Colonial Commercial Corp. Reports $1.23 in Diluted EPS for 1998, Compared With $0.21 in Previous Year.

LEVITTOWN, N.Y.--(BUSINESS WIRE)--March 24, 1999--

Net Income At Atlantic Hardware & Supply Increased

78%, On Record Sales of $25.2 Million

Colonial Commercial Corp. (Nasdaq:CCOM) (Nasdaq:CCOMP), which distributes contract and architectural door hardware, doors and frames (through its ownership of Atlantic Hardware and Supply Corporation), today announced increased sales and earnings for the quarter and year ended December 31, 1998.

For the year ended December 31, 1998, the Company's revenues increased 11.4% to $25.2 million, versus revenues of $22.6 million in 1997. Net income totaled $3,851,753, or $1.23 per diluted share, in 1998, compared with net income of $672,356, or $0.21 per diluted share, in the prior year.

The Company's wholly-owned subsidiary, Atlantic Hardware and Supply Corporation ("Atlantic") earned $1,291,552 during 1998, which represented a 78% increase when compared with its earnings of $727,448 in the previous year. Colonial's net income for 1998 also included a $2,101,853 gain from the sale of Monroc, Inc. common stock and a gain of $826,797 resulting from the sale of the Company's remaining real estate in Utah. Net income during 1997 included a gain of $238,033 from the sale of Monroc securities and a gain on the sale of land totaling $196,066. Excluding gains from the sale of securities and land, the Company's 1998 net income from operations increased to $906,633, or $0.29 per diluted share, versus net income from operations of $234, or $0.00 per diluted share, in the year ended December 31, 1997.

For the quarter ended December 31, 1998, revenues also increased 11.4%, to $6.6 million, compared with $5.9 million in the fourth quarter of the previous year. Net income totaled $1,323,494, or $0.42 per diluted share, in the final quarter of 1998, which represented an increase of 44% when compared with net income of $916,247, or $0.29 per diluted share, in the corresponding 1997 period.

"Management was very pleased with Colonial's financial and operating performance during 1998," stated Bernard Korn, Chief Executive Officer of Colonial Commercial Corp. "Atlantic had an outstanding year, with an earnings gain of 78% over the prior year and on record sales. Not only did Atlantic report the highest level of sales since our acquisition of that company, but its gross profit margins improved to 26.5%, from 25.8% in 1997, and strong cost controls allowed operating expenses to decline as a percentage of sales. Atlantic's $11.9 million backlog at December 31, 1998 was 34% higher than a year earlier, and in light of a strong construction environment in the New York-New Jersey area and higher bookings from Atlantic's Pennsylvania office, we are optimistic that 1999 will be another year of growth for our architectural hardware business."

"The sale of our remaining Monroc shares for a pretax gain of approximately $2.1 million, when combined with a gain of $827,000 on the disposition of our last parcel of real estate in Utah, allowed Colonial to report its highest level of total net income in recent years during 1998. Total earnings of $1.23 per diluted share were almost six times higher than in 1997, when we reported total net income of $0.21 per diluted share."

"The disposition of our non-operating assets has simplified Colonial's asset structure and provided us with sufficient cash and borrowing capacity to acquire additional companies in the building products distribution field," continued Korn. "We also believe that the investment community will find our Company easier to understand in the future, which should result in a higher price/earnings ratio being accorded our stock in the marketplace."

"Our balance sheet is in excellent shape, with almost one-third of total assets comprised of cash, virtually no long-term debt outstanding, and shareholders' equity of $10.8 million, which is equivalent to $3.54 per common-equivalent share outstanding," noted James W. Stewart, Chief Financial Officer of Colonial Commercial Corp. "We will continue to seek acquisitions which meet our strategic criteria for growth within the building products industry. The outstanding performance of Atlantic since its acquisition by Colonial reflects the success of our strategy, to date, and we are confident that future acquisitions can similarly benefit the Company and its shareholders."

Colonial Commercial Corp., through its ownership of Atlantic Hardware and Supply Corporation, distributes a broad line of contract and architectural door hardware, doors and frames to customers located in the Eastern United States. Its products are installed in commercial, residential, and institutional structures, including office buildings, hospitals, schools, government facilities and high-rise apartment buildings.

The Company is headquartered in Levittown, New York. Its common stock is traded on Nasdaq under the symbol "CCOM", while its convertible preferred shares trade on Nasdaq under the symbol "CCOMP" (Note: Each share of the Company's convertible preferred stock is convertible into one share of the Company's common stock. Preferred stockholders will be entitled to a dividend, based upon a formula, when and if any dividends are declared on the Company's common stock).

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. -0-

              COLONIAL COMMERCIAL CORP. AND SUBSIDIARIES
                   Consolidated Statements of Income

                     3 Months Ended            12 Months Ended
                       December 31,              December 31,
                    1998        1997         1998           1997
                    ----        ----         ----           ----

Sales           $ 6,620,135  $  5,943,941  $ 25,233,909  $ 22,642,783
Cost of sales     4,825,912     4,196,860    18,557,769    16,804,980
                ------------  ------------  ------------  ------------

  Gross Profit    1,794,223     1,747,081     6,676,140     5,837,803
                ------------  ------------  ------------  ------------

Selling, General and
 Administrative
 expenses, net    1,477,590     1,355,692     5,769,507     5,451,864
Write-off of
 deferred expenses
 for abandoned
 acquisition              -             -             -       385,705
                 ----------    ----------   -----------   ------------

Operating Income    316,633       391,389       906,633           234

Gain on sale of
 Monroc, Inc. Stock       -             -     2,101,853       238,033
Gain on sale
 of land            826,797       196,066       826,797       196,066
Interest Income      62,529       155,980       181,206       191,473
Other Income          1,519         7,075       114,899       178,231
Interest expense    (36,632)      (59,963)     (200,283)     (287,381)
                ------------  ------------  ------------  ------------
   Income before
    income taxes  1,170,846       690,547     3,931,105       516,656

Income taxes
 (benefit)         (152,648)     (225,700)       79,352      (155,700)
                 -----------  ------------  ------------  ------------

Net Income        1,323,494       916,247     3,851,753       672,356
                 ===========  ============  ============ ============

Net income per
 common share:
   Basic         $     0.91  $       0.64  $       2.66  $       0.47
                 ===========  ============  ============ ============
   Diluted       $     0.42  $       0.29  $       1.23  $       0.21
                 ===========  ============  ============ ============
Weighted
 average shares
 outstanding:
   Basic          1,460,142     1,427,530     1,446,354     1,418,719
                ===========  ============  ============  ============
   Diluted        3,115,709     3,151,709     3,134,617     3,164,840
                ===========  ============  ============  ============