Channell Announces Fourth Quarter Special Charges.

Business Editors & High-Tech Writers

TEMECULA, Calif.--(BUSINESS WIRE)--Dec. 19, 2002

Channell Commercial Corp. (Nasdaq:CHNL) today announced it expects to incur special charges of approximately $4.8 million or ($0.46) per diluted share in the fourth quarter of 2002, related primarily to international operations, for asset impairment, vacated facilities and inventory write downs.

The company anticipates net income per share excluding special charges in the fourth quarter of 2002 of approximately $0.01, which would result in 2002 net income per share excluding special charges of approximately $0.17.

In addition, the company expects 2003 net income per diluted share in the range of approximately $0.26 to $0.30 and in the first quarter of 2003 in the range of approximately $0.01 to $0.03. The company expects 2003 revenues in the range of approximately $82 million to $86 million.

The major elements of the fourth quarter special charges include:

1. Europe Region -- $1.7 million for asset impairment write down

of equipment and $1.1 million for expected lease payments on

vacated facilities.

2. Australia/Asia Region -- $1 million for goodwill impairment

write down.

3. Inventory and tooling -- $900,000 for inventory and tooling

write downs in the United States and United Kingdom due to

discontinued products.

Tom Liguori, chief financial officer, said: "We have determined these write downs are necessary in order to bring asset values in line with current operational levels and the outlook for the industry. Consolidation of connector manufacturing in the U.K. and of international enclosure manufacturing in Australia should improve operational efficiencies.

"Earlier this year we had expected our 2003 financial results to reflect a modest recovery in the telecommunications industry. Given current visibility and industry outlook, we are taking a more cautious approach to 2003.

"The 2003 estimate of $0.30 net income per diluted share assumes lower gross profit margin due to product mix, a twofold increase in R&D expenses for new products, and significantly lower interest expense and credit losses in 2003 than in 2002."

About Channell

Channell Commercial Corp. is a global designer and manufacturer of telecommunications equipment primarily supplied to telephone and broadband network operators worldwide. Major product lines include a complete line of thermoplastic and metal fabricated enclosures, advanced copper termination and connectorization products, and fiber-optic cable management systems.

Channell's headquarters and U.S. manufacturing facilities are in Temecula. International operations include facilities in Toronto, London, and Sydney, Australia.

Forward-Looking Statements 

Forward-looking statements contained within this news release are subject to many uncertainties in the company's operations and business environments. Examples of such uncertainties include customer demand, material costs, integration of acquired businesses and worldwide economic conditions among others. Such uncertainties are discussed further in the company's annual report/10K and S-1 filed with the Securities and Exchange Commission. Contact George C. Christy, Treasurer tel [phone], fax [phone], e-mail: [e-mail].