Iochpe-Maxion Releases 2005 First Quarter Results

SAO PAULO, Brazil, May 3, 2005 -- Iochpe-Maxion S.A. (Bovespa: MYPK3 MYPK4) (BULLETIN BOARD: IOCJY) releases 2005 first quarter results.

                           Consolidated Figures

  Net sales:                                    R$ 352.6 million
  Gross profit:                                 R$ 71.5 million
  Earnings before interest and taxes (EBIT):    R$ 41.3 million
  Earnings after financial result:              R$ 32.6 million
  Net income:                                   R$ 15.1 million
  Gross cash generation (EBITDA):               R$ 47.7 million
  Net bank debt:                                R$ 157.8 million
  Capital expenditures:                         R$ 11.8 million

Iochpe-Maxion ends the first quarter of 2005 with net income of R$ 15.1 million and strong growth in sales.

Iochpe-Maxion recorded net income of R$ 15.1 million in first quarter 2005, performance that represents an important increase compared to net income of R$ 2.1 million in the same period last year. Net sales amounted to R$ 352.6 million, an increase of 65.6% over first quarter 2004, reflecting increases in Brazilian production on trucks, buses, light commercial vehicles and railroad equipment. Also worth mentioning is performance on exports, which reached US$ 22.7 million, an expansion of 134% over the first three months of 2004.

Comparing first quarter 2005 and the same period in 2004, earnings before interest and taxes (EBIT) stood at R$ 41.3 million, an increase of 126%, while gross cash generation (EBITDA) amounted to R$ 47.7 million, an increase of 84.5%. Net bank debt reached R$ 157.8 million, resulting in a ratio between net bank debt and EBITDA for the last 12 months of 0.9x, lower than the ratio of 1.6x obtained in March 2004.

Iochpe-Maxion

Iochpe-Maxion, a publicly traded company since 1984, has its roots in the Iochpe Group, which started activities in the timber industry in Brazil's state of Rio Grande do Sul in 1918. After several decades of business diversification, the conglomerate shifted its focus in the late 1990s to the auto parts and railroad equipment businesses. Iochpe-Maxion currently has two main subsidiaries, both leaders in their industries: Maxion Sistemas Automotivos Ltda. (which operates with the Wheel and Chassis Division and the Automotive Component Division), and Amsted Maxion Fundicao e Equipamentos Ferroviarios S.A. These companies have five plants in the cities of Cruzeiro, Osasco and Hortolandia, in the state of Sao Paulo; and in Contagem, in the state of Minas Gerais. Iochpe-Maxion's parent companies are Companhia Iochpe and BNDESpar, both represented on the Board of Directors.

The Iochpe-Maxion investor relations website (http://www.iochpe-maxion.com.br/) contains comprehensive information about the company, including quarterly financial statements, presentations and releases.