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“Strong performance in Europe and South America, with improvement in Asia, reinforces the benefits of our global and product-line diversification strategy,” said Modine President and Chief Executive Officer David B. Rayburn. “Our international growth will be offset throughout fiscal 2008 by the much slower than anticipated rebound in the North American heavy duty truck market, coupled with near-term operating inefficiencies related to plant closures, consolidation, and new product launches. We are driving significant change in our business model as we realign our manufacturing, primarily in North America, and implement a diversified platform to meet the global needs of our customers. We continue to reduce the cost structure and appropriately align our operations, products and markets to increase our competitive position and deliver long-term growth and profitability.”

“We are executing on our plans to realign our operations to capitalize on growth opportunities and drive improvements in our ongoing operating results,” said Bradley C. Richardson, Modine Executive Vice President, Finance and Chief Financial Officer. “We have taken actions this quarter as part of our goal to significantly reduce SG&A, with an 11.5 percent of sales target at the end of three years. Our operating results included the impact of ongoing efforts to close plants and the inefficiencies of consolidating operations and launching new product lines. These near-term challenges, combined with the under-absorption of fixed costs due to the continued weakness in the higher margin North American truck market, compressed margins in the quarter. Despite this margin pressure, we remain committed to delivering margins in the 18 to 20 percent range by the end of 2010. We are pleased with the record sales volume in Europe, new business in Asia, strong performance in our Brazilian business, opportunities in Commercial Products, and the efforts to position our Fuel Cell operation as a leader in providing alternative energy solutions.”

			($ in millions, after tax)
Second Quarter Fiscal 2007 Earnings from Continuing Operations			$	5.8

Differences (pre-tax)
North American volume	(18.5	)
Other volume	12.4
Net impact of commodity prices	1.1
North American operating inefficiencies	(3.8	)
Pension freeze	5.6
Corporate aircraft sale	4.0
Other	(2.9	)
Total pre-tax differences	(2.1	)

After-tax impact of above differences				(1.9	)
Tax rate differential				6.0

Second Quarter Fiscal 2008 Earnings from Continuing Operations			$	9.9

Sales: Second quarter sales from continuing operations increased to $431.5 million from $427.6 million reported in the second quarter of fiscal 2007. Excluding the impact of foreign currency exchange rate changes, underlying sales decreased by $14.3 million, or 3.3 percent. The sales volume decrease was driven by substantial declines in the North American heavy duty truck volumes subsequent to the January 1, 2007 emissions change. Largely offsetting the decline, international sales volumes have shown strong improvement year-over-year, with significant growth in Europe, Asia, and South America.

Gross Profit: Second quarter gross profit was $62.7 million, or 14.5 percent of sales, compared to gross profit of $68.0 million, or 15.9 percent of sales, in the same period last year. The profit decrease was related to the decline in demand in the North American truck market and operational inefficiencies, primarily around facility closures, product transfers, and new product launches.

SG&A Expenses: Second quarter SG&A expenses declined $5.2 million from the second quarter of fiscal 2007, excluding the impact of foreign currency exchange rate changes. As a percentage of sales, SG&A decreased from 13.8 percent in the second quarter of the prior year to 12.9 percent in the second quarter of fiscal 2008. In an ongoing focused effort to reduce SG&A, the decrease in the second quarter of fiscal 2008 was largely related to the freeze of the pension plan and the sale of a corporate aircraft.

Earnings: Second quarter earnings from continuing operations of $9.9 million increased from $5.8 million in the same period last year. Second quarter earnings were driven by the strong performance outside North America and were favorably impacted by the targeted efforts to reduce SG&A, along with the decrease in the effective tax rate. These gains were partially offset by the heavy duty truck market and operating inefficiencies related to manufacturing realignment and consolidation.

Original Equipment – North America segment sales decreased 33.3 percent to $119.7 million from $179.6 million reported one year ago, with an operating loss of $4.2 million, compared to operating income of $13.9 million in the second quarter of fiscal 2007. In addition to the impact of the reduced truck market demand, earnings decreased due to near-term operational inefficiencies, primarily around facility closures, product transfers, and new product launches.

