Champion Parts Reports Continued Third Quarter Profitability Despite Lower Seasonal Sales Demand

Effective Cost Control Measures Continue

HOPE, Ark., Nov. 10 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) , remanufacturer of automotive parts, today announced net income for the third quarter ended Sept. 26, 2004 of $21,000, or $0.01 per share, compared to $12,000, or $0.00 per share for the same period in 2003. Net sales were $4,578,000, compared to $5,000,000 in 2003.

For the nine months of 2004, the company reported net income of $678,000, or $0.18 per share, compared to $909,000 or $0.25 per share for the same period in 2003. Net sales were $15,171,000, compared to $18,169,000.

"A strong demand for carburetors contributed to continued profitability in the third quarter," said Jerry A. Bragiel, president and chief executive officer. "However, we were confronted with lower than expected seasonal demand for air conditioning products in an overall soft market for replacement parts. The third quarter remains the low point in our sales cycle," he added.

Despite lower sales, the company continued to operate profitably, evident in its effective program of cost containment and improving operating efficiencies.

"We have positioned the company to capitalize on any new or increased sales volume, especially in the area of OEM products," the chief executive concluded.

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.

                  CHAMPION PARTS, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENT OF INCOME (CONDENSED)
                          FOR THE PERIODS ENDED
                               (Unaudited)

                        Nine Months  Nine Months  Three Months  Three Months
                          Sept. 26,     Sept. 28,    Sept. 26,     Sept. 28,
                            2004          2003         2004          2003
  Net Sales            $15,171,000   $18,169,000   $4,578,000    $5,000,000
    Costs and Expenses:
      Cost of products
       sold             12,384,000    14,903,000    3,856,000     4,198,000
      Selling,
       distribution &
       administrative    1,911,000     2,052,000      556,000       700,000
    Total costs and
     expenses           14,295,000    16,955,000    4,412,000     4,898,000

  Operating income         876,000     1,214,000      166,000       102,000

    Non-operating
     income/(expense):
      Interest (expense)  (440,000)     (349,000)    (140,000)     (106,000)
      Other non-operating
       income              258,000        44,000        2,000        16,000
    Total non-operating
     (expense)            (182,000)     (305,000)    (138,000)      (90,000)

  Net income before
   income taxes            694,000       909,000       28,000        12,000

    Income taxes            16,000            --        7,000            --

  Net income              $678,000      $909,000      $21,000       $12,000

   Weighted Average
    Common Shares
    Outstanding at
    September 26, 2004:
            Basic        3,655,266     3,655,266    3,655,266     3,655,266
            Diluted      3,755,203     3,689,423    3,757,166     3,680,380

  Earnings Per Common
   Share - Basic:
    Net income per
     common share - basic    $0.19         $0.25        $0.01         $0.00

  Earnings Per Common
   Share - Diluted:
    Net income per common
     share - diluted         $0.18         $0.25        $0.01         $0.00