Iochpe-Maxion Records Profit of R$ 16.8 Million for Second Quarter 2005

SAO PAULO, Brazil, July 28 -- Iochpe-Maxion S.A. (BULLETIN BOARD: IOCJY) (Bovespa: MYPK3 MYPK4) releases 2005 second quarter results.

                           Consolidated Figures

  Net Sales:                                   R$ 397.2 million
  Gross Profit:                                R$ 73.6 million
  Earnings before Interest
   and Taxes (EBIT):                           R$ 42.4 million
  Operational Profit
   after Financial Expenses:                   R$ 33.5 million
  Net Income:                                  R$ 16.8 million
  Earnings per Share (EPS):                    R$ 0.32
  Earnings before Interest, Taxes,
   Depreciation and Amortization (EBITDA):     R$ 49.0 million
  Net Bank Debt:                               R$ 179.7 million
  Capital Expenditures:                        R$ 32.8 million

Iochpe-Maxion recorded net income R$ 16.8 million in the second quarter of 2005, compared to net income of R$ 12.2 million in the same period of last year, a growth of 37.3%. Net sales reached R$ 397.2 million, an increase of 47.5% over the second quarter of 2004, reflecting the expansion of the Brazilian railway equipment market and the increase in the Brazilian production of trucks, buses and light-commercial vehicles. It is worth mentioning the performance in exports, which reached US$ 23.4 million in the second quarter of 2005, an increase in dollars of 136% over the same period last year.

Earnings before interest and taxes (EBIT) reached R$ 42.4 million in the second quarter of 2005, an increase of 13.2%, while earnings before interest, taxes, depreciation and amortization (EBIDTA) amounted to R$ 49.0 million, an increase of 8.6%, both compared to the same period last year. Earnings per share (EPS) reached R$ 0.32 in the second quarter, a growth of 39.1% over the same period last year (R$ 0.23).

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.