MILWAUKEE, Jul 29, 2003 /PRNewswire-FirstCall via COMTEX/ -- STRATTEC SECURITY CORPORATION (Nasdaq: STRT) today reported operating results for the fiscal year and fourth quarter ended June 29, 2003.

For the year ended June 29, 2003, net sales were $196.3 million, compared to net sales of $207.3 million in the prior year period. Net income was $16.4 million compared to $15.6 million and diluted earnings per share were $4.24 compared to $3.73.

Net sales for the fourth quarter ended June 29, 2003 were $50.3 million, compared to net sales of $57.0 million for the fourth quarter ended June 30, 2002. Net income was $3.9 million, compared to $4.7 million in the prior year quarter. Diluted earnings per share for the fourth quarter were $1.02 compared to $1.11 in the prior year quarter.

Sales to STRATTEC's largest customers decreased in the current quarter compared to the prior year quarter levels, with General Motors Corporation at $15.4 million compared to $17.7 million, Delphi Corporation at $7.1 million compared to 8.2 million, Ford Motor Company at $9.3 million compared to $12.2 million, DaimlerChrysler Corporation at $9.5 million compared to $10.5 million and Mitsubishi Motor Manufacturing of America, Inc. at $2.4 million compared to $2.7 million.

Gross profit margins were 22.7 percent in the current quarter compared to 21.7 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 along with a favorable Mexican Peso to U.S. Dollar exchange rate.

Operating expenses were $5.3 million in the current quarter, compared to $5.0 million in the prior year quarter.

During the fourth quarter, 78,000 STRATTEC SECURITY CORPORATION shares were repurchased under the Company's stock repurchase program at a cost of approximately $4.1 million. For the year ended June 29, 2003, a total of 487,200 shares were repurchased at a cost of approximately $21.9 million.

Harold M. Stratton II, Chairman of the Board and Chief Executive Officer, commented: "We entered our fourth quarter anticipating lower customer production volumes in comparison to the prior year due to the slow down in vehicle retail sales activity which occurred in the early months of this calendar year. The continuation of that vehicle sales trend did result in production volumes declining compared to the prior year quarter, and this, along with the product content changes and pre-programmed price reductions which have been a factor throughout this fiscal year, conspired to reduce both our sales and net income for the quarter. Nevertheless, we finished the fiscal year with solid operating results. The strategic cost reduction activities that helped us achieve these favorable operating results represent a long-term commitment. These activities will continue and should help us meet the challenge of the continued softness in vehicle production that has been widely predicted for the first half of our new fiscal year."

STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets mechanical locks, electro-mechanical locks and related access control products for North American and 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)

                                Fourth Quarter Ended         Years Ended
                                June 29,    June 30,     June 29,    June 30,
                                  2003        2002        2003         2002
                                    (Unaudited)

    Net Sales                   $50,315     $56,966     $196,827     $207,286
    Cost of Goods Sold           38,918      44,612      151,468      163,370
    Gross Profit                 11,397      12,354       45,359       43,916

    Engineering, Selling &
    Administrative Expenses       5,388       5,048       19,613       19,644
    Income from Operations        6,009       7,306       25,746       24,272

    Interest Income                  95         123          369          538
    Interest Expense                ---         ---          ---          ---
    Other Income (Expense), Net      71           7         (156)         (42)
                                  6,175       7,436       25,959       24,768

    Provision for Income Taxes    2,285       2,751        9,605        9,164

    Net Income                  $ 3,890     $ 4,685     $ 16,354     $ 15,604

    Earnings Per Share:
    Basic                       $  1.03     $  1.13     $   4.32     $   3.80
    Diluted                     $  1.02     $  1.11     $   4.24     $   3.73

    Average Basic
      Shares Outstanding          3,760       4,130        3,788        4,109

    Average Diluted
      Shares Outstanding          3,820       4,235        3,855        4,185

    Other
      Capital Expenditures        1,072       1,523        3,772        5,297
      Depreciation &
       Amortization               1,970       2,040        7,854        8,270


                          STRATTEC SECURITY CORPORATION

                           Condensed Balance Sheet Data
                                  (In Thousands)

                                                    June 29,       June 30,
                                                      2003           2002
    ASSETS
      Current Assets:
        Cash and cash equivalents                  $ 29,902       $ 34,956
        Receivables, net                             31,173         27,860
        Inventories                                   7,884          8,242
        Other current assets                         12,127         11,189
          Total Current Assets                       81,086         82,247
      Deferred Income Taxes                           1,973            469
      Investment in Joint Venture                     1,141            393
      Property, Plant and Equipment, Net             33,894         38,531
                                                   $118,094       $121,640


    LIABILITIES AND SHAREHOLDERS' EQUITY
      Current Liabilities:
        Accounts Payable                           $ 13,990       $ 15,291
        Other                                        15,819         16,234
          Total Current Liabilities                  29,809         31,525
      Borrowings Under Revolving Credit Facility        ---            ---
      Accrued Pension and Post Retirement
       Obligations (A)                               19,190         15,448
      Shareholders' Equity                          176,844        156,084
      Accumulated Other Comprehensive Loss           (6,891)        (2,440)
      Less:  Treasury Stock                        (100,858)       (78,977)
          Total Shareholders' Equity                 69,095         74,667
                                                   $118,094       $121,640

    (A)  Includes $6,932,000 of additional minimum pension liability recorded
         during the fourth quarter of 2003.

SOURCE STRATTEC SECURITY CORPORATION

Pat Hansen, Vice President and Chief Financial Officer of
STRATTEC SECURITY CORPORATION, +1-414-247-3435

http://www.strattec.com