Modine Announces $12.0 Million Investment to Build a Greenfield Manufacturing Facility in Hungary to Support Growing Product Demand – Marks Modine’s Second Facility in Hungary

RACINE, Wis.--Modine Manufacturing Company , a global leader in designing and developing heating and cooling solutions for a diversified group of markets, announced today that its Board of Directors has approved a $12.0 million investment to build a second facility in Hungary, supporting growing demand for aluminum heat transfer products from global customers such as Caterpillar, Volvo, Nacco and AGCO in Europe, and extending Modine’s global low cost country manufacturing footprint.

In commenting on the announcement, David B. Rayburn, Modine’s President and Chief Executive Officer, said, “This investment furthers our journey to reposition our manufacturing footprint to better balance our capacity in support of our blended manufacturing strategy. This move, as well as our previous announcements to build facilities in China and Mexico, is a key component of our five point plan to grow the company and increase profitability.”

Rayburn continued, ”We are very excited to be building a second facility in Hungary, leveraging our manufacturing scale and creating multiple synergies to drive incremental business wins by giving us a more competitive cost position. While the prime driver for this new facility is the need to add aluminum brazing capacity in Europe, the plant is being constructed to provide us with the flexibility for further growth at the location as demand grows. This will enable us to continue serving the growing needs of the commercial vehicle, construction and agricultural machinery and automotive markets cost competitively.”

The new facility will be built in Füzesabony, Hungary, very close to Modine’s existing facility in Mezökövesd, Hungary. The 83,000 square foot state-of-the-art facility site was chosen to leverage operating synergies with Modine’s Mezökövesd site, for Hungary’s relatively stable political environment, superior area logistics and infrastructure, relatively favorable wage levels, and government-supported tax incentives. The facility is expected to start operations in early 2008.

Founded in 1916, with fiscal 2006 revenues from continuing operations of approximately $1.6 billion, Modine specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, HVAC (heating, ventilating, and air conditioning) equipment, industrial equipment, refrigeration systems, fuel cells, and electronics. Based in Racine, Wisconsin, the company has approximately 9,000 employees at 34 facilities in 15 countries worldwide. For information about Modine, visit www.modine.com.

Statements made in this press release regarding future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those regarding the benefits of the greenfield expansion are based upon Modine’s current expectations. Modine’s actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to international economic changes and challenges; continued market acceptance and demand for the business’s products and technologies, achievement and adherence to product quality standards equivalent to those experienced by the company in its current manufacturing facilities and the ability of Modine to integrate the greenfield operations; and efficiencies and other factors affecting Modine’s business prospects discussed in filings made by Modine, from time to time, with the SEC including the factors discussed in Item 1A, Risk Factors, and the "Cautionary Factors" section in Item 7 of the Company's most recent Annual Report on Form 10-K and its periodic reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.