RTC Accelerated Return Bear Market Notes Linked TO The Russell 3000 Index

GRAND RAPIDS, Mich., April 17 /PRNewswire-FirstCall/ -- Riviera Tool Co. (AMEX:RTC) today reported financial results for the second quarter ended February 28, 2006. The Grand Rapids, Mich. designer and manufacturer of stamping die systems reported net sales increased 38 percent to $6.9 million for the second quarter of 2006, compared with net sales of $5.0 million for the second quarter of 2005. The Company attributed its increased sales to higher levels of contract backlog at the end of fiscal 2005 as compared to fiscal 2004. The Company's backlog as of August 31, 2005 was $13.7 million as compared to $2.5 million in 2004. During the second quarter, the Company received $5.2 million in new contracts bringing its contract backlog to $11.2 million as of February 28, 2006 as compared to $10.1 million as of February 28, 2005, an increase of 11 percent. Subsequent to the second quarter, the Company was awarded new contracts totaling $3.5 million. Riviera reported a net loss of $134,804, or $0.03 per diluted share, for the second quarter of 2006, as compared to a loss of $427,836, or $0.11 per share, for the same period in fiscal 2005. For the second quarter of 2006, the Company reported operating income of $369,092 as compared to an operating loss of $38,368 for the second quarter of 2005. For the six months ended February 28, 2006, Riviera reported net sales of $13.0 million as compared to last year's net sales of $9.5 million, an increase of 37 percent. The Company posted a net loss of $576,155, or $0.14 per diluted share, for the first six months of fiscal 2006, versus net loss of $892,477, or $0.24 per diluted share, for the same period last year. "Our continuing efforts in reducing operating expenses had a positive impact on operating margins during the past quarter, and should have a positive impact in the future as well," said Kenneth K. Rieth, president and chief executive officer of Riviera Tool. "We have managed to lower selling and administrative expenses from 15.2 percent of sales for the first six months of 2005 to 8.9 percent for the same period in 2006. We remain extremely focused on increasing revenue and lowering costs to produce a foundation for sustainable long-term profitability." The Company also announced today that on April 3, 2006 the American Stock Exchange (AMEX) notified the Company of its acceptance of the Company's plan of compliance and granted an extension of time to no later than August 9, 2007 to regain compliance with listing standards. "We are pleased that the AMEX has confidence in our plan of compliance and has granted us an extension until August of 2007," concluded Rieth. About Riviera Tool Riviera Tool Co. (http://www.rivieratool.com/ ) designs, develops and manufactures large-scale, custom metal stamping die systems used in the high- speed production of sheet metal parts and assemblies for the global automotive industry. A majority of Riviera's sales are to BMW, Nissan, DaimlerChrysler, General Motors Corp., Ford Motor Co. and their Tier One suppliers. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities laws. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially, including but not limited to economic, competitive, governmental and technological. RIVIERA TOOL COMPANY FINANCIAL STATEMENTS BALANCE SHEETS ASSETS February 28, August 31, 2006 2005 CURRENT ASSETS (unaudited) (audited) Cash $394,227 $239,475 Accounts receivable, net 7,996,314 5,232,138 Costs in excess of billings on contracts in process 2,996,603 2,844,444 Inventories 236,437 236,437 Prepaid expenses and other current assets 370,222 453,597 Total current assets 11,993,803 9,006,091 PROPERTY, PLANT AND EQUIPMENT, NET 10,164,567 10,902,845 PERISHABLE TOOLING 685,032 708,319 OTHER ASSETS 513,656 599,344 Total assets $23,357,058 $21,216,599 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Current