* Consolidated sales: EUR 277.7 million - up seven percent * Increase of input stock cost puts earnings under pressure Miba, a strategic partner and supplier of the international engine and automotive industry, boosted sales for the first three quarters of the 2006/07 business year (as at the end of October) to EUR 277.7 million, an increase of seven percent in comparison with the same period of the previous year. "The persistent positive economic conditions were the decisive factor leading to an increased demand for commercial vehicles, construction machines and ships", stated Peter Mitterbauer, Miba's CEO. With EUR 30.2 million, cash-flow remained at a constantly high level.

For the reporting period, earnings before taxes decreased from EUR 17.8 million to EUR 13.5 million. The company continued to be faced with cost increases for input stock, which could only partially be passed on to the clients. Higher start-up costs for the new friction materials plant in Slovakia had an additional negative impact on earnings of roughly EUR 2 million in comparison with the previous year.

With effective date of October 31, 2006, Miba sold its production site in Naples (Italy) with 177 employees to an Italian entrepreneur. By taking this step Miba is optimizing its production site concept and preparing itself for the expected market growth of the automobile industry in the Far East. Non-recurring effects from this production site adjustment had an additional negative impact of EUR 5.4 million on third quarter earnings.

	1st-3rd Quarter 2006/07	1st-3rd Quarter 2005/06
Sales volume in EUR million	277.7	258.6
Cash-flow from operations in EUR million	30.2	32.4
Earnings before taxes in EUR million	8.1	17.8
Number of employees (as of October 31, 2006)	2,917	2,736

At the reporting date of October 31, 2006, the number of Miba employees stood at 2,917 showing an increase of 181 in comparison with the reporting date of the previous year. This increase in employees was mainly a result of the recruitment drive for the Vráble site in combination with the on-going production in England. Furthermore, the Miba Bearing Group's sales growth resulted in additional manpower requirements. From November onwards, the number of employees dropped by 177 as a result of the sale of the Naples site.

For the current business year, an investment volume amounting to EUR 32.8 million is planned, of which EUR 24.8 million were invested in the first 3 quarters. The main targets of the investments were the new friction materials plant in Vráble (Slovakia) and the set-up of the production site for bearings and sintered components in Suzhou (China).

Continuing on the path to growth For the 2006/07 business year, Miba is expecting slightly increased production figures for the engine and vehicle industry and a slightly increased business volume resulting therefrom. However, growth will be tempered by a renewed increase in commodity prices and by uncertainties regarding the EUR to USD exchange rate. "We will continue on our path to growth during the current business year. We will offset the majority of the expected higher costs for material and staff with consistent productivity and efficiency increases at all our production sites", explained Mitterbauer.

Miba, strategic partner to the international engine and automotive industry, is selling its sinter plant in Naples with 170 jobs to an Italian investor on October 31, 2006. This move is aimed at securing the company’s existence in the long term. Both parties have agreed not to disclose the purchase price.

By optimizing its location concept, Miba is preparing for the anticipated market growth in the automotive industry in Far East. This includes building a manufacturing facility for shock absorber and small engine components in Suzhou. The Miba Sinter Group is also investing in its high-tech operations in Vorchdorf and Dolny Kubín/Slovakia. “Concentrating on specific plants means that we can continue to develop our high levels of quality and productivity and are equipped for future growth,” explains CFO Siegfried Dapoz. This year Miba is investing a total of 35.5 million euros in plant and machinery. Of this figure, 17.7 million euros will go towards expanding the sinter plants.

What speaks for selling the Naples plant to Italian businessman Giovanni Malvassora, who successfully took over the Turin-based Italian subsidiary in a management buy-out in 2004, is his long-standing experience, which will guarantee the company’s future existence.



The Miba Group Based in Laakirchen/Upper Austria, Miba is a strategic partner and supplier to the international engine and automotive industry. The Group manufactures sintered components, engine bearings and friction materials for vehicles, trains, ships, aircraft and power stations. Miba products make them safer, eco-friendlier and more powerful. The listed company employs some 2,900 people at nine locations worldwide with about half at its local plants in Laakirchen, Vorchdorf and Roitham. It reported sales of 347 million euros with an operating profit of 21.7 million euros for fiscal 2005-06.

