First Half 2007: SAF-HOLLAND Sales Rise 3%, Boosted by Strong Demand in Europe

LUXEMBOURG CITY, Luxembourg, August 31 /PRNewswire/ --

- H1 2007 Sales Increase to EUR411.6 Million, Up 3%

- Adjusted EBITDA of EUR36.2 Million

- Outlook FY 2007: Sales Volume Expected at Around EUR800 Million

SAF-HOLLAND S.A., Luxembourg, a world-leading producer and
supplier of key systems and components for the truck and trailer industries,
today reported interim consolidated H1 2007 sales of EUR411.6 million, a 3%
improvement on pro forma1 sales compared to the same period the previous year
(H1/2006: EUR399.1 million). Currency-adjusted, the growth in sales was 7%.
Adjusted EBITDA2 amounted to EUR36.2 million.

"Demand for SAF-HOLLAND's products has been tremendous,
specifically in Europe," said Rudi Ludwig, CEO of the SAF-HOLLAND Group. "The
merger, followed by the IPO of the newly formed group on July 26, also
provided an impulse for further international growth, allowing us to offer
our customers a wider product range on a global basis."

Due to strong demand for axles and axle systems in the
European market, orders on hand surged in the first six months of 2007, and
SAF-HOLLAND, in common with the rest of the industry, has not been able to
fully meet demand, despite having increased capacity.

"We will therefore increase our European capacity earlier than
planned to meet our customer's requirements," said Rudi Ludwig.

Robust sales growth

On a regional basis, sales in Europe rose to EUR252.4 million
in the first half of 2007, from EUR199.6 million in the year earlier period,
representing a significant increase of 27%. In North America, sales amounted
to EUR160.7 million, from EUR199.5 million in the year earlier period, a
decline of 19% on a pro forma basis. Adjusted for exchange rate effects,
sales were down 13%. The primary reasons for this decrease in sales were the
pre-buying trend in 2005 and 2006 due to the new engine emissions regulations
as of January 1, 2007, which impacted the Group's sales in the truck
industry. Additionally, sales related to trailers slowed down as a
consequence of the weakening housing market in North America, leading to
lower freight-related demand.

A breakdown into the three business units, however, shows that
Trailer Systems sales increased by 13% (currency adjusted 15%) to EUR273.3
million in the first half of 2007, from EUR242.5 million pro forma in the
year earlier period. The exceptionally strong demand for SAF-HOLLAND axle
systems in the European market clearly over-compensated the decrease in North
America. Sales in the Powered Vehicle Systems business unit in the US
declined 26% (currency-adjusted -20%) to EUR45.1m (H1/2006: EUR61.2 million)
as a result of the market developments mentioned above in the US in advance
of new emissions regulations. The Aftermarket Sales business unit posted a
slight decline of 2% despite a dynamic sales development in Europe (+23%),
with sales of EUR93.2 million in the first six months of the year (H1/2006:
EUR95.4 million). Adjusted for currency-effects, Aftermarket Sales achieved a
slight growth of 3%.

Earnings impacted by US market conditions

The earnings performance in the first half year of 2007 was
clearly impacted by the pre-buying situation in the US in 2005 and 2006.
Additionally, sales related to trailers slowed down in North America as a
consequence of the weakening housing market. In order to enhance the
understanding of operating results, SAF-HOLLAND reports adjusted EBITDA and
EBIT figures. The adjustments relate to the acquisition of SAF and HOLLAND
subgroups and include additional depreciation and amortization as well as an
inventory step up resulting from the purchase price allocation. In the first
half of 2007, these effects amounted to a total of EUR4.5 million in addition
to transaction costs which amounted to EUR9.5 million. Due to reduced volumes
in the US and the existing cost base, the adjusted H1 2007 EBITDA3 amounted
to EUR36.2 million (H1/2006: EUR42.4 million) and adjusted EBIT4 reached
EUR30.3 million (H1/2006: EUR37.0 million).

Outlook

SAF-HOLLAND expects a sustained high market demand in Europe
in the further course of 2007. In North America, the markets should remain
weak during 2007 as expected and then rebound in 2008. Additional
international growth is expected through the establishment of the Brazilian
subsidiary, which started operations in March 2007. The production of axles
in North America, intended to start in the fourth quarter of 2008, should
further support the international growth course.

For fiscal year 2007, SAF-HOLLAND expects a continued positive
sales trend in Europe and a continued weak development in the US. Overall,
sales for the group are expected to grow slightly to around EUR800 million in
2007. Based on reduced volumes in the US and the existing cost base, the
adjusted EBIT4 is expected to be around EUR60 million for 2007 and thus as
expected the adjusted EBIT margin will be slightly lower than in 2006.
However, the outlook for 2008 and 2009 remains positive, with sales expected
to return to a double-digit growth rate and adjusted EBIT to be back in line
with the 2006 margin for the fiscal year 2008.

