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Tognum grows in the third quarter

• Third-quarter revenues of EUR 709 million, 11 % above Q3/06
• Adjusted Q3 EBIT of EUR 96 million, 22 % above Q3/06
• Adjusted EBIT for full-year 2007 expected to be approximately 25 % higher than in 2006
• Approximately 10 % revenue growth anticipated for FY 2007
• Equity ratio rose to 21 % (on Sep 30, 2007) up from 3 % (at Dec 31, 2006) due to initial public offering and successful business development

Friedrichshafen, 31 October 2007. According to preliminary figures, in Q3/07 (period ending September 30, 2007), Tognum AG increased its revenues by 11 % compared with Q3/06 and by 6 % compared with the already strong Q2/07. Revenues increased to EUR 709 million in Q3/07 (Q3/06: EUR 636 million; Q2/07: EUR 669 million). Compared with the third quarter of last year, the strong growth occurred in the Industrial and Defense engine applications as well as in the area of After Sales. Compared with the second quarter of this year, Marine and Power Generation were the growth drivers; After Sales revenues stabilized at a high level in 2007, as had been expected.

Adjusted EBIT (earnings before interest and taxes) grew by 22 % to EUR 96 million in the third quarter (Q3/06: EUR 79 million). The positive earnings trend compared with the prior-year period was primarily a result of the strong revenue growth, assisted by the above-average expansion of the After Sales business.

As expected, due to seasonal effects specific to both the market and the company, the positive development did not continue at the same record level as in the previous quarter (Q2/07: EUR 107 million). This was mainly due to a seasonal change in the sales structure as well as due to negative exchange-rate effects on the US dollar earnings.

Deferred taxes have been revalued on the basis of the reform of German corporate taxation that was passed into law in the third quarter of this year. This resulted in a one-time positive tax effect (with no impact on cash flows) of EUR 23 million in Q3/07.

In the year 2007 to September 30, the Tognum Group received orders in the amount of EUR 2.4 billion (Jan 1-Jun 30 2007: EUR 1.6 billion). This continues to represent a very positive book-to-bill ratio (order intake / revenues) with a factor of 1.2. Third-quarter order intake increased in 2007 by 17 % compared with the prior-year period and by 5.5 % compared with Q2/07, with ongoing high numbers for the expanded product range of the Series 4000 and 2000. The sub-segments Marine, Power Generation and Defense recorded higher orders received than in Q3-06. Compared with Q2-07, increases in orders received were particularly strong for Power Generation, Defense and After Sales.

In view of the ongoing positive market environment, the stable high level of demand, an excellent utilization of capacity, and despite the weak US dollar, Tognum’s Executive Board has affirmed and put into concrete terms its revenue and earnings targets for full-year 2007 at the top end of previous expectations.

Irrespective of business-related quarterly shifts, for full-year 2007 the Group now anticipates revenue growth of approximately 10 % and an increase in adjusted EBIT of approximately 25 % with the potential for further growth (2006 pro-forma: revenues of EUR 2,535 million, adjusted EBIT of EUR 309 million). As previously announced, the inventory built up in the first nine months due to a more even capacity utilization, will lead to further revenue growth in the traditionally strong fourth quarter.

At September 30, 2007, equity was significantly higher than at December 31, 2006. The gross cash inflow of EUR 268 million from the initial public offering and the good quarterly earnings had a positive impact on the equity situation. The equity ratio thus rose to 21 % at September 30, 2007 (from 3 % at December 31, 2006).

Tognum Group - Q3 Comparison

EUR million*	Q3/06	Q3/07	Change Q3/07 vs.Q3/06	Q2/07	Q3/07	Change Q3/07 vs.Q2/07
Order intake	708	828	17%	785	828	+5.5%
Book-to-bill ratio	1.1	1.2	+0.1	1.2	1.2	+/- 0
Revenues	636	709	+11.5%	669	709	+6.0%
EBIT (adjusted****)	79	96	+21.5%	107	96	-10.3%
in % of revenues	12.3%	13.5%	+1.2	15.9%	13.5%	-2.4

Tognum Group - Yearly Comparison

Fiscal Year 2007 in EUR million*		Q1/07	Q2/07	Q3/07	Q1-Q3/07	Change Q1-Q3/06** pro-forma
Order intake		815	785	828	2,428	2,150
Book-to-bill ratio		1.2	1.2	1.2	1.2	1.2
Revenues		667	669	709	2,045	1,821
EBIT (adjusted****)		100	107	96	302	238
Fiscal Year 2006** pro-forma in EUR million*		Q1/06***	Q2/06	Q3/06	Q4/06	FY 2006**
Order intake		729	713	708	631	2,781
Book-to-bill ratio		1.4	1.1	1.1	0.9	1.1
Revenues		540	645	636	714	2,535
EBIT (adjusted****)		88	72	79	71	309

*  These spreadsheets contain differences between the single values, and sums derived by single values due to rounding.

** FY 2006 and Q1-Q3/06 are pro-forma financials (see ***).

*** Q1/06 results are for illustrative purposes only. They do not fulfil financial reporting standards due to the fact that the Tognum Group in its present form was only established in April 2006. Furthermore, the CVD business of the former DaimlerChrysler Group was not fully consolidated but only recorded as royalty income.

**** Excludes any effects from PPA (purchase price allocations) and one-off items.

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Tognum
Tognum is one of the world’s leading suppliers of high speed diesel engines and complete propulsion systems for ships, heavy land and rail vehicles and of industrial drive systems as well as decentralized power plants, set-up in the two divisions mtu Engines and Tognum Onsite Energy Systems and Components.
Its product portfolio includes diesel engines in the power range from 20 to 9,100 kW, gas engine systems, gas turbines and fuel cells and is one of the most modern and comprehensive in its sector. In addition, the group develops and manufactures custom-made electronic control and monitoring systems for its engines and propulsion systems.
Sales of the Tognum Group amounted to EUR 2.5 billion in 2006. Today, the Group employs more than 7,800 personnel worldwide. It maintains a global sales and distribution network including 16 subsidiaries, more than 130 distribution partners and 1,100 authorized dealers.