* Sales up 6 percent in the first six months of the year, to EUR 189.4 million * Three-year, EUR-100-million investment program to be completed this year

Miba, a strategic partner of the international engine and automotive industry, benefited from strong demand for transportation capacities, boosting sales by six percent to EUR 189.4 million in the first six months of the 2006/07 business year. However, the operating result was dragged down by high energy and commodity costs, which fell from EUR 16.8 million to EUR 13 million. Nevertheless, with a 6.9% operating margin, Miba demonstrated its strong earning power. "The positive trends in our customer markets - commercial vehicles, construction machines and ships - persisted during the first six months of the year," said Peter Mitterbauer, Miba's CEO. "Furthermore, since the beginning of the year automobile production in Europe gathered some momentum." Miba is making substantial investments in additional capacity, so as to be able to meet increased demand and be ready for future growth.

EUR 35.5 million to be invested in 2006 A total of EUR 35.5 million was earmarked for capital expenditure in the current business year. In the first half of the year, EUR 15.8 million of this amount were realized. This means that the three-year, EUR-100-million investment program will be completed this year. Half of the investment has been in new machinery and systems at the Austrian sites in Laakirchen, Vorchdorf, Roitham and Niklasdorf. "For a technology leader like Miba, our Austrian operations, with their highly skilled workforce, are of key significance," said Mitterbauer. The focal point of investments abroad is the new friction materials plant in Slovakia. In the first six months of the year, series production in Vráble, 100 kilometers east of Bratislava, began. In the Suzhou Industrial Park, 90 kilometers west of Shanghai, construction of the production hall for the new plant, which will produce truck bearings and sintered components for passenger car engines, has been in progress since the beginning of the year.

Stable growth during the first six months In the first half of the year (as of July 31, 2006), Miba's sales increased by more than 6 percent to EUR 189.4 million. The Miba Sinter Group generated the largest share of sales with 44.6 percent, followed by the Miba Bearing Group with 38.5 percent and the Miba Friction Group with 16.3 percent. High Tech Coatings (HTC), a company acquired in May 2005 with its headquarters in Niklasdorf (Austria), accounted for 0.6 percent of total sales. This trend reflects Miba's increased focus on the non-automotive sector.

However, the continued price increases for copper, metal powder and energy in the first half of the year adversely affected the operating result with regard to material costs. After a favorable result in the first half of the 2005/06 business year, earnings before taxes (EBT) decreased from EUR 16.80 million to EUR 13.0 million in the corresponding period of this year. The start-up cost for the new friction materials plant in Slovakia is one of the reasons for this decrease. Efficiency enhancement programs at the Naples and Barcelona sinter sites and the corresponding costs for staff reduction negatively impacted earnings in the short term, as well. In the first half of the year, cash-flow amounted to EUR 16.6 million as compared to EUR 18.5 million during the corresponding period in the previous year.

At the reporting date of July 31, 2006, the number of Miba employees stood at 2,920, an increase of 179 as compared to the reporting date of the previous year. This increase in employees was mainly a result of the recruitment drive for the Vráble site in combination with the on-going production in England. Furthermore, the Miba Bearing Group's sales growth resulted in additional manpower requirements.

	1st half-year 2006/07	1st half-year 2005/06
Sales volume in EUR million	189.4	178.4
EBT in EUR million	13.0	16.8
Investments in EUR million	15.8	21.6
Number of employees as of July 31, 2006	2,920	2,741

Miba Sinter Group As a supplier of the European automotive industry, the Miba Sinter Group recorded a sales volume for the first half of the 2006/07 business year which was approximately 4 percent higher than that achieved in the previous year. The high-tech sites in Vorchdorf (Austria) and Dolny Kubin (Slovakia) have benefited from this trend. The sales increase is the result of new series orders, for example for clutch bodies for manual transmissions. Other new orders, such as for sintered gears for camshaft drives and mass balancing, are almost ready for series production. Their results will show up in the sales volume and operating result for the second half of the year.

