BERU Achieves High Growth in the First Quarter of 2006.

LUDWIGSBURG, Germany -- On the basis of preliminary figures, BERU Aktiengesellschaft, listed in the General Standard of the Frankfurt Stock Exchange since February 28, 2006, increased its total sales revenues in the first quarter by 12.8% to EUR 117.4 million (Q1 2005: EUR 104.1 million). At the same time, operating profit (EBIT) increased in line with expectations to EUR 17.3 million, equivalent to an operating margin of 14.8% of revenues.

"BERU continued along its profitable growth path in the first quarter and achieved increases in sales revenues in all its divisions and segments. From today's perspective, we are on track to achieve the growth targets we set ourselves for 2006," commented Marco von Maltzan, Chairman of the Executive Board of BERU AG, on business developments.

Due to the changeover of the financial year to the calendar year effective December 31, 2005, the figures for January 1 to March 31 are disclosed for the first time as a first quarter. The comparative figures for the prior year refer to the fourth quarter of the 2004/05 financial year, which ended on March 31, 2005.

As a specialist in ignition technology, diesel cold-start technology, and electronics and sensor technology, BERU normally posts its strongest quarterly sales revenues in the first quarter of the calendar year. In addition to seasonal effects, this development was assisted in 2006 by the startup of new products and the worldwide trend towards diesel engines.

Original Equipment and Aftermarket segments are main growth drivers

The sales revenues generated by the Original Equipment segment increased in the first quarter in line with projections by 13.1% to EUR 77.2 million (EUR 68.2 million). The Group succeeded in further expanding its business with leading European and US automobile manufacturers in all of its divisions. Another major contribution to the growth in the Original Equipment segment's sales revenues was a ramp up by a European premium manufacturer that is equipping all of its vehicles exported to the United States with BERU's TSS tire-pressure monitoring system as of 2006.

The Aftermarket segment's sales revenues also increased sharply in the first quarter of 2006, growing by 13.9% to EUR 32.8 million EUR 28.8 million). BERU profited from the growing demand for parts subject to wear and tear, particularly in the field of ignition technology. The Group succeeded in strengthening its market position in the German domestic market as well as in other European volume markets.

In the General Industry segment, comprising the Group's business with producers of oil and gas burners and industrial electronics, BERU achieved growth in sales revenues of 5.2% to EUR 7.4 million (EUR 7.1 million).

Solid growth in all divisions and regions

BERU cemented its leading market position in its core division of Diesel Cold-Start Technology. Business developments benefited from rising fuel prices and increased sales of diesel engines in the United States and Europe. Revenues generated by sales of glow plugs and the technically sophisticated Instant Start System (ISS) increased to EUR 53.5 million in the first quarter (EUR 51.1 million). Revenues generated by the Ignition Technology division, which produces components for gasoline engines, expanded to EUR 30.5 million, mainly due to the good aftermarket business (EUR 28.8 million).

Successful product startups and higher equipping rates led to strong revenue growth for BERU's youngest division, Electronics and Sensor Technology. This division's key growth driver was the ramp-up by a European premium manufacturer using BERU's tire-pressure monitoring system. First-quarter revenues from sales of the Tire Safety System (TSS) increased at a disproportionately high rate, as expected, to EUR 8.6 million (EUR 5.2 million). Sales revenues from PTC auxiliary heating systems for vehicle interiors also developed positively, increasing to EUR 8.9 million (EUR 6.7 million).

In regional terms, the Group's sales revenues in its most important market, Europe (excluding Germany), rose to EUR 57.3 million (EUR 52.4 million). In Germany, BERU's domestic market, sales revenues increased to EUR 35.1 million (EUR 31.2 million). Sales revenues grew to EUR 12.9 million in the United States (EUR 10.2 million) and to EUR 9.7 million in Asia (EUR 8.6 million). In the other international markets, BERU recorded revenues of EUR 2.4 million (EUR 1.7 million). The proportion of sales revenues generated outside Germany thus remained almost unchanged in the first quarter of 2006 at 70.1% (70.0%).

High profitability and solid finances

The intensified pressure on margins and sale prices accompanied by high prices for raw materials and energy mean that automotive suppliers such as BERU have to achieve a high level of operating efficiency in the entire value chain while continuously improving production processes. At the plant in Chazelles sur Lyon, France, where BERU's entire European production of spark plugs is located, the Group initiated restructuring measures in 2005 that are scheduled to be completed by the middle of this year.

By means of strict cost management and rising utilization of capacity, the Group has succeeded in achieving an operating profit of EUR 17.3 million (EUR 12.0 million), representing an operating margin of 14.8%.

In the first quarter of this year, BERU invested 7.4% of its sales revenues, or EUR 8.7 million, in the expansion and improvement of its production facilities in Germany and abroad (EUR 10.9 million). The Group employed a total of 2,626 persons worldwide as of March 31, 2006 (December 31, 2005: 2,702).

The Group's cash and cash equivalents amounted to EUR 75.8 million at the end of the first quarter, compared with EUR 83.9 million at the end of its short financial year on December 31, 2005. As a result of credit repayments, liabilities to banks decreased from EUR 11.1 million to EUR 0.3 million. The BERU Group is therefore virtually debt free. At the same time, the net financial position improved by EUR 2.7 million to EUR 75.6 million.

Confirmation of forecasts for 2006

In line with the development of the world economy, the Group expects only a moderate revival of the worldwide demand for automobiles during the rest of the financial year. The increasingly difficult market environment will lead to a more moderate growth than in the first quarter. However, due to the rising demand for diesel and the ramp-up of new products in all three divisions, the Executive Board has confirmed its forecasts for this year. In full-year 2006 the Executive Board expects to achieve Group revenues of between EUR 425 and 435 million and an operating profit (EBIT) of more than EUR 50 million.

BERU business developments in the first quarter of 2006
(January 1 - March 31, 2006)on the basis of preliminary, unaudited
figures:

EUR million                               Jan 1, 2006 -  Jan 1, 2005 -
                                         March 31,2006* March 31, 2005

Sales revenues                                   117.4          104.1
Earnings before interest and taxes
 (EBIT)                                           17.3           12.0
Investments                                        8.7           10.9
Net financial position                            75.6          72.8**

Sales revenues by region
Germany                                           35.1           31.2
Rest of Europe (without Germany)                  57.3           52.4
North America                                     12.9           10.2
Asia                                               9.7            8.6
Rest of the world                                  2.4            1.7

Sales revenues by segment
Original Equipment                                77.2           68.2
Aftermarket                                       32.8           28.8
General Industry                                   7.4            7.1

Sales revenues by division
Diesel Cold-Start Technology                      53.6           51.1
Ignition Technology                               30.5           28.8
Electronics and Sensor Technology                 33.3           24.1

Number of employees                              2,626         2,702**

*based on preliminary, unaudited figures
**as of Dec 31, 2005

More information is available from:
BERU AG
Gala Conrad, Director Corporate Communications/ Investor Relations
Phone: [phone], e-Mail: [e-mail]

Language:     English
Issuer:       BERU AG
              Morikestr. 155
              71636 Ludwigsburg Deutschland
Phone:        [phone]
Fax:          [phone]
email:        [e-mail]
WWW:          www.beru.de
ISIN:         DE0005072102
WKN:          507210
indices:
Listed:       Amtlicher Markt in Frankfurt (General Standard),
              Stuttgart; Freiverkehr in Berlin-Bremen, Munchen,
              Hamburg, Dusseldorf