Aldila Income Jumps 43% due to 16% Sales Increase

Aldila net sales were $17.8 million and net income was $3.3 million, or 61 cents fully diluted per share for the three months ended March 31, 2005. This is a 16.3% increase in sales compared to the 2004 first quarter, when the Company had net sales of $15.3 million and a 43.4% increase in net income, which was $2.3 million, or 46 cents fully diluted per share.

“We are extremely pleased with the strong results achieved in our first quarter of 2005. Driven by the continuing acceptance of our flagship NV(TM) wood shaft line by the golfing world, our sales increased by 16% versus the first quarter of last year. Our net income of $3.3 million or $0.61 fully diluted per share represents one of the best quarters the Company has had in the last 10 years. The average selling price of golf shafts increased by 38% quarter on quarter on a 17% decline in unit sales. The decline in units was comprised of lower priced production units. Gross margin in the 2005 first quarter rose to 42% on a 21% increase in gross profit to $7.4 million as compared to 40% and $6.1 million in the first quarter of 2004. The Company's backlog of sales orders as of March 31, 2005 of $12.2 million was 20% higher than at March 31, 2004,” said Mr. Peter R. Mathewson, Chairman of the Board and CEO.

“Driven by continued strong sales of our flagship NV(TM) shaft line our first quarter 2005 branded sales exceeded our branded sales in the first quarter 2004 by 88%. While the majority of our branded sales have been the NV(TM) wood shaft, our NV(TM) Hybrid is gaining momentum after leading on the PGA Tour for most of this year as the most played hybrid graphite shaft. Our NVS(TM) wood shaft with its brilliant orange-bronze paint has been selected in several OEM club programs in the second half of 2005,” said Mr. Mathewson.

“The trend towards branded graphite shafts is growing, especially among the top tier premium club companies. One major OEM has essentially given up offering a production shaft in their current wood line. We believe this move to branded graphite shafts for woods is inevitable, as we only have to look at the steel shaft market to see virtually all branded shafts,” continued Mr. Mathewson.

“The much-anticipated launch of our NV(TM) iron shafts is set to take place this June. Rich Beem, playing our NV(TM) irons in the BellSouth Classic, finished second but was first in greens in regulation for the tournament, hitting over 90% of the greens. Shafts to support the launch of this exciting new product are currently being manufactured in our Poway, California facility,” said Mr. Mathewson.

“The Aldila NV(TM), NVS(TM), and NV(TM) ProtoPype continue as leading shafts on the PGA, Nationwide and European Tours. Through March of 2005, Aldila NV(TM) Series shafts have been used during victories at the Mercedes Championship, World Golf Championship and the Tour Championship. In addition, Aldila has begun testing the new 'Cinnamon Shaft' on Tour with very good success. The NV(TM) Hybrid and NVS(TM) Hybrid continue to be the leading hybrid shafts on the PGA and Nationwide Tours,” said Mr. Mathewson.

“Composite prepreg sales to third parties increased 51% versus the first quarter last year as interest in our products continues to grow. We are excited about the continual growth in our third party prepreg sales and have committed to support this growing business and be ready to seize opportunities as they appear,” Mr. Mathewson said.

“Our hockey business has begun the year on a sluggish note, much as it did last year. We anticipate a ramp up of activity as we progress further into the year,” said Mr. Mathewson.

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

                                                    Three months ended
                                                         March 31,
                                                      2005       2004
                                                    --------   --------

NET SALES                                           $ 17,808   $ 15,298
COST OF SALES                                         10,373      9,174
                                                    --------   --------
          Gross profit                                 7,435      6,124
                                                    --------   --------

SELLING, GENERAL AND ADMINISTRATIVE                    2,322      2,435
                                                    --------   --------
          Operating income                             5,113      3,689
                                                    --------   --------
OTHER EXPENSE (INCOME):
          Other, net                                     (72)        (3)
          Equity in earnings of joint venture            (68)       (99)
                                                    --------   --------

INCOME BEFORE INCOME TAXES                             5,253      3,791
PROVISION FOR INCOME TAXES                             1,944      1,517
                                                    --------   --------

NET INCOME                                          $  3,309   $  2,274
                                                    ========   ========

NET INCOME PER COMMON SHARE                         $   0.64   $   0.47
                                                    ========   ========

NET INCOME PER COMMON SHARE,
 ASSUMING DILUTION                                  $   0.61   $   0.46
                                                    ========   ========

WEIGHTED AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING                                    5,142      4,876
                                                    ========   ========

WEIGHTED AVERAGE NUMBER OF COMMON
 AND COMMON EQUIVALENT SHARES                          5,437      4,988
                                                    ========   ========