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The Coast Distribution System Reports Q3 Sales and Earnings

19 October 1998

The Coast Distribution System Reports Increased Third Quarter Sales and Earnings

    SAN JOSE, Calif., Oct. 19 -- The Coast Distribution System
(Amex: CRV) today reported financial results for the third quarter and nine
months ended September 30, 1998.
    Revenue for the third quarter ended September 30, 1998 increased 10% to
$41.5 million, as compared to $37.8 million for the third quarter of 1997.
For the nine months sales increased 10% to $126.1 million as compared to
$114.7 million, for the same period in 1997.
    Net earnings for the third quarter of 1998 were $69,000, or $.01 per
diluted share, as compared to a loss of $1,450,000 or $0.28 per diluted share,
in 1997.  For the nine months ended September 30, 1998, the company
$1,729,000, or $0.33 per diluted share, as compared to a loss of $1,593,000,
or $0.31 per diluted share, for the same period in 1997.
    "A year ago, we made the decision to divest ourselves of two equity
investments and focus on our core business," said Thomas R. McGuire, Chairman
of Coast.  "We are very pleased with the ensuing results.  Coast's sales have
increased 10% during the first nine months of 1998 and we have increased our
gross margin by 200 basis points during the same period."
    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 THIRD QUARTER
                 AND NINE MONTHS ENDED SEPTEMBER 30, 1998 & 1997

    Third Quarter Ended September 30,              1998           1997

    Net Sales                               $41,555,000    $37,847,000
    Operating Income (Loss)                    $775,000      ($56,000)
    Net Earnings (Loss)                         $69,000   ($1,450,000)
    Diluted Earnings (Loss) Per Share             $0.01        ($0.28)
    Average Shares Outstanding (Diluted)      5,279,854      5,246,879

    Nine Months Ended September 30,                1998           1997

    Net Sales                              $126,107,000   $114,652,000
    Operating Income (Loss)                  $5,209,000       $731,000
    Net Earnings (Loss)                      $1,729,000   ($1,593,000)
    Diluted Earnings (Loss) Per Share             $0.33        ($0.31)
    Average Shares Outstanding (Diluted)      5,266,567      5,235,489