Coastcast Reports Fourth-Quarter and Fiscal- Year End 1997 Financial Results.

RANCHO DOMINGUEZ, Calif.--(BUSINESS WIRE)--Feb. 4, 1998--Coastcast Corp. (NYSE:PAR) reported financial results for the fourth quarter and twelve months ended Dec. 31, 1997.

For the fourth quarter of 1997, compared with the same period in 1996, sales were $36,641,000 vs. $34,910,000; net income was $3,122,000 vs. $1,677,000; and diluted earnings per share were $0.35 vs. $0.19.

For the 12 months of 1997, as compared with the same period in 1996, sales were $149,515,000 vs. $148,257,000; net income was $10,876,000 vs. $15,066,000; and diluted earnings per share were $1.22 vs. $1.67.

Commenting on the year, Hans H. Buehler, chairman of Coastcast, expressed satisfaction at the outstanding performance of the company. Considering the slow start and higher costs in the first quarter, improvements were made every quarter through the year, and the year-end performance was very good. He stated, "We believe that we are well positioned to take advantage of the opportunities presented in 1998.

"Throughout the year, we expanded and improved. Production volume grew significantly to support demand from our customers for more clubheads. Our new Tijuana plant construction is well on its way, and the plant is expected to add to our production towards 1998 year end. This will allow additional capacity in our California plants, which we expect to utilize in 1999."

Over the years, Coastcast has grown to be a leading manufacturer of golf clubheads. It produces metal woods, irons and putters in a variety of metals, including stainless steel and titanium. The customer list includes some of the finest names in golf, including Callaway, Cleveland, Cobra, Daiwa, Odyssey, Taylor Made, Titleist, Tommy Armour and Wilson. The company also manufactures a variety of investment-cast orthopedic implants and surgical tools that are made to customers' specifications.

Except for the historical information contained in this release, other statements in this release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements as a result of risk factors and/or factors affecting future results detailed in the Company's Securities and Exchange Commission filings. -0-

                          Financial Highlights
                    ($ in 000s, except share date)
                             (Unaudited)

Income Statement Summary

Quarter Ended Dec. 31,                           1997        1996

Sales                                        $   36,641   $   34,910
Cost of sales                                $   29,484   $   29,992
Gross profit                                 $    7,157   $    4,918
Selling, general & administrative expense    $    2,170   $    2,320
Income from operations                       $    4,987   $    2,598
Other income                                 $      395   $      196
Income before provision for income taxes     $    5,382   $    2,794
Provision for income taxes                   $    2,260   $    1,117
Net income                                   $    3,122   $    1,677
Net income per share - basic                 $     0.35   $     0.19
Weighted average shares outstanding           8,817,756    8,777,890
Net income per share - diluted               $     0.35   $     0.19
Weighted average shares outstanding + cse     8,986,494    8,960,628

12 Months Ended Dec. 31,                          1997       1996

Sales                                        $  149,515   $  148,257
Cost of sales                                $  120,982   $  114,431
Gross profit                                 $   28,533   $   33,826
Selling, general & administrative expense    $   10,757   $    9,372
Income from operations                       $   17,776   $   24,454
Other income                                 $      975   $    1,042
Income before provision for income taxes     $   18,751   $   25,496
Provision for income taxes                   $    7,875   $   10,430
Net income                                   $   10,876   $   15,066
Net income per share - basic                 $     1.24   $     1.72
Weighted average shares outstanding           8,797,734    8,772,815
Net income per share - diluted               $     1.22   $     1.67
Weighted average shares outstanding + cse     8,924,262    9,038,223

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                          Financial Highlights---2
                        ($ in 000s, except share data)

Balance Sheet Summary
At                                      Dec. 31, 1997  Dec. 31, 1996
Assets                                    (Unaudited)

Cash & cash equivalents                  $    28,187    $    14,060
Accounts receivable -- net               $    12,893    $    11,783
Inventories                              $    21,208    $    21,660
Prepaid expenses and other
   current assets                        $     3,616    $     5,664
Net current assets of
   discontinued operations               $       911    $       808
          Total current assets           $    66,815    $    53,975
Property, plant & equipment -- net       $    19,079    $    20,171
Other assets                             $     4,131    $     1,954
          Total Assets                   $    90,025    $    76,100
Liabilities and Shareholders' Equity
Total current liabilities                $    10,020    $     9,175
Deferred compensation                    $     1,614    $       438
Shareholders' equity                     $    78,391    $    66,487
Total liabilities and equity             $    90,025    $    76,100

CONTACT: Coastcast Corp., Rancho Dominguez

Dick Mora, 310/638-0595