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EXHIBIT 99.1

To Our Shareholders:

      The comparative results of operations of Chicago Rivet & Machine Co. for
the third quarter and first nine months of 2004 and 2003 are summarized below.

      Results for the third quarter of 2004 were positive. Revenue of $9,324,695
for the quarter is approximately $493,000, or 5.6%, higher than that recorded in
the third quarter of 2003. Net income of $601,615 compares quite favorably with
the $5,431 reported in the same period of 2003, when revenues were much lower.
Along with higher revenue, results for the quarter also benefited from
reductions in some manufacturing costs and a refund of certain business taxes.
These factors are discussed in more detail below. On a year to date basis, 2004
revenue of $29,731,215 is approximately $657,000 greater than during the same
period in 2003, while net income for the first three quarters amounted to
$1,278,879, an increase of approximately $587,000.

      For the third quarter of 2004, revenue within the fastener segment totaled
$7,824,144, an improvement of nearly $694,000 compared with the third quarter of
2003. This improvement is due, in part, to a general increase in activity within
our markets compared with the third quarter of 2003. In addition, we continue to
ship product related to new applications to both existing customers and new
customers. Higher volumes are one factor contributing to the improvement in
margins, compared to the third quarter of 2003 when margins were affected by
unusually low volumes. With the exception of indirect labor and related fringe
benefit costs and repair and maintenance expense, both of which were lower on an
absolute basis in 2004, most variable cost components increased by an amount
consistent with the increased volume, while fixed costs were relatively
unchanged. Prices paid for raw materials continued to rise during the third
quarter of 2004. During the quarter, we had some success in passing along these
costs. We also benefited, to some extent, from the higher material costs as we
sold, at higher prices, some inventory that was valued at the lower material
prices that prevailed in the prior quarter. In addition, a portion of these
higher material costs is reflected in higher inventory values at the end of the
third quarter. On a year to date basis, 2004 revenues within the fastener
segment are 4.5% higher than those recorded in the first nine months of 2003. As
in the third quarter, most year to date changes in manufacturing costs are
consistent with the increased level of activity. Indirect labor, related fringe
benefits and repair and maintenance expense have declined year to date, while
higher than normal tooling expenses incurred in the first half of the year, in
connection with the initial production of several new parts, contributed to year
to date tooling expense being significantly higher than that incurred in the
first nine months of 2003.

      The cost of raw material continues to be a serious concern. Global demand
for commodities continues to manifest itself in the form of higher prices and
limited material availability. Our efforts to recover these higher costs have
met considerable resistance. We continue to pursue recovery of these costs, but
our ability to do so may be limited by either competitive or contractual
situations. In certain cases, we may find it advantageous to discontinue
production of parts for which we cannot obtain price relief.

      Revenues within the assembly equipment segment declined by nearly 12%
during the third quarter of 2004 compared to the third quarter of 2003. On a
year to date basis, 2004 revenues trail the first nine months of 2003 by 7%.
During the third quarter, as in the first six months, reductions in labor costs
and depreciation expense helped offset the effects of lower volumes. During the
third quarter, the combined effect of these reductions was sufficient to allow a
slight increase in gross margins for this segment, when compared to the third
quarter of 2003. However, on a year to date basis, the savings realized were not
sufficient to fully offset the impact of lower volumes and 2004 gross margins
are slightly below the amount recorded for the first nine months of 2003.

      During the third quarter, the Company received a refund of Michigan single
business tax amounting to approximately $330,000 as the result of a successful
appeal of the tax calculation for four prior years. This tax has been
traditionally recorded as an element of selling and administrative expense. This
refund is the primary reason that selling and administrative expenses were some
$301,000 lower during the third quarter of 2004 than during the third quarter of
2003. Partially offsetting the benefit of the tax refund were increases in legal
and professional fees. Reductions in salary and depreciation expense were
partially offset by increases in commission and profit sharing expense related
to higher sales and profits recorded during the quarter. On a year to date
basis, these factors contributed to a net reduction in selling and
administrative expense of $354,000.

      Conditions within our markets remain largely unchanged from the prior
quarter. Opportunities to further increase sales are limited by generally weak
demand. This is especially true within the assembly equipment segment, where
conditions have been weak for quite some time, and we have seen very little to
indicate conditions in this segment will improve. Our outlook for the fastener
segment is somewhat more optimistic as sales have shown some improvement and

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demand seems to have improved slightly, as well. We remain concerned about the
cost and availability of raw materials. We continue to negotiate with our
customers to recover these higher costs in the future, but we are concerned
because some customers have resisted our efforts to negotiate price relief. At
some point, we will be unable to accept future orders from these customers
unless we are able to obtain price relief. At this time, it is not possible to
predict the outcome of ongoing negotiations. We continue to actively pursue new
business from both new and existing customers and our efforts continue to meet
with some success, despite the extremely competitive conditions within our
markets.

                               Respectfully yours,

           John A. Morrissey                          John C. Osterman
                Chairman                                  President

November 10, 2004

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; increased global competition; 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.

                           CHICAGO RIVET & MACHINE CO.
                  SUMMARY OF CONSOLIDATED RESULTS OF OPERATIONS
                FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30

<TABLE>
<CAPTION>
                                    THIRD QUARTER             FIRST NINE MONTHS
                              -------------------------   -------------------------
                                  2004          2003          2004          2003
                              -----------   -----------   -----------   -----------
<S>                           <C>           <C>           <C>           <C>
Net sales and lease revenue   $ 9,324,695   $ 8,831,742   $29,731,215   $29,074,149
Income before income taxes        916,615         8,431     1,947,879     1,050,293
Net income                        601,615         5,431     1,278,879       692,293
Net income per share                  .62           .01          1.32           .72
Average shares outstanding        966,132       966,132       966,132       966,132
</TABLE>

                     (All figures subject to year-end audit)

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