Hansen Transmissions International NV - Interim Management Statement for the third quarter of financial year 2010

Edegem/Antwerp, Belgium - London, UK - 28 January 2010 Hansen Transmissions International NV ("Hansen", "the Group" or "the Company") today announces its Interim Management Statement for the 3 months ended 31 December 2009. The financial information reported in this release is presented in EURO and has been prepared in accordance with the recognition and measurement criteria of IFRS as adopted by the European Union. The accounting policies and methods of computation followed for the 9 months ended 31 December 2009 are the same as those followed in the consolidated annual accounts as per 31 March 2009. The financial information in this release is unaudited; the statutory auditor has conducted a limited review for the period. The interim report is in compliance with IAS 34.

HIGHLIGHTS Q3 FY 2010

* Revenue 136.6 million EUR compared to 155.4 million EUR for the same period in the previous year

* EBITDA1 margin 9.8%, up from 6.7% in Q2 and from 5.2% in Q1 of the current financial year 2010

* Challenges in the near-term wind market continue to cause volume and pricing pressure, and this has been reflected in our recent change to guidance

* In the short term, the Company remains focused on building on its successful cost reduction measures to mitigate the impact on profitability resulting from the current operating environment

* Communication of refocused Hansen's strategy to drive value in the medium to longer term

* Free float increased to 74% following the secondary placing of 236 million depositary interests by Suzlon on 19 November 2009

1 EBITDA = earnings before interest, tax, depreciation & amortisation

Ivan Brems, CEO of Hansen commented:

"Hansen continues to be confronted with considerable volatility and challenges from the global wind energy market. During the third quarter of financial year 2010, this trend has not changed. While the results over this period were in line with the Company's expectations, we believe that the operating environment for the Company will remain challenging for at least the next two quarters. Although the order book has seen significant rescheduling, the ongoing dialogue with our customers continues to suggest some optimism for improving industry investment from the second half of the 2010 calendar year."

HANSEN TRADING UPDATE

| | | | | | | Hansen Group For the 3 |% change|For the 3 ||For the 9 | %|For the 9 | Consolidated months| | months| | months| change| months| ended | | ended | | ended | | ended | | | | | | | | 31 December| | 31 | | 31 | | 31 | 2009| | December| | December| | December| | | 2008| | 2009| | 2008| | | | | | | | Unaudited| | Unaudited|| Unaudited| | Unaudited| ---------------------------+--------+----------+ +----------+-------+----------+ (EUR000)| | (EUR000)|| (EUR000)| | (EUR000)| | | | | | | | | | || | | | | | | | | | | Revenue 136,614| (12%)| 155,374|| 422,560| (6%)| 450,602| ---------------------------+--------+----------+ +----------+-------+----------+ | | || | | | | | | | | | | EBITDA1 13,448| (33%)| 20,119|| 30,543| (54%)| 66,338| | | | | | | | Margin 9.8%| | 12.9%|| 7.2%| | 14.7%| | | | | | | | Depreciation & | | || | | | amortization 11,585| 52%| 7,611| | 30,980| 47%| 21,041| | | | | | | | EBIT2 1,863| (85%)| 12,508|| (437)| -| 45,297| | | | | | | | Margin 1.4%| | 8.1%|| (0.1%)| | 10.1%| | | | | | | |

| | As at | As at | | | 31 December 2009 | 30 September 2009 | | | Unaudited | Unaudited | -------------------+-------------------+ (EUR000) | (EUR000) | | | | | | | Net working capital 248,193 | 239,029 | -----------------------------------------+-------------------+ Net Financial Debt3 187,422 | 180,331 | -----------------------------------------+-------------------+

1 EBITDA = earnings before interest, tax, depreciation & amortisation 2EBIT = EBITDA after depreciation & amortisation 3 Net Financial Debt = calculated as cash & cash-equivalents minus long- & short-term financial debts

REVENUES

Revenue decreased by 12% in the third quarter of the financial year 2010 compared to the same quarter last year.

