EVANSVILLE, IN — United Components, Inc. announced revenues of $238.3 million for the fourth quarter ending December 31, 2004. The company said revenue increased 4.2 percent over the year-ago quarter, with increases in all market channels except the original equipment service channel (OES). Net income for the quarter was $2.8 million. For the fourth quarter of 2003, net income was $1.8 million.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, as adjusted pursuant to the company’s credit agreement for its senior credit facilities, was $30.2 million for the fourth quarter, compared with $30.9 million for the year-ago quarter.

“We saw another solid year of revenue growth in 2004 and continued to generate cash and reduce our debt,” said Bruce Zorich, CEO of UCI. “However, in the fourth quarter, our cost reduction initiatives did not generate sufficient savings to offset higher steel and other costs. We remain focused on these initiatives, which are expected to increase our profitability as we move through 2005.”

For the full year 2004, revenue was $1,026.7 million, an increase of 7 percent over the prior year. Net income was $30.8 million and $13 million, for the year 2004 and 2003, respectively. EBITDA, as adjusted pursuant to the company’s credit agreement for its senior credit facilities, was $138.5 million for 2004 and $125.4 million for 2003.

UCI ended the quarter with $11.3 million in cash. In December, the company voluntarily prepaid $25 million of its senior credit facility borrowings. From the June 20, 2003, acquisition date to the end of 2004, UCI has used cash flow from operations to reduce debt, net of cash, from $569 to $447 million. The company said cash flow has come from reductions in working capital, as well as operating profits.

For more information about United Components, go to: www.champlabs.com.

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