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Clarion Technologies Announces 2002 Second Quarter Results

GRAND RAPIDS, Mich., Aug. 15 Clarion Technologies, Inc. today announced financial results for its second quarter, which ended June 29, 2002.

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Clarion's 2002 second quarter net sales were $22.2 million versus $22.3 million for the second quarter of 2001. While net sales remained fairly constant year over year, gross profit for the second quarter of 2002 increased to $3.9 million (17.6% of sales) compared with negative $1.99 million (negative 9% of sales) in the corresponding period of 2001. In the same period, operating income increased from a loss of $6.0 million for second quarter of 2001 to income of $2.0 million for the second quarter 2002, a $7.99 million comparative increase. Additionally, selling, general and administrative expenses decreased to $1.9 million in the second quarter of 2002 versus $3.1 million in the second quarter of 2001.

Clarion Technologies' President Bill Beckman commented, "We continue to execute our business plan which emphasizes operational improvements and a focused market strategy. We expect that we will continue to improve operations and that we will continue to grow Clarion's core markets, consumer products and automotive parts."

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. Further information about Clarion Technologies can be obtained on the web at www.clariontechnologies.com or by contacting Terri Streelman at 616-233-6680.

CLARION TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except per share data) Second Quarter Ended Year to Date Ended June 29, 2002 June 30, 2001 June 29, 2002 June 30, 2001 Net sales $22,206 $22,322 $40,863 $47,341 Cost of sales 18,297 24,321 34,613 47,447 Gross profit (loss) 3,909 (1,999) 6,250 (106) Operating expenses: Selling, general and administrative expenses 1,923 3,111 3,919 6,132 Impairment and other nonrecurring charges (24) 878 (452) 2,378 1,899 3,989 3,467 8,510 Operating income (loss) 2,010 (5,988) 2,783 (8,616) Interest expense (2,700) (2,693) (5,613) (4,930) Other income (expense), net 8 (5) 24 (98) Loss from continuing operations before income tax provision (682) (8,686) (2,806) (13,644) Income tax provision - - - - Loss from continuing operations (682) (8,686) (2,806) (13,644) Discontinued operations: Income (loss) from discontinued operations (including loss on disposal of $97 in 2002) (81) (5,267) 176 (5,469) Net loss $(763) $(13,953) $(2,630) $(19,113) Net loss $(763) $(13,953) $(2,630) $(19,113) Accretion of preferred stock to mandatory redemption value (496) - (978) - Preferred stock dividends accrued (696) (465) (1,372) (1,019) Loss attributable to common shareholders $(1,955) $(14,418) $(4,980) $(20,132) Average shares outstanding (basic and diluted) 43,556 23,547 41,246 23,539 Loss per share (basic and diluted): Loss from continuing operations (.04) (.39) (.12) (.63) Loss from discontinued operations - (.22) - (.23) Net loss $(.04) $(.61) $(.12) $(.86) ( ) Denotes deduction.