Asia PR News

FRIEDRICHSHAFEN and STUTTGART, April 27 /PRNewswire-AsiaNet/ –

- Sales in 2006 Increase by 8 Percent to EUR11.7 Billion

- Stronger Competitive Position in All Market Segments

- Innovative Products Increase Benefit to Customers and
Improve Environmental Compatibility

ZF Friedrichshafen AG continued to grow in 2006.

Sales increased by 8 percent to EUR11.659 billion.

The average number of ZF employees increased
by 2 percent this year to total 55,050.

Net profit after taxes totaled EUR296 million.

Speaking at the annual press conference in Stuttgart, ZF Friedrichshafen AG
CEO Hans-Georg Harter reported that the ZF Group continued to strengthen its
international market position in 2006. ZF divisions and business units gained
substantially from strong sales in the commercial vehicle and construction
machinery segments. The success of European vehicle manufacturers on export
markets had a positive impact on ZF performance. According to Mr. Harter, "This
enabled ZF to take an important step to toward securing the future."

Technology Leadership Through Innovations
Included among the most successful products for passenger cars are the ZF
6-speed automatic transmissions. The second generation of these products was
launched on the market in 2006. This advanced version of the first-generation
6-speed automatics produced since 2001 features significantly shorter shift
response times and a further improvement in fuel economy. ZF produced more than
one million automatic transmissions for passenger cars in last year. Other
products on the company’s list of top sellers include electronic steering
systems, of which ZF produced 1.6million units in 2006. Last year’s market
response was also very positive for ZF passenger car axle transmissions
(800,000 units), commercial vehicle transmissions (400,000 units), complete
axle systems (1.6 million units) and electronic damping systems (800,000 units).

ZF products play a significant role in reducing vehicle/fleet fuel
consumption and emissions. The second-generation 6-speed automatic
transmissions for passenger cars improves fuel economy by 3% with gasoline
engines and up to 6% with diesel power. The hybrid systems currently being
developed by ZF in cooperation with Continental Automotive Systems reduce fuel
consumption even further. In the chassis area, electronic steering systems and
lightweight components make it possible to achieve additional reductions in
fuel consumption.

Regional Developments
ZF development in the different regions around the world was varied in
2006. Sales in Western Europe increased by 4 percent to EUR7.841 billion. In
Eastern Europe, the company reported growth of around 70 percent with sales
totaling EUR547 million. The share of ZF Group sales in Western and Eastern
Europe was quoted at 72 percent. The strongest growth was reported in the
Asia-Pacific region with a 48-percent increase in sales to EUR1.115 billion.
The is equivalent to a nearly 10-percent share of ZF Group sales. The NAFTA
region accounted for 14 percent of ZF sales, a 9-percent decline compared to
the previous year’s figures.

Along with optimizing processes and structures, the future focus for ZF in
North America is on increasing engineering and sales activities. This applies
to existing ZF customers as well as to the transplants of Japanese and South
Korean manufacturers. In South America, where ZF generated 3 percent of its
totals sales, EUR369 million, the company reported a positive growth rate of 4
percent.

Germany, where the number of ZF employees remains at a consistently high
level, is a top priority for ZF. In 2006, the average ZF Group workforce
numbered 55,050 employees. Around 60 percent of these people work in Germany.
The total number of ZF employees increased by around 2 percent in 2006 compared
to the previous year’s figure.

Potential in the Emerging Markets
A further increase in global activities is necessary for ZF to maintain and
expand its long-term position on world markets. Along these lines, the product
strategy will focus more intensively on a design-to-market approach to meet the
different customer expectations in the various regions. The rapidly growing
demand for vehicles in the emerging markets offer interesting potential in this
respect. ZF is striving for a balanced regional distribution of sales between
Europe, North America and Asia. Europe will remain as the largest long-term
market region. In terms of customers and markets, higher growth rates are
expected in North America and especially Asia. According to Mr. Harter, the
rate of growth in ZF sales for 2007 will be somewhat lower compared to 2006.

ZF is one of the world’s leading automotive industry suppliers specializing
in driveline and chassis systems. With around 55,000 employees, the company
operates 120 plants in 25 countries. The ZF Group generated sales of EUR11.7
billion in 2006. ZF ranks among the 15 largest automotive suppliers worldwide.

Photos and additional press releases are available on the Internet:
http://www.zf.com/presscenter

Press contact:

Matthias Lenz
Corporate Public Relations
Tel.: +49-7541-77-2705
Fax: +49-7541-77-2764
E-mail: matthias.lenz@zf.com

Martin Demel
Business Press and PR
Mobile tel.: +49-171-381-0216
Fax: +49-7541-7790-2528
E-mail: martin.demel@zf.com

SOURCE: ZF Friedrichshafen AG

CONTACT: Matthias Lenz,
Corporate Public Relations,
+49-7541-77-2705,
fax +49-7541-77-2764,
matthias.lenz@zf.com, or

Martin Demel,
+49-171-381-0216,
fax +49-7541-7790-2528,
martin.demel@zf.com

Web site: http://www.zf.com/presscenter