News Release

STRATTEC SECURITY CORPORATION Reports Fiscal Third Quarter Results

April 8, 2004 at 8:03 AM EDT

MILWAUKEE, April 8 /PRNewswire-FirstCall/ -- STRATTEC SECURITY CORPORATION (Nasdaq: STRT) today reported operating results for the fiscal third quarter ended March 28, 2004.

Net sales for the Company's three months ended March 28, 2004 were $49.3 million, compared to net sales of $49.9 million for the three months ended March 30, 2003. Net income for the period was $4.4 million, compared to $4.2 million in the prior year quarter. Diluted earnings per share for the period were $1.15 compared to $1.11 in the prior year quarter.

For the nine months ended March 28, 2004, net sales were $143.7 million compared to net sales of $146.5 million in the prior year period. Net income was $12.6 million compared to $12.5 million and diluted earnings per share were $3.30 compared to $3.22 in the prior year.

Sales to STRATTEC's largest customers overall decreased in the current quarter compared to the prior year quarter levels. Sales to General Motors Corporation were $11.9 million compared to $15.0 million due to a combination of pre-programmed price decreases, discontinued models and lower levels of production on certain General Motors vehicles. Sales to Ford Motor Company were $9.3 million compared to $10.6 million due to price reductions and lower production volumes on certain models. Sales to Mitsubishi Motor Manufacturing of America, Inc. were $1.6 million compared to $2.4 million due primarily to declines in their production volumes. Sales to Delphi Corporation were flat during the current quarter at $7.6 million. However, sales to DaimlerChrysler Corporation increased significantly during the current quarter to $11.5 million compared to $8.6 million due to higher production volume and a more favorable vehicle content mix. Increased aftermarket sales substantially offset the decreased sales to the Company's largest customers.

Gross profit margins were 24.7 percent in the current quarter compared to 23.4 percent in the prior year quarter. The higher margins in the current year quarter were a result of the Company's ongoing cost reduction initiatives, a more positive sales mix, along with a favorable Mexican Peso to U.S. Dollar exchange rate. These favorable items were partially offset by higher purchased raw material costs for brass and zinc.

Operating expenses were $5.1 million in the current quarter, approximately the same level as in the prior year quarter.

During the third quarter, 33,700 STRATTEC SECURITY CORPORATION shares were repurchased under the Company's stock repurchase program at a cost of approximately $2.1 million.

STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets mechanical locks, electro-mechanical locks and related access control products for North American Automotive and other Global Automotive Manufacturers.

Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "may," "planned," "potential," "should," "will," and "would." Such forward- looking statements in this release are inherently subject to many uncertainties in the Company's operations and business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company's and its customers' products, competitive and technological developments, customer purchasing actions, foreign currency fluctuations, and costs of operations. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this release. In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission.

                        STRATTEC SECURITY CORPORATION
                            Results of Operations
                   (In Thousands except per share amounts)

                             Third Quarter Ended         Nine Months Ended
                           March 28,    March 30,     March 28,     March 30,
                             2004         2003          2004          2003
                                (Unaudited)                (Unaudited)

    Net Sales              $49,266      $49,926     $143,700     $146,512

    Cost of Goods Sold      37,082       38,255      108,956      112,550

    Gross Profit            12,184       11,671       34,744       33,962

    Engineering, Selling &
     Administrative Expenses 5,132        5,043       15,033       14,225

    Income from Operations   7,052        6,628       19,711       19,737

    Interest Income            112           91          289          274

    Interest Expense             -            -            -            -

    Other Income
     (Expense), Net            (49)          21          237         (227)

                             7,115        6,740       20,237       19,784

    Provision for Income
     Taxes                   2,668        2,493        7,589        7,320


    Net Income              $4,447       $4,247      $12,648     $ 12,464

    Earnings Per Share:
    Basic                    $1.17        $1.13        $3.35        $3.28
    Diluted                  $1.15        $1.11        $3.30        $3.22

    Average Basic
     Shares Outstanding      3,802        3,759        3,775        3,797

    Average Diluted
     Shares Outstanding      3,873        3,822        3,838        3,867


    Other
      Capital Expenditures    $528       $1,327       $3,550       $2,700
      Depreciation &
       Amortization         $1,883       $1,968       $5,842       $5,884


                        STRATTEC SECURITY CORPORATION
                         Condensed Balance Sheet Data
                                (In Thousands)

                                                March 28, 2004   June 29, 2003
                                                    (Unaudited)

    ASSETS
      Current Assets:
       Cash and cash equivalents                     $43,384        $29,902
       Receivables, net                               31,827         31,173
       Inventories                                     8,868          7,884
       Other current assets                           10,335         12,127
         Total Current Assets                         94,414         81,086
      Deferred Income Taxes                            1,973          1,973
      Investment in Joint Venture                      1,363          1,141
      Property, Plant and Equipment, Net              31,462         33,894
                                                    $129,212       $118,094


    LIABILITIES AND SHAREHOLDERS' EQUITY
      Current Liabilities:
        Accounts Payable                             $15,433        $13,990
        Other                                         14,379         15,819
          Total Current Liabilities                   29,812         29,809
      Borrowings Under Revolving Credit Facility           -              -
      Accrued Pension and Post Retirement
       Obligations                                    15,861         19,190
      Shareholders' Equity                           188,002        169,953
        Less: Treasury Stock                        (104,463)( 100,858)
        Total Shareholders' Equity                    83,539         69,095
                                                    $129,212       $118,094

SOURCE STRATTEC SECURITY CORPORATION
CONTACT: Pat Hansen, Vice President and Chief Financial Officer of STRATTEC SECURITY CORPORATION, +1-414-247-3435
Web site: http://www.strattec.com