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IMPCO Technologies Reports Strong Year-end Results

30 June 1998

IMPCO Technologies Reports Strong Year-end Results; Record Revenues and Operating Income

    CERRITOS, Calif.--June 30, 1998-- IMPCO Technologies Inc. Tuesday announced that net income for its fiscal year ended April 30, 1998, climbed 62 percent to $4.3 million, or $0.60 per diluted share, from $2.6 million, or $0.43 per share, last year.
    Operating income for the same period rose 47 percent to $7.1 million from $4.9 million in fiscal 1997. Revenues for fiscal 1998 climbed to a record $71.1 million from $61.8 million a year ago. For the fourth quarter, net income increased 45 percent to $1.4 million, or $0.18 per diluted share, from $1.0 million, or $0.15 per diluted share, in the same quarter of fiscal 1997.
    Operating income for the quarter increased 40 percent to a record $2.1 million from $1.5 million last year. For the same period, revenues increased 16 percent to a record $19.6 million from $17.0 million a year earlier.
    Robert M. Stemmler, president and chief executive officer, stated, "Results for the year reflect strong growth in IMPCO's materials handling sector, as well as increased contract revenues from General Motors ."
    He added, "The rapid emergence of the alternative fuels industry will continue over the next several years, with IMPCO benefiting from the significant global growth opportunities."
    Stemmler highlighted fiscal 1998 as a milestone year for IMPCO, with the signing of a five-year teaming agreement with General Motors Corp. to develop clean gaseous fuel delivery systems for passenger cars and medium- and light-duty trucks.
    "The teaming agreement with General Motors is expected to be a significant benefit to IMPCO over the next five years, positioning the company as a premier OEM supplier to the automotive industry," Stemmler added.
    He also highlighted the opening of IMPCO's technology center during fiscal 1998, the world's largest facility dedicated to the research and development of systems and products that support the use of clean-burning gaseous fuels in internal combustion engines and fuel cells. Located on a five-acre tract of land in Irvine, Calif., the new IMPCO Advanced Technology Center boasts the largest assemblage of alternative fuel engineers and technicians all working together under one 80,000 square-foot facility.
    In a move to strengthen its European presence and take advantage of rapidly growing opportunities in other segments of the alternative fuel market, IMPCO purchased the remaining 49 percent interest in its European distributor, IMPCO Technologies B.V. (IMPCO Europe). IMPCO Europe is one of the oldest and largest European-based suppliers of alternative fuel products.
    In other significant transactions, the company acquired the Algas Carburetion division of PGI International, with headquarters in Houston, and the privately held company Algas Mexicana, with headquarters in Mexico City.
    "These acquisitions diversify IMPCO's product line and establish a base of operations to fully service the growing Mexican and Latin American markets," Stemmler said.
    As previously announced, in the third quarter of fiscal 1998, the company redeemed its Common Stock Purchase Warrants . Approximately 2.1 million warrants, representing 99 percent of the outstanding warrants, were exercised, resulting in gross proceeds to the company of approximately $8.5 million. The company used the proceeds to pay down debt under its term and revolving credit facilities.
    IMPCO Technologies Inc. sells alternative fuel products and services worldwide. With headquarters in Cerritos, the company has additional facilities in Irvine; Detroit; Seattle; Mt. Pleasant, Iowa; Mexico; Australia; the Netherlands; France; Germany; and the United Kingdom.
    IMPCO is a market leader in the original equipment manufacturer (OEM) marketplace and aftermarket for gaseous fuel management systems and components that allow internal combustion engines to operate on clean gaseous fuels such as propane and natural gas. IMPCO provides conversion systems for motor vehicles, forklifts, other material handling equipment, and small portable to large stationary engines.

    Certain matters discussed in this news release contain forward- looking information that involve risks and uncertainties which could cause actual results to differ materially from current trends. These include growth of the alternative fuels market, competition, the company's ability to design and market new fuel management products, the company's ability to meet OEM specifications, and other such risks as cited in the company's 1997 annual report on Form 10-K and other documents filed with the Securities and Exchange Commission.