Coastcast Reports Second Quarter 1997 Financial Results.

RANCHO DOMINGUEZ, Calif.--(BUSINESS WIRE)--July 16, 1997-- Coastcast Corp. (NYSE:PAR) reported financial results for the second quarter and first six months of fiscal 1997, ended June 30.

For the second quarter of 1997 as compared with the same period in 1996, sales were $39,938,000 vs. $42,508,000, net income was $2,816,000 vs. $5,004,000 and earnings per share were 32 cents vs. 55 cents.

For the first six months of 1997 as compared with the same period in 1996, sales were $68,939,000 vs. $71,852,000, net income was $4,014,000 vs. $8,522,000, and earnings per share were 45 cents vs. 94 cents.

"The change in margin for the second quarter vs. the comparable period of 1996 is due to a change in the revenue mix from a preponderance of metal woods to irons and putters," said Hans H. Buehler, chairman and CEO of Coastcast. "The overall need for products by our customers appears to be high for the remainder of the year."

Buehler also noted, "We are beginning to see some results in our non-golf titanium casting business, but we do not expect it to have an impact for a year or more."

Coastcast is one of the largest manufacturers of investment-cast titanium and steel golf clubheads in the industry. Its production of metal woods, irons and putters is designed to service high-quality, premium-priced, brand-name manufacturers. The company is currently a supplier to more than 80 percent of the premium golf companies with a customer base that includes Callaway, Cobra, Cleveland, Daiwa, Goldwin, Lynx, Odyssey, Ping, Ray Cook, Spalding, Taylor Made, Titleist, Tommy Armour and Wilson.

Coastcast also manufactures a variety of investment-cast orthopedic implants and surgical tools used principally in replacements of hip and knee joints. These are made to specification of the company's medical equipment customers. During the past year, the company has moved to develop titanium casting capabilities in other commercial and industrial applications. -0-

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

Income Statement Summary

Quarter Ended June 30,                           1997       1996
Sales                                         $ 39,938   $ 42,508
Cost of sales                                 $ 31,956   $ 30,933
Gross profit                                  $  7,982   $ 11,575
Selling, general & administrative expense     $  3,278   $  3,188
Income from operations                        $  4,704   $  8,387
Other income                                  $    203   $    240
Income before provision for income taxes      $  4,907   $  8,627
Provision for income taxes                    $  2,091   $  3,623
Net income                                    $  2,816   $  5,004
Net income per share                          $   0.32   $   0.55
Weighted average shares outstanding          8,882,380  9,141,047

Six Months Ended June 30,                        1997       1996
Sales                                         $ 68,939   $ 71,852
Cost of sales                                 $ 56,932   $ 52,496
Gross profit                                  $ 12,007   $ 19,356
Selling, general & administrative expense     $  5,462   $  5,374
Income from operations                        $  6,545   $ 13,982
Other income                                  $    375   $    608
Income before provision for income taxes      $  6,920   $ 14,590
Provision for income taxes                    $  2,906   $  6,068
Net income                                    $  4,014   $  8,522
Net income per share                          $   0.45   $   0.94
Weighted average shares outstanding          8,919,098  9,052,352
-0-

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

Balance Sheet Summary
At                                              June 30,    Dec. 31,
                                                  1997        1996
Assets
Cash and cash equivalents                      $  13,913   $ 14,060
Accounts receivable -- net                     $  17,921   $ 11,783
Inventories                                    $  26,703   $ 21,660
Prepaid expenses and other current assets      $   2,236   $  5,664
Net current assets of discontinued operations  $     838   $    808
  Total current assets                         $  61,611   $ 53,975
Property, plant & equipment -- net             $  19,831   $ 20,171
Other assets                                   $   2,016   $  1,954
  Total assets                                 $  83,458   $ 76,100

Liabilities and Shareholders' Equity
Total current liabilities                      $  11,550   $  9,175
Deferred compensation                          $   1,067   $    438
Shareholders' equity                           $  70,841   $ 66,487
  Total liabilities and equity                 $  83,458   $ 76,100

CONTACT: Coastcast Corp.

Hans H. Buehler, 310/638-0595