Exhibit 99.1 Corporate Headquarters: Dorman Products, Inc. 3400 East Walnut Street Colmar, Pennsylvania 18915 Fax: (215) 997-8577 For Further Information Contact: Visit our Home Page: Mathias J. Barton, CFO www.dormanproducts.com (215) 997-1800 x 5132 E-mail: MBarton@dormanproducts.com Dorman Products, Inc. Reports Sales and Earnings for the Second Quarter Ended July 1, 2006 Colmar, Pennsylvania (August 2, 2006) - Dorman Products, Inc., (NASDAQ:DORM) (formerly R&B, Inc. NASDAQ: RBIN) today reported sales increased 8% to $74.2 million for the second quarter ended July 1, 2006 from $68.6 million in the same period last year. Sales for the six months ended July 1, 2006 increased 10% to $143.1 million from $129.8 million in the same period last year. Revenue growth was primarily the result of increased sales from products introduced in the past two years. Results for the second quarter and six months ended July 1, 2006 include a one-time $3.2 million non-cash write-down for goodwill impairment ($2.9 million or $0.16 per share) and the write off of deferred tax benefits ($0.3 million or $0.02 per share) associated with the Company's Swedish subsidiary (Scan-Tech). The charges, which are not tax deductible, were the result of a review of the Scan-Tech business in response to bad debt charge offs at two large customers and the resulting loss of those customers in the first half of the year. Total bad debt charges for the Swedish business were $0.6 million in the second quarter and $0.8 million for the six months ended July 1, 2006. Net income in the second quarter of 2006 was $0.9 million compared to net income of $4.6 million in the same period last year. Diluted earnings per share in the second quarter of 2006 decreased to $0.05 from $0.25 in the same period last year. Excluding the goodwill impairment and deferred tax write off, net income in the second quarter of 2006 was $4.1 million compared to net income of $4.6 million in the same period last year and fully diluted EPS in the second quarter of 2006 were $0.23 compared to $0.25 in the same period last year. Net income for the first six months of 2006 was $4.3 million compared to net income of $8.1 million in the same period last year. Diluted earnings per share for the first six months of 2006 decreased to $0.24 from $0.44 in the same period last year. Excluding the goodwill impairment and deferred tax write off, net income for the first half of the year was $7.6 million compared to net income of $8.1 million in the same period last year and fully diluted EPS in the second quarter of 2006 were $0.42 compared to $0.44 in the same period last year. Effective January 1, 2006, the Company adopted SFAS No. 123R, "Share-Based Payment" and related interpretations and began expensing the grant date fair value of employee stock options. Prior to January 1, 2006, the Company applied Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations in accounting for its stock option plans. Accordingly, no compensation expense was recognized in net income for employee stock options in the prior year. The Company adopted SFAS No. 123R using the modified prospective transition method and therefore has not restated prior periods. The estimated impact of adopting SFAS No. 123R in 2006, is expected to reduce diluted earnings per share for the year by approximately $0.02. Mr. Richard Berman, Chairman, President and Chief Executive Officer said, "The $3.2 million second quarter charge related to our Scan-Tech business is a non-cash item and will not have a significant impact on our financial position or future results of operations. We remain fully committed to the Scan-Tech business and its customer base despite the recent disappointments. Overall results for the quarter before the goodwill charge and the Scan-Tech bad debt write offs were flat and below expectation despite strong new product sales. We remain confident in and committed to our long term strategy of growing sales through new products, and leveraging operating expenses with this sales growth. Dorman Products, Inc., is a leading supplier of OE Dealer "Exclusive" automotive replacement parts, automotive hardware, brake products, and household hardware to the Automotive Aftermarket and Mass Merchandise markets. Dorman automotive parts and hardware are marketed under the OE Solutions(TM), HELP!