National Press Release

NOVI, Mich., Nov. 13 /PRNewswire/ -- Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., today announced sales and earnings for the third quarter of 2008.

Net sales for the quarter were $599.7 million compared to $602.6 million for the same quarter of 2007, as lower auto sales volumes in North America more than offset increased sales from Brazil and Europe, acquisitions and favorable exchange rates.

Gross profit for the third quarter was $62.5 million, or 10.4 percent of sales, as compared to $83.5 million, or 13.9 percent of sales, for the same period of the prior year. The reduction of gross profit relates primarily to lower North American vehicle volume, unfavorable mix and rising material costs, with some offset provided by acquisitions and the impact of various cost-saving initiatives.

The company reported a $32.6 million net loss for the third quarter compared to a net loss of $12.8 million for the same period of 2007, due primarily to lower North American light vehicle production, restructuring charges and vehicle mix changes related to shifts in consumer demand.

The company also announced a record $309.7 million of expected net new business, a 52 percent increase versus prior year to date net new business.

For the first nine months of the year, consolidated sales increased by $318.5 million to $2.1 billion compared to the same period of 2007, the 17.7 percent increase was due largely to the impact of the acquisitions and favorable foreign exchange rates.

Adjusted EBITDA, a measure of operating performance which excludes certain non-cash and non-recurring items, was $39.1 million in the third quarter, compared to $58.2 million for the same period of 2007. A table reconciling Adjusted EBITDA, a measure not recognized under Generally Accepted Accounting Principle (GAAP), can be found in this news release.

"The global financial crisis, volatile economic conditions and sharp decline in automotive sales presented unprecedented challenges which impacted our performance in the third quarter of 2008," said Cooper-Standard Automotive President and Chief Executive Officer Edward A. Hasler. "We were able to offset the impact of these factors to some degree by proactively flexing our manufacturing costs, reducing administrative expenses and continued recovery of raw material cost escalation. Though the economic climate continues to be challenging, we are encouraged by the new business we have been awarded, especially on global small car platforms, as well as awards for products that contribute to greater fuel efficiency and reduced emissions."

Key Launches:

During the quarter, the company launched production on new customer vehicles, as well as next-generation models for existing platforms. Highlights of these launches include:

     -- Fiat (Alfa MiTo)
     -- Ford (F-150, Fiesta global program, Fusion, Milan and Volvo XC 50)
     -- General Motors (Traverse)
     -- Honda (Acura and New City via Nisco JV)
     -- Peugeot (308 CC)

Adjusted EBITDA reconciliation for the three months and nine months ending September 30, 2008 is presented in the table below.

                                         Three Months Ended Nine Months Ended
                                             September 30,     September 30,
                                             2007     2008     2007     2008
    Net income (loss)                      $(12.8)  $(32.6)    $1.6    $(5.3)
    Provision for income tax expense
     (benefit)                                7.2     (1.0)    20.6     12.7
    Interest expense, net of interest
     income                                  22.0     23.7     64.9     71.3
    Depreciation and amortization            34.3     35.2     95.5    106.2
        EBITDA                              $50.7    $25.3   $182.6   $184.9
    Restructuring & other(1)                  7.5     13.8     20.8     16.3
    Gain on bond repurchase                   -        -        -       (1.7)
        Adjusted EBITDA                     $58.2    $39.1   $203.4   $199.5


    (1) Primarily inventory write up at acquisition and foreign exchange gain
        and acquisition related indebtedness.

Management uses Adjusted EBITDA as a measure of performance and to demonstrate compliance with debt covenants. Adjusted EBITDA may vary slightly from the amount used in calculating indenture covenant compliance due to the classification of joint venture equity earnings and Pro Forma acquisition results. EBITDA and Adjusted EBITDA are not calculated according to GAAP and should not be construed as income from operations or net income, as determined by GAAP. Other companies may report EBITDA differently and therefore Cooper- Standard Automotive's results may not be comparable to other similarly titled measures of other companies.

Conference Call Details

Cooper-Standard Automotive will hold a conference call and webcast with investors on Thursday, Nov. 13, 2008 at 9 a.m. EST to discuss its 2008 third quarter results, provide a general business update and respond to investor questions. Cooper-Standard Automotive's executive team will host the call. A copy of the presentation will be available on the Cooper-Standard Automotive Web site (http://www.cooperstandard.com) 30 minutes prior to the call.

An interactive webcast will also be available via http://www.cooperstandard.com/investor_home.php or http://investor.shareholder.com/cooperstandard/eventdetail.cfm?eventid=60162.

To participate in a live question-and-answer session, North American callers should dial toll-free 800-406-5356 (international callers dial 001- 913-312-0635) and provide pass code 7045812 or ask to be connected to the Cooper-Standard Automotive third quarter teleconference. Callers should dial in at least five minutes prior to the start of the call. Financial and automotive analysts are invited to ask questions after the presentations are made. Those joining via the webcast may also submit questions electronically through the Web interface.

Individuals unable to participate during the live teleconference or webcast may visit the Investor Relations portion of the Cooper-Standard Automotive Web site http://www.cooperstandard.com/investor_home.php for a webcast replay of presentation.

About Cooper-Standard Automotive

Cooper-Standard Automotive Inc., headquartered in Novi, Mich., is a leading global automotive supplier specializing in the manufacture and marketing of systems and components for the automotive industry. Products include body sealing systems, fluid handling systems, and NVH control systems. Cooper-Standard Automotive Inc. employs approximately 19,000 people globally with more than 70 facilities throughout the world. For more information, visit the company's Web site at: www.cooperstandard.com.

Cooper-Standard is a privately-held portfolio company of The Cypress Group and Goldman Sachs Capital Partners Funds.

The Cypress Group is a New York-based private equity investment firm founded in 1994. Since its formation, Cypress has invested more than $3.5 billion of capital within its two funds. Cypress has an extensive track record of making growth-oriented investments in targeted industry sectors and building equity value alongside proven management teams.

Goldman Sachs is leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms.

This news release includes forward-looking statements, reflecting current analysis and expectations, based on what are believed to be reasonable assumptions. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from those projected, stated or implied, depending on many factors, including, without limitation: our substantial leverage; limitations on flexibility in operating our business contained in our debt agreements; our dependence on the automotive industry; availability and cost of raw materials; our dependence on certain major customers; competition in our industry; our conducting operations outside the United States; the uncertainty of our ability to achieve expected Lean savings; our exposure to product liability and warranty claims; labor conditions; our vulnerability to rising interest rates; our ability to meet our customers' needs for new and improved products in a timely manner; our ability to attract and retain key personnel; the possibility that our owners' interests will conflict with yours; our new status as a stand-alone company; our legal rights to our intellectual property portfolio; our underfunded pension plans; environmental and other regulations; and the possibility that our acquisition strategy will not be successful. There may be other factors that may cause our actual results to differ materially from the forward-looking statement. Accordingly, there can be no assurance that Cooper-Standard Automotive will meet future results, performance or achievements expressed or implied by such forward-looking statement. This paragraph is included to provide safe harbor for forward- looking statements, which are not generally required to be publicly revised as circumstances change, and which Cooper-Standard Automotive does not intend to update.

SOURCE Cooper-Standard Holdings Inc.