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STRATTEC SECURITY CORPORATION Reports Fiscal Third Quarter Results

MILWAUKEE, Wis., April 10 -- STRATTEC SECURITY CORPORATION today reported operating results for the fiscal third quarter ended March 30, 2003.

Net sales for the Company's three months ended March 30, 2003 were $49.9 million, compared to net sales of $51.7 million for the three months ended March 31, 2002. Net income for the period was $4.2 million, compared to $4.0 million in the prior year quarter. Diluted earnings per share for the period were $1.11 compared to $.96 in the prior year quarter.

For the nine months ended March 30, 2003, net sales were $146.5 million compared to net sales of $150.3 million in the prior year period. Net income was $12.5 million compared to $10.9 million and diluted earnings per share were $3.22 compared to $2.62 in the prior year.

Sales to STRATTEC's largest customers overall decreased in the current quarter compared to the prior year quarter levels, with General Motors Corporation at $15.0 million compared to $15.7 million, and DaimlerChrysler Corporation at $8.6 million compared to $9.6 million. Sales to Ford Motor Company and Mitsubishi Motor Manufacturing of America, Inc. were flat during the current quarter at $10.6 million and $2.4 million, respectively. Sales to Delphi Corporation increased slightly at $7.6 million compared to $7.4 million in the prior year quarter.

Gross profit margins were 23.4 percent in the current quarter compared to 22.0 percent in the prior year quarter. The higher margins in the current year quarter were a result of the company's ongoing cost reduction initiatives along with a favorable Mexican Peso to U.S. Dollar exchange rate.

Operating expenses were $5.0 million in the current quarter, approximately the same level as in the prior year quarter.

During the third quarter, 33,000 STRATTEC SECURITY CORPORATION shares were repurchased under the Company's stock repurchase program at a cost of approximately $1.6 million. The Company also contributed $5.0 million to its Pension Fund during the quarter.

Harold M. Stratton II, Chairman of the Board and Chief Executive Officer, commented: "I'm pleased that we continued to show solid operating results during the third quarter ended March 30, 2003 despite an uncertain U.S. economy. Our North American production increased approximately 5% in comparison to the prior year quarter. However, our sales continued to be reduced by product content changes and pre-programmed price reductions as has been the case throughout the current fiscal year. This sales pattern will continue into our fiscal fourth quarter. In addition, certain customers have announced vehicle production cutbacks for the upcoming quarter, while at the same time enhancing incentive programs to encourage consumer buying. The effectiveness of these incentive programs is dependent upon many factors, including the outcome of the war in Iraq. It is therefore difficult to predict the effect these actions will have on our fourth quarter. Regardless, we believe we have positioned ourselves operationally to meet the uncertainty, and anticipate a favorable finish to our fiscal year end in June."

STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets mechanical locks, electro-mechanical locks and related access control products for North American Automotive and other Global Automotive Manufacturers.

Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "may," "planned," "potential," "should," "will," and "would." Such forward- looking statements in this release are inherently subject to many uncertainties in the Company's operations and business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company's and its customers' products, competitive and technological developments, customer purchasing actions, foreign currency fluctuations, and costs of operations. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this release. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.

                      STRATTEC SECURITY CORPORATION
                          Results of Operations
                 (In Thousands except per share amounts)

                          Third Quarter Ended         Nine Months Ended
                        March 30,     March 31,    March 30,     March 31,
                           2003         2002          2003          2002
                             (Unaudited)                 (Unaudited)

  Net Sales              $49,926       $51,687     $146,512      $150,320

  Cost of Goods Sold      38,255        40,313      112,550       118,758

  Gross Profit            11,671        11,374       33,962        31,562

  Engineering, Selling &
  Administrative Expenses  5,043         4,954       14,225        14,596

  Income from Operations   6,628         6,420       19,737        16,966

  Interest Income             91           119          274           415

  Interest Expense             -             -            -             -

  Other Income (Expense),
   Net                        21          (142)        (227)          (49)

                           6,740         6,397       19,784        17,332

  Provision for Income
   Taxes                   2,493         2,367        7,320         6,413

  Net Income              $4,247        $4,030      $12,464       $10,919

  Earnings Per Share:
    Basic                  $1.13          $.98        $3.28         $2,66
    Diluted                $1.11          $.96        $3.22         $2.62

  Average Basic
   Shares Outstanding      3,759         4,130        3,797         4,103

  Average Diluted
   Shares Outstanding      3,822         4,204        3,867         4,162

  Other
    Capital Expenditures  $1,327        $1,489       $2,700        $3,774
    Depreciation &
     Amortization         $1,968        $2,082       $5,884        $6,230

                      STRATTEC SECURITY CORPORATION

                       Condensed Balance Sheet Data
                              (In Thousands)

                                             March 30, 2003  June 30, 2002
                                                (Unaudited)
  ASSETS
    Current Assets:
      Cash and cash equivalents                    $27,442        $34,956
      Receivables, net                              28,230         27,860
      Inventories                                   11,067          8,242
      Other current assets                          11,623         11,582
        Total Current Assets                        78,362         82,640
    Deferred Income Taxes                              469            469
    Property, Plant and Equipment, Net              35,042         38,531
                                                  $113,873       $121,640

  LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities:
      Accounts Payable                             $16,279        $15,291
      Other                                         15,608         16,234
        Total Current Liabilities                   31,887         31,525
    Borrowings Under Revolving Credit Facility           -              -
    Accrued Pension and Post Retirement
     Obligations                                    11,625         15,448
    Shareholders' Equity                           167,083        153,644
      Less: Treasury Stock                         (96,722)       (78,977)
      Total Shareholders' Equity                    70,361         74,667
                                                  $113,873       $121,640