(R), AutoGrade(TM), First Stop(TM), Conduct-Tite(R), Pik-A-Nut(R) and Scan-Tech(R) brand names. Forward looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward looking statements which speak only as of the date hereof. Factors that cause actual results to differ materially include, but are not limited to, those factors discussed in the Company's Annual Report on Form 10-K under "Item1A - Risk Factors." DORMAN PRODUCTS, INC. AND SUBSIDIARIES Consolidated Statements of Operations (in thousands, except per-share amounts) 13 Weeks 13 Weeks Second Quarter (unaudited) 7/01/06 Pct. 6/25/05 Pct. Net sales $ 74,187 100.0 $ 68,611 100.0 Cost of goods sold 47,500 64.0 43,668 63.6 Gross profit 26,687 36.0 24,943 36.4 Selling, general and administrative expenses 19,333 26.1 16,925 24.7 Goodwill impairment 2,897 3.9 - - Income from operations 4,457 6.0 8,018 11.7 Interest expense, net 631 0.8 682 1.0 Income before income taxes 3,826 5.2 7,336 10.7 Provision for income taxes 2,910 4.0 2,708 4.0 Net income $ 916 1.2 $ 4,628 6.7 Earnings per share Basic $ 0.05 - $ 0.26 - Diluted $ 0.05 - $ 0.25 - Average shares outstanding Basic 17,730 - 17,927 - Diluted 18,147 - 18,464 - 26 Weeks 26 Weeks Year-to-Date (unaudited) 7/01/06 Pct. 6/25/05 Pct. Net sales $ 143,052 100.0 $ 129,842 100.0 Cost of goods sold 91,676 64.1 82,206 63.3 Gross profit 51,376 35.9 47,636 36.7 Selling, general and administrative expenses 37,992 26.6 33,548 25.8 Goodwill impairment 2,897 2.0 - - Income from operations 10,487 7.3 14,088 10.9 Interest expense, net 1,221 0.8 1,289 1.0 Income before income taxes 9,266 6.5 12,799 9.9 Provision for income taxes 4,930 3.5 4,717 3.7 Net income $ 4,336 3.0 $ 8,082 6.2 Earnings per share Basic $ 0.24 - $ 0.45 - Diluted $ 0.24 - $ 0.44 - Average shares outstanding Basic 17,738 - 17,906 - Diluted 18,153 - 18,457 - DORMAN PRODUCTS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands) 7/1/06 12/31/05 Assets: (unaudited) Cash and cash equivalents $ 4,891 $ 2,944 Accounts receivable 61,597 64,778 Inventories 75,994 75,535 Deferred income taxes 10,033 9,560 Prepaid expenses 1,672 1,545 Total current assets 154,187 154,362 Property & equipment 28,025 27,473 Goodwill 27,000 29,617 Other assets 920 704 Total assets $210,132 $212,156 Liability & Shareholders' Equity: Current portion of long-term debt $ 8,571 $ 8,571 Accounts payable 12,143 14,739 Accrued expenses and other 12,091 15,240 Total current liabilities 32,805 38,550 Long-term debt and other 25,643 27,869 Deferred income taxes 7,768 7,195 Shareholders' equity 143,916 138,542 Total Liabilities and Equity $210,132 $212,156 Selected Cash Flow Information: (in thousands) 13 Weeks (unaudited) 26 Weeks (unaudited) -------------------- -------------------- 7/01/06 6/25/05 7/01/06 6/26/05 Depreciation and amortization $ 1,659 $ 1,448 $ 3,281 $ 2,774 Capital Expenditures $ 2,293 $ 1,953 $ 3,795 $ 4,113 DORMAN PRODUCTS, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Measures (in thousands, except per-share amounts) During the second quarter of 2006 the Company recorded a $3.2 million non-cash write-down for goodwill impairment ($2.9 million) and the write off of deferred tax benefits ($0.3 million) associated with the Company's Swedish operation (Scan-Tech). This press release contains non-GAAP measures which adjust current year net income and fully diluted earnings per share to exclude the impact of these charges. The presentation of these non-GAAP measures is intended to enhance the usefulness of the financial information by providing measures which the Company's management uses internally to evaluate the Company's baseline performance. A reconciliation of net income and fully diluted earnings per share follows: 13 Weeks (unaudited) _________________________________________________ July 1, 2006 June 25, 2005 % Change Net Income, as reported $ 916 $ 4,628 -80.2% Add: Goodwill and deferred tax write offs 3,216 - N/A -------------------------------------------------- Net Income, as adjusted $ 4,132 $ 4,628 -10.7% __________________________________________________ Fully Diluted EPS, as reported $ 0.05 $ 0.25 -80.0% Add: Goodwill and deferred tax write offs 0.18 - N/A -------------------------------------------------- Fully Diluted, as adjusted $ 0.23 $ 0.25 -8.0% __________________________________________________ 26 Weeks (unaudited) _________________________________________________ July 1, 2006 June 25, 2005 % Change Net Income, as reported $ 4,336 $ 8,082 -46.3% Add: Goodwill and deferred tax write offs 3,216 - N/A -------------------------------------------------- Net Income, as adjusted $ 7,552 $ 8,082 -6.6% __________________________________________________ Fully Diluted EPS, as reported $ 0.24 $ 0.44 -45.5% Add: Goodwill and deferred tax write offs 0.18 - N/A -------------------------------------------------- Fully Diluted, as adjusted $ 0.42 $ 0.44 -4.5% __________________________________________________