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Commercial Vehicle Group Reports Second Quarter 2008 Results

NEW ALBANY, Ohio, July 22 /PRNewswire-FirstCall/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $209.2 million for the second quarter ended June 30, 2008, compared to revenues of $158.6 million for the second quarter of 2007. Operating income for the second quarter was $6.3 million, compared to $0.8 million for the second quarter of 2007. Net income was $3.1 million for the quarter, or $0.14 per diluted share, compared to a net loss of $0.2 million, or ($0.01) per diluted share, in the prior-year quarter. Fully-diluted earnings per share for the second quarter of 2008 included a non-cash, non-operating gain on the marking-to-market of forward foreign exchange contracts of approximately $3.7 million, or $0.11 per diluted share, and fully-diluted earnings per share for the second quarter of 2007 included a non-cash, non-operating gain on the marking-to-market of forward foreign exchange contracts of $1.7 million, or $.05 per diluted share. Fully diluted shares outstanding for the quarter were 21.8 million.

"This most recent quarter was filled with increasing economic pressures on a global basis," said Mervin Dunn, president and chief executive officer of Commercial Vehicle Group. "We continue to experience the impacts of the current economic environment through our supply chain, foreign currency transactions and across our overall cost structure. Despite these difficult times, we continue to forge ahead with our long-term strategy while placing a great deal of emphasis on cost improvement and containment throughout our company," added Dunn.

Revenues for the quarter compared to the prior-year period increased by approximately $50.7 million due primarily to the increase in the North American Class 8 heavy truck market as well as acquisitions made during the fourth quarter of 2007. Operating income increased by approximately $5.6 million from the prior year quarter and net income increased by approximately $3.3 million from the prior year quarter.

The Company reported revenues of $406.2 million for the six-month period ended June 30, 2008 compared to $357.4 million in the prior-year period. Operating income for the six-month period ended June 30, 2008 was $17.8 million compared to $11.4 million last year. Net income for the six-month period was $3.6 million, or $0.16 per diluted share, compared to net income of $2.7 million, or $0.13 per diluted share, in the prior six-month period. Fully diluted shares outstanding for the six-month period ended June 30, 2008 and June 30, 2007 was 21.7 million.

"The impact from dramatically rising fuel and raw material costs together with fluctuating currencies make for very trying times for our company and difficult to provide definitive guidance on results for the balance of the year," said Chad M. Utrup, chief financial officer of Commercial Vehicle Group. "We will discuss these items as well as the North American Class 8 market and global construction market trends in further detail on our earnings call on July 23rd," added Utrup.

A conference call to review second quarter results is scheduled for Wednesday, July 23, 2008 at 10:00 a.m. ET. To participate, dial (888) 713-4213 using access code 24853793. You can pre-register for the conference call and receive your pin number at:

https://www.theconferencingservice.com/prereg/key.process?key=PHVKU87GK

This call is being webcast by Thomson/CCBN and can be accessed at Commercial Vehicle Group's Web site at www.cvgrp.com.

A replay of the conference call will be available for a period of two weeks following the call. To access the replay, dial (888) 286-8010 using access code 91195981.

About Commercial Vehicle Group, Inc.

Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture market and the specialty and military transportation markets. The Company's products include suspension seat systems, interior trim systems, such as instrument and door panels, headliners, cabinetry, molded products and floor systems, cab structures and components, mirrors, wiper systems, electronic wiring harness assemblies and controls and switches specifically designed for applications in commercial vehicle cabs. The Company is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. Information about the Company and its products is available on the internet at www.cvgrp.com.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. In particular, this press release may contain forward-looking statements about Company estimates for future periods with respect to revenues and earnings per share or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) the Company's ability to develop or successfully introduce new products; (ii) risks associated with conducting business in foreign countries and currencies; (iii) general economic or business conditions affecting the markets in which the Company serves; (iv) increased competition in the heavy-duty truck market; (v) the Company's failure to complete or successfully integrate additional strategic acquisitions; (vi) the impact of changes in governmental regulations on the Company's customers or on its business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; and (viii) various other risks as outlined in the Company's SEC filings. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.



               COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (Amounts in thousands, except per share amounts)

                                   Three Months Ended     Six Months Ended
                                        June 30,               June 30,
                                    2008        2007       2008        2007
                                (unaudited) (unaudited)(unaudited) (unaudited)


    REVENUES                      $209,240    $158,566   $406,244    $357,367

    COST OF REVENUES               185,832     141,947    362,071     314,479

       Gross Profit                 23,408      16,619     44,173      42,888

    SELLING, GENERAL AND
     ADMINISTRATIVE EXPENSES        16,760      14,610     31,778      30,164

    GAIN ON SALE OF LONG LIVED
     ASSETS                              -           -     (6,075)          -

    AMORTIZATION EXPENSE               341         259        686         362

    RESTRUCTURING CHARGES                -         998          -         998

       Operating Income              6,307         752     17,784      11,364

    OTHER (INCOME) EXPENSE          (3,786)     (2,103)     5,912         217

    INTEREST EXPENSE                 3,792       3,536      7,699       7,173

    LOSS ON EARLY EXTINGUISHMENT
     OF DEBT                             -         149          -         149

       Income (Loss) Before
        Provision for Income Taxes   6,301        (830)     4,173       3,825

    PROVISION (BENEFIT) FOR INCOME
     TAXES                           3,218        (599)       618       1,097

       Net Income (Loss)            $3,083       $(231)    $3,555      $2,728

    EARNINGS (LOSS) PER COMMON
     SHARE:
       Basic                         $0.14      $(0.01)     $0.17       $0.13
       Diluted                       $0.14      $(0.01)     $0.16       $0.13
    WEIGHTED AVERAGE SHARES
     OUTSTANDING:
       Basic                        21,537      21,413     21,537      21,401
       Diluted                      21,750      21,413     21,696      21,680

    Reconciliation to Net Income:
       Net Income (Loss)            $3,083       $(231)    $3,555      $2,728
       Depreciation & Amortization   4,788       3,998      9,476       7,727
       Interest Expense              3,792       3,536      7,699       7,173
       Provision (Benefit) for
        Income  Taxes                3,218        (599)       618       1,097
       (Gain) on Sale of Long-Lived
        Assets                           -           -     (6,075)          -
       Loss on Early Extinguishment
        of Debt                          -         149          -         149
       Restructuring Charges             -         998          -         998
       Miscellaneous (Income)
        Expense                        (40)         35        (24)        108
    Adjusted EBITDA (1)            $14,841      $7,886    $15,249     $19,980

    Supplemental Information:
    Noncash (gain) loss on
     forward exchange contracts    $(3,746)    $(1,661)    $5,936        $586
    Nonrecurring (benefit) for
     prior period debt service          $-       $(477)        $-       $(477)



               COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
               (Amounts in thousands, except per share amounts)

                                                   June 30,       December 31,
                                                     2008             2007
                                                 (unaudited)      (unaudited)
                   ASSETS
    CURRENT ASSETS:
       Cash and cash equivalents                    $8,598            $9,867
       Accounts receivable, net                    141,066           107,687
       Inventories, net                            100,192            96,385
       Prepaid expenses                             13,878            16,508
       Deferred income taxes                        16,625            12,989
       Total current assets                        280,359           243,436
    PROPERTY, PLANT AND EQUIPMENT, net              97,140            98,258
    GOODWILL, INTANGIBLE AND OTHER ASSETS, net     263,331           257,395
          TOTAL ASSETS                            $640,830          $599,089

