CompX Announces Third Quarter Preliminary Results.

Business Editors

HOUSTON--(BUSINESS WIRE)--Oct. 10, 2000

CompX International Inc. (NYSE:CIX) announced today it expects third quarter revenues to be approximately $63 million and earnings per share, before the non-cash charge discussed below, to be in the range of $.39 to $.40. Both revenues and earnings per share are below analysts' expectations for the quarter. The shortfall is attributable to weaknesses in sales of the company's ergonomic products and in sales of locks to the computer industry. In addition, earnings were adversely impacted by the continuing weakness of the Euro.

CompX said that its operating results in the third quarter would also include a non-cash, pre-tax charge aggregating approximately $1.5 million, or $.06 per share net-of-tax, for higher than expected scrap and labor costs and the impairment of the manufacturing software at its facility in Grand Rapids, Michigan. CompX will replace the software used by this facility with the manufacturing software currently used in other CompX facilities. Including the effect of this charge, reported third quarter earnings per share are likely to be in the range of $.33 to $.34.

Commenting on the weak sales of ergonomic products, Joseph S. Compofelice, Chairman and CEO, stated, "To regain market share and return to historical growth rates for this important area, we have reviewed our product offering, competitive position, and sales and marketing strategies. We have concluded that the decision by our largest competitor in ergonomic products to move away from OEMs and ergonomic specialists creates an opportunity for us. We will continue to focus our ergonomic sales and customer service resources on OEM and ergonomic specialist customers and continue to improve the channels that we have developed over the last ten years."

CompX will release its final third quarter results on Thursday, October 19 and hold a conference call to discuss its third quarter earnings report on Friday, October 20, 2000 at 9:00 a.m. EDT.

Participants can access the call by dialing 800/450-0788 (domestic) and 612/288-0340 (international) and request the operator to connect you to the CompX International Inc. third quarter earnings call. A taped replay of the call will be available until 12:00 midnight on November 18, 2000 by dialing 800/475-6701 (domestically) and 320/365-3844 (internationally) and using the access code of 543414. This call will also be available live via the Internet at StreetEvents.com.

CompX is a leading manufacturer of ergonomic computer support systems, precision ball bearing slides and locking systems.

Statements in this release relating to matters that are not historical facts are forward-looking statements based on management's belief and assumptions using currently available information. Although the Company believes the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct. Such statements, by their nature, involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, the Company continues to face many risks and uncertainties. Among the factors that could cause actual future results to differ materially include, but are not limited to, general economic and political conditions, demand for office furniture, service industry employment levels, competitive products and prices, the introduction of tariff or non-tariff trade barriers, potential difficulties in integrating completed acquisitions, currency and exchange rates, and other risks and uncertainties detailed in the Company's Security and Exchange Commission filings. Should one or more of these risks materialize (or the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those forecast or expected. The Company disclaims any intention or obligation to update publicly or revise such statements whether as a result of new information, future events or otherwise.