Colonial Commercial Corp. has $0.66 Per Share Gain From Sale of Investment in Monroc.

LEVITTOWN, N.Y.--(BUSINESS WIRE)--June 11, 1998--Colonial Commercial Corp. (Nasdaq: "CCOM", "CCOMP"), today announced that it has received approximately $3.5 million in cash from privately-held U.S. Aggregates, Inc., in exchange for 328,071 shares of Monroc, Inc., pursuant to a merger of U.S. Aggregates, Inc. with Monroc, Inc. at a price of $10.77 per share

Colonial Commercial Corp. will realize a net gain of approximately $2.1 million, or $0.66 per share, from this transaction in the quarter ended June 30, 1998. The Company's balance sheet at March 31, 1998, reflected approximately $1.9 million of this gain as unrealized in its shareholders' equity account under GAAP accounting rules, but the entire $2.1 million gain will be reported as realized income in the second quarter of 1998.

At Colonial's annual shareholders' meeting, which was held yesterday in Rockville Centre, New York, the Company's Chairman and CEO, Bernard Korn, noted that "since our initial $4 million investment in Monroc 21 years ago, we have received cash of $21.4 million. This should be further enhanced by the pending sale of our final Utah real estate holdings for approximately $1 million in cash in our third quarter. This real estate was spun off to Colonial from Monroc in 1986."

At the annual meeting, shareholders approved all of the proposals in the proxy statement, including the election of Board members and the re-appointment of KPMG Peat Marwick as the Company's auditors.

Regarding the Company's operating outlook, Mr. Korn continued, "our Atlantic Hardware and Supply subsidiary expects sales and earnings in 1998 to exceed last year's levels. Atlantic's confirmed order backlog increased 16% during the first quarter to $10.3 million, compared with $8.9 million at December 31, 1997."

"With about $4 million of cash on hand and another $1 million anticipated from the third quarter real estate sale, Colonial is well- positioned to pursue acquisitions which are compatible with Atlantic's contract and architectural hardware business. Our goal is to use Colonial's liquidity and its debt-free capital structure to enhance shareholder values through internal growth and complementary acquisitions. Our Company's pro-forma book value per share approximates $3.48, including $1.52 in cash on a per-share basis."

Colonial Commercial Corp., through its ownership of Atlantic Hardware and Supply Corporation, distributes a broad line of contract and architectural door hardware, and 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, hotels, schools, government facilities and high-rise apartment buildings.

The Company also holds for sale certain real estate assets unrelated to Atlantic Hardware and Supply Corporation. Colonial and its 50% partner have entered into an agreement to sell Colonial's remaining real estate assets to a private company, subject to certain conditions being satisfied. Closing of the transaction is anticipated in 1998 and, if closed, Colonial anticipates its net cash proceeds from the sale to approximate $1 million.

Colonial Commercial Corp. 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".

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.

CONTACT: For further information:

Colonial Commercial Corp.

Bernard Korn

[phone]

or

R. Jerry Falkner, CFA,

Investor Relations Counsel

[phone]