Champion Parts Reports Higher Year-End Sales and Continued Profitability; Fourth Quarter Profitability Negatively Impacted Mainly Attributable to Increased Costs of Products Sold

HOPE, Ark., April 25 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) , remanufacturer of automotive parts, today announced net sales of $4,523,000 for the fourth quarter ended Dec. 3, 20051, 2005, compared to $4,828,000 in the comparable period of 2004. The company reported a net loss of $242,000, or $0.06 per share in the quarter, compared to a profit of $37,000, or $0.01 per share in the same period of 2004.

For the year 2005, the company reported an 8.3% increase in net sales to $21,651,000, compared to $19,998,000. The company had net income of $37,000, or $0.01 per share, compared to $715,000, or $0.20 per share for the same period in 2004.

Jerry A. Bragiel, president and chief executive officer, said, "The year- end results were positive, reflecting a good increase of net sales with a sustaining profitability. The stronger net sales were felt in the company's constant velocity axles, heavy duty and agricultural products, and air conditioning products. However, lower sales of carburetors partially offset these increases.

"We continued to feel the impact of increased costs of products sold that resulted in the decline of net income. Significantly higher material costs had the largest negative impact on our profitability," Bragiel said.

The company said it experienced the increased cost of raw materials and higher prices for purchased materials that are petroleum based. Although most of Champion's product lines are remanufactured, many component parts are replaced with new materials in the assembly process.

"We have implemented corrective measures to mitigate these higher costs including price changes to our customers and re-sourcing materials that will reflect in reduced costs of our products sold in future periods," Bragiel concluded.

The chief executive also said the company is pursuing other new products and markets for existing products, as well as acquisition opportunities.

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.

Certain forward-looking statements in this press release involve various risks and uncertainties, including, without limitation, those statements relating to the impact of future sales, market expansion, and the ability to increase prices and reduce costs. These statements are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby.

Although the company believes that its forward-looking statements are reasonable, there are no assurances that such statements will prove to be correct. Attention is directed to the discussion of risks and uncertainties contained in the Management's Discussion and Analysis of Operations - Factors Which May Affect Future Results and Business - Risk Factors sections of the company's Form 10-K and other reports filed with the Securities and Exchange Commission.

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

                     Twelve Months Twelve Months  Three Months  Three Months
                     Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2005 Dec. 31, 2004

  Net Sales           $21,651,000   $19,998,000    $4,523,000    $4,828,000
   Costs and
    Expenses:
      Cost of products
       sold            18,625,000    16,588,000     3,892,000     4,203,000
      Selling,
       distribution &
       administrative   2,437,000     2,358,000       736,000       448,000
   Total costs and
    expenses           21,062,000    18,946,000     4,628,000     4,651,000

  Operating income        589,000     1,052,000      (105,000)      177,000
   Non-operating
    (income)/expense:
      Interest expense    582,000       606,000       132,000       166,000
      Other non-operating
       (income)          (113,000)     (424,000)      (24,000)     (165,000)
   Total non-operating
    expense               469,000       182,000       108,000         1,000

  Net income before
   income taxes           119,000       870,000      (214,000)      176,000
     Income taxes          82,000       155,000        28,000       139,000

  Net income              $37,000      $715,000     $(242,000)      $37,000
   Weighted Average
    Common Shares
    Outstanding at
    December 31, 2004:
        Basic           3,655,266     3,655,266     3,655,266     3,655,266
        Diluted         3,736,060     3,756,452     3,736,060     3,760,199
  Earnings Per Common
   Share - Basic:
     Net income per
      common share -
      basic                 $0.01         $0.20        ($0.07)        $0.01

  Earnings Per Common
   Share - Diluted:
     Net income per
      common share -
      diluted               $0.01         $0.19        ($0.06)        $0.01