Core Materials Reports Increased Sales And Earnings For The Third Quarter Of 1997.

COLUMBUS, Ohio--(BUSINESS WIRE)--Oct. 22, 1997--Core Materials Corporation (AMEX Symbol: CME) today announced results for the third quarter ended September 30, 1997.

Net income was $382,000, or $0.04 per share, for the three months ended September 30, 1997, an increase of $74,000, or 24% over the $308,000, or $0.03 per share, for the three month period ended September 30, 1996 on a pro forma basis. The 1997 increase over 1996's pro forma amounts was primarily the result of increased sales. Core Materials has approximately $32 million of operating tax loss carryforwards that do not begin to expire until the year 2007. If the benefit of the Company's operating tax loss carryforwards were recorded as a reduction in income tax expense, which is reflective of the actual cash treatment, net income for the quarter would have been increased by $211,000, or $0.02 per share, to a total of $0.06 per share. The comparable 1996 pro forma net income would have been increased by $175,000, or $0.02 per share, to a total of $0.05 per share.

Net sales for 1997's third quarter were $13,680,000, an increase of $1,743,000, or 15% over the $11,937,000 pro forma sales revenues for 1996's third quarter. This increase results from an increase in sales to Navistar International Transportation Corp. ("Navistar") due to a general increase in volume. Conversely, sales to Yamaha Motor Manufacturing Corporation ("Yamaha") were down during the third quarter, reflecting continuation of Yamaha's inventory leveling and model change over.

For the nine months ended September 30, 1997 net income was $1,753,000, or $0.18 per share, an increase of $832,000, or 90%, as compared to $921,000, or $0.10 per share, reported for the nine month period of the prior year on a pro forma basis. Net sales for the nine months were $46,712,000, an increase of $4,073,000, or 10%, over the $42,639,000 pro forma sales revenues for 1996's first nine months. These increases are due to similar reasons as noted above for the quarter.

Core Materials' management is pleased with the results of the third quarter. As anticipated and previously reported, the results for the third quarter were less than the earnings reported in the first two quarters. This decline is attributed to lower sales caused by Navistar's annual vacation shutdown and inventory leveling at Yamaha. However, higher than expected post shutdown sales to Navistar and increased sales to Yamaha late in the quarter resulted in earnings which exceeded management's original expectations.

With the effects of the Navistar vacation shutdown and the Yamaha inventory leveling behind, management is optimistic about the results of the Company for the fourth quarter and the full year. The Company also continues to focus significant effort on obtaining new business for both its Columbus, Ohio facility and its new facility being constructed in Gaffney, South Carolina, which will begin molding and assembly operations in early 1998.

As previously announced, Core Materials Corporation acquired substantially all of the assets and liabilities of the Columbus Plastics Operation, an operating unit of Navistar, on December 31, 1996.

Prior to the acquisition, Columbus Plastics was not a "stand alone" division or subsidiary of Navistar and was not generally accounted for separately. As a result, the distinct and separate accounts necessary to present the individual Core Materials income statements for the quarter and nine months ended September 30, 1996, have not been maintained. For comparative purposes, pro forma information has been prepared, reflecting the results for the prior year (1996), as if the acquisition had occurred on January 1, 1996.

Core Materials Corporation, located in Columbus, Ohio, is a compounder and compression molder of sheet molding composites (SMC). The company markets, manufactures and sells these fiberglass reinforced plastic products for a variety of applications.

Certain statements under this caption constitute "forward-looking statements" which involve certain risks and uncertainties. Core Materials' actual results may differ significantly from those discussed in the forward-looking statements. Factors that may cause such a difference include, but are not limited to: business conditions in the plastics, transportation, recreation and consumer products, the general economy, competitive factors including the dependence on two major customers, new technologies, regulatory requirements, labor relations, the loss or inability to attract key personnel, construction delays, the availability of capital and management's decisions to pursue new products or businesses which involve additional cost risks or capital expenditures. -0-

                   CORE MATERIALS CORPORATION

                      Income Statement Data
              (in thousands, except per share data)
                           (unaudited)

                         Three Months Ended          Nine Months Ended
                          9/30/97  9/30/96(a)    9/30/97    9/30/96(a)
Net Sales                 $ 13,680  $11,937    $46,712       $42,639
Cost and Expenses           12,543   11,013     42,162        39,870
Income Before Interest
 and Taxes                $  1,137  $   924    $ 4,550       $ 2,769
Net Income(b)             $    382  $   308    $ 1,753       $   921
Net Income per Common
 Share(b)                 $  0.04   $  0.03    $  0.18       $  0.10
Weighted Average Number of
  Common Shares and Common
  Stock Equivalents         9,890     9,654      9,774         9,654

(a) Pro forma

(b) If the benefit of the Company's operating tax loss carryforwards
were recorded as a reduction in income tax expense, the Company's
net income for the three months ended 9/30/97 and 9/30/96 would
have been $593,000, or $0.06 per share, and $483,000, or $0.05 per
share, respectively.  For the nine months ended 9/30/97 and 9/30/96,
net income would have been $2,679,000, or $0.28 per share, and
$1,446,000, or $0.15 per share respectively.

                            Balance Sheet
                            (in thousands)

                              As of        As of     As of
                             9/30/97       6/30/97     12/30/97
                           (unaudited)   (unaudited) (audited)

Cash, Investments and Other
  Current Assets           $   4,919     $   3,953 $   4,230
Accounts Receivable           11,833        10,369     2,008
Inventories                    3,085         2,641     3,343
Property, Plant & Equipment,
 net                          29,824        26,642    25,068
Deferred Tax Asset, net of
  valuation reserve           11,528        11,739    12,455
Total Assets               $  61,189     $  55,344 $  47,104

Accounts Payable           $  6 ,981     $   5,113 $     373
Notes Payable                  2,347            --        --
Accrued Liabilities            4,163         3,071     1,422
Secured Note Payable          29,514        29,514    29,514
Post Retirement Benefits
 Liability                       806           666       244
Stockholders' Equity          17,378        16,980    15,551
Total  Liabilities and
 Stockholders' Equity      $  61,189     $  55,344 $  47,104

CONTACT: Core Materials Corporation

800 Manor Park Drive

Columbus, Ohio 43228

Kevin L. Barnett, [phone]