portion of long-term debt $3,199,645 $3,287,510 Accounts payable 4,006,718 3,517,578 Accrued liabilities 820,700 661,833 Total current liabilities 8,027,063 7,466,921 LONG-TERM AND SUBORDINATED DEBT, NET OF UNAMORTIZED DISCOUNT 10,851,491 8,870,045 ACCRUED LEASE EXPENSE 922,911 897,885 Total liabilities 19,801,465 17,234,851 PREFERRED STOCK - no par value, $100 mandatory redemption value: Authorized - 5,000 shares Issued and outstanding - no shares - - STOCKHOLDERS' EQUITY: Preferred stock - no par value, Authorized - 200,000 shares Issued and outstanding - no shares - - Common stock - No par value: Authorized - 9,785,575 shares Issued and outstanding - 4,257,601 shares and 3,984,874 shares as of February 28, 2006 and August 31, 2005, respectively 17,280,483 17,130,483 Retained deficit (13,724,890) (13,148,735) Total stockholders' equity 3,555,593 3,981,748 Total liabilities and stockholders' equity $23,357,058 $21,216,599 RIVIERA TOOL COMPANY STATEMENTS OF OPERATIONS (UNAUDITED) For The Three Months For The Six Months Ended Ended Feb. 28, Feb. 28, Feb. 28, Feb. 28, 2006 2005 2006 2005 SALES $6,952,599 $4,981,009 $13,015,784 $9,533,560 COST OF SALES 5,985,554 4,151,887 11,452,939 8,190,347 GROSS PROFIT 967,045 829,122 1,562,845 1,343,213 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 597,953 867,490 1,163,530 1,446,831 INCOME/(LOSS) FROM OPERATIONS 369,092 (38,368) 399,315 (103,618) OTHER EXPENSE Interest expense 447,633 383,538 889,802 776,701 Other expense 56,263 5,930 85,668 12,158 TOTAL OTHER EXPENSE 503,896 389,468 975,470 788,859 LOSS BEFORE INCOME TAXES (134,804) (427,836) (576,155) (892,477) INCOME TAXES - - - - NET LOSS $(134,804) $(427,836) $(576,155) $(892,477) BASIC AND DILUTED LOSS PER COMMON SHARE $(.03) $(.11) $(.14) $(.24) BASIC AND DILUTED COMMON SHARES OUTSTANDING 4,257,601 3,774,346 4,257,601 3,774,346 RIVIERA TOOL COMPANY STATEMENTS OF CASH FLOWS (UNAUDITED) For the Three Months For the Six Months Ended Ended Feb. 28, Feb. 28, Feb. 28, Feb. 28, 2006 2005 2006 2005 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $(134,804) $(427,836) $(576,155) $(892,477) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 478,390 427,701 875,530 855,402 (Increase) decrease in assets: Accounts receivable (365,224) 6,429,427 (2,764,176) 10,146,997 Costs in excess of billings on contracts in process (1,280,720) (1,096,106) (152,159) (1,902,674) Perishable tooling 18,487 23,110 23,287 (31,040) Prepaid expenses and other current assets 11,961 (66,222) 83,375 (38,485) Increase (decrease) in liabilities: Accounts payable 74,384 569,558 489,140 (423,336) Accrued lease expense 12,513 23,292 25,026 46,584 Accrued liabilities 150,631 116,523 158,867 235,786 Deferred compensation - (166,474) - (166,474) Net cash provided by/ (used in) operating activities $(1,034,382) $5,832,973 $(1,837,265) $7,830,283 CASH FLOWS FROM INVESTING ACTIVITIES Decrease/(increase) in other assets 49,671 100,000 85,688 79,454 Additions to property, plant and equipment (27,897) (16,806) (56,002) (247,089) Net cash provided by/ (used in) investing activities $21,774 $83,194 $29,686 $(167,635) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowings (repayments) on revolving credit line 1,362,017 (6,505,958) 2,465,273 (7,253,654) Proceeds from sale of common stock 150,000 - 150,000 - Deferred interest - 44,588 - 90,500 Principal payments on notes payable to bank (382,867) (129,024) (652,942) (291,492) Net cash provided by/ (used in) financing activities $1,129,150 $(6,590,394) $1,962,331 $(7,454,646) NET INCREASE/(DECREASE) IN CASH $116,542 $(674,227) $154,752 $208,002 CASH - Beginning of Period 277,685 883,429 239,475 1,200 CASH - End of Period $394,227 $209,202 $394,227 $209,202 DATASOURCE: Riviera Tool Co. CONTACT: Kenneth K. Rieth, CEO, or Peter C. Canepa, CFO, of Riviera Tool Company, +1-616-698-2100 Web site: http://www.rivieratool.com/

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