This revenue decrease was due to a reduction in scheduled deliveries of both industrial and wind turbine gearboxes as Hansen worked with customers to manage their requirements in line with the current operating and credit environment.

EBITDA MARGIN

Improvement to 9.8% EBITDA margin on revenue in Q3, based upon the cost alignment measures starting to have a positive impact.

MEASURES TO REDUCE THE COST BASE AND IMPROVE CASH FLOW

In order to maintain flexibility, align its cost structure to the current environment and support its EBITDA margins and cash flow, the Company continues to implement several cost containment measures including:

* Supply chain optimization; * Temporary unemployment for blue and white collar employees (under Belgian legislation); * A reduction in white collar headcount in Belgium of 6% in September 2009; * Discontinuing of 120 temporary blue collar contracts in since October 2009 in Belgium; * Savings programmes on general expenses; and * Inventory reduction.

The effect of these cost containment measures has positively impacted the EBITDA margin of the third quarter of the current financial year and additionally the Company will continue to explore and exploit further cost reduction opportunities.

ONE-TIME COSTS

In the third quarter of the financial year 2010, the Company incurred one-time costs of 0.7 million EUR relating to the expansion projects. These costs are included in EBITDA and EBIT.

WORKING CAPITAL

Overall net working capital has increased by 9 million EUR in the third quarter. This reflects a moderate decrease in inventory levels and accounts receivables balanced by a larger decrease in trade payables as a result of supply chain management efforts.

The absolute level of accounts receivables is partly caused by overdue payments from customers. This is being addressed in the context of normal business practices and contractual arrangements, in light of the current operating environment.

The Company's cash levels remain solid. The reduced sales volumes, the overdue customer payments and the reduction of trade payables have resulted in a higher than expected net debt situation at period end which is anticipated to reduce over the coming quarters.

SHAREHOLDER STRUCTURE

Hansen noted the announcement made by AE Rotor Holding BV ("AERH") a wholly owned indirect subsidiary of Suzlon Energy Limited ("Suzlon") on 19 November 2009 regarding the secondary placing of 236 million depository interests in Hansen (the "Placing"). As a result of the Placing, AERH continues to hold 26.1% of the total depository interests in Hansen, down from 61.3%, and Hansen's free float increased from 38.7% to 73.9%.

"STRONGER THAN WIND" - refocusing of Hansen's strategy

Hansen has assessed its strategic goals and refocused to drive value in the medium to longer term.

Hansen reconfirms the target for 14,300 MW manufacturing capacity by financial year 2013.

Throughout the organization, Hansen defined updated key elements of reaching this target with a strategic plan that aims for sustainable, profitable growth with a diversified customer base, state-of-the-art manufacturing facilities in Europe, India and China supported by a global supply chain and a highly motivated and skilled workforce.

OUTLOOK

Since early 2009, the volatility and challenges impacting the near term wind market have been reflected in Hansen's financial results, including the recent half year Interim Results, where we outlined our caution resulting from the operating environment.

This trend has continued and Hansen believes the operating environment will remain challenging for at least the next two quarters, these being the first two quarters of the 2010 calendar year (reporting quarters Q4 2010 and Q1 2011).

As confirmed in Hansen's trading update published on 20 January 2010, the revenue guidance for financial year 2010 is for a decrease of approximately 15% from the level achieved for the financial year 2009.

While the order book has seen significant rescheduling, our ongoing dialogue with customers continues to suggest some optimism for improving industry investment from the second half of the 2010 calendar year. We continue to be well-positioned with our customers and see the issues as predominantly relating to the wind market as a whole. Our confidence in the medium and longer-term fundamentals of the wind industry remains.

ANALYST AND INVESTOR CONFERENCE CALL

Hansen will host an Analyst and Investor meeting on the Q3 Interim Management Statement for financial year 2010

With: Ivan Brems, CEO and Alex De Ryck, CFO

On: Thursday 28 January 2010 - 11 am UK time

At: Peterborough Court, 10th Floor, Room A, 133 Fleet Street, London, EC4A 2BB.

