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The Coast Distribution System Reports Second Quarter Results

6 August 1997

The Coast Distribution System Reports Second Quarter Results

    SAN JOSE, Calif., Aug. 6 -- The Coast Distribution System
(Amex: CRV) today reported financial results for the second quarter and six
months ended June 30, 1997.
    Net sales for the recent second quarter were $41,600,000 compared with
$42,159,000 for the second quarter of 1996.  The Company reported a net loss
for the quarter of $51,000, or ($0.01) per share, compared with net income of
$1,155,000, or $0.22 per share, for the second quarter of 1996.  The Company's
earnings in the second quarter of 1996 were largely the result of a
non-recurring credit to earnings resulting from the favorable settlement of
litigation.
    For the six months ended June 30, 1997, net sales totaled $76,805,000
versus $79,539,000 for the comparable period in 1996.  The Company's net loss
for the six months ended June 30, 1997 was $143,000 or ($0.03) per share,
versus net income of $1,918,000 or $0.37 per share in 1996.
    "We continue to make progress on our operating plan," said Thomas R.
McGuire, Chairman and Chief Executive of Coast.  "We have seen our sales on a
comparable basis turn positive late in the quarter, and our July sales showed
continued strength.  We have also seen favorable margin improvement during the
quarter, and have continued to reduce our inventory and debt significantly."
    The Coast Distribution System is a leading supplier of accessories for
recreational vehicles (RVs) in both the U.S. and Canada.  The Company is also
a leading supplier of accessories for the pleasure-boat market in the U.S.
Coast supplies its 15,000 customers through the company's 18 distribution
centers located throughout the U.S. and Canada.  Investments in affiliates
include RV product distributors in Europe, Australia and Mexico, and a
manufacturer of RV products in the U.S.

                        THE COAST DISTRIBUTION SYSTEM
                    CONSOLIDATED STATEMENTS OF OPERATIONS
       FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 1997 & 1996

    Second Quarter Ended June 30,             1997             1996

    Net Sales                            $41,600,000       $42,159,000
    Net Earnings (Loss)                    ($51,000)        $1,155,000
    Earnings (Loss) Per Share               (1 Cent)          22 Cents
    Average Shares Outstanding
      (Fully Diluted)                      5,246,879         5,217,166

    Six Months Ended June 30,                 1997             1996

    Net Sales                            $76,805,000       $79,539,000
    Net Earnings (Loss)                   ($143,000)        $1,918,000
    Earnings (Loss) Per Share              (3 Cents)          37 Cents
    Average Shares Outstanding
      (Fully Diluted)                      5,229,700         5,205,928

SOURCE  The Coast Distribution System