Coastcast Announces Preliminary Fourth-Quarter Results and Provides Outlook On 1999.

RANCHO DOMINGUEZ, Calif.--(BUSINESS WIRE)--Jan. 25, 1999-- Coastcast Corporation (NYSE:PAR) today announced preliminary unaudited financial results for the fourth quarter of the fiscal year ended December 31, 1998 and provided an outlook for the fiscal year ending December 31, 1999.

For the fourth quarter of 1998, Coastcast currently expects to report sales of $23 to $25 million (down from $36.6 million for the fourth quarter of fiscal 1997), a net loss of $700,000 to $1,100,000 (compared to net income of $3.1 million for the fourth quarter of fiscal 1997), and a net loss per share of $0.09 to $0.14 (compared to diluted net income per share of $0.35 for the fourth quarter of fiscal 1997).

In commenting on the results of operations for the fourth quarter of 1998 and the outlook for 1999, Hans Buehler, Chairman and CEO, stated: "Sales declined in the fourth quarter of 1998 because our customers ordered fewer golf club heads from us. We believe that this resulted from a reduced need by our customers rather than a loss of market by Coastcast. We further expect that sales in each of the first two quarters of 1999 may not be better than the fourth quarter of 1998. It is difficult to project future sales beyond one or two quarters, but we believe that sales for the second half of 1999 could be lower than sales for the first half of the year."

Buehler further stated: "We are not happy with these developments, but we have no control over them. During the past several months, we have made major reductions in our work force to adjust to the reduced level of business. We have operated profitably at lower levels of production before and it is our intention to do so again."

"We also have some good news," Buehler added. "The new Tijuana plant is in production and is expected to reduce labor costs. We have also received some new orders for non-golf titanium castings. The numbers are small but are expected to grow. We are cautiously optimistic that non-golf titanium products could begin to generate significant sales by the end of this year."

Buehler concluded: "This is a difficult time for Coastcast. It also offers some opportunities. We intend to do our best to make the most of them."

Coastcast, a leading manufacturer of golf clubheads, produces metal woods, irons and putters in a variety of metals, including stainless steel and titanium. Customers include Callaway, Cleveland, Cobra, Daiwa, Never Compromise, Odyssey, Taylor Made, Titleist and Wilson. The Company also manufactures a variety of investment-cast orthopedic implants and surgical tools that are made to customer specifications.

Safe Harbor Statement:

Except for historical information, the matters discussed in this news release are forward-looking statements, including in particular the statements regarding the preliminary unaudited financial results for the fourth quarter of the fiscal year ended December 31, 1998 and the statements of the Company's CEO relating to the golf industry, and the statements of the Company's CEO concerning market share and anticipated or projected future performance, earnings, sales and costs of the Company.

Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially, including, but not limited to, industry conditions, economic conditions, competitive factors and pricing pressures, shifts in market demand, the costs of product development and production as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.