Webasto Reports Increased Sales But Reduced Earnings

Orders Strong But Operating Result Negatively Impacted by High Development and Start-up Costs; Wolfgang Thurow Leaves Webasto

STOCKDORF, Germany, Feb. 15 -- Global supplier Webasto AG reported registered worldwide sales of $1.79 billion (euro 1.5 billion) for 2005, a 5 percent increase over 2004 sales. Despite the positive sales growth, the German company reported a drop in operational business earnings of almost 50% compared to 2004 figures.

"Although our order book is satisfactory, we're still concerned about our earnings as we've already taken considerable cost-cutting measures," said Franz-Josef Kortum, chairman of Webasto's management board. "We'll be taking all the necessary actions to enhance the long-term profitability of Webasto."

Despite rising sales by innovative products, Kortum does not anticipate much improvement for Webasto's earnings in 2006. The chairman cites high development and start-up costs for new products as well as enormous price pressure being exerted by automobile manufacturers and rising costs of raw materials.

As part of a planned restructuring at Webasto, Kortum and fellow board member Dr. Helmut Leube are taking over the responsibilities of Dr. Wolfgang Thurow. Thurow, 58, left Webasto by mutual agreement on February 1st after seven years on the company's management board. Thurow played a major role in organizing and establishing Webasto's automotive convertible roof business and helped implement roof system projects for several vehicles including BMW's Mini, Volkswagen's Eos, Volvo's C70 and Ford's Focus.

"On behalf of Webasto AG, I want to extend our grateful thanks to Dr. Thurow for all of his hard work and commitment to this company," said Kortum. "Because of his efforts, Webasto was able to gain a foothold in the established market of convertible roof manufacturers."

Webasto AG, based in Stockdorf, Germany, is one of the world's largest suppliers of roof systems and thermosystems to the automotive industry. With focus on development and manufacture of complete roof modules, sliding roof and convertible roof systems as well as heating/cooling and ventilation systems, Webasto is both an original equipment and aftermarket provider for automotive, heavy-duty and marine applications. The 103-year old company employs over 6,700 people in over 40 countries with 27 production sites in 15 countries. For additional information go to http://www.webasto.com/.