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Riviera Tool Reports Year-End Loss GRAND RAPIDS, Mich., Nov. 30 /PRNewswire-FirstCall/ -- Riviera Tool Co. (AMEX:RTC) today announced anticipated financial results for the fourth quarter and year ended August 31, 2004. The Grand Rapids, Michigan-based designer and manufacturer of stamping die systems said it has filed for an extension on the filing of its Form 10-K for the 2004 fiscal year. Riviera anticipates reporting a net loss, before any potential asset impairment charges, of between $7.2 and $7.95 million, or $1.91 and $2.11 per diluted share, on net sales of approximately $24.6 million for fiscal year ended August 31, 2004, compared with net income of $900,000, or $0.27 per diluted share, on net sales of $34.1 million for the year ended August 31, 2003. For the fourth quarter, Riviera anticipates reporting a net loss, before any potential asset impairment charges, of between $8.0 and $8.7 million, or $2.12 and $2.31 per diluted share, compared with net income of $466,000, or $0.14 per diluted share for the same period in fiscal 2003. During the fourth quarter, the Company completed two significant tooling programs for the Mercedes-Benz M Class sports utility vehicle and a new "crossover" vehicle. In completing these programs, the Company incurred significant unanticipated difficulties, which had a severe negative effect on revenue and related earnings. Riviera incurred significant, unanticipated costs as a result of customer changes in material specifications and engineering changes while still maintaining customer delivery dates. This resulted in the Company re-cutting certain dies up to eight times in order to produce a part within specifications and resulted in the Company incurring approximately $4.0 million in unanticipated additional outsourcing costs and $3.5 million in additional labor costs. Despite the higher costs in the fourth quarter of fiscal 2004, the two- year contract is expected to yield future sales related to service, repairs and changes on the parts after they are in production. "Our fourth-quarter financial results were the result of our efforts to exceed the high expectations of our customer on this very important contract," said Ken Rieth, president and chief executive officer. "These costs, combined with the expected softness in the tooling market, contributed to the net loss and put significant pressure on our margins." Rieth said: "While our bottom-line results were disappointing, we are pleased to have completed this important job for Mercedes and are confident that our work for them will yield additional, profitable opportunities in both the short- and long-term -- for Mercedes and other customers. The complexity of these jobs has allowed us to develop additional competencies and solutions that we will be leveraging on future work." "We continue to see strong quoting activity for new models and believe there is pent-up demand," Rieth said. "Still, we are cautious about the timing of these new contract releases and will remain focused on controlling costs and managing cash flow." About Riviera Tool Riviera Tool Co. (http://www.rivieratool.com/ ) designs, develops and manufactures large-scale, custom metal stamping die systems used in the high- speed production of sheet metal parts and assemblies for the global automotive industry. A majority of Riviera's sales are to Mercedes-Benz, BMW, Nissan, DaimlerChrysler, General Motors Corp., Ford Motor Co. and their Tier One suppliers. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities laws. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially, including but not limited to economic, competitive, governmental and technological factors. DATASOURCE: Riviera Tool Co. CONTACT: Kenneth K. Rieth, CEO of Riviera Tool Company, +1-616-698-2100; or Investor inquiries: Jeff Lambert of Lambert, Edwards & Associates, Inc., +1-616-233-0500, for Riviera Tool Company Web site: http://www.rivieratool.com/

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