ZF Growth Rate Above Industry Average

-- ZF Group Sales Increased by 8 Percent in 2007 to $17.3 Billion

-- Workforce Grew by 4 Percent to 58,000 Worldwide

-- Operating Profit Reached $1.26 Billion
NORTHVILLE, Mich.--(Business Wire)--
Speaking at the ZF annual press conference in Stuttgart, Germany
today, ZF Friedrichshafen AG CEO Hans-Georg Harter reported:
"Profitable growth for the ZF Group continued in 2007."

ZF reported worldwide sales of EUR 12.65 billion ($17.32 billion).
This positive earnings position will be used to finance investments,
expand the company's international scope in Russia, Asia, and other
countries, and move forward with technical innovations.

Regionally, ZF showed the following results:

-- Western Europe increased by 8 percent in 2007 to EUR 8.469
billion ($11.6 billion).

-- Eastern Europe increased by 10 percent to EUR 601 million
($823 million)

-- The biggest increase was recorded in the Asia-Pacific region
where revenues rose 46 percent over the previous year to total
EUR 1.627 billion ($2.23 billion).

-- In North America, a slump in sales for traditional U.S.
customers resulted in a 19- percent decline in revenues to EUR
1.279 billion ($1.75 billion).

-- South America showed dynamic growth, with a 30-percent
increase over 2006 to EUR 478 million ($654 million).

Full order books throughout most of 2007 had a positive effect on
the employment situation at ZF. The company's international workforce
averaged 57,372 employees, 4-percent more than the previous year. A
total of 2,322 new jobs were created worldwide. More than 100
engineers were hired in 2007 for the development of future-oriented
hybrid technology at ZF sites in Friedrichshafen and Schweinfurt,
Germany. Another 250 engineers will be added this year.

Improved profits and liquidity

According to ZF CFO Willi Berchtold, "The 2007 business year was
characterized by positive developments in the company's profit and
liquidity."

Operating profit increased by 35 percent over the previous year to
EUR 518 million ($709 million). The net financial position improved by
48 percent to EUR 1.288 billion ($1.76 billion), while ZF invested EUR
584 million ($800 million) in property, plants and equipment in 2007.
This year, the company is planning to invest more than EUR 900 million
($1.23 billion) to prepare new product launches and expand the ZF
research and development network.

Outlook 2008

During 2007, ZF introduced several new developments that will
begin production in 2008 and 2009. These include an 8-speed automatic
transmission for cars that represents another major step towards
improving fuel economy and lowering emissions.

In addition, series production of hybrid modules is scheduled to
start soon, making ZF the first independent manufacturer to supply
mass-produced hybrid technology. Production of chassis components at a
new plant in Levice, Slovakia is also slated to start in spring 2008.

The differing sales performance trends in regional markets are
expected to continue in 2008 with sluggish economic development in
North America and Europe. According to Harter, the increase in sales
for 2008 will be below the 2007 growth rate.

Strong growth in ZF divisions

Increased sales performance for the ZF Group is based on positive
business development in corporate divisions, business units and ZF
Lenksysteme joint venture. The ZF divisions primarily gained from the
ongoing strong demand in the commercial vehicle and construction
machinery industries in all relevant market regions. The growth in car
driveline and chassis technology was fueled by new product generations
and the export success achieved by ZF customers.

The ZF Car Driveline Technology Division increased sales by 5
percent over the previous year to EUR 2.070 billion ($2.83 billion).
This is a direct result of the strong export performance by ZF
customers and the growing demand for second-generation ZF 6-speed
automatic transmissions. Introduced at the end of 2006, this new
product now accounts for 44 percent of all automatic car transmissions
manufactured at the ZF plant in Saarbrucken, Germany. The Car
Driveline Technology Division manufactured a total of 1.3 million car
transmissions.

The ZF Car Chassis Technology Division reported a 2 percent
decline in sales to EUR 2.285 billion ($3.13 billion). This is a
result of reporting procedures after a major customer assumed
financial responsibility for purchased parts. The currency exchange
rates between the dollar and Euro also had a negative effect.
Competitive pressures from best-cost countries have had an impact on
the company's sales of chassis modules and components. In terms of
axle assembly orders, the ZF division continues to enjoy an excellent
market position. New manufacturing plants achieved or surpassed the
targeted series production volumes in 2007.

With a 17 percent increase in sales to EUR 2.085 billion ($2.86
billion), 2007 was a record year for the ZF Commercial Vehicle and
Special Driveline Technology Division. This was primarily a result of
the further market penetration of the AS Tronic automatic transmission
system. Launched into series production in 2006, the AS Tronic Mid and
AS Tronic Lite versions designed for delivery vans and light trucks,
marked a steep startup curve. Sales were also driven by a strong
demand for the Ecosplit manual transmission for commercial vehicles as
well as for the Ecomat automatic transmission for buses. The
division's internationalization strategy had a positive impact. New
plants opened in Russia and China in 2006 already report strong
growth.

The ZF Off-Road Driveline Technology and Axle Systems Division
once again reported double-digit growth. Sales increased by 11 percent
in 2007 to reach EUR 1.876 billion ($2.57 billion). This upswing was
fueled by a healthy market for construction machinery and a strong
demand for agricultural machinery. Other growth factors included the
sales of low-floor axle systems on markets in China and South America,
as well as ongoing large-quantity call-off orders for car axle
transmissions.

Sales totaling EUR 2.386 billion ($3.27 billion) were generated by
the ZF Powertrain and Suspension Components Division in 2007, a
12-percent increase over 2006 figures. The demand for dual-mass
flywheels and automatically adjustable clutches surpassed the
relatively high 2006 production figures. In the passenger car market,
sales of electronic CDC systems (Continuous Damping Control) increased
significantly.

Consolidated (50%) in the ZF Friedrichshafen AG annual report,
sales from ZF Lenksysteme GmbH, a joint venture with Robert Bosch GmbH
(50%), totaled EUR 1.313 billion ($1.8 billion) in 2007. The
12-percent increase is based on strong export business and sales of
electronic steering systems, which reached the 5-million unit mark
since the series production launch in 2002.

Development of ZF business units

The Rubber-Metal Technology business unit increased sales by 1
percent in 2006 to EUR 521 million ($714 million), as a result of the
positive market developments in Europe and South America. An ongoing
strong demand for commercial ships helped the Marine Propulsion
Systems unit achieve an 18-percent increase in sales to EUR 264
million ($362 million). Double-digit growth was also reported by the
ZF Aviation Technology business unit: Sales of EUR 60 million ($82
million) in 2007 represents a 11-percent increase over 2006. ZF
Trading increased by 13 percent to EUR 624 million ($855 million).
This increase is primarily attributed to growth in Eastern Europe as
well as to the first-time inclusion of a company in Mexico in the
financial reporting. The ZF Sales and Service Organization increased
by 12-percent to EUR 348 million ($477 million).

Note to Editors: There should be an umlaut over the "a" in
"Harter" above.

ZF Group NAO
Corporate Communications
Frank Buscemi, 734-207-2820
frank.buscemi@zf.com

Copyright Business Wire 2008