Collins Industries Completes Workers' Compensation Investigation

HUTCHINSON, Kan., May 12, 2005 -- Collins Industries, Inc. , announced today that its audit committee has completed an investigation of the Company's reserves for future workers' compensation costs, and have recommended revised procedures for establishing workers' compensation reserves. The Board of Directors has approved the recommendations.

The Company is working closely with its outside auditor, KPMG, to complete the audit of its restated financial statements. The investigation findings, required adjustments to workers' compensation reserves, and all other requested information have been furnished to its auditor. Additional audit procedures related to the restatement are near completion. The audit cannot be completed, however, until the Company has filled its chief financial officer vacancy, and the CFO is able to provide typical management representations to KPMG. Separately, the Company has announced the hiring of a chief financial officer who will assume his position May 23, 2005.

William R. Patterson, Chairman of the Audit Committee, stated, "Our investigation has been very thorough and we feel it has confirmed the overall integrity of our accounting process at the highest level." He continued, "We believe there are no other significant issues at this time and anticipate completion of the audit, and the filing of delinquent Securities and Exchange Commission filings, as soon as the next 45 days."

Donald Lynn Collins, President and CEO, said, "Our orders received continue at a record pace and we believe the outlook is positive for future operations." He continued, "I am very pleased to report to our shareholders and employees that our products are being very well received in the marketplace and we continue to benefit from our investments in capital expenditures to lower our costs and improve the quality of products delivered to our customers."

Collins Industries, Inc. is a leading manufacturer of ambulances (including medical attack vehicles, rescue vehicles and fire emergency vehicles), North America's largest producer of Type "A" small school buses, the nation's second largest manufacturer of terminal trucks and a leader in the road construction and industrial sweeper markets. Since 1971, the Company has grown to approximately 900 employees in six plants comprising over one million combined square feet of manufacturing space. The Company sells its products throughout the United States and abroad.

For more information on Collins Industries, Inc., visit Collins Industries, Inc.'s website at http://www.collinsind.com/ .