Champion Parts Reports Higher Fourth Quarter and Year-End Sales and Profits

Improved Results Attributed to Steadily Increased Sales of Air Conditioning Compressor Product Lines and Implemented Cost Effective Plant Restructuring Measures at Arkansas Facility

HOPE, Ark., Mar. 31 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) today reported net income for the fourth quarter ended Dec. 31, 2002 of $351,000, or $0.10 per share, compared to a net loss of $244,000, or $0.07 per share for the same period in 2001.

For the year 2002, the company reported net income of $367,000, or $0.10 per share, compared to $7,000, or $0.00 per share for the same period in 2001. Net sales increased 13% to $24,790,000, versus $21,936,000 for the comparable period in 2001.

"We are pleased with the results of our fourth quarter and the full year," said Jerry A. Bragiel, president and chief executive officer. "We benefited for a full year from continued strong sales from our air conditioning compressor product lines and realized reduced costs and improved operating efficiencies, stemming from the company's comprehensive plant restructuring program implemented early in 2002. The company saw the realization of this plan begin to manifest itself in the second half operating results of 2002," Bragiel said.

The chief executive also noted that without the net relocation and restructuring costs, net income for the year 2002 would have been $822,000, an increase of $815,000 over the year 2001.

The company also reported that a reduction in inventory has already been realized and further reductions in the ensuing months should improve cash flow. With the plant consolidation plan now complete, the company said that it will focus on further improvements in efficiency in the months ahead. The company may also realize additional benefits from the sale of its closed 200,000 sq. ft. company-owned Pennsylvania facility.

"The year was filled with a strong challenge that we imposed early on," said Bragiel, "and we collectively and strategically met it head on.

"Champion Parts," Bragiel continued, "is currently expanding its air conditioning compressor operation that it acquired a little over a year ago," and further noted that management is pursuing new products and new markets for existing products, which includes internal product development, as well as possible acquisition opportunities.

Champion Parts remanufactures fuel system components, air conditioning compressors, front wheel drive assemblies, and other underhood electrical and mechanical products for the passenger car and light truck, agricultural, heavy-duty truck and marine parts aftermarket.

Certain forward-looking statements in this press release involve various risks and uncertainties, including, without limitation, those statements relating to the impact of plant consolidation and product marketing and those statements relating to market expansion and acquisitions. These statements are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Although the company believes that its forward-looking statements are reasonable, there are no assurances that such statements will prove to be correct. Attention is directed to the discussion of risks and uncertainties contained in the Factors Which May Affect Future Results section of the company's Form 10-K and other reports filed with the Securities and Exchange Commission.

                           CHAMPION PARTS, INC.
                           Consolidated Results

                               Unaudited                    Audited
                         Fourth Quarter Ended             Year Ended
                         Dec. 31,     Dec. 31,      Dec. 31,     Dec. 31,
                            2002         2001          2002         2001

  Net Sales            $5,618,000   $4,840,000   $24,790,000  $21,936,000

  Costs and Expenses:
  Cost of products
   sold                4,514,000     4,232,000    20,804,000   19,291,000
  Selling,
   distribution
   & admin               594,000       680,000     2,680,000    2,544,000
  Relocation &
   Restructuring
   costs                  51,000       154,000       455,000      154,000
     Total costs and
      expenses         5,159,000     5,066,000    23,939,000   21,989,000

  Operating
   Income/(Loss)         459,000      (226,000)      851,000      (53,000)

  Non-operating
   expense/(income):
    Interest expense     117,000       136,000       529,000      491,000
    Other non-operating
    (income)              (5,000)     (128,000)      (50,000)    (561,000)
  Total non-operating
   exp/(inc)             112,000         8,000       479,000      (70,000)
  Net Income/(loss)
   before income taxes   347,000      (234,000)      372,000       17,000

  Income Taxes            (4,000)       10,000         5,000       10,000

  Net Income/(Loss)     $351,000     $(244,000)     $367,000       $7,000

  Weighted Average
   Common Shares
   Outstanding at
   December 31,2002:
     Basic             3,655,266     3,655,266     3,655,266    3,655,266
     Diluted           3,659,410     3,671,497     3,655,266    3,671,497
  Earnings Per
   Common Share
    - Basic:
   Net Income/(loss)
    per common share       $0.10        ($0.07)        $0.10        $0.00
  Earnings Per Common
   Share-Diluted:
   Net Income/(loss)
    per common share       $0.10        ($0.07)        $0.10        $0.00