Aldila Posts Q3 Profit on 24% Sales Gain

Aldila, Inc. announced third quarter net sales increased 24% to $8.0 million, compared to net sales of $6.5 million for the 2002 third quarter. Net income was $189,000 ($.04 per share) for Q3 compared to a net loss of $699,000 ($0.14 loss per share) for the third quarter of 2002.

For the nine-months ended September 30, 2003, net sales were $28.0 million
compared to $28.4 million for the nine-month period ended September 30,
2002, a decrease of 1.2%. The company reported a net loss of $451,000
($.09 loss per share) for the nine-month period ended September 30, 2003,
compared to a net loss of $1.1 million ($.22 loss per share) for the
nine-month period ended September 30, 2002.

In the quarter ending September 30, 2003, the company's cash and cash
equivalents balance increased $1.1 million, resulting in an ending balance
of $6.0 million, and we currently have no outstanding borrowings.

“We are encouraged with the progress we are making in our business which is
reflected in our positive results in the historically weak third quarter.
Net consolidated sales in the third quarter increased 24%, and the average
selling price of golf shaft units sold increased 20.9% over the 2002 third
quarter. Value golf shaft units sold in the 2003 third quarter, which have
the lowest gross margins, declined 45% and were somewhat offset by a 12%
increase in premium golf shaft unit sales for a net 5% decline in total
golf shaft units sold from the 2002 third quarter. Our cash balance
continued to grow and we generated positive earnings for the first time in
10 quarters. The company continues to consolidate its operations, which
are expected to result in further cost savings in 2004,” said Peter R.
Mathewson, Chairman and Chief Executive Officer.

“Our new NV™ shaft continues to generate momentum in both segments of
the premium branded market. Virtually every major golf club OEM will offer
NV™ as a custom upgrade option for 2004 and several major companies have
chosen to offer it for stock custom programs which have a strong retail
presence. On the distribution side of the business, NV™ has a very
strong position at all of our major distributors and we believe the stage
is set for brisk sales in 2004. New NV™ offerings for 2004 include a 55
gram wood shaft and a Hybrid iron shaft, which makes the NV™ the most
complete range of high performance premium graphite shafts available on the
market today,” Mr. Mathewson said.

Worldwide professional tour use of the NV™ continues to grow. Since its
introduction in February, NV™ has become a leading shaft model on the
PGA Tour and has dominated the Nationwide Tour counts. Numerous tour
victories, including the 2003 British Open, have positioned NV™ near the
top of this highly competitive market.

Our hockey business with Mission Hockey continues to grow with an expanding
product line and further growth in the composite hockey stick market as
that market continues to convert from traditional wood sticks.

Negotiations continue regarding Carbon Fiber Technology (“CFT”) since our
announcement of September 17, 2003 in which the company stated that CFT, a
joint venture limited liability company owned by it and its joint venture
partner, had signed a non-binding letter of interest to sell selected
assets, including property, plant, equipment, and know-how to an
independent third party at a price to be negotiated.

The company repurchased 20,199 shares of its common stock during the third
quarter of 2003 at prices ranging between $1.71 and $2.07.

                      ALDILA, INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS  - UNAUDITED
                  (In thousands, except per share data)

                                   Three months ended   Nine months ended
                                      September 30,        September 30,
                                      -------------        -------------
                                    2003        2002    2003         2002
                                    ----        ----    ----         ----

NET SALES                        $  7,995    $  6,450  $ 28,022   $ 28,375
COST OF SALES                       6,102       5,968    22,877     24,594
                                 --------    --------  --------   --------
          Gross profit              1,893         482     5,145      3,781
                                 --------    --------  --------   --------

SELLING, GENERAL AND
 ADMINISTRATIVE                     1,741       1,897     5,643      5,650
                                 --------    --------  --------   --------
          Operating income (loss)     152      (1,415)     (498)    (1,869)
                                 --------    --------  --------   --------

OTHER EXPENSE (INCOME):
          Interest expense              2          17        19         85
          Other, net                   (2)          9        43         45
          Equity in earnings of
           joint venture              (37)        (52)     (109)      (192)
                                 --------    --------  --------   --------

INCOME (LOSS) BEFORE INCOME TAXES     189      (1,389)     (451)    (1,807)
BENEFIT FOR INCOME TAXES                -        (690)        -       (740)
                                 --------    --------  --------   --------

NET INCOME (LOSS)                $    189    $   (699) $   (451)  $ (1,067)
                                 ========    ========  ========   ========


NET INCOME (LOSS) PER COMMON
 SHARE                           $   0.04    $  (0.14) $  (0.09)  $  (0.22)
                                 ========    ========  ========   ========

NET INCOME (LOSS) PER
 COMMON SHARE, ASSUMING
 DILUTION                        $   0.04    $  (0.14) $  (0.09)  $  (0.22)