Group Figures at a Glance

                           FY   H1/2007 H1/2006 Change Q2/2007 Q2/2006 Change
                          2006
    (EURm)                 Pro             Pro    in %            Pro    in %   
                         Forma(1)         Forma(1)              Forma(1)

    Sales                 777.8   411.6   399.1      3   199.1   199.5      -
    Operating profit       55.0    15.9    31.2    -49     1.8    15.7    -89
    Profit /loss before    23.6     5.6    15.7    -65    -1.9     7.8   -124
    tax
    Profit/loss for the    13.1     3.1     8.1    -62    -1.4     3.7   -138
    period
    Earnings per share    13.83    3.25    8.53    -62   -1.44    3.93   -137
    (EPS) in EUR (2)
    EBIT                   55.7    16.3    31.2    -48     2.0    15.6    -87
    Adjusted EBIT(3)       65.1    30.3    37.0    -18    12.3    17.4    -29
    EBITDA                 74.5    25.5    40.1    -37     6.6    19.4    -66
    Adjusted EBITDA(4)     77.0    36.2    42.4    -15    15.2    19.4    -22
    Employees (Number as      -   2,949   2,913      1       -       -      -
    of June 30)

    Sales by region:

                                    H1/2007    H1/2006   Change in  Change in
                                                             %          %
                                            Pro Forma(1)            currency-
    (EUR MM)                                                         Adjusted

    North America                       160.7      199.5        -19       -13
    Europe                              252.4      199.6         27        27
    Elimination                          -1.5          0          -         -
 
    due to inter-segment sales
    Total                               411.6      399.1          3         7


                                    Q2/2007    Q2/2006   Change in  Change in
                                                             %          %
                                            Pro Forma(1)            currency-
    (EUR MM)                                                         Adjusted

    North America                        73.8       98.2        -25       -11
    Europe                              126.2      101.3         25        25
    Elimination                          -0.9          0          -         -
 
    due to inter-segment sales
    Total                               199.1      199.5          -         8

    Sales by business unit:


                                 H1/2007    H1/2006   Change in % Change in %
                                                                    currency-
                                         Pro Forma(1)                Adjusted
    (EUR MM)                                                        

    Trailer Systems                  273.3      242.5          13          15
    Powered Vehicle Systems           45.1       61.2         -26         -20
    Aftermarket                       93.2       95.4          -2           3
    Total                            411.6      399.1           3           7

                                 Q2/2007    Q2/2006   Change in % Change in %
                                                                   currency-
                                           Pro Forma(1)
    (EUR MM)                                                        Adjusted

    Trailer Systems                  134.0      123.2           9          14
    Powered Vehicle Systems           20.0       30.6         -35         -23
    Aftermarket                       45.1       45.7          -1          12
    Total                            199.1      199.5           -           8



(1) SAF-Holland S.A. acquired SAF-HOLLAND GmbH with effective
date March 31, 2006 and SAF-HOLLAND Holdings (USA) Inc. with effective date
December 18, 2006. Therefore the first six months and the second quarter 2007
can only be compared with the second quarter 2006 on a pro forma basis. Pro
forma represents figures for the year 2006 as if the two subgroups would have
been acquired as of January 1, 2007.

(2) EPS based on number of shares before share split into
EUR0.01shares

(3) Adjusted EBITDA is defined as EBITDA plus additional step up
inventory costs from purchase price allocation (PPA) as well as transaction
costs.

(4) Adjusted EBIT is defined as EBIT plus any additional
depreciation, amortization and step up inventory costs from purchase price
allocation (PPA) as well as transaction costs.

Legal Disclaimer:

This report contains certain statements that are neither reported
financial results nor other historical information. These forward-looking
statements are subject to risk and uncertainties that could cause actual
results to differ materially from those expressed in the forward-looking
statements. Many of these risks and uncertainties relate to factors that are
beyond the Group's ability to control or estimate precisely, such as future
market and economic conditions, the behavior of other market participants,
the ability to successfully integrate acquired businesses and achieve
anticipated synergies and the actions of government regulators. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which apply only as of the date of this presentation. SAF-HOLLAND Group does
not undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
of these materials.

About SAF-HOLLAND:

SAF-HOLLAND has been listed in the Prime Standard of the Frankfurt Stock
Exchange since 26th July 2007. The stock exchange code is "SFQ", the ISIN
LU0307018795. In the year 2006, the company achieved pro-forma sales of
around EUR778 million and employed more than 3,100 employees at 20 locations
on five continents. The pro-forma adjusted EBIT was around EUR65 million. The
company's product range covers premium axles and axle systems, trailer and
truck suspension systems, fifth wheels and "kingpins", the part on the
semitrailer that is connected to the fifth wheel, as well as trailer
couplings and landing gear for semi-trailers. SAF-HOLLAND customers include
the majority of large truck and trailer producers all over the world. The
products are sold to Original Equipment Manufacturers (OEM), Original
Equipment Suppliers (OES) through a global service and distribution network,
and direct to consumers and service garages through the spare parts market.

Media Contact:

    Merlin Koene, CNC AG
    +49-173-204-6365
    merlin.koene@cnc-communications.com