EX. 99.3

                       [COASTCAST CORPORATION LETTERHEAD]


                                 _________, 2000


Dear Coastcast Corporation Shareholder:

     I am writing to inform you of important actions recently taken by your
Board of Directors.

     Over the past few years, Coastcast Corporation has accumulated a
significant amount of cash that has not been reserved for any specific
business purpose.  The Board of Directors discussed whether these funds
should be used to repurchase shares of Coastcast Corporation stock in the
market, among other things, or whether there might be some other use of the
funds that would be of greater benefit to Coastcast Corporation's
stockholders. After careful consideration, the Board of Directors determined
that declaring an extraordinary cash dividend and distributing a large
portion of the excess cash would be in the best interest of Coastcast
Corporation's stockholders, and would still leave the company with adequate
cash reserves to satisfy its business needs and to accomplish its current
goals for the reasonably foreseeable future.

     Consequently, at a meeting of the Board on October 27, 2000, the Board
approved a special dividend of $5.00 per share to be paid on January 9, 2001
to stockholders of record on December 19, 2000. In connection with the $5.00
per share special dividend, Coastcast Corporation has been advised by the New
York Stock Exchange that the shares will not trade ex-dividend until January
10, 2001, the day after the distribution date. THEREFORE, YOU SHOULD CONSULT
YOUR BROKER REGARDING THE CONSEQUENCES OF SELLING YOUR SHARES PRIOR TO
JANUARY 10, 2001.

     At the October 27 meeting, the Board also approved the adoption of a new
dividend policy pursuant to which Coastcast will distribute excess cash to
stockholders in regular quarterly dividends. The amount of dividends will
depend upon results of operations and the needs of the business. Currently it
is expected that the first quarterly dividend will be paid in May 2001 and
that the initial quarterly dividend rate will be $0.26 per share.

     At the same meeting, the Board of Directors also adopted a Shareholder
Rights Plan intended to strengthen the Board's ability to act on behalf of
stockholders in connection with any potential takeover. A summary of the
Shareholder Rights Plan is enclosed for your information. NO ACTION ON YOUR
PART IS REQUIRED AT THIS TIME. YOU WILL BE NOTIFIED IF THE RIGHTS ARE EVER
TRIGGERED AND BECOME EXERCISABLE.

     The Stockholder Rights Plan is similar to other plans which have been
adopted and are in effect at approximately 2400 other United States
corporations. We believe they have shown their value in helping to maximize
stockholder values.

     We appreciate your continuing support.



                                      Sincerely,



                                      HANS H. BUEHLER

                                      Chief Executive Officer


Enclosure

                                       1