Riviera Tool Reports New Orders, Record Backlog

GRAND RAPIDS, Mich., March 12 -- Riviera Tool Company (AMEX:RTC) today reported that it secured approximately $17 million in new orders -- including lead program manager on a major assembly for a new Mercedes Benz vehicle -- during the second quarter of fiscal 2003.

The Grand Rapids, Mich.-based designer and manufacturer of stamping die systems said that the new orders will include work on vehicles for DaimlerChrysler, Ford Motor Co., International Truck and Freightliner, in addition to work for Mercedes. In its role as the leading program manager, Riviera Tool will manage the work of 10 West Michigan tooling suppliers that will build stamping die systems and tooling for the new Mercedes M-class sport utility vehicle.

Riviera Tool added that it closed the second quarter of fiscal 2003, which ended Feb. 28, 2003, with record backlog of $32.7 million. Since the beginning of the 2003 fiscal year, Riviera has added 35 new engineers, program managers and die makers to meet production demands.

"We are very pleased to have ended the second quarter on such a strong note," said Kenneth K. Rieth, president and chief executive officer of Riviera Tool. "The capital and technology investments we completed over the past several years have expanded our capabilities and allowed us to secure substantial new contracts.

"The auto industry's growth plans are based on introducing fresh, new vehicles. With sales of new vehicles slowing down, automakers recognize that the way to stimulate sales -- and move away from costly incentives -- will be to launch new products that resonate with consumers. Riviera is well positioned to continue to capture new orders for the industry's largest and most complex stamping die systems. Our strong backlog, in combination with the solid fundamentals of our business, has drawn renewed attention to our stock. We remain focused on capturing additional new contracts and improving our margins in order to maximize shareholder value."

Rieth said that quoting activity remained strong as the Company begins the third quarter of fiscal 2003. While the current tooling market is being driven substantially by the transplants, he said that industry experts forecast a significant increase in tooling orders from the domestic automakers during the latter half of calendar year 2003.

Over the past four years, Riviera has succeeded in diversifying its customer base by securing contracts for work on German luxury vehicles, including BMW and Mercedes. Riviera's new contracts include work on a new crossover vehicle for Mercedes, as well as for the M-class SUV.

"We are particularly pleased to serve as a leading program manager on this Mercedes vehicle, which will allow us to partner with a number of quality tooling suppliers in West Michigan," Rieth said. "We have been working on a number of innovative solutions -- such as taking on greater responsibility for managing large and complex programs -- that are designed to strengthen the domestic tool industry and boost production in North America.

"The tooling partnership on this vehicle will be one of the first opportunities to test this new model, and we look forward to establishing long-term relationships with these and other fine tooling suppliers in West Michigan."

Rieth said he was also pleased to see new orders from heavy-truck manufacturers and suppliers. He attributed the orders to new fuel economy standards, which have prompted many trucking firms to begin to upgrade their fleets by adding more fuel-efficient vehicles.

"New orders from both automakers and truck manufacturers have allowed us to increase our workforce by 31 percent since the beginning of the fiscal year," Rieth said. "There are a number of exceptional engineers and skilled craftsmen looking for work, and they are a good addition to our talented workforce."

About Riviera Tool:

Riviera Tool Co. (www.rivieratool.com ) designs, develops and manufactures large-scale, custom metal stamping die systems used in the high-speed production of sheet metal parts and assemblies for the global automotive industry. A majority of Riviera's sales are to DaimlerChrysler, General Motors Corp., Ford Motor Co. and their Tier One suppliers.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities laws. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially, including but not limited to economic, competitive, governmental and technological.