United Components Reports Results of Operations for Third Quarter 2006

EVANSVILLE, Ind.--United Components, Inc. (“UCI”) today announced results for the third quarter ended September 30, 2006. Revenue of $252.4 million increased $28.5 million compared to the year-ago quarter. The quarter included $25.3 million in sales by water pump manufacturer ASC Industries, which was acquired by UCI during the second quarter. The company reported revenue increases in the retail, OEM and heavy duty channels, and declines in the original equipment service and traditional channels.

Net income for the quarter was $2.1 million, including $6.9 million ($4.3 million net of tax) in special charges, primarily costs related to the acquisition of ASC and facilities consolidation costs. Excluding these charges, adjusted net income would have been $6.4 million for the quarter. Adjusted net income for the third quarter of 2005 was $6.6 million, excluding a $0.6 million special charge.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI’s continuing operations, as adjusted consistent with the company’s historical presentations, was $34.6 million for the third quarter, compared with $29.6 million for the year-ago quarter. The reconciliation of net income to adjusted EBITDA, a non-GAAP measure of financial performance, is set forth in Schedule A.

“This was an important quarter for United Components, as we took significant steps to integrate our historical water pump operations with ASC Industries, and continued our initiatives to streamline our business and make operational improvements,” said Bruce Zorich, Chief Executive Officer of UCI. “The water pump integration is right on track, with the combination of the distribution operations being completed ahead of schedule, and the manufacturing integration now underway and on schedule. We are well on the way toward delivering our expected cost savings in the quarters ahead.”

“In addition, the strategic initiatives we have undertaken over the past several quarters have allowed our core business to show continuing improvement in our operating results, even as the overall market is showing softness,” continued Zorich. “These initiatives include targeted new business wins, additional cost reduction projects and consolidation of manufacturing and distribution facilities. We are working to continue this progress and, leveraging ASC’s China operations, expand UCI into an efficient global manufacturer.”

As of September 30, the company’s debt stood at $532.7 million. The company ended the quarter with $41.4 million in cash. In addition, on October 27, the company repaid $30 million of its senior credit facility borrowings with cash flow from operations.