November 14, 2005 10:29 ET

BREMBO : The Board of Directors approved the financial results as of 30th September 2005

CURNO -- (MARKET WIRE) -- November 14, 2005 -- Curno, 14 November 2005

. The Board of Directors approved the financial results as of 30th September 2005, prepared according to IAS/IFRS. Compared to 9M of previous year:

- Sales + 6.1%

- EBITDA -2%

- Net Profit +6,2%

. New Director appointed

The Board of Directors, chaired By Alberto Bombassei, met today to examine and approve the financial results ad of 30 September 2005, prepared in accordance with IAS/IFRS.

In brief:

|    E million   |  9M 05 |  9M 04 *|  Var %|  3Q 05|  3Q 04 *|  Var % |
|                |   IFRS |     IFRS|       |   IFRS|     IFRS|        |
|  Sales         |   538.7|    507.9|  +6.1%|  165.0|    155.2|   +6.3%|
|  EBITDA        |  81.7  |     83.4|  -2.0%|   24.6|     22.7|   +8.4%|
|  EBIT          |    53.7|     52.0|  +3.4%|   15.9|     13.0|  +21.7%|
|  Pre-tax profit|    49.2|     48.8|  +0.9%|   15.2|     11.5|  +32.4%|
|  Net profit    |    29.8|     28.0|  +6.2%|    9.2|      6.5|  +41.7%|
|  Cash-flow     |    57.8|     59.5|  -2.9%|   18.0|     16.2|  +11.0%|
* recalculated according to IAS/IFRS. Revenues for the first nine months 2005 amount to E 538.7 million, up 6.1% over the same period last year.

All segments of activity contributed to sales growth. Particularly, the commercial vehicles continued their robust growth, increasing 13.6%. The motorcycle segment, thanks to a good performance in the quarter, made an upturn and totally recovered the drop of the first six months.

Applications for passenger cars increased by 5.6% over the nine months, reflecting a good performance of the OE segment, which more than compensates the poor performance of the After Market. The racing sector continued with its positive trend, up 6.4%.

The German market became more and more important over the years and now exceeds the weight of the Italian one. Brazil continues its growth and increases by more than 55% over the first nine months.

EBITDA is E 81.7 million, down 2%. The reduction is due to the direct and indirect costs connected with the industrial plan, with the strong labour unrest occurred in the first half of the year, to the increase in raw material cost, not completely transferred to selling prices, as well as to the less favourable sales mix. These effects are only partially offset by some capital gains, for E 1.9 million, generated by the sale of two industrial buildings in Barcelona, no longer used for production.

Amortization and depreciation for the period decrease form E 31.4 million to E 28 million (down 10.9%); the decline is due to the change in depreciation policies for some classes of assets and to the total depreciation of some intangible assets. Like-for-like depreciation of the first nine months of 2004 would have been lower by E 1,5 million.

EBIT amounts to E 53.7 million, up 3.4%. Net profit increases by 6.2% to E 29.8 million.

The results of the quarter

Q3 revenues are up 6.3%, to E 165 million. Personnel charges increase by 10.5% in the quarter to E 33.4 million, with an incidence on revenues that increases from 19.5% to 20.2% over the same quarter last year, due to the wage adjustments for Italy-based employees connected with the renewal of the internal labour agreement.

EBITDA, E 24.6 million, is up 8.4% due to the above mentioned capital gains on the sale of two industrial buildings in Spain. Net of this capital gain (E1.9 million) the margin would be in line with the same quarter of last year, thus registering a slight improvement compared to what shown up to now.

Amortization and depreciation decrease from E 9.7 million to E 8.7 million (-9.6%) over the same quarter of 2004, due to the already mentioned change in depreciation policies and to the total depreciation of some intangible assets.

EBIT amounts to E 15.9 million, up 21.7%. Net consolidated profit for the quarter is E 9.2 million, up 41.7% compared to the previous year.

Investments made in the quarter are E 21 million, mainly for projects connected with the industrial plan and to the expansion of production capacity. Of these, E 9 million are related to the start-up of the new iron foundry in Poland.

The net indebtedness worsens to E 183.2 million from E 169 million at 30th June, because of the strong investments done, both in fixed and current assets, connected with the industrial plan.

Foreseeable evolution

Even though macroeconomic and sector difficulties, the sharp increase in raw material prices as well as the competitive pressure are continuing, in the last part of the year revenues growth and margin evolution should not differ from what registered until now.

The start-up of the new foundry in Poland, that should be inaugurated beginning of next year, and of other production initiatives should contribute to a progressive improvement of results and margins.

New Director appointed

The Board of Directors coopted Mr. Giovanni Cavallini in replacement of the outgoing Director Alberto Tazartes, who leaves the charge for personal engagements.

Mr. Cavallini is President of Interpump Group; he meets all necessary requirements to be qualified as independent Directors. His curriculum vitae has been deposited at the Company headquarters and Borsa Italiana.

The President and the Board expressed their sincere appreciation for the contribution Mr. Tazartes offered to the development and growth of the company in these several years of cooperation.

E 50 million guaranteed floating notes issued

On 26th October Brembo International S.A., 100% controlled by Brembo S.p.A., issued E 50 million guaranteed floating notes expiring 2010 privately sold to institutional investors.

The securities, guaranteed by the parent company Brembo S.p.A., have been fully subscribed.

The transaction aims at differentiating the sources of financing and lengthening the company's average debt life, replacing some existing short term debts. No covenants are foreseen.

Joint venture company established with Bosch to manufacture motorcycle brakes for Indian market.

On 17th October the Indian Bosch subsidiary Kalyani Brakes Ltd. Pune, India, and the Italian company Brembo established a 50/50 joint-venture company for the application engineering, production and sales of two-wheeler brakes.

The joint-venture company will be headquartered in Pune, India. Kalyani Brakes, that pioneered introduction of hydraulic brakes for motorcycles in India, will integrate their existing two-wheeler brake production into the joint venture. Brembo will contribute licences and technology and will have the industrial leadership. The total investment of the two partners amounts to E 13 million.

The turnover for the first twelve months is forecasted at around E 20 million and is expected to double over the subsequent four years.

Products are initially intended for the Indian market and the JV will explore export potential in the near future.

The deal is subject to the final approval of the relevant Antitrust Authorities and Foreign Investment Promotion Board of India.

For further information:

Investor Relations

Orsi Corrado

Tel. +39 035 605 884

Fax +39 035 605 518

Roberto Vavassori

Tel. +39 035 605 223


Media Relations:

Francesca Muratori

Tel. +39 035 605 277

Fax +39 035 605 273


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