SOURCE: BREMBO

July 31, 2006 11:28 ET

The Board of Directors of BREMBO approves the 2Q 2006 results. Sales are up 7.6% over 2Q 2005; all sectors are growing. Positive outlook also for the coming months.

CURNO, ITALY -- (MARKET WIRE) -- July 31, 2006 --

2Q 2006 results:

- Revenues +7.6%

- EBITDA +12.7%

- Net profit +9.2%

over the same quarter last year.

+-------------------------+--------+--------+-------------+
|(€ Mio)                  |  2 Q 06|  2 Q 05|  Var % 06/05|
+-------------------------+--------+--------+-------------+
|Revenues                 |   212.3|   197.3|       + 7.6%|
+-------------------------+--------+--------+-------------+
|EBITDA                   |    34.1|    30.3|       +12.7%|
+-------------------------+--------+--------+-------------+
|EBIT                     |    24.3|    20.6|       +18.2%|
+-------------------------+--------+--------+-------------+
|Pre-tax profit           |    21.5|    19.2|       +12.0%|
+-------------------------+--------+--------+-------------+
|Net profit               |    12.5|    11.5|       + 9.2%|
+-------------------------+--------+--------+-------------+
|Net financial            |   245.0|   222.3|      + 10.2%|
|indebtedness             |        |        |             |
+-------------------------+--------+--------+-------------+
Results as of 30.6.2006:

- Revenues +10.7%

- EBITDA +12.4%

- Net profit +14.1%

over the same quarter last year.

+----------------+---------+---------+-------------+
|     (€ Mio)    |  30.6.06|  30.6.05|  Var % 06/05|
+----------------+---------+---------+-------------+
|  Revenues      |    413.8|   373 .7|      + 10.7%|
+----------------+---------+---------+-------------+
|  EBITDA        |     64.2|     57.1|       +12.4%|
+----------------+---------+---------+-------------+
|  EBIT          |     45.4|     37.9|       +20.0%|
+----------------+---------+---------+-------------+
|  Pre-tax profit|     40.0|     34.0|       +17.5%|
+----------------+---------+---------+-------------+
|  Net profit    |     23.5|     20.6|      + 14.1%|
+----------------+---------+---------+-------------+
+----------------+---------+---------+-------------+
Consolidated results for the 2Q 2006

Consolidated revenues for the quarter amount to EUR 212.3 million, up 7.6% over the same quarter last year.

The sectors mainly contributing to the growth are: racing (+18.6%), commercial vehicles (+10.5%) and passenger cars (+6.2%) as far as the Original Equipment is concerned, with encouraging signals from the Aftermarket sector, after several months of troubles. The motorcycle segment continues its growth, with an increase of 1.9%.

The growth was good in Europe, driven in particular by sales to Germany, up 7.7% and to Italy, +4.1% over the same period of last year, with the exception of France, down 4.6%. Very good also sales to Nafta area (+40.6%) and to Brazil (+48.9%).

In the quarter development costs for EUR 2.4 million were capitalized, down 17.9% compared to previous year (EUR 3 million).

Personnel expenses are EUR 39 million, up 8.5% over the same period last year, with an incidence on sales substantially unchanged.

EBITDA margin, EUR 34.1 million or 16.1% of sales, is up 12.7%.

Amortization and depreciation increase from EUR 9.7 million of 2Q 2005 to EUR 9.8 million, with an increase of 1%. The Polish foundry completed its start-up phase and during the month of July the plant was handed-over to the subsidiary Brembo Poland Sp. Zoo.. Depreciation will start in July.

EBIT is EUR 24.3 million, or 11.4% of sales, compared to EUR 20.6 million (10.4% of sales) of previous year.

Financial charges (EUR 2.7 million, +90%) include: EUR 1.3 million for negative exchange rate differences (EUR 125.000 positive for the same quarter 2005), due to the depreciation of the Polish Zloty against the Euro, and EUR 1,3 million for net financial charges (EUR 1.5 million in Q2 2005). The latter were affected by the increase of net indebtedness and rising of interest rates, partially compensated by the settlement of a hedging financial instrument.

Taxes amount in the quarter to EUR 8.5 million, or 39.6% of profit, compared to 39.2% of previous year.

Net profit is EUR 12.5 million, up 9.2% over previous year.

Net indebtedness at 30 June 2006 is EUR 245 million (EUR 222.3 million as of 31 March.2006).

Its increase is due to the strong boost in sales, to the prosecution of the investment plans and to dividend payment for EUR 14 million.

In the quarter investments in tangible and intangible assets were made for EUR 22.2 million, of which EUR 2.4 million for capitalized development costs.

Results as of 30th June 2006

Consolidated revenues of the first half-year amount to EUR 413.8 million up 10.7% over the same period last year.

After deducting cost of goods sold for EUR 270.4 million, up 10.2%, EBITDA amount to EUR 64.2 million, +12.4%.

Amortization and depreciation amount to EUR 18.7 million, down 2.7% over previous yea, also due to the suspension of depreciation of an industrial building held for sale.

EBIT amount to EUR 45.4 million, up 20%. Net profit is EUR 23.5 million, up 14.1%.

Foreseeable evolution

Positive outlook for the months to come: the order portfolio shows a growth trend similar to what registered in the first six months of the year, with very encouraging signals from the passenger cars segment and with the aftermarket on the way to recovery.

Net financial position will start to improve during the second half-year also thanks to the sale of some buildings no longer used for production.

The industrial plan for the rationalization of brake discs production in Italy is proceeding as planned: within the first half of August the transfer of one plant to the new site in Mapello will be completed. The other factory will be completely transferred by the end of current year.

The international development programs are going on as scheduled.

For further information to:

Investor Relations

Orsi Corrado

Tel. +39 035 605 884

Fax +39 035 605 518

Roberto Vavassori

Tel. +39 035 605 223

e-mail: ir@brembo.it

Media Relations:

Francesca Muratori

Tel. +39 035 605 277

Fax +39 035 605 273

e-mail: press@brembo.it

www.brembo.com

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