ZF Sales Increase by 5 Percent in Q1 2005

FRIEDRICHSHAFEN, Germany, April 27 -- Compared to Q1 2004, first quarter 2005 sales for the ZF Group increased by 5 percent to $3.25 billion (euro 2.6 billion). The company expects an average increase of 5 percent for the year.

The Car Driveline Technology Division achieved a 10-percent increase in sales compared to the same period last year. This growth is primarily based on an increase in the numbers of 6-speed automatic transmissions manufactured in Saarbruecken, Germany and 6-speed manual transmissions produced at the company's plant in Brandenburg, Germany.

With an increase of 15 percent in the first quarter, the Car Chassis Technology Division achieved the highest growth rate in ZF sales. This positive result was fuelled by the series production launch of car axle systems at European and U.S. manufacturing sites.

Sales from the Commercial Vehicle and Special Driveline Technology Division increased by 10 percent in the first quarter. This is a direct result of orders placed by major manufacturers in the growing commercial vehicle industry. Significant increases were recorded in manual transmissions for trucks and buses.

During the first quarter of the year, sales in the Off-Road Driveline Technology and Axle Systems Division increased by 7 percent. New orders were received for construction machinery systems, bus axles, and axle modules for commercial vehicles. Improvements were also seen in the axle transmission business for SUVs.

First-quarter sales in the Powertrain and Suspension Components Division were down by 1-percent. This was a result of the sluggish German car business, a weaker demand for chassis components in the USA, and a loss of market share by customers in China.

ZF Lenksysteme GmbH, a joint venture with Robert Bosch GmbH, recorded a slight 1-percent decrease in sales for the first three months of 2005. This was a result of a weaker demand for car steering systems in Europe, China, and North America.

ZF Friedrichshafen AG is a leading worldwide supplier of driveline and chassis technology. Headquartered in Friedrichshafen, Germany, ZF is among the 15 largest automotive suppliers in the world. The company has a total workforce of 54,500 at 125 locations in 26 countries, and combined revenues for the group totaled more than $12 billion in 2004.

ZF operates a large manufacturing network in North America, combined with global research and development capabilities, to provide advanced technology to the region. The ZF Group North American Operations Headquarters and Technical Center is located in Northville, Mich., USA

For additional information, please visit: http://www.zf.com/presscenter