Dial-in details: +44 20 8515 2302 Please quote "Hansen Q3 Interim Management Statement" as the event title when joining the call and state your name and company.

A replay of this analyst presentation will be available on the Investor Relations section of Hansen's website as from Thursday evening 28 January 2010 on http://www.hansentransmissions.com/en/reports_publications.html

For further information, please contact

+------------------------------------------------------------------------------+ |Hansen Transmissions International NV | +--------------------------------------------------------------+---------------+ |Investor Relations |+32 3 450 58 62| |Hans Ooms | | |De Villermonstraat 9 | | |2550 Kontich - Belgium | | |hans.ooms.ir@hansentransmissions.com | | |<mailto:hans.ooms.ir@hansentransmissions.com> | | |http://www.hansentransmissions.com/en/reports_publications.htm| | |l | | +--------------------------------------------------------------+---------------+

+----------------------------------------------------------------------------+ |M:Communications | +-----------------------------------------------------------+----------------+ |Eleanor Williamson |+44 20 7920 2339| |Williamson@mcomgroup.com <mailto:Williamson@mcomgroup.com> | | +-----------------------------------------------------------+----------------+

Financial Calendar - Hansen

FINANCIAL YEAR 2010

12 months period ending 31 March 2010 +--------------------------------------+------------------------------------+ |29 July 2009 |Interim statement Q1 2010 Results | +--------------------------------------+------------------------------------+ |26 October 2009 |Press Release 1H 2010 Results | +--------------------------------------+------------------------------------+ |28 January 2010 |Interim statement Q3 2010 Results | +--------------------------------------+------------------------------------+ |17 May 2010 (*) |Press Release FY 2010 Results | +--------------------------------------+------------------------------------+ |24 June 2010 |Annual Shareholders' Meeting FY 2010| +--------------------------------------+------------------------------------+ (*) date subject to final confirmation

About Hansen Transmissions

Hansen Transmissions International NV is an established global wind turbine gearbox and industrial gearbox designer, manufacturer and supplier, with a leading position (by MW supplied) in the wind turbine gearbox market. The company supplies gearboxes to the world's major manufacturers of gear-driven wind turbines and provides durable gear drives for a wide range of industrial applications throughout the world. Both Hansen's wind energy and industrial activities have established dedicated international service networks. In addition to its principal state-of-the-art manufacturing facilities located in Flanders, Belgium - i.e. a wind turbine and industrial gearbox plant and a fully integrated, dedicated wind turbine gearbox manufacturing facility - Hansen has a production plant for wind turbine gearboxes in Coimbatore, India and an assembly and testing plant for the Chinese market, located in Tianjin, China. As such, Hansen plans to increase its wind turbine gearbox manufacturing capabilities, from 7,300 MW per annum in the financial year 2009 to 14,300 MW, by financial year 2013. Strong in-house R&D operations maintain Hansen's technological leadership and the company employs over 2,300 people worldwide.

http://www.hansentransmissions.com/en/ http://www.hansentransmissions.com/en/investorrelations.html

Forward Looking Statements This press release may include statements that are "forward-looking statements". In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "forecasts", "plans", "prepares", "projects", "anticipates", "expects", "intends", "may", "will", "should" or other similar words. Forward-looking statements may include, without limitation, those regarding Hansen's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Hansen's products) and the wind turbine and gearbox markets. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Hansen, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward looking statements are based on numerous assumptions regarding Hansen's present and future business strategies and the environment in which Hansen will operate in the future. These forward looking statements speak only as of the date of this press release. Hansen expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Hansen's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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[HUG#1378026]

Press Release (PDF): http://hugin.info/139494/R/1378026/338761.pdf

SOURCE: Hansen Transmissions International NV

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