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CHAMPION PARTS REPORTS FOURTH-QUARTER AND YEAR-END LOSS AFTER YEAR-END ADJUSTMENTS; EXPECTS PROFITABLE 1993

 OAK BROOK, Ill., March 2 /PRNewswire/ -- Champion Parts, Inc. (NASDAQ-NMS: CREB), a major remanufacturer of replacement parts for cars, trucks and farm equipment, today reported a loss for the fourth quarter of 1992 and the calendar year. The net loss for calendar 1992 amounted to $7,784,000, or $2.13 per share, compared to a net loss of $653,000, or 18 cents per share in 1991. As previously indicated, the loss includes an increased provision for workers' compensation cost, inventory write-downs, a reserve for environmental costs and employee severance costs. The loss is greater than previous estimates due to the establishment of a reserve for a potential loss on the company's joint venture investment in a Canadian automotive engine rebuilder, and additional inventory write-downs. Net sales for 1992 decreased to $100,900,000 from $111,741,000 in 1991.
 For the fourth quarter, the company reported a net loss of $7,983,000, or $2.18 per share. This compares to a net loss of $518,000, or 14 cents per share for the previous year's fourth quarter. Net sales increased to $24,126,000 from $23,501,000.
 As previously reported, the company will not be in compliance with certain covenants in its loan and industrial revenue financing agreements. The company said it is currently working with its banks to amend its existing credit agreements.
 The company recently announced it had implemented cost reductions, which have reduced operating expenses by over $2 million annually. "The company has budgeted a profit for 1993, and is operating ahead of budget through January. We expect cash flow to remain strong throughout the year," said Thomas W. Blashill, vice president and chief financial officer. "The company will continue to look for cost reductions and intensify its focus on all aspects of the company's operations, with a goal of improved efficiency, product quality and customer service," added Blashill.
 Champion Parts is the country's largest independent automotive replacement parts remanufacturer in the multi-billion-dollar automotive, truck and farm equipment aftermarket.
 CHAMPION PARTS, INC.
 CONSOLIDATED RESULTS
 Year Ended Fourth Quarter Ended
 1/3/93 12/29/91 1/3/93 12/29/91
 Net sales $100,900,000 $111,741,000 $24,126,000 $23,501,000
 Earnings (loss)
 before interest,
 income taxes &
 extraordinary
 item (a) (6,939,000) 3,240,000 (9,157,000) 720,000
 Interest 2,489,000 3,397,000 609,000 645,000
 Earnings (loss)
 before income
 taxes and
 extraordinary
 item (9,428,000) (157,000) (9,766,000) 75,000
 Income taxes (1,644,000) 77,000 (1,783,000) 174,000
 Earnings (Loss)
 before
 extraordinary
 item (7,784,000) (234,000) (7,983,000) (99,000)
 Extraordinary
 item (419,000) (419,000)
 Net earnings
 (Loss) (7,784,000) (653,000) (7,983,000) (518,000)
 Net earnings
 (Loss) per common
 share before
 extraordinary item ($2.13) ($0.06) ($2.18) ($0.02)
 Extraordinary item ($0.12) ($0.12)
 Net earnings (loss)
 per common share ($2.13) ($0.18) ($2.18) ($0.14)
 Average shares
 outstanding 3,655,266 3,655,266 3,655,266 3,655,266
 (a) Includes restructuring cost of $3,223,000 in 1992 and $1,034,000 in 1991.
 -0- 3/2/93
 /CONTACT: Thomas W. Blashill, vice president & CFO of Champion Parts, Inc., 708-573-6600, or Alex Tassos of Alex Tassos & Associates, 619-748-0787, for Champion Parts, Inc./
 (CREB)


CO: Champion Parts, Inc. ST: Illinois IN: AUT SU: ERN

DH -- DE004 -- 1797 03/02/93 09:09 EST
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Date:Mar 2, 1993
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