Mirgor — Earnings Release 2005

May 16, 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 FIRST QUARTER ENDED MARCH 31ST, 2005

Buenos Aires, May 12th 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 1st quarter of fiscal year 2005, ended on March 31st 2005. All figures were prepared according to generally accepted accounting principles in Argentina in Pesos as of March 31st, 2005. The closing rate of exchange was ­ P$2.88=US$ 1.0.

For the quarter ended March 31st, 2005, the Company reported a net profit of P$ 0.71 million, compared to a net profit of P$ 0.36 million calculated for the same period of the previous year. The Company’s gross margin for the quarter ended on March 31st, 2005 was P$ 7.12 million compared to P$4.09 reported for the same period of last year, a 74.1 % increase.

For the quarter ended March 31st, 2005 sales increased 37.8% to P$47.8 million, from P$ 34.7 million for the same quarter of the previous year. The Company is benefiting from increase of car production and from the new products introduced last year.

Air-conditioning unit sales for the quarter were 18,198, a 17.4% increase compared to 15,506 units sold in the same period of last year. Non-air-conditioning units sales were 7,503 an increase of 21.0%, compared to were 6,199 units sold during the same period of the previous year.

During the period, Mirgor also delivered 4,899 instrument panels to Volkswagen Argentina, a 17.0% increase compared to the 4,188 units delivered on the first quarter of 2004.

The Company’s administrative expenses increased to P$2,20 million from P$ 1.88 million, a 17% increase over the same period of last year. The increase relates to the need to update the structure to the increased operations.

Selling expenses increased during the quarter ended March 31st, 2005 to P$1.02 million from P$0.87 million reported during the same period of last year, a 17.2% increased related to higher volumes transported by the Company.

Other expenses/(income) were negative, P$ (0.03) million on the first quarter of last year. This year the Company reversed it to a profit of P$ 0.86 as a consequence engineering services sold to third companies.

Financial results for the first quarter ended March 31st, 2005 were P$ (3.05) million, compared to P$ (0.68), reported during the same period of the previous year.

Following strict accounting principles, Mirgor has made provisions for sales credits and slow rotation inventories. Some items are being discussed with the customers and the Company believes that part of them will be recovered during the current fiscal year.

CEO´s Statement

Mr. Roberto Vazquez, Chief Executive Officer of Mirgor, stated, “ Car production continues to grow at lower rates. Although we believe that the trend will continue, we are cautious because this is an election year, which coupled with inflation and the lack of an agreement with the IMF it may slowdown the economy.

Domestic car sales have grown 39,7% on the first quarter and production has increased 29%. Car exports, at the same time have grown 32,2% over the same period and we expect that the new cars produced in Argentina will help improve this growth rate.

Our sales increased with the addition of new products and also because of the production growth of some of our customers, while air conditioning penetration has remain on the same levels.

We have been able to pass some of the cost increases of last year to our sales prices, as most of the autoparts manufacturers have done in recognition of the raw material increases. We know that our customers are also increasing their prices as a consequence of this cost hikes. It remains to be seen if this impact will affect car consumers.

During the quarter, we were able to obtain a new order to supply some of the versions of the Peugeot 307 assembled in Palomar. We are finishing the negotiations to be able to start the supply of the systems in August of this year, until Peugeot introduces the new 2006 model of this car.

In the meantime, we continue to work on other opportunities available in the market.”