Coast Distribution System Declares Cash Dividend for Third Quarter 2008

MORGAN HILL, Calif., Sept. 2 /PRNewswire-FirstCall/ -- The Coast
Distribution System, Inc. (Amex: CRV) announced its Board of Directors
declared its 2008 third quarter dividend of $0.03 per share, to be paid on
Sept. 30, 2008 to shareholders of record as of Sept. 16, 2008.
"We continue to anticipate that the second half of 2008 may be a difficult
period in our markets based on the prevailing conditions in the recreational
vehicle and marine industries," said James Musbach, President and CEO of
Coast. "We also are continuing the careful management of our assets in these
turbulent times, including our cash in particular. That being said, we still
believe that Coast's dividends reflect the Board's confidence in our long-term
growth, and our commitment to enhance stockholder value."
This dividend marks the fifteenth consecutive quarterly cash dividend
since Coast's Board of Directors established the dividend policy in Feb. 2005.
On June 27, 2008, Coast paid its second quarter 2008 dividend of $0.03 per
share.
About The Coast Distribution System
The Coast Distribution System, Inc. (www.coastdistribution.com) is one of
North American's largest wholesale aftermarket suppliers of replacement parts,
supplies and accessories for the recreational vehicle (RV), pleasure boat and
outdoor recreation markets. Coast supplies more than 14,000 products from 500
manufacturers through 17 distribution centers located in the U.S. and Canada.
Most of Coast's customers consist of independently owned RV and marine
dealers, supply stores and service centers. Coast is a publicly traded
company on the American Stock Exchange under the ticker symbol CRV.
Cautionary Statements Regarding Forward-Looking Information
The declaration of cash dividends in the future, pursuant to the Company's
dividend policy, is subject to final determination each quarter by the Board
of Directors based on a number of factors, including the Company's financial
performance and its available cash resources. Also, it could become necessary
for the Company to obtain the consent of its lender under its secured bank
loan agreement in order to pay cash dividends in the future. For these
reasons, as well as others, there can be no assurance that dividends in the
future will be equal or similar to the amount described in this press release
or that the Board of Directors will not decide to suspend or discontinue the
payment of cash dividends in the future.
Statements in this news release regarding our expectations and beliefs
about our future financial performance and trends in our markets are
"forward-looking statements" as defined in the Private Securities Litigations
Reform Act of 1995. Forward-looking statements often include the words
"believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or
words of similar meaning, or future or conditional verbs such as "will,"
"would," "should," "could," or "may."
The forward-looking statements in this news release regarding our future
financial performance are based on current information and, because our
business is subject to a number of risks and uncertainties, actual operating
results in the future may differ significantly from the future financial
performance expected at the current time. Those risks and uncertainties may
include, among others: Loss of confidence among consumers regarding economic
conditions, which could adversely affect their willingness to purchase and use
their RVs and boats and which, in turn, would affect their purchases of the
products we sell; increases in interest rates and tightening in credit
underwriting standards by banks and other lenders which affect the
availability and affordability of financing that consumers need to purchase
and accessorize RVs and boats; increases in the costs and shortages in the
supply of gasoline which increase the costs of using, and the willingness and
ability of consumers to use, RVs and boats; and unusually severe or extended
winter weather conditions, which can reduce the usage of RVs and boats for
periods extending beyond the ordinary winter months or to regions that
ordinarily encounter milder winter weather conditions; possible increases in
price competition within our markets that could reduce our margins and,
therefore, our earnings; our practice of obtaining a number of our products
from single manufacturing sources, which could lead to shortages in the supply
of products to us in the event any single source supplier were to encounter
production or other problems; and possible changes in supply relationships in
our markets, which could lead to increased competition or to reductions in the
number of products we are able to offer our customers; and uncertainties as to
whether or not we will succeed in our efforts to diversify into other markets,
such as the outdoor power products, where we face considerable competition
from larger and better known companies that have greater marketing and
financial resources. Certain of these risks and uncertainties, in addition to
other risks, are more fully described in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2007, as filed with the Securities
and Exchange Commission, and readers of this news release are urged to review
the discussion of those risks and uncertainties that is contained in that
Report.
Due to these and other possible uncertainties and risks, readers are
cautioned not to place undue reliance on the forward-looking statements
contained in this news release, which speak only as of today's date, or to
make predictions based solely on historical financial performance. We also
disclaim any obligations to update forward-looking statements contained in
this news release or in the above referenced 2007 Form 10-K Annual Report,
whether as a result of new information, future events or otherwise.
SOURCE The Coast Distribution System, Inc.

Sandra Knell, CFO, Coast Distribution System, Inc., +1-408-782-6686,
sknell@coastdist.com, or Ryan McGrath, Lambert, Edwards & Associates, Inc.,
+1-616-233-0500, mail@lambert-edwards.com