Successful Fiscal Year for Hella - Considerable Increase in Sales and Profits in 2007-08

LIPPSTADT - September 10, 2008: Hella KGaA Hueck & Co. today announced its preliminary annual result for the past fiscal year 2007-2008 (May 31). With growth of 7%, the family company generated sales of 3.9 billion euros with its three business divisions of Lighting Technology, Electronics and Aftermarket. This makes Hella one of the 100 largest industrial companies in Germany. The operating result (EBIT) increased considerably from 46 million euros in the previous year to 144 million euros now. This corresponds to a return on sales of 4 percent. Including one-off effects, the result (EBIT) increased to 232 million euros. Through this considerable increase in results, it was possible despite constantly high investments in new technology projects and development projects to reduce medium-term net debt below 25 years. Chairman and President Dr. Jürgen Behrend, who has full overall responsibility for the company, considers this result an important milestone: "With the end of fiscal year 2007-08, Hella is practically debt-free. We regard this as significant proof for our customers as well of our economic and financial ability to act". In its annual credit rating, the ratings agency Moody's also confirmed this positive development. Despite poorer prospects for the automotive supply industry, Moody's sees Hella as being on a good course. With the confirmation of the credit rating "Investment Grade, Baa3, stable", particular emphasis is placed on the solid and sufficient liquid funds of the company.

Hella was also able to set clear trends in the case of new technologies and product developments. For instance, the first full-LED headlamp is currently being launched on the American market. Further orders for this technology were won last year. LEDs are a pioneering technology in the field of automotive lighting technology. Through its continuous investments and technological competence, Hella sees itself as being in a leading position here. A further key focal point is energy management. Hella has been active in this field for some years now with innovative products, and generates sales of around 250 million euros. Further growth with the product range of sensors, converters and pumps is planned in the next few years. In the case of driver assistance systems as well, which are intended to make car driving considerably safer in the next few years, Hella holds a leading position with products such as the side obsticale warning, parking assistance, the adaptive cruise control and the lane tracking assistant. In relation to this, the interaction of different technologies and products from the fields of electronics and lighting technology represents a great opportunity for Hella. This becomes clear in the current medium-class vehicle the Opel 'Insignia', which, for the first time in this class, offers state-of-the-art lighting technology and driver assistance. Both the lighting technology and the camera assistance system come from Hella.

In addition to profitable and organic growth that builds on Hella's strong position as a leader in technology and innovation, the trailblazers for the further strategy are above all cooperations and joint ventures. For example, in the vehicle diagnostic sector, the foundation of the joint venture 'Hella Gutmann Solutions', which is still subject to approval by the cartel authorities, will further strengthen the good position of Hella in relation to wholesalers and garages in the aftermarket. "Hella intends to expand considerably its business with garage-oriented diagnosis equipment for vehicles in Europe. We believe that through the partnership with the company Gutmann, we are able to provide a good response to the growing market demand for diagnostic competence, said Dr. Behrend with regard to the strategic significance of this joint venture.