Coastcast Corporation Announces China Joint Venture.

RANCHO DOMINGUEZ, Calif.--(BUSINESS WIRE)--Dec. 7, 1998--Coastcast Corporation (NYSE:PAR) today announced that it has entered into a joint venture agreement with Dynamic Precision Casting Mfg. Co., Ltd. (DPC) to establish a new golf clubhead manufacturing plant in mainland China.

Coastcast will own a 55% interest in the joint venture. DPC, which has been manufacturing golf clubheads in Taiwan for approximately 20 years, will own a 45% interest in the joint venture. Construction of a 100,000 square-foot facility near Guangzhou, which will be leased by the joint venture company, has already begun and is expected to be operational in the third quarter of 1999. Coastcast's investment in the joint venture is not expected to exceed $2,000,000 over the next twelve months.

Hans Buehler, Coastcast CEO, said: "We are very pleased to have joined forces with Dynamic Precision Casting in this new venture. In addition to being an experienced and respected manufacturer of golf clubheads, DPC knows how to do business in China. We are looking forward to a long and mutually beneficial partnership with DPC."

In commenting on Coastcast's strategy in expanding its manufacturing operations to China, Mr. Buehler added: "Coastcast will continue to manufacture golf clubheads in California and Mexico. With the addition of a new plant in China, we expect to compete more effectively with clubhead manufacturers in the Far East. We will also be able to reduce costs on products which our customers will allow us to manufacture in China."

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, 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.