ROADMASTER INDUSTRIES, INC. ANNOUNCES PRELIMINARY FIRST QUARTER RESULTS.

ATLANTA, Ga.--(BUSINESS WIRE)--May 2, 1995--Roadmaster Industries, Inc. (NYSE Symbol: RDM) today announced preliminary results for the first quarter ended April 1, 1995.

Roadmaster announced that revenues increased 79% to approximately $175.5 million reflecting strong performance from the Company's core Roadmaster, Vitamaster, and Flexible Flyer brands as well as from significant contributions from the Sporting Goods Subsidiaries that were recently acquired from the Actava Group. The revenue increases also included an increase in bicycle sales during a quarter in which bicycle sales, in general, showed signs of softening at the retail level. The Company's operating profits are also expected to show double-digit increases over the first quarter of 1994.

Particularly noteworthy, revenue for Roadmaster's camping subsidiary, Nelson/Weather-Rite, increased 34% during the period. Approximately half of that increase relates to existing camping product sales, and the remainder relates to the newly acquired sleeping bag lines of MZH, Inc. The Company noted that the MZH, Inc. acquisition, which closed effective March 1, 1995, is expected to complement its camping products and provide significant growth in profitability going forward.

Consistent with expectations, the Company further indicated that first quarter results would show a loss of approximately $1.5 million, or $0.03 per share, due to the factors anticipated in a March 1, 1995 announcement. These factors include market pricing pressures in bicycle and fitness products, high material costs related to cardboard, plastics and steel, and elevated interest expenses.

Nonetheless, management has set in place a number of measures that should enhance third and fourth quarter operating and net margins. These measures include price increases to be fully implemented by July 1, 1995, the realignment of production to more efficiently utilize the Company's base of manufacturing facilities, and a securitization of accounts receivable transaction, scheduled to close this month, that will reduce the interest expense.

Henry Fong, Chief Executive Officer of Roadmaster noted, "The first quarter revenue performance exceeds internal plans and signals that the Company's strategy of combining strong brand names with a focus on serving our mass merchant distribution channel is receiving broad market acceptance. We are also pleased with the Company's first major infomercial, the "Body by Jake Ab and Back Plus" machine. This new product has consistently been a market leader in its category and will be the first of many exciting products to be introduced by Roadmaster via infomercial."

Roadmaster is one of the largest manufacturers of bicycles and is a leading producer of fitness equipment, toys, team sports and camping equipment. The trademarks or brand names under which Roadmaster sells its products include Roadmaster, Flexible Flyer, Vitamaster, MacGregor, Weather-Rite, American Camper, Remington, DP, Hutch Reach, Forster, and the newly acquired sleeping bag lines of Cloud Nine, American Trails, and Expedition Trails. -0-

The information contained herein was obtained from the Management of ROADMASTER INDUSTRIES, INC. and other sources deemed to be reliable. This does not constitute the solicitation of the purchase or sale of securities. Lippert/Heilshorn & Associates, Inc. is employed by the Company as its investor relations firm.

CONTACT: Lippert/Heilshorn & Associates

Andrew Jeske, ext. 109

Richard Foote, ext. 119

at 212/838-3777

or

ROADMASTER INDUSTRIES, INC.

Jeff Hinton, 404/586-9000