T.J.T., Inc. Reports Fourth Quarter Results.

Business Editors

EMMETT, Idaho--(BUSINESS WIRE)--Nov. 27, 2002

T.J.T., Inc. (OTCBB:AXLE), a recycler of axles and tires and wholesale distributor of O.E.M. parts and aftermarket material to the manufactured housing industry, today reported net income of $39,000, or $0.01 per share, for the fourth quarter ending Sept. 30, 2002.

Sales in the quarter increased 2 percent to $5.8 million from $5.4 million in the same year ago period. Despite the slight sales gain, gross profit of $1.2 million declined $204,000, or 4 percent, from the 2001 fourth quarter, due to higher cost of raw axles and tires and lower overall selling prices as a result of increased competition. Net income for the quarter decreased from $153,000, or $0.03 per share, in the comparable year ago quarter.

"The manufactured housing markets remains sluggish and the result is continued price pressure from our competitive markets," said Terrence Sheldon, president and chief executive officer of TJT.

As an offset to the pressure on gross margins, the company reduced selling and general administrative expenses slightly in the fourth quarter, despite an increase of $58,000 to the allowance for doubtful accounts. The allowance was due, in part, to the recent chapter 11 bankruptcy filed by a major T.J.T. customer, Oakwood Homes.

"Oakwood Homes remains a major customer of TJT, Inc.," Sheldon pointed out. "We are continuing to sell axles and tires to Oakwood Homes and conducting business as usual."