4th April 2007 - Hayes Lemmerz Reports 2006 Fiscal Year End Results

In Line with Announced Preliminary Results; International Growth Continues

Hayes Lemmerz International, Inc. today reported financial results for its fiscal year ended January 31, 2007. The results were in line with preliminary results announced on March 16, 2007 and with guidance the Company provided to investors in December 2006.

For the fiscal year, the automotive and commercial highway wheels and components maker reported sales of $2.06 billion, up 5.1% from sales of $1.96 billion in the prior fiscal year. Earnings from operations were $4.8 million for fiscal 2006, compared with a year earlier loss from operations of $215.2 million, which included $185.5 million of goodwill impairment charges. Capital expenditures for the fiscal year were $80.8 million, down from $95.2 million a year earlier. The foregoing results exclude the suspension components business reported as discontinued operations, which had sales of $230 million, a loss from operations of $46.0 million and capital expenditures of $9.1 million.

The Company reported a net loss of $166.9 million for fiscal 2006, compared to a net loss of $457.5 million for fiscal 2005. The Company reported a loss from continuing operations of $120.9 million, compared with a loss from continuing operations of $287.1 million a year earlier.

Adjusted EBITDA for fiscal 2006 (including the suspension components business) was $188.6 million, up 7.3% from $175.7 million a year earlier. For the full fiscal year, Hayes Lemmerz reported free cash flow of negative $9.1 million, excluding the impact of the Company's securitization program, an improvement of $71.6 million from a year earlier.

"Hayes Lemmerz is a much stronger company today than it was five years ago," said Curtis Clawson, President, CEO and Chairman of the Board of Hayes Lemmerz.

"We have significantly decreased our dependence on U.S. markets, and continue to grow our international business, especially in Asia. By divesting non-core businesses and focusing on high growth/high return markets, we are continuing to execute our strategic business plan and our drive toward profitability and positive free cash flow. Sales to GM, Ford and Chrysler in the U.S., excluding discontinued operations, now account for only about 18% of global sales. Given the extremely difficult conditions in our marketplace, our results for 2006 are encouraging."

As previously announced, as part of its continuing profit-enhancing initiatives, the Company completed the sale of two aluminum suspension components plants in February 2007. "These divestitures further reduce our dependence on the North American automotive market and free us from a very capital-intensive business," said Mr. Clawson.

"Our new business wins point the way toward our future. We won over $575 million in annualized sales in 2006, of which 75% is international business," Mr. Clawson said. "We continue to win with Japanese and Korean manufacturers, including Toyota, Hyundai, Nissan and Honda, both in the U.S. and internationally. We continue to win new business with our European partners, and in the U.S. markets our new business wins diversify our product mix with more crossover and passenger vehicles," he said.

As previously announced, the Company's board of directors has approved a rights offering for existing shareholders, for up to $180 million of common stock. Proceeds will be used to repurchase the Company's 10.5% Senior Notes. The offering must be approved by shareholders at a special meeting scheduled for May 4, 2007. "By raising new equity capital and retiring high-cost debt, we are de-leveraging, strengthening our balance sheet and significantly improving free cash flow," Mr. Clawson commented.

For the full fiscal year 2007, Hayes Lemmerz expects to achieve sales of about $2.1 billion, Adjusted EBITDA of approximately $195 to $205 million, positive free cash flow (excluding securitization impact) and capital expenditures of approximately $85 to $90 million.

Forward Looking Statement

This press release contains forward-looking statements with respect to our financial condition and business. All statements other than statements of historical fact made in this press release are forward-looking. Such forward- looking statements include, among others, those statements including the words "expect," "anticipate," "intend," believe," and similar language. These forward-looking statements involve certain risks and uncertainties. Our actual results may differ significantly from those projected in the forward- looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others: (1) competitive pressure in our industry; (2) fluctuations in the price of steel, aluminum, and other raw materials; (3) changes in general economic conditions; (4) our dependence on the automotive industry (which has historically been cyclical) and on a small number of major customers for the majority of our sales; (5) pricing pressure from automotive industry customers and the potential for re-sourcing of business to lower-cost providers; (6) changes in the financial markets or our debt ratings affecting our financial structure and our cost of capital and borrowed money; (7) the uncertainties inherent in international operations and foreign currency fluctuations; (8) our ability to divest non-core assets and businesses; (9) the risks described in our most recent Annual Report on Form 10-K and our periodic statements filed with the Securities and Exchange Commission; and (10) our ability to consummate the previously announced rights offering. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this press release.

Source: Hayes Lemmerz Press Release