Kendrion N.V. — Earnings Release 2008

Jan 19, 2009

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

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

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Kendrion faced with deteriorating market conditions

Developments

Kendrion announces that it has been faced with rapidly deteriorating market conditions in relation to its core activities in the fourth quarter of 2008. Following the announced sale of the Kendrion Distribution Services operation (refer to the related press releases including those issued on 26 November 2008 and 18 December 2008), Kendrion has focused on the development, production and sale of electromagnetic components and systems. Market conditions have deteriorated in relation to both the Company's industrial and automotive activities with an average decrease in revenue of between 10% and 15% compared to the fourth quarter of 2007. This will cause the operating profit of Kendrion Electromagnetic (including incidental costs) to be approximately 5% to 10% lower for the full year 2008 than the 2007 normalised operating profit that totalled EUR 19.3 million.

Measures taken

Kendrion has now with a view to the future introduced a wide range of measures with respect to its electromagnetic activities. In recent months it has reduced the number of temporary employees by approximately 90 to virtually zero. It additionally announced in its third quarter report dated 4 November 2008 that it would reduce its total workforce of more than 1,400 permanent employees by approximately 50 employees at specific locations within the organisation. The incidental effect of the implemented cost-saving measures will amount to approximately EUR 0.7 million in the fourth quarter of 2008. In addition, reduction in working time will be introduced at a number of German production companies in early 2009.

The current measures have been implemented in line with Kendrion's strategy of continuing, particularly during the current difficult times, to focus on strengthening its own market positions in the niches in which it operates. In view of the development of the order portfolio, the start-up of new projects in 2009 and the total magnitude of the currently implemented cost-reducing measures, the steps that have been implemented are deemed to be sufficient at this time.

Sale of Distribution Services

The sale of the Servico company has now been finalised and a proportion of the previously announced book profit on the sale of Kendrion Distribution Services in 2008 (estimated at EUR 9 million) has consequently been realised. The definitive sale of the Vink Group will be finalised in early 2009 in connection with the required approval of the European Competition Authorities that is expected to be received in the second half of January 2009. Profits at the Vink Group have also come under pressure owing to the deteriorated market conditions. In light of the agreed selling price for the Vink Group, the lower operating profits at this group in 2008 will, however, lead to a higher book profit in 2009 upon finalisation of the sale.

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 used in machines, lifts, door locking systems, motor coaches, industrial robots, medical equipment, diesel engines, automatic gear boxes and airco systems.

Kendrion has leading positions in a number of business-to-business niche markets. With around 1,400 employees worldwide, it achieves annual revenue of over EUR 200 million. Germany is Kendrion's main home market.

Kendrion aims to be a leading international company that leverages its existing know-how, innovative capabilities and commercial strengths to provide effective solutions to its industrial customers. In doing so, Kendrion is committed to remaining a transparent, flexible and reliable company in which entrepreneurial zeal is combined with clear profit targets. Kendrion aims to further strengthen its position as a fast-growing high-tech company in the future by organic growth, strategic acquisitions and generating an attractive return 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, 30 December 2008

Executive Board of Kendrion N.V.

For more information, please contact:

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

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