Coast Distribution Board of Directors Selects Seven Hills Partners LLC as Financial Advisor

MORGAN HILL, Calif., Jan. 6, 2006 -- The Coast Distribution System, Inc. (AMEX:CRV) today announced that its Board of Directors has retained Seven Hills Partners LLC, a corporate finance and financial advisory firm based in San Francisco, California, as its financial advisor to assist the Board in determining a course of action that is in the best interests of the Company's stockholders in light of the Bell Industries proposal.

The Company cautions its stockholders, and others that may consider trading in the Company's shares, that the Board has just begun this process; no decisions have been made by the Board with respect to the Company's response, if any, to Bell's proposal; and the Board will proceed in a timely and orderly manner to consider, with the assistance of its financial advisor, that proposal and its implications.

About The Coast Distribution System

The Coast Distribution System, Inc. (http://www.coastdistribution.com/ ) is one of the leading suppliers of parts, accessories and supplies for recreational vehicles (RVs) and pleasure boats in the U.S. and Canada. Coast supplies its products to its 15,000 customers through 17 distribution centers throughout the U.S. and Canada. Coast is publicly traded on the American Stock Exchange under the ticker symbol CRV.

Additional Information and Where to Find It

In the event that Bell Industries attempts to pursue the transaction contemplated by its proposal, investors and security holders are urged to read the disclosure documents regarding such transaction when they become available, because they would contain important information. If Bell Industries pursues a transaction, investors and security holders may obtain a free copy of the disclosure documents (when they are available) and other documents filed by Bell Industries and The Coast Distribution System with the Commission at the SEC's website at http://www.sec.gov/ . The disclosure documents and these other documents may also be obtained for free from Coast Distribution by directing a request to 350 Woodview Avenue, Morgan Hill, CA 95037 at (408) 782-6686.

Detailed information regarding the names of the directors and executive officers of The Coast Distribution System is available in its proxy statement filed with SEC by Coast Distribution on July 27, 2005.