Starcraft Corporation Remains Comfortable With 2003 Forecast

    GOSHEN, Ind.--March 5, 2003--Starcraft Corporation , said today that it continues to anticipate strong revenue and earnings growth for its fiscal year ending September 28, 2003, despite recent reports of lower retail sales of light trucks and sport utility vehicles (SUVs) by the automotive OEMs.
    Through its Tecstar joint venture, Starcraft provides components and design elements for several light truck and SUV models produced by General Motors Corporation.
    "After reviewing our sales order log and production schedule, we remain comfortable with the projections for fiscal 2003 that we made in early January. We will review the outlook again in the next few months, following the close of our fiscal second quarter," said Michael H. Schoeffler, President and Chief Operating Officer.
    On January 6, 2003, Schoeffler said that Starcraft's outlook for the fiscal year ending in September 2003 is for revenues of approximately $180 million, up more than 70 percent from fiscal 2002 sales levels. Earnings per share are expected to be in a range of $2.00 to $2.15 per basic share ($1.85 to $2.00 fully diluted), compared with EPS of $0.68 per basic share and $0.58 per diluted share in fiscal 2002. The 2002 results include a charge related to the redemption of certain stock warrants and options. Excluding the charge, basic and diluted EPS would have been $1.17 and $0.99 per share, respectively.
    Starcraft Corporation, through its joint-venture ownership interest in Tecstar, LLC, is a leading supplier to the OEM automotive supply market. It also supplies after-market parts and accessories to wholesale and retail customers throughout North America. Starcraft reported annual revenues of $105 million, up 114% from the prior year, for the fiscal year ended September 29, 2002.

    This news release contains forward-looking statements regarding Starcraft's business operations and outlook, including projections of revenues and earnings. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, the level of customer demand, competitive pressures, labor and operational issues, compliance with GM customer contracts, the ability to obtain new customer contracts, and other important factors detailed in the Company's Form 10-K for fiscal 2002 filed with the Securities and Exchange Commission.