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Champion Parts, Inc. Reports Q3 Profit

19 November 1997

Champion Parts, Inc. Reports Third Quarter Profit After Non-Reoccurring Gain Resulting From Vendor Creditors Settlement

    GLEN ELLYN, Ill., Nov. 19 -- Champion Parts, Inc.
(OTC Bulletin Board: CREB) today reported a net profit, after a
non-reoccurring gain resulting from a vendor creditors settlement, for the
third quarter, ended Sept. 28, 1997 of $224,000, or $0.06 per share, on sales
of $4,847,000, compared to a loss of $816,000, or $0.22 per share, on sales of
$5,31O,000 for the comparable quarter in 1996.  Without the non-reoccurring
gain, the company would have reported a $368,000 loss, or $0.10 per share for
the third quarter of 1997.
    For the first nine months of 1997, the company reported net earnings of
$322,000, of $0.09 per share, after the non-reoccurring gain resulting from
the vendor settlement, on sales of $18,464,000, compared to a net loss of
$986,000, or $0.27 per share, on sales of $20,744,000 for the first nine
months of 1996.  Without the non-reoccurring gain, the company would have
reported a $270,000 loss, or $0.07 per share, for the first nine months
of 1997.
    As previously announced, on July 1, 1997, the company reached an agreement
with approximately 90% of its unsecured trade creditors to restructure
approximately $3.4 million of past due obligations.  This agreement resulted
in a non-reoccurring gain of $592,000 in the third quarter ended Sept. 28,
1997.  Discussions are continuing with certain remaining unsecured trade
creditors with past due balances totaling approximately $275,000.  Champion
also said it has been asked to replace its current banking facility and is in
the process of seeking another lender.  However, the company's banks have
continued advancing funds during the interim period.
    "Champion Parts is focused as it moves into the fourth quarter of 1997,"
said Jerry Bragiel, president.  "While working to secure long-term financing
and restructure other obligations, our primary emphasis is on the business of
providing high value remanufactured products," added Mr. Bragiel.  "We believe
that through the synergies of teamwork, higher levels of quality and service
can be achieved while further reducing operating costs.
    "Sales are expected to increase over the next several periods based upon
seasonal trends," said Mr. Bragiel, "and we are also continuing to pursue new
business and markets."
    Champion Parts remanufactures fuel systems, front wheel drive assembly
components and underhood electrical and mechanical products for the passenger
car, agricultural and heavy duty truck parts aftermarket.


                             CHAMPION PARTS, INC.
                             Consolidated Results
                                 (Unaudited)

                             Third Quarter Ended            Nine Months Ended
                          Sept. 28,    Sept. 29,     Sept. 28,     Sept. 29,
                              1997          1996         1997          1996

    Net Sales           $4,847,000    $5,310,000  $18,464,000   $20,744,000
    Earnings (Loss)
      Before
      Extraordinary Gain,
      Interest and
      Income Taxes        (133,000)    (484,000)      473,000       221,000

    Extraordinary Gain     592,000             0      592,000             0
    Interest Expense       235,000       332,000      743,000     1,200,000
    Earnings (Loss)
      Before Income Tax    224,000     (816,000)      322,000      (979,000)
    Income Taxes                 0             0            0         7,000
    Net Earnings (Loss)    224,000     (816,000)      322,000      (986,000)
    Net Earnings (Loss)
      Per Common Share        0.06        (0.22)         0.09         (0.27)
    Average Shares
      Outstanding        3,655,266     3,655,266    3,655,266     3,655,266

SOURCE  Champion Parts, Inc.