Boyds Wheels reports first quarter results.

STANTON, Calif.--(BUSINESS WIRE)--May 8, 1997--Boyds Wheels Inc. (NASDAQ:BYDS) Thursday reported financial results for its first fiscal quarter ended March 31, 1997.

The company posted a net loss for the first quarter of $1,416,000, or $.37 per share, compared with net income of $460,000, or $.17 per share, in the 1996 first quarter. As previously announced last week, the loss is attributable to increased overhead due to the recent facilities expansion coupled with lower than expected sales, in addition to a one-time interest charge related to a capital lease buy-out.

The company posted sales for the 1997 first quarter of $3,576,000 compared with $5,519,000 for the 1996 first quarter. While the first quarter results did not meet expectations, the prior year period included shipment of an unusually high backlog of orders from year-end 1995. The backlog was a result of manufacturing capacity restraints at the time.

The increase in weighted average shares is due to a secondary offering of approximately 1.2 million shares of common stock completed in June 1996, which raised approximately $11.5 million in net proceeds to the company to fund continued growth and the recent expansion.

"We are clearly disappointed with these results, but continue to take aggressive measures toward re-establishing meaningful growth for this company," said Boyd Coddington, chief executive officer.

"The expansion was crucial to enable us to target regions beyond our core customer base in time for the industry's peak season, which is typically April through October."

Coddington added that the company continues to ramp up East Coast sales efforts and that, "Although relationships with new distributors and retail outlets take time to build, we are pleased with the initial responses to the Boyds brand name from potential customers who can now gain access to our product lines."

The company also announced that this month it significantly reduced its workforce in an effort to continue to streamline a number of the company's manufacturing processes.

Coddington said, "While we remain optimistic about this current season in terms of our new product lines and new markets, the workforce reduction was a key move to help cut costs going forward. It was obviously a difficult decision to make and we foresee the situation as a temporary one."

The company reported strong initial sales of Boyds Ultra Violet, its premium line of car care products, now sold in all of AutoZone's approximately 1,500 auto parts retail stores. A Boyds Wheels' representative is also in discussions with several other large retail chains for distribution of the product.

Founded in 1988, Boyds Wheels, Inc. designs, manufactures and markets high-quality aluminum wheels and related products for the specialty automotive and motorcycle aftermarkets. The Company sells its products through a nationwide network of retailers, distributors and mail order outlets, as well as through foreign distribution channels. Boyds Wheels complete line of wheel and accessory products can be ordered directly by calling 714/952-4038 for a complete catalogue. -0-

Note to Editors: The language contained in this news release relating to performance of specific product lines, cost cutting due to workforce reduction and streamlining of processes, constitute forward looking statements and actual results could be materially different. Among the factors that could cause actual results to differ include: customer order rates; increased competition; changing consumer trends; expansion delays; and political and economic instability of international markets, as well as other risk factors included in the company's stock offering prospectus dated June 11, 1996. -0-

                BOYDS WHEELS INC. AND SUBSIDIARY
                     Statements of Income
        (In thousands, except share and per share data)
                          (Unaudited)


                                    Three Months Ended
                                         March 31,
                                  1997              1996

Net sales                       $ 3,576           $ 5,519

Cost of goods sold                3,870             4.068

Gross (loss) profit                (294)            1,451

Selling, general &
  administrative expenses         1,011               745

(Loss) income from operations    (1,305)              706

Interest and other expenses, net    111                10

(Loss) income before
 provision for income taxes      (1,416)              696

Provision for income taxes           -                236

Net (loss) income            $   (1,416)          $   460

(Loss) earnings per share    $     (.37)          $   .17

Weighted average
 shares outstanding           3,817,000         2,655,000

-0-
               BOYDS WHEELS INC. AND SUBSIDIARY
                  Summary Balance Sheet Data
                        (In thousands)


                              March 31,          December 31,

                                1997                 1996
                            (unaudited)

Working capital               $10,937              $10,886
Total current assets           16,568               17,313
Total assets                   30,934               28,603
Total current liabilities       5,631                6,426
Long-term debt                  6,708                2,398
Total liabilities              12,697                9,223
Shareholders' equity           18,237               19,379
Total liabilities
and shareholders' equity       30,934               28,603

CONTACT: Boyds Wheels Inc., Stanton

Boyd Coddington, Rex Ours, or Lisa Prukop,

714/952-4038