CRV

MORGAN HILL, Calif., Nov. 2 /PRNewswire-FirstCall/ -- The Coast Distribution System, Inc. (AMEX:CRV) has opened a new distribution center in Visalia, Calif. to better service the company's overseas sourcing operation and its regional warehouses and distribution centers across America and Canada. Coast Distribution, one of North America's largest suppliers of aftermarket replacement parts, accessories and supplies for the recreational vehicle and marine industries, said the 190,000-square-foot facility is nearly twice the size of the former distribution center in Visalia that it replaced. The Company needed the added space to better accommodate an increase in volume of proprietary products sourced overseas. "Our prior distribution center was nearing capacity due to increased demand of our products and the increased role of our sourced, proprietary products," said Thomas R. McGuire, chairman and CEO of Coast Distribution. "As mentioned previously, this move will result in increased operating costs and reduced gross margins in the short-term. However, we also expect this move to increase the volume of proprietary products we can source overseas, and as a result, help us better serve our customers and increase our profitability over the long-term." As part of the move, the Company will retain an option to expand the facility within the existing structure at a future date. Coast Distribution currently supplies customers with more than 15,000 products from 600 vendors, and sources more than 20 proprietary brands of products from overseas. About The Coast Distribution System The Coast Distribution System, Inc. (http://www.coastdistribution.com/ ) is a leading supplier of parts, accessories and supplies for recreational vehicles (RVs) and pleasure boats in the U.S. and Canada. Coast supplies its products to its 15,000 customers through 17 distribution centers throughout the U.S. and Canada. Coast is publicly traded on the American Stock Exchange under the ticker symbol CRV. Forward-Looking Information Statements in this news release regarding our expectations and beliefs about our future financial performance and trends in our markets are "forward- looking statements" as defined in the Private Securities Litigations Reform Act of 1995. Forward-looking statements often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." The forward-looking statements in this news release regarding our future financial performance are based on current information and, because our business is subject to a number of risks and uncertainties, actual operating results in the future may differ significantly from the future financial performance expected at the current time. Those risks and uncertainties may include, among others: Loss of confidence among consumers regarding economic conditions, which could adversely affect their willingness to purchase and use their RVs and boats and which, in turn, would affect their purchases of the products we sell; increases in interest rates which affect the availability and affordability of financing for RVs and boats; increases in the costs and shortages in the supply of gasoline which increase the costs of using, and the willingness and ability of consumers to use, RVs and boats; unusually severe or extended winter weather conditions, which can reduce the usage of RVs and boats for periods extending beyond the ordinary winter months or to regions that ordinarily encounter milder winter weather conditions; possible increases in price competition within our markets that could reduce our margins and, therefore, our earnings; our practice of obtaining a number of our products from single manufacturing sources, which could lead to shortages in the supply of products to us in the event any single source supplier were to encounter production or other problems; and possible changes in supply relationships in our markets, which could lead to increased competition or to reductions in the number of products we are able to offer our customers. There is also no assurance that we will purchase all of the shares that have been authorized for repurchase under the share buy- back program, as this will depend on a number of factors, including our future financial performance, other needs for capital, and stock market conditions that can affect the prices and the availability for repurchase of our shares. Certain of these risks and uncertainties, as well as others, are more fully described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, as amended by Amendment No. 1 on Form 10-K/A, and readers of this news release are urged to review the discussion of those risks and uncertainties that are contained in that Report. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today's date, or to make predictions based solely on historical financial performance. We also disclaim any obligation to update forward-looking statements contained in this news release or in the above-referenced 2004 Annual Report, whether as a result of new information, future events or otherwise. DATASOURCE: The Coast Distribution System, Inc. CONTACT: Sandra Knell, CFO of The Coast Distribution System, Inc., +1-408-782-6686, ; Jeff Lambert or Ryan McGrath of Lambert, Edwards & Associates, Inc., +1-616-233-0500, for The Coast Distribution System, Inc. Web site: http://www.coastdistribution.com/

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