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Coast Distribution System Reports Q1 Sales and Profit

28 April 1998

The Coast Distribution System Reports Increased First Quarter Sales; First Quarter Profit

    SAN JOSE, Calif., April 28 -- The Coast Distribution System
(AMEX: CRV) today reported financial results for the first quarter ended March
31, 1998.
    Revenue for the first quarter ended March 31, 1998 increased 9% to
$38,364,000 from $35,205,000 for the comparable period in 1997.  The Company
reported net income of $607,700, or $0.12 per share, in 1998 as compared to a
net loss of $92,000, or $0.02 per share, in the first quarter of 1997.
    "We are encouraged that our strategies have begun to yield positive
financial results," stated Thomas R. McGuire, Chairman and Chief Executive of
Coast.  "Our annual sales show in early February was an overwhelming success.
We are continuing to experience sales growth.  We have increased our gross
margins and reduced our operating expenses.  In light of our first quarter
results, we are optimistic about our prospects for the remainder of the year."
    The Coast Distribution System is a leading supplier of accessories for
recreational vehicles (RVs) and pleasure boats in the U.S. and Canada.  Coast
supplies its over 15,000 customers through the Company's 18 distribution
centers located throughout the U.S. and Canada.

                          THE COAST DISTRIBUTION SYSTEM
                  CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
                    FIRST QUARTER ENDED MARCH 31, 1998 & 1997

    First Quarter Ended March 31,    1998                    1997

    Net Sales                 $38,364,000             $35,205,000
    Net Earnings (Loss)          $607,700               ($92,000)
    Earnings (Loss) Per Share    12 Cents               (2 Cents)
    Average Shares Outstanding
    (Fully Diluted)             5,246,879               5,212,330

SOURCE  The Coast Distribution System