National Press Release

EXETER, Pa., March 30 /PRNewswire/ -- Keystone Automotive Operations, Inc., a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, today announced financial results for the fourth quarter and 2008 fiscal year ended January 3, 2009. Highlights include:

    --  For the fiscal year ended January 3, 2009, sales were $566.3 million, a
        decrease of $48.6 million, or 7.9%, compared to $614.9 million in the
        prior fiscal year.  The decrease in sales was driven by a combination of
        factors, including a decrease in consumer spending on discretionary
        items due to general economic uncertainty, a year-over-year decline in
        truck and SUV sales and the decline in available consumer credit in the
        marketplace.

    --  Gross profit for fiscal year 2008 was $176.5 million, a decrease of
        $11.2 million, or 5.9%, from the prior fiscal year due to lower net
        sales offset slightly by higher selling margins.  Gross margin increased
        to 31.2% from 30.5% in the prior fiscal year.

    --  Operating loss for the 2008 fiscal year was $210.6 million, compared to
        $10.0 million income from operations in the prior year period.  The
        $220.6 million decrease was driven primarily by a $209.2 million
        increase in non-cash goodwill impairment charges and by the decrease in
        gross profit.  Excluding these non-cash goodwill impairment charges from
        both years, the 2008 fiscal year operating income would have been $8.4
        million compared to $19.8 million in the prior year period.

    --  The Company recorded a net loss of $206.0 million for the fiscal year
        ended January 3, 2009, versus a net loss of $27.1 million in the prior
        fiscal year.  Partially offsetting the decrease of $220.6 million in
        operating income cited above was a $3.9 million decrease in net interest
        expense and a $31.6 million increase in income tax benefits.  The 2007
        full year results were further impacted by a $6.1 million write-off of
        deferred financing costs associated with the Company's refinancing
        in January 2007.

    --  For the 2008 fiscal year, net cash provided by operating activities
        declined to $3.4 million compared to $21.3 million dollars for the prior
        fiscal year.  The net decrease in cash from operations year-over-year
        was driven by a decrease in net income after adjustment for non-cash
        charges and a decrease in the reduction for net assets employed in the
        business.

    --  Cash on hand increased by $17.4 million to $27.3 million compared to the
        fiscal 2007 year end balance of $9.9 million.  At January 3, 2009 and
        subsequently at February 28, 2009, the company had $66.0 million and
        $81.9 million, respectively, in cash and borrowing capacity under its
        revolving credit facility.

    --  During the second half of fiscal year 2008, the company focused on
        reducing working capital requirements.  As a result, accounts receivable
        and inventory were reduced by $11.5 million and $18.4 million
        respectively over prior year levels.  During this difficult economic
        environment, the company continued to monitor and effectively mitigate
        credit risk exposure of its receivables portfolio and also decreased its
        slower-moving inventory.

2009 Fiscal Year Update

Keystone Automotive Operations has implemented a number of cost reduction initiatives since the beginning of fiscal year 2009, including closing three call centers and one retail store, and reducing its workforce. The estimated annual savings from these initiatives is expected to be approximately $11.0 million.

"With consumers short of discretionary dollars and new car and SUV sales continuing to decline, our business continues to face significant challenges," said Ed Orzetti, Chief Executive Officer of Keystone Automotive Operations. "We have taken a number of actions to deal with the current and near-term environment. In October 2008, we purchased the operating assets of Arrow Speed Warehouse. The incremental revenue from Arrow Speed mitigated what would otherwise have been a more significant decrease in sales as a result of current economic conditions. Thanks to a more disciplined pricing management approach, we have managed to maintain our gross margins during 2008. We are focused on doing the right things for the business while managing our expenses appropriately so that we remain well-positioned in the marketplace, and poised for a rebound when market conditions improve."

    Summary Financials

    Summary Income Statement
    ($ in millions)

                 Three Months     Three Months   Fiscal Year   Fiscal Year
                     Ended            Ended         Ended         Ended
                 December 29,      January 3,    December 29,   January 3,
                     2007            2009            2007         2009
                  (Unaudited)    (Unaudited)
    Net sales        $141.7         $120.3         $614.9        $566.3
    Gross profit       43.7           35.8          187.7         176.5
    Operating income   (8.2)        (225.7)          10.0        (210.6)
    Net income
     (loss)          $(16.4)       $(199.0)        $(27.1)      $(206.0)



    Summary Balance Sheet
    ($ in millions)

                                As of December 29, 2007  As of January 3, 2009

    Assets
      Current assets                            $207.1                 $187.0
      Property, plant and equipment, net          50.0                   47.4
      Other non-current assets                   417.7                  182.8
      Total Assets                              $674.8                 $417.2

    Liabilities and Stockholder's Equity
      Current liabilities                        $83.0                  $46.9
      Long-term debt                             365.2                  391.5
      Other long-term liabilities                 63.1                   20.4
      Total Liabilities                          511.3                  458.8
      Stockholder's Equity                       163.5                  (41.6)
    Total Liabilities and Stockholder's Equity  $674.8                 $417.2

Conference Call Details

Keystone will hold a live conference call to discuss financial results for the fourth quarter and fiscal year ended January 3, 2009, on April 2, 2009, at 11:00 a.m. EDT. To participate, please dial in to the conference call at (866) 379-5047, access code 93097933. The conference call topic is Keystone Automotive Operations, Inc. Fiscal Year 2009 Earnings Conference Call.

A telephone replay of the call will be available from 12:30 p.m. EDT on April 2, 2009 until 11:59 p.m. EDT on April 9, 2009. The replay of the call may be accessed by dialing (800) 642-1687, access code 93097933.

About Keystone Automotive Operations

Keystone Automotive Operations, Inc. (www.ekeystone.com) is a leading distributor and marketer of automotive aftermarket accessories and equipment in North America, providing product lines to approximately 17,000 wholesale customers. The Company operates four distribution centers and 21 non-inventory stocking cross-docks in the U.S. and Canada, as well as a fleet of over 330 trucks that provide multi-day per week delivery and returns covering 47 states and parts of Canada.

Safe Harbor for Forward-Looking and Cautionary Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. As such, final results could differ from estimates or expectations due to risks and uncertainties, including but not limited to: incomplete or preliminary information; changes in government regulations and policies; continued acceptance of the Company's products and services in the marketplace; competitive factors; technological changes; the Company's dependence upon third-party suppliers; and other risks. For any of these factors, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended.

SOURCE Keystone Automotive Operations, Inc.