Mirgor — Earnings Release 2005

Nov 11, 2005

CONTACT IN BUENOS AIRES

Fabio Rozenblum

Mirgor S.A.C.I.F.I.A. Tel: (54-11) 6394-2826

fabio.rozenblum@mirgor.com.ar

MIRGOR REPORTS RESULTS FOR THE THIRD QUARTER ENDED

SEPTEMBER 3OTH, 2005

Buenos Aires, November 10th 2005 - MIRGOR S.A.C.I.F.I.A., (“Mirgor or “the Company­”), Argentina's largest autoparts company listed on the Buenos Aires stock exchange, announced today its results for the 3rd quarter of fiscal year 2005, ended on September 30th 2005. All figures were prepared according to generally accepted accounting principles in Argentina in Pesos as of September 30th, 2005. The closing rate of exchange was ­ P$2.895=US$ 1.0.

For the quarter ended September 30th, 2005, the Company reported a net profit of P$ 6.37 million, compared to a net profit of P$ 2.39 million calculated for the same period of the previous year. The Company’s gross margin for the quarter ended on September 30th, 2005 was P$ 13.68 million compared to P$8.37 reported for the same period of last year, a 63.4 % increase. This improvement of results is due to the increased sales, the change of product mix of Mirgor´s automotive products and the consolidation of the new product line of residential air conditioning.

For the quarter ended September 30th, 2005 sales increased 52.1% to P$79.1 million, from P$ 52.0 million for the same quarter of the previous year. Car production has grown 25,8% compared to last year, but Mirgor´s sales volumes have not grown at a similar rate Air-conditioning penetration has continued to increase over last year, representing 72% of the total volume compared to 68% for the same period of last year. It must be remembered that the air conditioning products are more expensive and this helps reach higher sales amount for the Company.

Air-conditioning unit sales for the quarter were 23,857, a 24.9% increase compared to 19,094 units sold in the same period of last year. Non-air-conditioning units sales were 8,493, a decrease of only 19.7%, compared to were 10,572 units sold during the same period of the previous year.

During the period, Mirgor also delivered 6,721 instrument panels to Volkswagen Argentina, a 17% increase compared to the 5,768 units delivered on the third quarter of 2004.

Among the most relevant sales increases we find the expansion to new export markets of Mercedes´Sprinter vehicles, which apparently demand more air-conditioning and also the strong increase of demand of General Motors´ Corsa Classic.

The Company’s administrative expenses increased to P$2,65 million from P$2.25 million, a 17.8% increase over the same period of last year. The increase relates to the need to update the structure to a higher scale. The Company has been very cautious when adding the necessary resources to sustain the increased activity.

Selling expenses increased during the quarter ended September 30th, 2005 to P$2.01 million from P$1.61 million reported during the same period of last year, a 24.8% increase related to higher volumes transported by the Company .

Other (expenses)/income were P$ (0.81) million on the third quarter compared to P$ (0.31) on the same quarter of last year. The negative result is a consequence of actual expenses and provisions for studies made and to be made, in the search of new business opportunities.

Financial results for the third quarter ended September 30th, 2005 were P$ (1.70) million, compared to P$ (1.42), reported during the same period of the previous year, an increase of 19.7%.

The requirement to make provisions for sales collections; and asset holding losses related to the revaluation of the peso, have increased the financial loss of the Company.

CEO´s Statement

Mr. Roberto Vazquez, Chief Executive Officer of Mirgor, stated, “ We have been able to leverage our activity thanks to the introduction of our new products, manufactured in Tierra del Fuego, as the main reason for the recovery of the Company. Also, the higher penetration of air conditioning, which is returning to the pre-crisis period, is very helpful for the imporved results of Mirgor.

We are still concerned about the lack of growth of our traditional automotive customers who are not profitting from the higher domestic and export demand as much as other non customers of Mirgor like Toyota and Peugeot (in certain models not supplied by us).

However, in the case of the latter, we expect to see our sales increase when we start to deliver the Peugeot 307 at full scale.

There also questions that need to be answered so that we can project the future of Mirgor. Two of our customers: Renault and General Motors have not announced new products for their plants. As their cars become older, they will loose market share and this can affect our sales.

We trust that they will not follow the path of Fiat and decide new investments for their plants.

We are also following very closely the negotiations between Argentina and Brazil regarding the future of Mercosur because it is very important that our two countries arrive to a strategical about the conditions under which the automotive industry will be run.

Brazil and Mexico are Argentina´s largest markets and many of the investment decisions require the complementation of vehicles and parts.

I want to mention the good performance of our residential air conditioning operation and we hope that local demand will continue to be strong to help us finish the year with good results”