Clarion Technologies Announces 2002 First Quarter Results

GRAND RAPIDS, Mich., May 16 Clarion Technologies, Inc.today announced financial results for its first quarter, which ended March 30, 2002.

Clarion's 2002 first quarter sales were $22.6 million versus $28.8 million for the first quarter of 2001, which is primarily due to a reduction in tooling revenue. Despite the decrease in revenue, gross profit for the first quarter of 2002 increased to $2.6 million (11.5% of sales) compared with $1.7 million (5.9% of sales) in the corresponding period of 2001. In the same period, operating income increased from a loss of $2.8 million for first quarter of 2001 to income of $1.0 million for the first quarter 2002, a $3.8 million comparative increase. Also, selling, general and administrative expenses decreased to $2.0 million in the first quarter of 2002 versus $3.0 million in the first quarter of 2001.

Clarion Technologies' President Bill Beckman commented, "We have implemented many operational and business improvements over the past six to nine months and are now beginning to reap the financial benefits. With aggressive cost control initiatives and improved efficiencies, we have been able to meet and exceed our plan. With the combination of a focused strategy and continued economic stabilization, we continue to position ourselves to be a leader in our primary markets."

Beckman also commented, "Our company is stronger after enduring the challenges of 2001. We are experiencing continued performance improvement trends and expect the second quarter to show improvement over the first. In addition, the sale of the Montpelier Facility, as part of our long-term strategy, has significantly reduced senior debt and the associated interest payments. These actions have poised Clarion to continue to effectively execute our long-term strategy and create shareholder value."

Clarion Technologies, Inc. operates four manufacturing facilities in Michigan and South Carolina with approximately 145 injection molding machines ranging in size from 55 to 1500 tons of clamping force. The Company's headquarters are located in Grand Rapids, Michigan.

                 CLARION TECHNOLOGIES, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                    (In thousands, except per share data)

                                                     First Quarter Ended
                                               March 30, 2002   March 31, 2001

    Net sales                                       $22,566        $28,801
    Cost of sales                                    19,968         27,109
        Gross profit                                  2,598          1,692

    Selling, general and administrative expenses      1,996          3,022
    Impairment and other nonrecurring charges and
     adjustments                                       (428)         1,500
        Operating income (loss)                       1,030         (2,830)

    Interest expense                                 (2,913)        (2,237)
    Other income (expense), net                          16            (93)
      Loss before income taxes                       (1,867)        (5,160)
    Provision for income taxes                            -              -
        Net Loss                                    $(1,867)       $(5,160)


    Net loss                                        $(1,867)       $(5,160)
    Accretion of preferred stock to mandatory
     redemption value                                  (482)
    Preferred stock dividends accrued                  (676)          (554)
        Loss attributable to common shareholders    $(3,025)       $(5,714)

    Average shares outstanding (basic and diluted)   38,936         23,531

    Net loss per share of common stock (basic and
     diluted)                                         $(.08)         $(.24)

    ( ) Denotes deduction.