Miba Bearing Group The Miba Bearing Group's customer markets continued their dynamic development during the first half of the year. The international engine producers' consistently high demand for engine bearings is the result of the elevated demand for transportation capacities. Compared to the corresponding period of the previous year, the Miba Bearing Group realized a sales increase of just under nine percent. The growth witnessed is distributed over all the important segments, i.e. from commercial vehicles and ships up to and including large stationary engines.

Miba Friction Group In the first half of 2006, the Miba Friction Group's sales volume increased by three percent as compared to the same period of the previous year. This positive development is a result of the consistently strong demand for clutch linings, particularly for commercial vehicles. The Miba Friction Group's brake segments benefited from the strong demand generated by high speed trains and wind turbines.

Outlook: Growth trend will continue Increasing production figures in the engine and automotive industry can be expected in the coming months. However, growth will be tempered by a renewed increase in energy and commodity prices. During the second half of the year, the resulting pressure on margins will be countered by endeavors to cut costs and enhanced efforts to increase productivity and efficiency at all of our sites. For the 2006/07 business year, Miba's Management Board continues to anticipate a moderate increase in sales volume and a slight growth in earnings.

On 1 September, 2006 Volker Pötzelberger took over the newly created post of Vice President Purchasing, as central purchasing manager for the Miba group.

With a purchasing and investment volume totaling 40 % of group sales, strategic purchasing management is one of the main factors for the success of the company. Miba runs production sites in Austria, Slovakia, Spain, Italy, USA and Brazil. A new site is being built up in China. Pötzelberger will link the purchasing departments at all of the Miba sites.

Pötzelberger graduated from electrical engineering at the Technical University in Vienna and has gathered considerable experience working for industrial enterprises. Forty-two years old, Mr Pötzelberger is married and father of two.

At the 20th Annual General Meeting for the 2005-06 fiscal year held last Friday, the shareholders of Miba, strategic partner and supplier to the international engine and automotive industry, approved a dividend of 2.80 euros. As the market price was 118.7 euros on the reporting date (January 31, 2006), this corresponds to a dividend yield of 2.36 percent.

Miba reported Group sales of 347 million euros and a profit on ordinary activities of 21.7 million euros for fiscal 2005-06. With a return on sales (ROS) of 6.3 percent, the Group again showed high profitability. These encouraging business trends are reflected in the dividend payout: the 20th Annual General Meeting held on July 7, 2006 declared a distribution of 2.80 euros on common stock and a preference dividend of 0.59 euros plus a bonus of 2.21 euros on preferred stock for the 2005-06 fiscal year.

By distributing 2.80 euros per common and preferred share, Miba is underscoring its continuity in dividend payment and the company’s financial strength. The dividend will be paid to shareholders on July 17, 2006.

* Group sales up 7 percent to EUR 92.4 million * Significant increase in raw materials and energy prices

In Q1 '06-'07 (status as of the end of April) Miba - a strategic partner and supplier to the international engine and vehicle industry - increased sales by just under 7 percent relative to Q1 '05-'06, to EUR 92.4 million. Strong demand in the areas of utility vehicles and construction machinery, as well as in the shipbuilding industry in Europe and the Far East, played a decisive role. At the same time the company was faced with rising raw materials and energy prices. Earnings from ordinary activities fell from EUR 8.2 million to EUR 6.1 million. Miba generated return on sales of 6.5 percent, a respectable figure by the standards of the industry. The Miba Sinter Group accounted for the largest proportion of sales, namely 45.4 percent, followed by the Miba Bearing Group with 38.1 percent and the Miba Friction Group with 15.9 percent. Niklasdorf-based High Tech Coatings (HTC), acquired in May 2005, accounted for the remaining 0.6 percent. Current orders within the group increased from EUR 143.3 million to EUR 149.4 million. "We are benefiting from greater demand for transport capacity, especially in the areas of ships and utility vehicles. In addition, production figures in the auto industry in central and eastern Europe have recovered again", commented Miba management board chairman Peter Mitterbauer.

