Raytech Corporation Announces Preliminary Results for the Quarter Ended April 3, 2005

SHELTON, Conn.--May 1, 20059, 2005--Raytech Corporation today announced that it will be filing a notification of late filing related to its quarterly report on Form 10-Q for the quarter ended April 3, 2005. The Company is finalizing the purchase accounting for its acquisition on March 21, 2005 of a minority interest in Allomatic Products Company, a consolidated subsidiary of the Company. These tasks will not be completed by the Company until after the due date for the Report. The Company expects to file its Form 10-Q for the fiscal quarter ended April 3, 2005 within five calendar days after the prescribed due date of such Form 10-Q.

It is currently anticipated that the Company will report a net loss of $675 thousand, subject to the completion of the purchase accounting, for the fiscal quarter ended April 3, 2005, compared to net income of $1,352 thousand for the fiscal quarter ended March 28, 2004. The decrease in net results is due to a decline in the performance of the Company's Domestic OEM segment, primarily due to the increased price of steel, a key raw material, and the recognition of a $1.3 million product liability claim in the Company's International segment. In addition, net results were unfavorably impacted by restructuring expense and increased SG&A expense resulting from preparation for the transfer of certain production from the facilities to be closed this year as part of the restructuring program.

Raytech Corporation is a worldwide manufacturer 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 five 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 United States, Germany 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.