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KIT Announces Results for Fiscal 1997

16 December 1997

KIT Announces Results for Fiscal 1997

    LONG BEACH, Calif., Dec. 16 -- KIT Manufacturing Company
(Amex: KIT) reported a 21 percent sales decline for the fiscal year ended
October 31, 1997 as compared to fiscal 1996.  The Company reported a net loss
of $2,312,000, or $2.08 per share, for the fiscal year in comparison to net
income of $1,431,000, or $1.29 per share, for fiscal 1996.  Fiscal year 1996
included an after-tax gain from insurance proceeds from a business
interruption claim of $373,000, or $0.34 per share.
    Recreational vehicle sales decreased 30 percent while manufactured housing
sales increased 1O percent in comparison to fiscal 1996.

    KIT Manufacturing Company
    Condensed Financial Statements

    Statements of Income
                                            Fiscal Year Ended October 31,
                                               1997                1996
    Sales                                  $76,465,000        $97,158,000
    Costs and expenses                      80,250,000         95,384,000
    Operating (loss) income                (3,785,000)          1,774,000
    Other income
     Gain on business interruption claim            --            620,000
     Interest expense, net                    (36,000)           (13,000)
    (Loss) income before income taxes      (3,821,000)          2,381,000
    (Benefit) provision for income taxes   (1,509,000)            950,000
    Net (loss) income                     $(2,312,000)         $1,431,000
    Net (loss) income per share                ($2.08)              $1.29
    Shares outstanding                       1,110,934          1,110,934



SOURCE  KIT Manufacturing Company