	Q1/2006-07	Q1/2005-06
Sales (in EUR million)	92.4	86.6
Earnings before tax (in EUR million)	6.1	8.2
Number of employees (as at April 30, 2006)	2,822	2,581

Following a strong Q1/'05-'06, the operating result before tax fell from EUR 8.2 million to EUR 6.1 million. This was partly due to start-up and relocation costs for the new friction materials plant in Slovakia. The efficiency program at the Naples and Barcelona sinter sites, and the resulting staff reduction costs, also had an impact on earnings. Cash flow from operations amounted to EUR 2 million in Q1, as compared with EUR 4 million in Q1/'05-'06. This was partly attributable to building up of stocks for the transfer of friction materials production from England to Slovakia. As of 30th April 2006, the employee headcount was 2,822, up 241 relative to 30th April 2005. This increase was due to hiring for the Vráble location in parallel with ongoing production in England, and also to the acquisitions in Slovakia and Austria in Q2/'05-'06. Investments of EUR 36.3 million are planned for the current business year. EUR 5.7 million of this has already been invested. In Q1, construction began for the new production plant for truck bearings and sintered components for truck engines at the Suzhou industrial park, 90 kilometers west of Shanghai. Setting-up of production systems will begin in September of this year. The first Chinese employees are currently undergoing training in Austria.

Price of copper up 50 percent The raw materials copper, steel and metallic powder were significantly more expensive relative to '05-'06, and it was not possible to pass all of this on to the customer. The price of a ton of copper rose by about 50 percent between February and the end of April of this year, to about USD 7,500. The steel industry announced a hike in prices, too. In addition to increased materials costs, higher energy prices also had an impact.

Miba Sinter Group: series of new orders Thanks to new projects in the area of engine components, Miba boosted sales by about 2 percent relative to Q1/'05-'06. In particular it was the high-tech locations in Vorchdorf and Dolny Kubin (Slovakia) which benefited from this. Advance payments for further new orders will be reflected in sales figures over the next few months.

Miba Bearing Group: capacity expanded at Laakirchen The Miba Bearing Group increased sales by 14 percent relative to Q1/'05-'06. Capacity at the Laakirchen location is to be expanded in readiness for further growth. This investment is a further step towards ensuring high technological standards in production for ship drive diesel engines.

Miba Friction Group: relocation to Slovakia progressing according to plan In Q1, the Miba Friction Group's sales remained strong, just as in Q1/'05-'06. This positive trend was driven by strong demand for steel plates for four-wheel drive vehicle locking differentials and for wind turbine brake linings. The relocation of production of steel plates from England to Slovakia began at the start of the year, and is essentially progressing according to plan.

On course for further growth In '06-'07, Miba expects a slight increase in production figures in the engine and vehicle industry, and therefore expects sales and earnings to rise slightly as well. "We are on course for further growth during the current business year. We will offset the anticipated higher costs of materials, energy and personnel by stepping up our efforts to achieve greater productivity and efficiency at all locations," explained Mitterbauer.

* Sales volume increased to 347 million EUR - high earnings power * The non-automotive sector: the driving force behind growth

Miba, a strategic partner of the international engine and automotive industry, realized a consolidated sales volume of 347 million EUR for the 2005/06 business year. This corresponds to a 6 percent increase in comparison with the previous year despite mixed developments in customer markets. Growth stemmed exclusively from the non-automotive sector. Whereas Miba Bearing Group and Miba Friction Group benefited from the sustained high demand for transportation capacities, Miba Sinter Group was confronted with the rising cost of raw materials and increased price pressure stemming from the automobile industry. "Our customer markets developed in different ways during 2005/06. Demand for transportation capacities - from commercial vehicles and locomotives up to and including ship-building - was strong. At the same time, we were confronted with declining production figures in the European automobile industry," stated Miba's CEO, Peter Mitterbauer. Miba was able to hold onto its high earnings power and defend its position as technology leader despite the increased prices for commodities and energy. During the previous business year, a figure corresponding to five percent of the sales volume was invested in research and development.

More than half the sales volume realized outside the automobile industry During the 2005/06 business year (as at 31st January, 2006) Miba realized a consolidated sales volume of 347 million EUR, i.e. a six percent increase in sales volume in comparison to the previous year. With 44.8 percent, Miba Sinter Group contributed the largest share of the sales volume, followed by Miba Bearing Group with 37.7 percent and Miba Friction Group with 17.3 percent. This was the first time for Miba to realize more than half of its sales volume outside the automobile industry. "This development is in line with our strategy of further developing the non-automotive sector in the future," stated Mitterbauer.

