Nuremberg – Owing to the significantly poorer underlying conditions, induced by the financial crisis, since the beginning of October and the persisting slump in demand above all in the automotive business, Leoni readjusts its forecast for 2008 to the current situation. A drop in demand of about 25 percent is expected for the fourth quarter versus the first three quarters of 2008, which is likely resulting in a break-even 4th quarter in terms of earnings before interests and taxes. For the year as a whole an increase in sales to approximately EUR 2.9 billion (previously: at least 2.9) is projected. From today’s perspective, earnings before interest and taxes (EBIT) will come to approximately EUR 95 million (previously: 110 to 120). In response to the reduction in orders from numerous car makers, the Company has initially cut back overtime and holiday entitlements at production facilities around the world. In case of continuing scaling back of production, corresponding staff reduction cannot be ruled out either. However, various new start-ups, which will partly go into series production from 2009 onwards, will cushion the need to adjust capacity. Leoni is preparing further cost cutting measures in close collaboration with its customers.

The wire, cable and wiring systems specialist generated consolidated sales of EUR 2.3 billion in the first nine months of 2008 (previous year: 1.77). This 31 percent growth was due above all to having consolidated Leoni Wiring Systems France Group (LWSF), which was acquired at the beginning of 2008. Leoni felt the economic downturn in the third quarter of 2008: sales no longer rose as strongly as expected and the substantial drop in the price of copper required writedowns on inventory. Earnings before interest, taxes and depreciation/amortisation (EBITDA) nevertheless rose by 8 percent to EUR 177.0 million in the first nine months of 2008. In terms of earnings before interest and taxes (EBIT), which declined to EUR 95.7 million in the first nine months of the year (2007: 110.6), Leoni also had to absorb the impact of revaluation pertaining to business acquisitions. Consolidated net income from the beginning of January to the end of September 2008 was down to EUR 55.9 million (previous year: 72.4).