Champion Parts, Inc. Reports Third Quarter and Nine Months Results

HOPE, Ark., Nov. 15, 2006 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) , remanufacturer of automotive parts, today announced net sales for the third quarter ended Oct. 1, 2006 of $4,264,000, compared to $5,320,000 in the comparable period of 2005. The company reported a net loss of $64,000, or $0.02 per share in the quarter, down from a net loss of $138,000, or $0.04 per share in the same period of 2005.

For the first nine months of 2006, the company reported net income of $268,000, or $0.07 per share, compared to $279,000, or $0.08 per share in 2005. On a comparison basis for the first nine months of 2006, the $11,000 decline in net income reflects higher non-operating income recorded in 2005, when the company earned $78,000 in rebates. Non-operating income in the first nine months of 2006 was $7,000, compared to $89,000 in 2005, an $82,000 decrease. Net sales for the nine months were $14,934,000, compared to $17,128,000 in 2005.

Jerry A. Bragiel, president and chief executive officer of Champion Parts, said, "We were able to reduce our net loss in the third quarter, despite significantly lower sales. The third quarter sales were impacted with lower seasonable demand for air conditioning products, as well as lower demand for constant velocity axles. The third quarter is traditionally a seasonally weaker quarter."

Champion recently completed the acquisition of Tomco's carburetor business, reflecting Champion's further penetration of this market. "The increased revenue resulting from the acquisition and expected profit margins generated from remanufactured carburetors will begin to be reflected in our fourth quarter," Bragiel said. In 2005, Tomco reported approximately $9.5 million in carburetor sales.

Bragiel also said the company is continuing to pursue other new product and market opportunities, and diversification.

About Champion

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, pursuit of new product and market opportunities, diversification, and favorable profit margins. 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 STATEMENTS OF INCOME (CONDENSED)
                          FOR THE PERIODS ENDED
                               (Unaudited)

                       Nine Months  Nine Months  Three Months  Three Months
                        October 1,   October 2,    October 1,   October 2,
                           2006         2005          2006         2005
  Net Sales            $14,934,000  $17,128,000    $4,264,000   $5,320,000
   Costs and Expenses:
    Cost of products
     sold               12,561,000   14,733,000     3,713,000    4,752,000
    Selling, distribution
     & administrative    1,638,000    1,701,000       491,000      562,000
   Total costs and
    expenses            14,199,000   16,434,000     4,204,000    5,314,000

  Operating income         735,000      694,000        60,000        6,000

  Non-operating expense/
   (income):
   Interest expense, net   444,000      450,000       157,000      128,000
   Other non-operating
    (income)                (7,000)     (89,000)       (2,000)      (3,000)
  Total non-operating
   expense/(income)        437,000      361,000       155,000      125,000

  Net income before income
   taxes                   298,000      333,000       (95,000)    (119,000)

   Income taxes             30,000       54,000       (31,000)      19,000

  Net income              $268,000     $279,000      $(64,000)   $(138,000)

   Weighted Average Common
    Shares Outstanding:
      Basic              3,655,266    3,655,266     3,655,266    3,655,266
      Diluted            3,716,303    3,741,424     3,725,697    3,732,721

  Earnings Per Common
   Share - Basic:
    Net income per common
     share - basic           $0.07        $0.08        $(0.02)      $(0.04)

  Earnings Per Common
   Share - Diluted:
    Net income per common
     share - diluted         $0.07        $0.07        $(0.02)      $(0.04)