Coastcast Anticipates Loss

    RANCHO DOMINGUEZ, Calif.--Dec. 21, 2001-- Coastcast Corp. today announced that it expects a loss for the quarter and year ending Dec. 31, 2001. The company also announced that it is discontinuing production of the aluminum turbo charger wheels.
    Hans Buehler, chairman and CEO, stated: "We have experienced a significant reduction in sales and orders in the aftermath of the tragic events of September 11. Although we are taking action to reduce costs, including reduction of our workforce and reduction of the compensation of officers and other employees, a substantial loss for the fourth quarter and the fiscal year is inevitable. Our expectation is that sales for the fourth quarter will not exceed $25 million and the loss before tax benefits could be between $3.0 and $4.0 million."
    Buehler further stated: "As another cost-cutting measure, we are also discontinuing operations of our subsidiary, California Precision Aluminum Castings Inc. ("CPAC"), which manufactures aluminum turbo charger wheels for automotive applications. We acquired CPAC in 1999, while it was still in the development stage, began shipment of products last year, but have not been able to generate sufficient sales to make CPAC a profitable operation. CPAC's sales for the current year represent less than 1% of our total sales."
    Coastcast, a leading manufacturer of golf clubheads, produces metal woods, irons and putters in a variety of metals, including stainless steel and titanium. Customers include Callaway (including Odyssey), Cleveland, Cobra, Ping and Titleist. The company also manufactures a variety of investment-cast orthopedic implants and surgical tools and other specialty products that are made to customers' specifications.

    Except for historical information, other statements in this release (including the statement made by the company's chairman and CEO relating to the expectations of sales and loss before tax benefits for the fourth quarter) are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially, including, but not limited to, industry conditions, economic conditions, competitive factors and pricing pressures, and shifts in market demand, as well as other risks detailed in the company's Securities and Exchange Commission filings.