Champion Parts, Inc. Reports Continued Profitability for First Quarter on Higher Sales

HOPE, Ark., May 16, 2005 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) , remanufacturer of automotive parts, today announced net income for the first quarter ended April 3, 2005 of $160,000, or $0.04 per share, compared to $335,000, or $0.09 per share for the same period in 2004. Net sales increased to $5,813,000, compared to $5,468,000 in 2004.

"While we are pleased with our continued profitability," said Jerry A. Bragiel, president and chief executive officer, "we are also especially encouraged with the 6.3% increase in net sales, mainly attributable to a stronger sales demand of constant velocity axle and carburetor product lines."

The company's operating income for the first quarter of 2005 increased to $305,000, compared to $231,000 in the first quarter of 2004, despite significantly higher prices paid for raw materials and products purchased that are petroleum based.

"On a comparable basis," Bragiel continued, "our net income for the first quarter exceeded the 2004 first quarter by $75,000, reflecting our strong net sales performance." He noted that last year's first quarter included the recognition of a $250,000 loan forgiveness, which was recorded as non- operating income. The $250,000 City of Hope, Arkansas note was forgiven based upon the company meeting job expansion incentives.

"With the warmer months ahead," Bragiel concluded, "the company is anticipating increased demand in its air conditioning products lines, which generally has been a strong and consistent contributor."

The company also said it is pursuing other new products and markets for existing products, which include internal new product development as well as acquisition opportunities.

Separately, the company said that its Vice President and Chief Financial Officer, Richard W. Simmons, has resigned to pursue other interests. The company is currently reviewing and interviewing candidates for the position.

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)

                                           Three Months       Three Months
                                           April 3, 2005     March 28, 2004
  Net Sales                                  $5,813,000         $5,468,000
   Costs and Expenses:
    Cost of products sold                     4,937,000          4,557,000
    Selling, distribution & administrative      571,000            680,000
  Total costs and expenses                    5,508,000          5,237,000

  Operating income                              305,000            231,000

  Non-operating expense/(income):
   Interest expense, net                        170,000            145,000
   Other non-operating (income)                 (43,000)          (254,000)
  Total non-operating expense/(income)          127,000           (109,000)

  Net income before income taxes                178,000            340,000

   Income taxes                                  18,000              5,000

  Net income                                   $160,000           $335,000

  Weighted Average Common Shares
  Outstanding at April 3, 2005:
    Basic                                     3,655,266          3,655,266
    Diluted                                   3,753,371          3,756,252

  Earnings Per Common Share - Basic:
   Net income per common share - basic            $0.04              $0.09

  Earnings Per Common Share - Diluted:
   Net income per common share - diluted          $0.04              $0.09