Mirgor — Earnings Release 2005

Aug 12, 2005

CONTACT IN BUENOS AIRES

Fabio Rozenblum

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

corozenblum@mirgor.com.ar

MIRGOR REPORTS RESULTS FOR THE SECOND QUARTER ENDED

JUNE 3OTH, 2005

Buenos Aires, August 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 2nd quarter of fiscal year 2005, ended on June 30th 2005. All figures were prepared according to generally accepted accounting principles in Argentina in Pesos as of June 30th, 2005. The closing rate of exchange was ­ P$2.895=US$ 1.0.

For the quarter ended June 30th, 2005, the Company reported a net profit of P$ 4.02 million, compared to a net profit of P$ 0.71 million calculated for the same period of the previous year. The Company’s gross margin for the quarter ended on June 30th, 2005 was P$ 10.76 million compared to P$5.66 reported for the same period of last year, a 90.1 % increase. This improvement of results is due to the increased sales and the addition of new products to Mirgor´s portfolio.

For the quarter ended June 30th, 2005 sales increased 28.1% to P$56.0 million, from P$ 43.7 million for the same quarter of the previous year. Car production continues to grow, although the rate is moderating, compared to last year. However, air-conditioning penetration has improved over the same period of last year. The higher sales price of these units allow a higher sales amount for the Company.

Air-conditioning unit sales for the quarter were 23,332, a 23.9% increase compared to 18,824 units sold in the same period of last year. Non-air-conditioning units sales were 8,827 an increase of only 0.4%, compared to were 8,789 units sold during the same period of the previous year.

During the period, Mirgor also delivered 4,678 instrument panels to Volkswagen Argentina, a 6.8% decrease compared to the 5,020 units delivered on the second quarter of 2004.

Some of Mirgor ´s customers are loosing market share to the new projects introduced in the last years.

The Company’s administrative expenses increased to P$2,55 million from P$ 2.33 million, a 9.4% increase over the same period of last year. The increase relates to the need to update the structure to a higher scale.

Selling expenses increased during the quarter ended June 30th, 2005 to P$2.02 million from P$0.94 million reported during the same period of last year, a 114.9% increase related to higher volumes transported by the Company and the addition of guards to escort the trucks from Tierra del Fuego.

Other (expenses)/income were P$ 0.07 million on the second quarter compared to P$ (0.19) on the same quarter of last year. The positive result is a consequence of the reversion of some provisions and contingency charges.

Financial results for the second quarter ended June 30th, 2005 were P$ (2.11) million, compared to P$ (1.20), reported during the same period of the previous year, an increase of 75.8%.

Mirgor has made provisions for sales credits and slow rotation inventories in anticipation of the possibility of material changes in some of the products currently sold. This obsolescense will have to be discussed with the customers who are introducing these changes and some of these provisions be reversed later during the year.

CEO´s Statement

Mr. Roberto Vazquez, Chief Executive Officer of Mirgor, stated, “ We had anticipated a slowdown in sales and production. So far the lower confidence of the consumer has not impacted our sales and we expect to be able to mantain this growth rate in our sales during the rest of the year.

Domestic car sales have grown at a higher rate than production, which means that our customers are reducing their inventories. Production so far this year has grown 26.9%, however, our customers are not the big winners of this race.

Condensers to Peugeot and the addition of residential air conditioning are helping us increase our sales levels over last year and we expect to start our supply to Peugeot for some versions of the 307 at the end of the next quarter.

Also we have noticed that air conditioning penetration has increased compared to last year. We believe that this explained by some recovered purchasing power of the consumer.

Our sales could have been even higher if our customers had not had to suffer the union conflicts which ended in big salary increases for most of the car manufacturers.

After the quarter was ended we were able to finish an agreement with Valeo that will allow us to supply the condensers for the new Celta in Brazil.

Interclima had been supplying this product in 2002 but had lost the contract because of some technical changes to the condenser which Interclima had not been able to introduce.

There are some rumors in the market about new products and newer opportunities in the car industry. Our Company is working to be able to obtain new contracts for next year”