Keystone Automotive Operations, Inc. Reports Third Quarter 2006 Results

EXETER, Pa., Nov. 13, 2006 -- Keystone Automotive Operations, Inc. (the "Company"), the largest distributor and marketer of specialty automotive accessories in North America, today announced financial results for the third quarter ended September 30, 2006. Highlights include:

  * Net sales for the third quarter ended September 30, 2006 were $152.5
    million, an increase of $23.7 million, or 18.5%, as compared to $128.8
    million for the same period in the prior year.  Sales increased due to
    new customer acquisitions and higher sales to existing customers in our
    developing markets as well as the integration of Blacksmith and Reliable
    customers.

  * Gross profit for the third quarter ended September 30, 2006 was $49.7
    million, or 32.6% as a percentage of sales, as compared to $41.5
    million, or 32.2% as a percentage of sales for the same period in the
    prior year.  The increase in gross profit dollars was due to the
    increase in sales and promotional activities, partially offset by
    increased freight expense as a result of serving customers in expanded
    geographic regions with smaller average order size.

  * Operating income for the third quarter ended September 30, 2006 was
    $10.9 million, an increase of $3.2 million, or 42.0%, as compared to
    $7.7 million for the comparable period in 2005.  The increase in
    operating income resulted primarily from higher net sales partially
    offset by an increase in selling, general and administrative expenses
    due to higher delivery, selling and warehouse expenses, which are
    associated with Reliable being fully integrated into Keystone.

  * Net income for the third quarter ended September 30, 2006 was $1.0
    million compared to $0.2 million for the same period last year.

  * As of September 30, 2006, the Company's net debt (total debt less cash)
    at the end of the third quarter was $360.2 million.

"Our quarterly performance continues to be encouraging as revenues increased 18.5%, and income from operations increased 42.0%. We believe that our sales are beginning to reflect the positive impact of many of our company wide initiatives," said Ed Orzetti, CEO of Keystone Automotive Operations. "Keystone provides the widest array of products at competitive prices, and we are focused every day on being a better partner for our customers and vendors."

  Summary Financials (Unaudited)

   Summary Income Statement
   ($ in millions)

                             Three Months Ended       Three Months Ended
                              October 1, 2005         September 30, 2006

  Net sales                        $128.8                   $152.5
  Gross profit                       41.5                     49.7
  Operating income                    7.7                     10.9
  Net income (loss)                  $0.2                     $1.0

   Summary Balance Sheet
   ($ in millions)

                                    As of December 31,   As of September 30,
                                                2005           2006

  Assets
    Current assets                             $184.4         $207.2
    Property, plant and equipment, net           51.9           53.2
    Other non-current assets                    455.4          443.8
  Total assets                                 $691.7         $704.2

  Liabilities and Stockholders Equity
    Current liabilities                         $90.6         $101.4
    Long-term debt                              350.0          347.1
    Other long-term liabilities                  64.1           63.2
    Total liabilities                           504.7          511.7
    Stockholder's equity                        187.0          192.5
  Total liabilities and stockholder's equity   $691.7         $704.2

  Conference Call Details

Keystone Automotive Operations, Inc. will hold a live conference call to discuss third quarter ended September 30, 2006 financial results on November 14, 2006 at 11:00 a.m. EST. To participate, please dial in to the conference call at (866) 600-0797 access code 1876291. The conference call topic is Keystone Automotive Operations, Inc. Earnings Conference Call.

A telephone replay of the call will be available from 12:00 p.m. EST on November 14, until 11:59 p.m. EST on November 21. The replay of the call may be accessed by dialing (800) 642-1687, access code 1876291.

About Keystone Automotive Operations

Keystone Automotive Operations, Inc. (http://www.ekeystone.com/) is the largest distributor and marketer of specialty automotive accessories in North America, providing more than 775 product lines of automotive parts and accessories to approximately 22,000 wholesale customers. Keystone Automotive operates four distribution centers and 19 non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet of over 360 trucks that can provide next-day delivery to over 42 states and Canada.

Safe Harbor for Forward-Looking and Cautionary Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of the Company's products and services in the marketplace; competitive factors; technological changes; the Company's dependence upon third-party suppliers; and other risks. For any of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.