Kendrion N.V. — Earnings Release 2009

Mar 31, 2009

P R E S S R E L E A S E

K E N D R I O N N . V .

3 1 M A R C H 2 0 0 9

• Kendrion responds to further deterioration in market conditions
• "Springtime" plan: implementation of additional changes to organisation
• Number of jobs to be reduced by 330 to 1,070
• Costs of "Springtime" plan: EUR 8.5 million, realisation in cost savings approximately EUR 20 million annually
• "Springtime" and start-up of new projects expected to enable a modest positive result again in Q2 2009

As Kendrion announced in late 2008, in view of the 14% decrease in the level of activities in the fourth quarter of 2008, Kendrion has introduced a number of cost-reduction measures including reducing the total number of jobs by approximately 120 (including 70 temporary workers) to approximately 1,400 and implementing reduced working hours at its operations in Germany and Austria as of 1 January 2009. Revenue at all business units decreased further by an average 35% in the first months of this year. The decline was particularly marked with respect to the industrial machine building activities, the passenger car sector and the bus activities. This fall in revenue reflects the current developments in virtually all of the industrial sectors in Kendrion's main home market Germany. Due to this decrease in revenue, Kendrion expects to have to close the first quarter of 2009 with a slightly negative operating result.

Kendrion does not foresee a recovery in the short term and as a result it is implementing additional measures to further align the capacity to the forecasted lower demand in the months ahead. In addition, a number of previously initiated efficiency improvement projects will be carried out at an accelerated pace. The measures are elaborated in the "Springtime" plan.

The main objective of the Springtime plan is to ensure that Kendrion maintains its leading market position and its strength in the field of product development. Kendrion also attaches a great deal of importance to its strategy for serving the market on the basis of a number of geographical areas with differentiated production locations and sales markets. However, a number of locations no longer have sufficient economies of scale due to the reduced level of revenue and as a result the production activities can be carried out more efficiently and effectively at other locations.

In the past month, the capacity of the production locations in especially the Czech Republic and China has been further reduced. The Austrian location's industrial activities will be moved to other locations in the course of the year in order to enable this location to focus exclusively on automotive activities. Jobs will also be eliminated at smaller production locations worldwide. The aforementioned measures will lead to increased effectiveness whereby, particularly at the knowledge centre in Germany, the decrease in the level of activities will be partly absorbed by transferring production. It will nonetheless also be necessary to cut jobs in Germany in all business units.

Within the context of the Springtime plan, the total number of permanent jobs has already been trimmed and will ultimately be reduced to a total of approximately 1,070 compared to the more than 1,400 permanent jobs at the end of 2008. 100 of these jobs were already eliminated by the end of the first quarter of 2009. The Springtime plan will enable the realisation of approximately EUR 20 million in cost-savings annually.

The total reorganisation costs will amount to approximately EUR 8.5 million in cash in 2009 and these costs will be accounted for in the first quarter. As previously announced, the book profit on the sale of the Vink Group at approximately EUR 10 million will also be realised in the first quarter of 2009.

Based on current insights and the measures that have and will be taken, Kendrion expects to be able to once again achieve a modest net profit in the second quarter of 2009 as a result of Springtime and the start-up of new projects.

In addition to cost control, greater emphasis will naturally also be placed on cash flow control and there will continue to be an unfaltering focus on stringent working capital management. A positive operating cash flow is expected in the months ahead. Kendrion's financial position remains strong and as a result Kendrion also envisions opportunities for benefiting from the current market situation.

Profile of Kendrion N.V.

Kendrion N.V. develops, manufactures, and markets high-quality electromagnetic systems and components. The activities of Kendrion are performed in four business units: Industrial Magnetic Systems, Industrial Drive Systems, Passenger Car Systems and Commercial Vehicle Systems. The electromagnets are applied worldwide in items such as lifts, door locking systems, industrial robots, medical equipment, electrical switchbox systems, diesel engines and airco engine cooling systems.

Kendrion has leading positions in a number of business-to-business niche markets. Germany is Kendrion's main home market.

Kendrion is committed to being a leading international company that leverages its existing knowhow, innovative capabilities and commercial strengths to provide effective solutions to its industrial customers. In doing so, Kendrion is dedicated to remaining a transparent, flexible and reliable company in which entrepreneurial zeal is combined with clear profit targets. Kendrion seeks to further strengthen its position as a fast-growing high-tech company in the future by organic growth, strategic acquisitions and generating attractive returns on invested capital. Kendrion's objective is to become a major player worldwide.

Kendrion's shares are listed on NYSE Euronext's Amsterdam market.

Zeist, 31 March 2009

Board of Kendrion N.V.

For more information, please contact:

Kendrion N.V. Mr P. Veenema Utrechtseweg 33 3704 HA ZEIST

Tel: +31 – 30 – 699.72.68 Fax: +31 – 30 – 695.11.65 Website www.kendrion.com