[CHICAGO RIVET LOGOS]


To Our Shareholders:

  The comparative results of operations of Chicago Rivet & Machine Co. for the
first quarter of 2002 and 2001 are summarized below.

  Results for the first quarter were mixed. We are pleased to report that net
income for the current quarter improved dramatically compared to the results
posted in the first quarter of 2001. The improvement in net income is primarily
attributable to the cumulative success of a variety of cost control measures
that have been implemented over the past year in response to the prevailing
market conditions. The success of these efforts is readily apparent in
comparisons of the most recent quarter with the year earlier quarter. Margins
were further improved due to lower tooling costs, as well as reductions in
heating costs. These changes resulted in an overall 14% increase in gross profit
compared with the first quarter of 2001. In addition, results for the current
quarter also reflect reductions in selling and administrative expenses and a
$46,000 reduction in net interest expense.

  While there have been reports that the recession has ended, we have yet to see
tangible evidence of a widespread recovery. Revenues from the fastener segment
improved approximately 4% compared to the first quarter of 2001, but the
improvement has been limited to a few customers, rather than a broadly based one
that would indicate a significant change in business prospects. The increase in
fastener segment revenues was more than offset by a 22% decline in revenues
within the assembly equipment segment, where spending continues to be
restrained. Overall, compared to the first quarter of 2001, revenues declined by
1.7% to $10,452,326. The rather disappointing performance with respect to
revenues tempers our enthusiasm over an otherwise strong quarterly performance.

  Our markets remain extremely competitive and our customers continue to press
for price reductions. These conditions are not expected to change in the near
term and will continue to exert pressure on our margins. In response, we plan to
continue emphasizing cost controls and to continue our efforts to solicit new
and profitable business from existing customers as well as from new customers.

                              Respectfully yours,

                          
     John A. Morrissey             John C. Osterman
     John A. Morrissey             John C. Osterman
          Chairman                    President



May 3, 2002

  The foregoing discussion is only intended to provide highlights of operations
for the periods covered. Additional information is contained in our Form 10-Q,
which has been filed with the SEC and is available to shareholders upon request
from the Company, or via the internet through the SEC's EDGAR database. This
discussion contains certain "forward-looking statements" which are inherently
subject to risks and uncertainties that may cause actual events to differ
materially from those discussed herein. Factors which may cause such differences
in events include, among other things, our ability to maintain our relationships
with our significant customers; increases in the prices of, or limitations on
the availability of, our primary raw materials; or a downturn in the automotive
industry, upon which we rely for sales revenue, and which is cyclical and
dependent on, among other things, consumer spending, international economic
conditions and regulations and policies regarding international trade. Many of
these factors are beyond our ability to control or predict. Readers are
cautioned not to place undue reliance on these forward-looking statements. We
undertake no obligation to publish revised forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

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                          CHICAGO RIVET & MACHINE CO.
                 SUMMARY OF CONSOLIDATED RESULTS OF OPERATIONS
                      FOR THE THREE MONTHS ENDED MARCH 31



                                                                 2002          2001
                                                              -----------   -----------
                                                                      
Net sales and lease revenue.................................  $10,452,326   $10,627,831
Income before taxes.........................................      947,116       513,241
Net income..................................................      625,116       339,241
Net income per share........................................          .65           .35
Average shares outstanding..................................      967,132       967,132


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                    (All figures subject to year end audit)