Automodular Corporation 2003 Earnings Guidance

TORONTO--Jan. 2, 20046, 2004--Automodular Corporation ("Automodular") announces that it expects to report net earnings of approximately $3.7 million or $0.19 per share (unaudited) for the year ended December 31, 2003 on sales of $108 million. This compares to net earnings of $4.6 million or $0.25 per share in 2002 on sales of $56 million.

The fourth quarter shows net earnings of approximately $0.7 million or $0.03 per share. This compares to net earnings of $0.4 million or $0.02 per share in the same period in 2002.

The current year's results were negatively affected by the strong rise in the Canadian dollar, which reduced the net earnings contribution from profitable U.S. operations when expressed in Canadian currency. Production of Saturn vehicles assembled in Wilmington, Delaware was well below expectations resulting in losses at Automodular's Delaware operations. The power blackout in August also affected operating performance, shutting down all but one of Automodular's plants.

Automodular has scheduled disclosure of its audited financial results for 2003 on or about March 15, 2004.

The Company has several strategic initiatives underway and when considered in conjunction with the uncertainty associated with the Delaware operations has decided to omit the first quarter dividend. Automodular will review the issue of dividends at its April board meeting.