Raytech Corporation Announces First Quarter Results for 2004

SHELTON, Conn.--May 1, 20042, 2004--Raytech Corporation today announced net income of $1.4 million for the thirteen-week period ended March 28, 2004 amounting to $.03 per basic share compared to a net loss of $.1 million or $.00 per share for the same period in the prior year. The Company recorded sales for the thirteen-week period ended March 28, 2004 of $56.6 million compared to $55.7 million in the same period in the prior year, an increase of 1.5%.

The increase in sales was driven by favorable currency translation adjustments in Europe and modest growth in the Aftermarket segment. The increase in earnings reflects realized cost reductions in the Domestic Wet Friction segment.

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 two 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 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.

(See attached financial statement.)

                          RAYTECH CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            -----------------------------------------------
                  (000's omitted, except share data)

Comparative results are as follows:

                                          For the 13 Weeks Ended
                                     March 28, 2004     March 30, 2003
                                     --------------     --------------
                                                 (Unaudited)

Net Sales                                $ 56,598           $ 55,735

Net income (loss)                         $ 1,351              $ (73)

Basic earnings per share:

  Earnings per share                        $ .03             $ (.00)

  Weighted average shares              41,737,306         41,701,554

Diluted earnings per share:

  Earnings per share                        $ .03             $ (.00)

  Weighted average shares              41,737,306         41,701,554