With 21.7 million EUR, the operating result (EBT) was approximately 7 percent lower than the operating result obtained during the previous business year. This corresponds to a 6.3 percent return on sales (ROS). Once again, these results demonstrate Miba's high earnings power. Cash-flow from operations decreased slightly from 39.1 to 37.8 million EUR over the same time period. Investments during the 2005/06 business year increased to 46.8 million EUR, thus almost amounting to twice the amount invested in the previous year. 20.8 million EUR of these investments went to Miba's Austrian sites. The new friction material plant in Vrablé was an additional driving force behind investments. Compared to the previous year, the average number of employees increased by 97 to a total of 2,683.

	2005/06	2004/05
Sales volume (in millions of €)	347	328
EBT (in millions of €)	21.7	23.3
Investments (in millions of €)	46.8	24.7
Number of employees (average for the year)	2,683	2,586

Miba Sinter Group: Market situation remains tense 2005 was a difficult year for Miba Sinter Group's primary market, the European automobile industry. The number of automobiles produced in Europe decreased by 1.1 percent to 17.95 million vehicles. The weakness in demand resulted in significant price pressure on the market and also had a noticeable effect on the automobile component supplying companies. To a great extent, the simultaneously occurring and substantial price increases for commodities could not be passed on to our customers. For the 2005/06 business year, Miba Sinter Group recorded a sales volume of 155.4 million EUR. Adjusted for the sale of the Turin site with effective date of July 31, 2004, sales volume remained at the same level as during the previous year.

During the previous business year, the individual Sinter Group sites developed in very diverse ways. For example, strong growth resulted in the need for additional capacities at the Dolny Kubin plant in Slovakia. In the course of an asset deal with effective date of June 30, 2005, Miba Sinter Group acquired the adjacent production plant Metalsint. This acquisition added an additional 90 to the approximately 260 Miba employees in Dolny Kubin.

Even in this challenging market environment, Miba Sinter Group continued its ongoing research and development program and consequently won the "Ecotech Award" from the French automobile producer Peugeot-Citroen (PSA) for its technological cost savings with regard to the design of two clutch bodies and a differential housing cover. Since February 2006, PSA has been using the two sintered clutch bodies in its 6-speed MCP manual transmission instead of two complex, mechanically-finished steel clutch bodies. The differential housing cover has been used in the 4-speed automatic transmission TA 96 since November 2004, where it also replaces a mechanically-finished steel and aluminum part. These Miba products will be used in the Peugeot models 206, 207, 307, 407, 807 and the Citroen models C3, C4, C5, C8 and Xsara Picasso. "This award demonstrates that success in the component supplying industry does not depend on the size of a company. Instead, a company's success is linked to innovative power and flexibility," stated Mitterbauer.

Miba Bearing Group achieves record sales In 2005/06, Miba Bearing Group, a supplier to the internationally leading engine builders, benefited from the strong demand for transportation capacities on the road, on rails and on the water. Compared to the previous year, sales volume increased by 16.4 percent, leading to a new sales volume record of 130.8 million EUR.

Due to the extensive market potential in the Far East, Miba Bearing Group is currently building a plant in China. The ground-breaking ceremony for this new bearing plant located in the Suzhou industrial park, 90 kilometers west of Shanghai, took place at the beginning of March. At present, the first Chinese employees are already being trained in Austria. It is anticipated that the first bearings will roll off the production line in Suzhou by the end of the 2006/07 business year.

In September 2005, the US subsidiary Advanced Bearing Materials (ABM) was founded as a joint venture of the Miba Bearing Group and the German Kolbenschmidt Group for the purpose of securing the Bearing Group's long-term supply with cast lead-bronze. Both Miba Bearing and the Kolbenschmidt Group hold a 50% interest in ABM which is headquartered in Greensburg and employs 30 people. The in-house production of cast bronze and brass compound materials with and without lead sets the stage for the development of new and innovative materials and the optimization of production processes.

