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EXHIBIT 99.1


To Our Shareholders:

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

         Overall, results for the second quarter of 2004 were positive. For the
quarter, revenues increased by approximately $232,000, and net income grew by
approximately $165,000, compared with the second quarter of 2003. Despite the
relatively strong second quarter results, net income for the first six months of
2004 trails that of 2003 by about $10,000.

         In 2004, second quarter revenues within the fastener segment were 6%
higher than in the second quarter of 2003. In addition to increased volumes
during the second quarter, the Company benefited from reductions in expenditures
for tooling and repairs and maintenance. These benefits were partially offset by
significant increases in the cost of raw materials. Our efforts to recover these
higher costs have included price increases and the implementation of raw
material surcharges. However, prices for nearly all metals increased during the
quarter, and our suppliers recently announced an additional price increase for
steel wire and rod, our primary raw materials. The net, unrecovered cost
associated with higher raw material prices was approximately $180,000 during the
second quarter and $305,000 for the first six months. We have seen no indication
that prices for raw materials will decline in the near term, and we are
vigorously continuing our efforts to recover these higher costs.

         For the first six months, fastener segment revenues are 2% above
those recorded in the first six months of 2003. Indirect labor and repairs and
maintenance expense were lower during 2004 than during the first six months of
2003. The company incurred significant tooling costs late in 2003 and early in
2004 in connection with pre-production approval for a number of new parts. While
these costs are behind us, and the new parts are beginning to go into
production, the impact of these higher costs in the first quarter of 2004
contributed to year to date tooling costs being disproportionately high for the
first half of 2004. Raw material costs are also higher than during the first
half of 2003 due to the price increases discussed above, and similar increases
that were incurred in the first quarter of 2004.

         Weak demand for our products within the assembly equipment segment
contributed to an 11% decline in revenues within this segment during the second
quarter of 2004 compared to the second quarter of 2003. Reductions in indirect
labor and depreciation expense partially offset this decline in revenues. Raw
material costs have also increased within this segment, although the impact has
not been as significant as in the fastener segment. On a year to date basis,
revenues within this segment trail last year by nearly 5%. As was the case in
the second quarter, year to date reductions in indirect labor and depreciation
expense were not sufficient to offset the impact of lower sales revenues and
higher raw material prices.

         Selling and administrative expenses have declined approximately $52,000
in 2004 compared to 2003, even though these expenses increased by approximately
$46,000 during the second quarter of 2004. The year to date decline primarily
relates to lower depreciation on office equipment. During the second quarter of
2004, commissions expense increased approximately $18,000 compared to 2003 due
to higher sales in the quarter, and profit sharing expense increased $26,000 due
to improved profitability.

         While general economic conditions continue to improve, our business has
not enjoyed a proportionate improvement. This is especially true within the
assembly equipment segment where demand for new assembly equipment and for
perishable tooling remains weak. While fastener sales have shown some
improvement, the lack of a similar improvement in demand for assembly equipment
is troubling and may be an indication that demand for these products will not
return to levels enjoyed in the past. We continue to be concerned with the
escalating price of raw materials and have some continuing uncertainty with
respect to supply availability. Although the market for fasteners has shown some
improvement, especially compared to the recent past, excess market capacity
continues to limit our pricing ability and we expect margins will remain under
pressure as long as these conditions persist. On the positive side, efforts to
win new business have met with some success, and we will continue our efforts in
that regard.




                                       20
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                               Respectfully yours,


                 John A. Morrissey            John C. Osterman
                      Chairman                   President

August 3, 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 SIX MONTHS ENDED JUNE 30

<TABLE>
<CAPTION>
                                                  SECOND QUARTER                               FIRST SIX
                                                  --------------                              ---------
MONTHS                                      2004                  2003                  2004              2003
                                       ------------           -----------           -----------       -----------
<S>                                     <C>                   <C>                   <C>               <C>
Net sales and lease revenue             $10,237,556           $10,005,944           $20,406,520       $20,242,407
Income before income taxes                  588,276               332,621             1,031,264         1,041,862
Net income                                  386,276               221,621               677,264           686,862
Net income per share                            .40                   .23                   .70               .71
Average shares outstanding                  966,132               966,132               966,132           966,132
 ----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      (All figures subject to year-end audit)