POMONA, Calif., Oct. 5, 1999 (PRIMEZONE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) issued the following statement regarding the verdict in the class action lawsuit filed against State Farm involving the use of aftermarket collision replacement parts:
"We are disappointed with the outcome of the trial. We believe the evidence presented at the trial supported our longstanding position that aftermarket collision replacement parts provide a cost-effective alternative to original equipment parts when repairing a collision damaged vehicle. We believe aftermarket parts to be functionally equivalent to OEM parts and, when properly installed, return a vehicle to its pre-accident condition."
Charles J. Hogarty, president and chief executive officer, said, "This is truly a sad day for consumers. Anyone who takes the time to look objectively at the evidence will realize that there is not, nor has there ever been, an injured class. One of the basic foundations of our free enterprise system is competition. We are confident that, ultimately, the marketplace will give us the real and true verdict on aftermarket parts. That verdict will be that consumers demand the benefits of competition and that their insurers have an obligation to control costs and the premiums they charge by utilizing competitively produced parts that meet high quality standards."
Hogarty further stated: "It is too early to predict what short-term effect, if any, this verdict may have on Keystone."
Keystone Automotive Industries, Inc. distributes its products in the United States primarily to collision repair shops through its 115 distribution facilities, of which 22 serve as regional hubs. Its product lines consist of automotive body parts, bumpers, auto glass and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. These products comprise more than 22,000 stock keeping units that are sold to more than 25,000 repair shops throughout the nation.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (many of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the impact on the Company of (i) the unfavorable verdict in the State Farm class action suit (ii) the outcome of numerous other class actions pending against other automobile insurance companies and (iii) the response of the insurance companies to the State Farm verdict and the other pending actions. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of other ongoing risks and uncertainties of the Company's business, see the Company's filings with the Securities and Exchange Commission.