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R&B, Inc. Expects to Report Loss in 1999 Fourth Quarter

13 January 2000

R&B, Inc. Expects to Report Loss in 1999 Fourth Quarter; Take Restructuring Charge

    COLMAR, Pa., Jan. 13 -- R&B, Inc. today
announced that it expects to report a loss, before restructuring charges, for
the fourth quarter ending December 25, 1999, bringing net income for the full
year, before giving effect to restructuring charges, to approximately
$4 million.  Net sales for the fourth quarter ending December 25, 1999, will
approximate 1998's fourth quarter sales.  The fourth quarter loss, before
restructuring charges, is due to lower than forecasted sales caused by
continued softness in the automotive aftermarket, higher than forecasted
customer returns driven primarily by the continued consolidation in the
market, lower gross margins created by reduced production levels and higher
than expected inventory adjustments.  These factors resulted in approximately
$2 million in reduced fourth quarter earnings.
    The Company had announced in October 1999 that it would review additional
opportunities to reduce costs to bring them in line with projected business
levels.  As a result of that review, the Company announced today that it will
take a fourth quarter restructuring charge to earnings of approximately
$7.5 million after tax primarily related to inventory write downs associated
with the elimination of a significant number of underperforming products, as
well as the consolidation of a warehouse and production facility in
Carrollton, Georgia, and several smaller warehouses into existing facilities,
and the one-time costs of layoffs of approximately 12 percent of the Company's
total workforce, including 25 percent of its salaried workforce.  The Company
expects annual savings as a result of this program to be approximately
$6 million once the program is completed in the third quarter of 2000.
    Mr. Richard Berman, Chairman, President and CEO said, "We are disappointed
with the fourth quarter results.  Several new programs initiated in 1999 were
less profitable than anticipated as a result of the higher than projected
customer credits.  Accordingly, we have revised and tightened our new business
evaluation process.  We are committed to growing our core business of
hard-to-find parts and fasteners, along with the continued successful
development of our acquired companies.  Our focus on profit mandates that we
simplify our business, improve margins and lower operating costs."
    Mr. Berman continued, "This permanent reduction in fixed costs will allow
us to improve profitability on a smaller sales base.  However, the planned
initiatives will not be fully implemented until the third quarter of 2000 due
to the necessary lead times associated with customer notification of
discontinued items and the steps necessary to consolidate the Georgia
facility.  As a result, we expect earnings for the first two quarters of 2000
to be below prior year levels.  Finally, we have coupled the cost reduction
program with a renewed focus on cash flow.  As a result, we expect to
strengthen the Company's balance sheet considerably over the next twelve
months through better working capital management and other initiatives.  We
remain confident with our ability to develop new opportunities and we are
excited to announce the signing of an agreement to provide our `Pick-a-Nut'
brand of hardware and general use fasteners to a major non-automotive
retailer, beginning in the third quarter of 2000."
    R&B, Inc. is a leading supplier of "hard-to-find" parts, fasteners and
service line products for the automotive aftermarket.  R&B's parts are
marketed under more than sixty proprietary brand names, through its Motormite
and Dorman divisions, as well as under the private labels of automobile
manufactures, parts manufacturers, and national warehouse distributors.

    Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those projected.
Readers are cautioned not to place undue reliance on these forward-looking
statements which speak only as of the date hereof.  Factors that cause actual
results to differ materially include, but are not limited to, those factors
discussed in the Company's Annual Report on Form 10-K under "Business -
Investment Considerations."