BERU REDUCES TARGETED SALES GROWTH TO A MINIMUM OF 10%
10 February 2005 - BERU

BERU Executive Board expects that the original goal for the full year ofincreasing the Group’s sales revenues by 13% and its operating profit by asimilar rate might not quite be achieved.

Due to the lower numbers of tire-pressure monitoring systems called off than in the prior-year period, an unusually warm early winter resulting in weaker than planned third-quarter unit sales in the aftermarket business, and temporarily lower than expected call-offs in the field of diesel technology from some German manufacturers, the BERU Executive Board expects that the original goal for the full year of increasing the Group’s sales revenues by 13% and its operating profit by a
similar rate might not quite be achieved.

In the future, BERU anticipates rising sales of tire-pressure monitoring systems:
Deliveries of a major order for such systems received recently from a European
manufacturer with a total volume of EUR 80-100 million over 3 years will begin
in the next financial year, and should contribute EUR 15-20 million to sales
revenues in that year. Profit contributions from Eyquem, our newly acquired
French subsidiary, have not yet fulfilled our expectations. The installation of new
ultra-modern manufacturing equipment and processes and the restructuring
carried out at Eyquem should improve this situation.

Total sales revenues should rise by at least 10% in the current financial year,
EBIT (earnings before interest and taxes) should reach at least EUR 56 million,
before exceptional expenses for changes in the Executive Board and consulting
fees incurred in connection with the takeover offer from BorgWarner of nearly
EUR 5 million. In the prior year, BERU achieved an EBIT of EUR 53.4 million.

www.beru.de

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