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The Coast Distribution System Reports Q2 Sales And Earnings

4 August 1998

The Coast Distribution System Reports Increased Second Quarter Sales And Earnings

    SAN JOSE, Calif., Aug. 4 -- The Coast Distribution System
(Amex: CRV) today reported financial results for the second quarter and
six months ended June 30, 1998.
    Revenue for the second quarter ended June 30, 1998 increased 11% to
$46.2 million, as compared to $41.6 million for the second quarter of 1997.
For the six months, sales increased 10% to $84.6 million as compared to
$76.8 million for the same period in 1997.
    Net earnings for the second quarter of 1998 were $1,052,000, or $.20 per
diluted share, as compared to a loss of $51,000 or $0.01 per diluted share, in
1997.  For the six months ended June 30, 1998, the company earned
$1,660,000, or $0.31 per diluted share, as compared to a loss of $143,000, or
$0.03 per diluted share, for the same period in 1997.
    "Coast's sales of recreational vehicle products increased 9% during the
first six months of 1998 as compared to last year," said Thomas R. McGuire,
Chairman and Chief Executive Officer at Coast.  "These increases were
particularly strong in the Midwest, Southeast and throughout Canada.  In
addition, we were able to post strong margin growth in both our RV and marine
businesses, while holding our costs in line."
    Looking forward, the company will continue to focus on sales and margin
growth.  With the acquisition of Marine Distributors, Inc. in May, Coast began
the implementation of its strategy to segment the sales and marketing
functions of its RV and marine businesses.  Sales of marine products in July
have increased from 1997 not only at the M.D.I. location in Seattle, but in
the entire western U.S.  Coast will continue to expand this strategy
geographically while exploring other regional distributors to augment its
sales base.
    Some information in this release regarding future results is forward
looking.  Actual results for these future periods could differ, depending on
the effect of factors such as industry and market changes, competition,
overall economic impacts, and effects of interest rate changes.  For a more
detailed discussion of factors that affect the company's operating results,
interested parties should review the company's SEC reports, including the
company's annual report on Form 10-K for the year ended December 31, 1997, and
the quarterly report on Form 10-Q for the quarter ended March 31, 1998.
    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 15,000 customers through 18 distribution centers located
throughout the U.S. and Canada.

                        THE COAST DISTRIBUTION SYSTEM
                CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
           SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 1998 & 1997

    Second Quarter Ended June 30,                   1998           1997

    Net Sales                                   $46,188,000    $41,600,000
    Net Earnings (Loss)                          $1,052,000       ($51,000)
    Diluted Earnings (Loss) Per Share                 $0.20         ($0.01)
    Average Shares Outstanding (Diluted)          5,272,607      5,246,879


    Six Months Ended June 30,                       1998           1997

    Net Sales                                   $84,552,000     $76,805,000
    Net Earnings (Loss)                          $1,660,000       ($143,000)
    Diluted Earnings (Loss) Per Share                 $0.31          ($0.03)
    Average Shares Outstanding (Diluted)          5,259,814       5,229,700