Financial Overview

(in million euros)

	FY2008	FY2007	Rate of change (%)	Factors
Overall
Sales	374.6	387.7	(3.4)	-
Earnings before taxes	63.3	54.5	16.1	-
Sales by Segments
Sinter Group	135.4	159.9	(15.3)	1)
Bearing Group	160.4	159.6	0.5	2)
Friction Group	76.5	69.9	9.4	3)

Factors
1)
Sinter Group
-Because of the sharp drop in demand in the fourth quarter, Sinter Group sales in 2008-2009 fell below the prior-year level (159.9 million euros) to 135.4 million euros, accounting for 36 percent of total Group sales revenues.

-After adjustment for the sintering plant in Spain, which was sold in fiscal year 2007-2008, the sales deficit was approximately 3 percent.

-Earnings before interest, taxes, depreciation and amortization (EBITDA) improved to 15.5 million euros from 7.1 million euros a year earlier. That year, however, had been negatively affected by consolidation losses resulting from the disposal
of the Spanish subsidiary.

2)
Bearing Group
-In target sectors such as heavy-duty commercial vehicles and shipbuilding, the order levels reached all-time highs due to the huge demand for transportation capacities. After three strong quarters, however, the fourth quarter was negatively impacted by the global financial and economic crisis.

-Fiscal year 2008-2009 closed with a new sales record of 160.4 million euros.

-Higher raw material costs and special production costs resulting from a shortage of capacity in the first three quarters reduced earnings before interest, taxes, depreciation and amortization (EBITDA) to 36.5 million euros (previous year: 38.9 million euros).

3)
Friction Group
-2008-2009 was marked by very high customer demand in the first nine months and by significant declines in orders as of early November 2008 as a consequence of the global financial and economic crisis. The sharpest declines occurred toward the end of the year in the automotive and construction equipment sectors.

-In spite of the weak fourth quarter, Miba Friction Group sales rose in 2008-2009 to 76.5 million euros, an increase of about 9 percent. The business unit thus generated 20.2 percent of total Miba sales. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose during the reporting period to 9.2 million euros, up from 6.4 million.

-Ongoing optimization at the friction material plant in Vrable, Slovakia, was a big factor in this increase.

-The friction material plant in the United States, Miba HydraMechanica based in Sterling Heights, Michigan, has been more severely affected by the economic slowdown due to the extent of its deliveries to the U.S. automotive market. After an encouraging initial six months, the results in the second half of the year were below expectations due to a less favorable product mix.

R&D Expenditure

(in million euros)

	FY2008	FY2007	FY2006
Overall	19.1	16	18.5
% of Sales	5%	4%	5%

R&D Structure
-Throughout the Company, 152 employees work in this area.

-The number of patents filed in the past business year increased again by 10 percent.


R&D Facilities
-Technology activities are based at the Laakirchen, Vorchdorf and Roitham locations in Austria.

-At the Laakirchen site, which is Bearing Group's R&D competence center, the laboratory was expanded.


Product Development
Bearing Group
-In the research and development area, the focus of activities was on the commercial vehicle sector. A lead-free four-layer bearing for heavy duty engines was developed in 2008-2009.

Sinter Group
-One focus of Sinter Group's development activities has been the systematic continuation of technology and application development of sintered gears and modules for new fuel-saving internal combustion engines.

-A second research focus was further development of power synchronization system for manual and automatic transmissions in motor vehicles. The vehicle tests carried out at customer facilities confirm that ease of shifting is significantly improved by the synchronization power increase. The Miba Durasint (R.) technology was developed and the production process defined for highly stressed transmission components such as synchronizer hubs.

Friction Group
-The Company is working on developing a carbon friction material for use in car and truck synchronizers. Because of significantly reduced wear, this material permits higher load-carrying capacity and fuel savings in the vehicle.

Capital Expenditure

(in million euros)

	FY2008	FY2007	FY2006
Sinter Group	17.4	18.9	15.1
Bearing Group	20.8	11.9	9.8
Friction Group	3.7	4.0	5.3
Others	1.2	1.2	1.7
Investment Total	43.1	36.0	31.9

Sinter Group
-In Jul. 2008, the Company announced that it is building a new plant for sintered components in McConnelsville, Ohio. Components for passenger car engines and transmissions will be produced there beginning in the second half of 2009. By mid-2010 the company will have invested 16.5 million U.S. dollars and created 60 new jobs. In addition to the major U.S. automakers and suppliers, Miba will supply primarily European customers in North America. (From a press release on Jul 18, 2008)

Bearing Group
-Bearing Group invested in the construction of a large bearing production facility at its site in Suzhou, China. Capital investments by Bearing Group in fiscal year 2008-2009 increased to 20.8 million euros from 11.9 euros in 2007-2008.

-In Laakirchen, Austria, production was reorganized in order to guarantee more flexibility and autonomy.

Friction Group
-Friction Group's capital expenditures totaled 3.7 million euros . about the same level as in the previous year and primarily involved the parent plant in Roitham, Austria. By the end of the summer, a major project for increasing production of clutch segments was
completed. Two production lines were switched to a robotic system. In addition, another sintering furnace for brake segments was installed.

-At Friction Group's location in Vrable, Slovakia, the focus in 2008-2009 was on systematic development of production processes in order to increase productivity.

-Work is also being done, in cooperation with the plant in Roitham, Austria, to optimize the process quality of the steel plates produced in Vrable.


Investments in Austria
-In Feb. 2008, High Tech Coatings (HTC), a wholly owned subsidiary of the Company, went productive at its second production site in Vorchdorf, Austria. At its new location HTC develops and produces coating solutions for the international automotive industry. Vorchdorf facility will supply products such as Spacecoat(R) and Synthec(R), and PVD coatings. A total of 4 million euros has been invested. (From a press release on Feb. 19, 2008)