Coast Distribution System Opens New Distribution Center

The Coast Distribution System, Inc. (Amex: CRV) has opened a new distribution center in Visalia, Calif. to better service the company's overseas sourcing operation and its regional warehouses and distribution centers across America and Canada.

Coast Distribution, one of North America's largest suppliers of aftermarket replacement parts, accessories and supplies for the recreational vehicle and marine industries, said the 190,000-square-foot facility is nearly twice the size of the former distribution center in Visalia that it replaced. The Company needed the added space to better accommodate an increase in volume of proprietary products sourced overseas.

"Our prior distribution center was nearing capacity due to increased demand of our products and the increased role of our sourced, proprietary products," said Thomas R. McGuire, chairman and CEO of Coast Distribution. "As mentioned previously, this move will result in increased operating costs and reduced gross margins in the short-term. However, we also expect this move to increase the volume of proprietary products we can source overseas, and as a result, help us better serve our customers and increase our profitability over the long-term."

As part of the move, the Company will retain an option to expand the facility within the existing structure at a future date. Coast Distribution currently supplies customers with more than 15,000 products from 600 vendors, and sources more than 20 proprietary brands of products from overseas.

About The Coast Distribution System
The Coast Distribution System, Inc. (http://www.coastdistribution.com) is a leading supplier of parts, accessories and supplies for recreational vehicles (RVs) and pleasure boats in the U.S. and Canada. Coast supplies its products to its 15,000 customers through 17 distribution centers throughout the U.S. and Canada. Coast is publicly traded on the American Stock Exchange under the ticker symbol CRV.