CRV

MORGAN HILL, Calif., June 7 /PRNewswire-FirstCall/ -- The Coast Distribution System, Inc. (AMEX:CRV) announced the recent opening of its new Design and Test Center in Elkhart, Ind. The facility will better enable the company to design, develop and test new products for its North American customers. Coast, one of North America's largest parts and accessory suppliers to RV, marine, and outdoor power equipment dealers, officially opened the 18,000 sq. foot building in December 2006. The facility enlarges Coast's overall design and development staff and adds resources for product prototyping, computer simulation testing and physical testing. The Elkhart-based testing center is the fourth operated by Coast, with other centers located in China, Taiwan, and Wilsonville, Ore. "This new Design and Test Center allows Coast to develop the next generation of products for our customers," said Dennis Castagnola, Executive Vice President of Coast. "It enables us to start with a product concept, test the product to the latest industry and national standards and provide after- sale technical and product training to our dealers. It's location in Elkhart is strategically positioned near the largest manufacturing area for RV products in the U.S. and also central to our customers and distribution centers." About The Coast Distribution System The Coast Distribution System, Inc. (http://www.coastdistribution.com/) is one of the leading suppliers 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. Cautionary Statements Regarding Forward-Looking Information The declaration of cash dividends in the future, pursuant to the Company's dividend policy, is subject to final determination each quarter by the Board of Directors based on a number of factors, including the Company's financial performance and its available cash resources. Also, it could become necessary for the Company to obtain the consent of its lender under its secured bank loan agreement in order to pay cash dividends in the future. For these reasons, as well as others, there can be no assurance that dividends in the future will be equal or similar to the amount described in this press release or that the Board of Directors will not decide to suspend or discontinue the payment of cash dividends in the future. 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; and 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. Certain of these risks and uncertainties, in addition to other risks, are more fully described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, 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 obligations to update forward-looking statements contained in this news release or in the above referenced 2005 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, ; 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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