Grammer Reports Strong Revenue, Earnings in First Three Quarters of 2006

AMBERG, Germany, Nov. 13, 2006 -- Grammer AG, a leading global supplier of automotive interior components and seating systems, raised consolidated revenue and earnings before interest and taxes during the first nine months of 2006.

Grammer's revenue during the period rose from $816.1 million in 2005 to $839.1 million during the same period of 2006, an increase of $23 million. The company achieved even stronger growth in its earnings before interest and taxes. Earnings climbed to $37.1 million, up 25.4 percent from $29.6 million during the same period last year. Its earnings per share also climbed sharply to $1.75, up 44.2 percent from $1.21 during the first nine months of 2005.

Automotive Division Wins Several New Orders

Automotive, Grammer's largest division, performed well despite international market results that varied from one country to another. Between January and September, Grammer won a number of new orders, including business from Ford, General Motors and Nissan.

Automotive division revenue grew by $10 million to $543.2 million in the first three quarters of the current year. The automotive division accounted for nearly 65 percent of Grammer's sales overall. Its earnings before interest and taxes grew by 16.9 percent to $21.2 million (2005: $18.1 million).

The company's second division, Seating Systems, includes two business units - Driver Seats and Passenger Seats.

Driver Seats Unit Benefits from Strong Truck Business

The company's Driver Seats unit delivered a solid performance on the back of a continued boom in the truck market and stronger demand for seats for construction equipment and lift trucks.

Driver Seats generated revenues of $258.9 million during the first three quarters of the year compared to $256.6 million during the same period a year ago. The division also raised its earnings before interest and taxes by 22.1 percent to $21.2 million (2005: $17.4 million).

Passenger Seats Unit Boosted by Restructuring

Passenger Seats, Grammer's smallest business unit, continued to perform well in a difficult market environment. The restructuring of its bus and rail business organizations initiated last year also showed the first signs of success.

The rail business group expanded its production volumes, partly by implementing projects that had been postponed in 2005, while the bus business was bolstered by a number of new orders received from the United Kingdom. Overall, the Passenger Seats unit raised its revenues for the first three quarters of 2006 to $42.2 million compared to year-ago revenues of $35.9 million, a year-to-year increase of 17.4 percent. Passenger Seats posted a $1 million loss in earnings before interest and taxes compared to a loss of $2.9 million during the same period last year.

Strong Balance Sheet

The Grammer Group's financial position is characterized by its strong balance sheet. Over the first nine months its total equity grew to $219.2 million as of September 30 (Sept. 30, 2005: $217.3 million), and its equity ratio came to 37.7 percent (2005: 37.8 percent). Total assets grew to $580.7 million (2005: $574.7 million).

About Grammer

Headquartered in Amberg, Germany, Grammer AG is a specialist in the development and production of components and systems for automobile interiors, as well as driver and passenger seats for offroad vehicles, trucks, buses and trains. Grammer's key division, Automotive, supplies headrests, armrests and center consoles as well as integrated children's seats to well-known automakers and vehicle systems suppliers.

The company's second division, Seating Systems, includes two business units - Driver Seats and Passenger Seats. Driver Seats is an OEM and aftermarket supplier for prominent truck and offroad automakers. Passenger Seats supplies original equipment manufacturers as well as bus and train operators.

Grammer is represented in 17 countries worldwide with more than 8,700 employees in 21 subsidiaries. Grammer shares are listed in the S-DAX segment of the German Stock Exchange and are traded on the Munich and Frankfurt stock exchanges, the Xetra electronic trading platform and the OTC markets of the Stuttgart, Berlin and Hamburg stock exchanges.