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The Coast Distribution System, Inc. Reports Q1 Results

11 May 2000

The Coast Distribution System, Inc. Reports First Quarter Results

    MORGAN HILL, Calif., May 11 The Coast Distribution System,
Inc. (Amex: CRV) today reported financial results for the first quarter ended
March 31, 2000.
    Net sales for the quarter ended March 31, 2000 increased 7% to
$43.9 million as compared to $41.1 million for the first quarter of 1999.  The
Company earned $413,000, or $0.10 per share, in 2000 versus $340,000, or
$0.07 per share, in the first quarter of 1999.  Diluted average shares
outstanding for the three months ended March 31, 2000 were 4,314,804 in 2000
and 5,143,526 for the same period in 1999.  The reduction in the average
number of shares outstanding in 2000 as compared to 1999 was the result of the
Company's 1999 repurchase of approximately 1,000,000 shares of its common
stock.
    "In general, sales in the first quarter reflect our continued penetration
in the marine aftermarket as well as a strong dealer showing at our annual RV
buying show held in Las Vegas," stated Thomas R. McGuire, Chairman and Chief
Executive of Coast.  "Accompanying these sales, however, were corresponding
increases in our sales expenses and trade show expense.  We will continue to
invest to increase our marine market share as it represents one of our best
opportunities for growth.  General and administrative expenses for the first
quarter were also negatively impacted by our computer conversion process.
    "We are carefully monitoring the current economic conditions of our
marketplaces.  Rising interest rates and fuel prices have historically had a
negative impact on the sales and usage of RVs and boats.  While we are less
dependent today that in the past on the sales of new units, we will be
vigilant to take the steps necessary should our markets begin to soften."
    Management's focus for the balance of 2000 is to identify opportunities to
reduce both the operating costs and the assets required to run the business.
We are committed to making those changes that will return the company to
acceptable levels of profitability in the future.
 

                     The Coast Distribution System, Inc.
                 Consolidated Statements of Earnings For the
                  First Quarter Ended March 31, 2000 & 1999

    First Quarter Ended March 31,        2000            1999

    Net Sales                        $43,872,000     $41,129,000
    Net Earnings                        $413,000        $340,000
    Diluted Earnings Per Share              $.10            $.07
    Average Shares Outstanding         4,314,804       5,143,526