Nine strong months for Tognum AG

• Nine-month revenues up by 12.3% to €2.045 billion
• Increase in orders received to €2.4 billion will bring stable growth
• Equity ratio rises to 21%
• Nine-month net profit of €156 million
• Return on sales of 14.8%
• Earnings per share of €1.26
• Workforce expansion of 13%

Friedrichshafen, 28 November 2007. Tognum AG (FSE: TGM; ISIN: DE000A0N4P43; German SIN: A0N4P4) posted an increase in sales revenues* of 12.3% in the first nine months of 2007 compared with the same period of last year to €2.045 billion, while orders received rose by 13% to €2.4 billion. Earnings** (adjusted EBIT) amounted to €302 million and net profit** for the period was €156 million. The return on sales** for the first nine months of 2007 was 14.8% (9M 2006: 13.1%). Demand for diesel engines remains high. Despite the weak dollar, Tognum anticipates a good full-year net profit from its worldwide operations. Earnings per share** for the first nine months of this year already amounted to €1.26. The nine-month figures now presented confirm the Group’s preliminary disclosure of October 31. (**All figures are adjusted to exclude exceptional items and non-operating effects.)

Third-quarter revenues of €709 million actually surpassed the strong second quarter (€669 million). With the proceeds of the initial public offering and the recent strong business, Tognum AG was able to reduce its net financial indebtedness to €341 million as of September 30, 2007 (September 30, 2006: €697 million), and increased its equity ratio to 21%.

Good conditions for strong earnings

“These are excellent results, and will have a positive impact on full-year profits and on our dividend,” stated Volker Heuer, CEO of Tognum AG. The good business situation is driven by sustained strong demand. Additional orders from Asia and Europe have offset decreases in demand in some areas due to the financial crisis in the United States. Orders received in the first nine months of this year reached a record value of €2.4 billion – 1.2 times as high as revenues – thus providing a solid base for growth in the coming year.

Strong demand for high-speed diesel engines

The high-speed diesel engines of Tognum’s core brand mtu continue to be the main source of revenues. The segment mtu Engines increased its nine-month revenues by 11.1% to €1.758 billion. The increase in orders received was even stronger. In the third quarter, mtu Engines received orders to supply 66 of its biggest engines for public-authority ships and military ships. For yachts, ferries, public-authority ships and commercial applications, approximately 200 engines of the medium-sized Series 4000 were ordered in Q3, as well as 250 Series 2000 and 250 Series S60 engines, while producers of power-generator sets in Europe and the USA ordered 500 engines of the Series 4000 alone. Orders received for engines in the first nine months of the year amounted to €2.135 billion, €118 million more than in the comparable prior-year period.

More revenues due to Katolight

The Tognum business segment Onsite Energy Systems & Components, which manufactures and distributes onsite power generators, is also growing. Its nine-month sales revenues increased to €364 million, which is €93 million higher than in the (pro-forma) prior-year period*. Of the Tognum Group’s total volume of orders received in the first three quarters of 2007 of €2.4 billion, €376 million was accounted for by the segment Onsite Energy Systems & Components.

Expanded workforce

Good business is also good for employment: At the end of September, the companies of the Tognum Group employed 8,091 people – 939 more than at the end of 2006 and 1,011 more than at the end of September 2006.

Investment in the future

Some major corporate decisions made this year are indicative of Tognum’s future-oriented business policy: With the acquisition of SKL-Motor GmbH in Magdeburg effective January 1, 2008, Tognum intends to expand its after-sales business; engines will be overhauled with reworked components at the SKL plant. A large volume of logistics operations for spare parts, production and distribution is to be transferred from the two mtu plants in Friedrichshafen to a logistics center that is already under construction in Überlingen and to another planned logistics center nearby in Salem (approximately 20 kilometers from Friedrichshafen). This will create space to expand production facilities in Friedrichshafen.

* A comparison of figures for the first nine months of 2007 with those of the prior-year period is only possible to a limited extent because the Tognum Group in its present form was only formed in April 2006 from the operating business of the former DaimlerChrysler Off-Highway unit with MTU Friedrichshafen as its core company. Comparative figures for the year 2006 are the result of a pro-forma calculation.

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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.

A detailed report on business developments is also available on the Internet: http://investors.tognum.com