Raytech Corporation Announces First Quarter Results for 2003

    SHELTON, Conn.--May 14, 2003--Raytech Corporation today announced a net loss of $.1 million for the thirteen-week period ended March 30, 2003 amounting to $.00 per basic share compared to net income of $1.3 million or $.03 per share for the same period in the prior year.
    The Company recorded sales for the thirteen-week period in 2003 of $55.7 million compared to $52.7 million, an increase of 5.7%, in the first quarter of 2003.
    The increase in sales reflects market share gains within the automotive original equipment market sector, both domestically and internationally. The decrease in earnings reflects higher cost of sales and increased selling costs compared to the prior period.
    The President and Chief Executive Officer, Albert A. Canosa, stated, "The increased sales for the period reflect both expansion in the domestic and international components of our business. We continue our long-term focus on implementing manufacturing programs designed to improve our operating profits."
    Raytech Corporation is a recognized world leader in the production of wet and dry clutch, power transmission and brake systems as well as specialty engineered polymer matrix composite products and related services for vehicular applications, including automotive OEM, heavy duty on-and-off highway vehicles and aftermarket vehicular power transmission systems. Through three technology and research centers and six manufacturing operations worldwide, Raytech develops and delivers energy absorption, power transmission and custom-engineered components focusing on niche applications where its expertise and technological excellence provide a competitive edge.
    Raytech Corporation, headquartered in Shelton, Connecticut, operates manufacturing facilities in the U.S., Germany, England and China as well as technology and research centers in Michigan, Indiana and Germany. The Company's operations are strategically situated in close proximity to major customers and within easy reach of geographical areas with demonstrated growth potential.
    Raytech common stock is listed on the New York Stock Exchange and trades under the symbol "RAY." Company information may be accessed on our Internet website http://www.raytech.com.

                          Raytech Corporation
            Condensed Consolidated Statements of Operations
                  (000'S Omitted, Except Share Data)

Comparative results are as follows:

                        For the 13 Weeks Ended

                     March 30, 2003        March 31, 2002
                                (Unaudited)


 Net Sales                 $ 55,735        $ 52,709

 Net (loss) income         $    (73)       $  1,330

Basic earnings per share:

 Earnings per share        $   (.00)       $    .03

 Weighted average shares 41,701,554      41,528,520

Diluted earnings per share:

 Earnings per share          $ (.00)          $ .03

 Weighted average shares 41,701,554      41,565,824