Miba Friction Group: New plant in Slovakia Miba Friction Group's 2005/06 business year was characterized by a strong demand for friction materials, especially for commercial vehicles and construction machinery. In comparison with the previous year, sales volume increased by 10.1 percent to 59.9 million EUR. This sales volume increase resulted from a number of new serial orders as an original equipment supplier.

For the most part, ongoing construction at the new friction material plant in Vráble, Slovakia has been completed and part of the production line at the new site has already been installed. Initial series are being produced. Approximately 20 million EUR will be invested in this new site. By the end of the year, the production plant for steel plates with its 150 employees should be operating at full capacity. In return, the existing Miba Friction Group site in Sheffield will be closed as a balancing measure. An agreement was reached with the trade union regarding a social compensation plan for the employees affected by this measure.

Outlook: Continued expansion of our technology leadership Technology leadership is an important part of Miba's strategy for success. During the 2006/07 business year, we will continue on the road to expanding our technology leadership. With a research budget corresponding to five percent of its sales volume, Miba is investing in its future and ranks among the 500 most research-intensive companies in Europe according to a study by the EU Commission. Within Austria - Miba's technology and research center - the Group's research budget ranks it among the Top 10. Every technological innovation aims to provide client-specific and cost-efficient solutions.

For the 2006/07 business year, Miba expects slightly higher production figures for vehicle and engine producers, primarily as a result of economic dynamics in the Far East. "As a strategic partner of the international engine and vehicle industry and with sites in the most important economic centers of the world, Miba is well-prepared for the challenges of the current business year. For 2006/07, we are expecting a slight increase in sales as well as slightly higher earnings," stated Mitterbauer. Intensified efforts to increase productivity and efficiency at all sites will be needed to offset the expected higher costs of materials, energy and personnel.

* “Ecotech Award” for technological cost savings through innovation * Miba again demonstrates technology leadership

Miba, a strategic partner and supplier of the international engine and automotive industry, was honored on March 6, 2006, by the French car maker Peugeot-Citroen (PSA) as its supplier. The Miba Sinter Group received the “Ecotech Award” for technological cost savings achieved in two clutch bodies and a differential housing cover. This award once again underlined Miba’s technology leadership.

“This award is clear recognition of our intensive research and development,” said Peter Mitterbauer, Miba’s CEO. Miba invests approximately 3.5 percent of its annual sales in research and development, which makes it one of the 500 most research-oriented companies in Europe. Since February 2006, the two sintered clutch bodies have replaced a pair of costly, mechanically finished steel clutch bodies in PSA’s 6-gear MCP transmission. The differential housing cover has been used in the TA 96 4-gear automatic transmission since November 2004 and likewise replaced a mechanically finished steel and aluminum solution. The Miba products are found in the following models: Peugeot 206, 207, 307, 407, 807; Citroen C3, C4, C5, C8 and Xsara Picasso.

“This award also shows that the success of industry suppliers is not dependent on company size, but on flexibility and innovative power,” observed Mitterbauer. The Miba Sinter Group operates as a partner of the automotive industry and is involved in the development projects of its customers at a very early stage.

Best Supplier Awards for the Highest Standards This was the second time that the French car maker Peugeot-Citroen has presented “Best Supplier Awards” to its top suppliers in four categories. The companies that have received the trophies are those able to meet the high standards of the Peugeot Group. In addition to the “Ecotech” category in which technological cost savings play the key role, awards were also made in the categories Quality, Innovation and Service Quality. Norbert Schrüfer, CEO of the Miba Sinter Group, accepted the award from the CEO of PSA, Jean-Martin Folz.

The Miba Group With headquarters in Laakirchen, Upper Austria, Miba is a strategic partner and supplier of the international engine and automotive industry. At nine sites around the world, it manufactures sintered components, engine bearings and friction materials for vehicles, trains, ships, aircraft and power plants. Miba’s products make vehicles more efficient, safer and more environmentally friendly. The group has 2,700 employees, approximately half of whom work at its Austrian sites in Laakirchen, Vorchdorf and Roitham. In fiscal year 2004-05, the sales of the listed company were EUR 328 million and its operating result was EUR 23.3 million.