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Aldila Reports Results

09 February 2001

For the year ended Dec. 31, 2000, net sales increased 24% to $55.9 million. Net income was $3.2 million, including $0.3 million after tax recovery of previous period charges and tax benefit items of $0.7 million. In 1999, the company reported net sales of $45.1 million and a net loss of $2.1 million, or a $0.14 loss per share including a $0.03 after-tax plant consolidation charge. "2000 was a solid year for Aldila's golf shaft business with four successive profitable quarters. Shaft sales increased 44% over 1999 and total shaft unit shipments increased 46% which set an all-time record. Premium and value shaft shipments increased 58% and 33%, respectively, over 1999, resulting in a modest decline in average selling prices from 1999 levels of only 2%," said Peter R. Mathewson, chairman of the board and chief executive officer. "Aldila's prepreg operation set a company production record in 2000 with a 59% increase in pounds of prepreg produced as compared to 1999, which supplied virtually all the prepreg requirements for our golf shafts," Mathewson continued. "At our joint venture operation in Evanston, Wyoming, carbon fiber production increased 40% in 2000, compared to the previous year." "In 2000 we accomplished our long-term goal of qualifying Aldila's facilities in Mexico with the majority of our OEM customers for the manufacture of their premium shafts. This allows us to compete against our U.S.-based competitors on a lower cost basis from a close proximity," Mathewson continued. "A rising level of interest in our China operation for production of premium shaft lines bodes well for the future. Delivery of value shafts in China to nearby club assemblers increased significantly in 2000, and all indications are this activity will expand to include Premium shafts," Mathewson said. "Our operation has made good progress in assuming expanded responsibilities in the areas of customer service, quality, credit issues and coordination of shipping schedules directly with local assemblers." "Following several months of development work, we have begun manufacturing a complete line of composite hockey sticks for Mission Hockey," Mathewson continued. "Mission Hockey increased their initial order following strong interest in their product line at two recent hockey trade shows. Although we don't expect these sales to impact total sales in the short term, the similarities in production methods and raw materials for our golf shafts make hockey sticks a good product fit." Aldila is the golf industry's leading manufacturer of graphite golf shafts used in clubs assembled and marketed throughout the world by major golf club companies, component distributors and custom clubmakers. Aldila manufactures composite prepreg material for its golf shaft business and external sales, and through its ownership interest in Carbon Fiber Technology LLC, externally manufactures carbon fiber for internal use.