10th May 2007 - Affinia Reports Gross Profit Increase for the First Quarter of 2007

Affinia Group Inc., a global leader in the on and off highway replacement products and service industry, today reported improved profit on lower sales for the first quarter ended March 31, 2007.

Net sales were $502 million for the quarter compared to $548 million for the same period in 2006. The decline was a result of Affinia's planned exit from certain unprofitable brake and chassis product contracts and the discontinuation in early 2006 of a customer relationship. General softness in retail and traditional market channels also contributed to lower brake and chassis product sales.

Gross profit increased to $94 million, approximately 19% of sales, as compared to $92 million, or approximately 17% of sales for the same period in 2006. The company has made steady improvement in its first three years with 15%, 17% and 19% gross margin in the 2005, 2006 and 2007 first quarters, respectively.

"A significant portion of our revenue decline in the first quarter was due to our planned exit from business that was not profitable, and was not on our strategic roadmap. We remain on schedule with our $152 million restructuring plan, all of which is being financed through internal operations. Overall, we are very pleased with our improved margin as a result of our restructuring program," said Thomas Madden, Affinia's Senior Vice President and Chief Financial Officer.

Selling, general and administrative expenses were $83 million, a decrease of $1 million compared to 2006.

Net loss for the quarter ended March 31, 2007 was $3 million which includes restructuring costs of $6 million net of tax, compared to a loss of $6 million which includes restructuring costs of $4 million net of tax, for the same quarter in 2006.

As of March 31, 2007 Affinia had $70 million of cash and total long-term debt outstanding of $597 million. At March 31, 2007, Affinia had no borrowings under the company's receivables securitization program or its revolving credit facility, and was in compliance with all debt covenants.

"In the first quarter, we continued with our transformation program and moved forward on a number of new global growth initiatives. We announced construction of a new facility in Mexico to produce filters for the Latin and North American markets; announced a joint venture to produce brake products in China and India; and began production at our new filter manufacturing plant in the Ukraine," said Terry McCormack, Affinia's President and Chief Executive Officer. "These initiatives were clearly defined by our strategic roadmap which drives Affinia to become a high quality global manufacturer and distributor of on and off highway replacement products and services. I am pleased with the first steps we have taken on the road to our future growth," said McCormack.

Affinia Group Inc. is a global leader in the on and off highway replacement products and service industry. In North America the Affinia family of brands includes WIX(R) filters; Raybestos(R) brand brakes and AIMCO(R) brake products, and McQuay-Norris(R) and Spicer(R) Chassis parts. South American and European brands include Nakata(R), Filtron(R), Urba(R) and Quinton Hazell(R). For more information, visit www.affiniagroup.com

Source: Affinia Group Press Release