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Keystone Automotive Industries Reports Q2 Income

30 October 1997

Keystone Automotive Industries Reports Second Quarter Net Income Up 54 Percent; Six Months Net Up 37 Percent

    POMONA, Calif., Oct. 30 -- Keystone Automotive Industries,
Inc. today reported net income for the second fiscal quarter
ended September 27, 1997 of $2,525,000, or $0.20 per share, up from
$1,636,000, or $0.17 per share, posted in the comparable period a year
earlier, a 54 percent increase in net income.  Average weighted shares
outstanding were 12,610,000 compared with 9,759,000 in the year ago quarter.
    Net sales for the second fiscal quarter rose more than 23 percent to
$54,311,000 from the $43,894,000 recorded a year earlier.
    For the six months ended September 27, 1997, Keystone Automotive
Industries reported net income of $4,335,000, or $0.39 per share, up from
$3,155,000, or $0.35 per share, reported a year earlier, a 37 percent increase
in net income.  Net sales for the six months ended September 27, 1997 were
$107,791,000, up from the $89,455,000 reported a year earlier.
    Charles Hogarty, President and Chief Operating Officer, said "We are
extremely pleased with the company's performance in the second quarter and
first half of this fiscal year.  Our acquisitions are being integrated
smoothly into the Keystone system and performing on plan, as is the entire
business."
    "Second quarter sales were driven primarily by an increase from a year ago
of approximately 17 percent in the sales of automotive body parts, including
fenders, hoods, headlights, radiators, grilles and other crash parts; an
increase of about 23 percent in sales of new and recycled bumpers; and an
increase of approximately 17 percent in the sale of paint and related
materials."
    Mr. Hogarty said that "We are particularly pleased with the results of our
newest business, remanufactured alloy wheels, which represented nearly $2
million in second quarter sales.  This brings to approximately $3.5 million in
sales of this business for the six month period.
    "With respect to our other products for the six month period, sales of
body parts rose 15 percent, new and recycled bumpers posted an increase of
nearly 19 percent and sales of paint and related materials were up nearly 16
percent."
    During the second quarter, Keystone Automotive Industries acquired All
Makes Body Parts of Phoenix, Arizona with facilities in Phoenix, Tucson,
Arizona, Albuquerque, New Mexico, El Paso, Texas, Las Vegas, Nevada and
Denver, Colorado; Bud's Bumper of Ft. Lauderdale, Florida and Reddish
Professional Auto Paint Supply of Salt Lake City, Utah.
    Keystone Automotive Industries, Inc. distributes its products in the
United States primarily to collision repair shops through its 78 service
centers, of which 12 serve as regional hubs.  Its product lines consist of
automotive body parts, bumpers, autoglass and remanufactured alloy wheels, as
well as paint and other materials used in repairing a damaged vehicle.  These
products comprise more than 19,000 stock keeping units that are sold to more
than 24,000 repair shops throughout the nation.
    NOTE: For a discussion of factors that could affect Keystone Automotive
Industries' business and financial results, see information contained in the
Company's Form 10-K and Forms 10-Q on file at the Securities and Exchange
Commission.

                     Keystone Automotive Industries, Inc.
                    Consolidated Statements of Operations
              (In thousands, except per share and share amounts)
                                 (Unaudited)

                            Three Months Ended          Six Months Ended
                     September 26, September 27,  September 26, September 27,
                            1997       1996             1997         1996

     Net sales          $54,311  $43,894        $107,791        $89,455
     Cost of sales       31,690   26,182          63,631         53,447
     Gross profit        22,621   17,712          44,160         36,008
     Operating expenses:
      Selling and
        distribution
        expenses         15,460   12,112          29,758         24,883
      General and
        administrative    3,055    2,754           6,301          5,262
      Severance
        costs                --       --             705             --
     Operating
       income             4,106    2,846           7,396          5,863
     Interest income
       (expense)            102    (326)           (171)          (746)
     Income before
       income taxes       4,208    2,520           7,225          5,117
     Income taxes         1,683      884           2,890          1,962
     Net Income          $2,525   $1,636          $4,335         $3,155
     Net income
       per share          $0.20    $0.17           $0.39          $0.35
     Weighted averages
       shares
       outstanding   12,610,000   9,750,000      11,190,000     9,075,000

SOURCE  Keystone Automotive Industries, Inc.