       LIABILITIES AND STOCKHOLDERS' INVESTMENT

    CURRENT LIABILITIES:
       Current maturities of long-term debt           $119              $116
       Accounts payable                             96,875            93,033
       Accrued liabilities                          42,608            33,115
       Total current liabilities                   139,602           126,264
    LONG-TERM DEBT, net of current maturities      171,547           159,609
    OTHER LONG-TERM LIABILITIES                     55,228            47,881
       Total liabilities                           366,377           333,754
    COMMITMENTS AND CONTINGENCIES
    STOCKHOLDERS' INVESTMENT:
       Common stock, $0.01 par value per
        share; 30,000,000 shares authorized;
        21,536,814 and 21,536,814 shares issued
        and outstanding                                215               215
       Treasury stock purchased from
        employees; 28,153 shares                      (414)             (414)
       Additional paid-in capital                  179,365           177,421
       Retained earnings                            92,373            88,818
       Accumulated other comprehensive
        income (loss)                                2,914              (705)
          Total stockholders' investment           274,453           265,335
             TOTAL LIABILITIES AND
               STOCKHOLDERS' INVESTMENT           $640,830          $599,089

Footnotes to Press Release

(1) Adjusted EBITDA is a non-GAAP financial measure that is reconciled to net income, its most directly comparable GAAP measure, in the accompanying financial tables. Adjusted EBITDA is defined as net earnings before interest, taxes, depreciation, amortization, gains/losses on the early extinguishment of debt, gain/losses on the sale of long-lived assets, miscellaneous income/expenses, restructuring charges and cumulative effect of changes in accounting principle. In calculating Adjusted EBITDA, the Company excludes the effects of gains/losses on the early extinguishment of debt, gains/losses on the sale of long-lived assets, miscellaneous income/expenses, restructuring charges and cumulative effect of changes in accounting principles because the Company's management believes that some of these items may not occur in certain periods, the amounts recognized can vary significantly from period to period and these items do not facilitate an understanding of the Company's operating performance. The Company's management utilizes Adjusted EBITDA, in addition to the supplemental information, as an operating performance measure in conjunction with GAAP measures, such as net income and gross margin calculated in conformity with GAAP.

The Company's management uses Adjusted EBITDA, in addition to the supplemental information, as an integral part of its report and planning processes and as one of the primary measures to, among other things:

       (i)   monitor and evaluate the performance of the Company's business
             operations;
       (ii)  facilitate management's internal comparisons of the Company's
             historical operating performance of its business operations;
       (iii) facilitate management's external comparisons of the results of
             its overall business to the historical operating performance of
             other companies that may have different capital structures and
             debt levels;
       (iv)  review and assess the operating performance of the Company's
             management team and as a measure in evaluating employee
             compensation and bonuses;
       (v)   analyze and evaluate financial and strategic planning decisions
             regarding future operating investments; and
       (vi)  plan for and prepare future annual operating budgets and
             determine appropriate levels of operating investments.

The Company's management believes that Adjusted EBITDA, in addition to the supplemental information, is useful to investors as it provides them with disclosures of the Company's operating results on the same basis as that used by the Company's management. Additionally, the Company's management believes that Adjusted EBITDA, in addition to the supplemental information, provides useful information to investors about the performance of the Company's overall business because the measure eliminates the effects of certain recurring and other unusual or infrequent charges that are not directly attributable to the Company's underlying operating performance. Additionally, the Company's management believes that because it has historically provided a non-GAAP financial measure in previous filings, that continuing to include a non-GAAP measure in its filings provides consistency in its financial reporting and continuity to investors for comparability purposes. Accordingly, the Company believes that the presentation of Adjusted EBITDA, when used in conjunction with the supplemental information and GAAP financial measures, is a useful financial analysis tool, used by the Company's management as described above, that can assist investors in assessing the Company's financial condition, operating performance and underlying strength. Adjusted EBITDA should not be considered in isolation or as a substitute for net income prepared in conformity with GAAP. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA, as well as the other information in this filing, should be read in conjunction with the Company's financial statements and footnotes contained in the documents that the Company files with the U.S. Securities and Exchange Commission.

SOURCE Commercial Vehicle Group, Inc.

CONTACT:
John Hyre, Investor Relations, Commercial Vehicle Group, Inc.,
+1-614-289-5157
Web site: http://www.cvgrp.com

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