Original Equipment – Europe segment sales increased 24.1 percent to $168.4 million from $135.7 million in the second quarter of fiscal 2007, primarily driven by strong exhaust gas recirculation (EGR) cooler and condenser sales volumes and a $10.8 million favorable impact of foreign currency exchange rate changes. Operating income was $17.0 million versus $14.5 million last year. New developments in the European market advanced the introduction of environmentally friendly vehicle air conditioning systems using carbon dioxide, providing opportunities for Modine with its range of leading-edge technology solutions.

Original Equipment – Asia segment sales increased 49.7 percent to $62.9 million from $42.0 million one year ago, related to strong passenger thermal management and powertrain cooling sales volumes, as well as $1.9 million of favorable exchange rate changes. The operating loss of $0.7 million in the second quarter of fiscal 2008 was an improvement from the operating loss of $3.7 million in the same period last year. The fiscal 2007 results were impacted by unplanned customer shutdowns as a result of strike activity in their facilities. Favorable union negotiations in fiscal 2008 resulted in no lost time due to strikes.

South America segment sales increased 55.6 percent to $33.6 million in the second quarter of fiscal 2008, from $21.6 million one year ago. The strong sales performance in South America was related to robust agricultural and commercial vehicle sales, markets in which Modine has a leading position; the improving economic environment in Brazil; as well as $4.1 million of favorable exchange rate changes. Operating income increased to $4.0 million in the second quarter of fiscal 2008, up from $0.7 million in the same period last year.

Commercial Products segment sales were consistent with $50.9 million in the second quarter of fiscal 2008 and $50.0 million in the second quarter of fiscal 2007. Strong sales in the UK were largely offset by decreased volumes in the North American air conditioning and heating businesses caused by softness in the construction market. Operating income was $4.1 million in the second quarter of fiscal 2008, compared to $2.1 million in the same period last year.

Fuel Cell segment, still in the start-up phase, reported sales of less than $1.0 million. The company continues to partner with Bloom Energy and Ceres Power and anticipates fuel cell technology has the long term potential to contribute up to 10 percent of the company’s revenues toward the end of the five year planning period based on customer estimates of volumes.

During the first half of fiscal 2008, the company funded $34.3 million of capital expenditures in support of new business and the construction of plants in China, India, and Mexico and provided $11.3 million in cash returns to shareholders through dividend payments. Year-to-date through October 10, the company purchased 250,000 of its common stock at an average price of $27.48 under the anti-dilution portion of its share repurchase program.

Total debt at the end of the second quarter of fiscal 2008 was $214.2 million, compared to $179.3 million at the end of fiscal 2007. The debt to capital (debt plus shareholders’ equity) ratio increased to 28.9 percent, compared to 26.7 percent at the end of fiscal 2007. The increase in debt was primarily attributable to the construction of new plants, along with the increase in working capital. The cash balance at September 26, 2007 was $36.2 million, compared to $21.2 million as of March 31, 2007. Return on average capital employed (ROACE)*, excluding discontinued operations, for the second quarter of fiscal 2008 was 6.4 percent, compared to 8.9 percent for the second quarter of fiscal 2007.

	Fiscal 2007			Fiscal 2008

	Actual			Low			High
Net sales	$1.72 billion			$1.73 billion			$1.80 billion
Gross margin		16.2	%		15.0	%		15.5	%
Operating margin		2.7	%		2.1	%		2.8	%
Pre-tax earnings	$45 million			$37 million			$41 million
Tax rate		13.8	%		9	%		5	%
EPS	$	1.21		$	1.00		$	1.20
Capital spending	$83 million			$85 million			$105 million
Depreciation	$70 million			$75 million			$80 million

The most significant factor impacting the updated guidance assumptions is the North American truck volumes which are expected to continue to remain weak during fiscal 2008. While softness was anticipated subsequent to the January 1, 2007 emissions law change, the heavy duty truck market rebound is slower than expected; therefore, the build rate assumption for fiscal 2008 has been reduced to 190,000 units from 205,000 units in the guidance reported in conjunction with the first quarter fiscal 2008 results.

The company forecasts improvement in net material pricing for fiscal 2008, with materials pass through beginning to outpace commodity price increases. The assumption for metals pricing, consistent with recent average market rates, is $1.15 per pound for aluminum, $13.00 per pound for nickel, and $3.50 per pound for copper. A parallel five percent shift in the average metal prices during fiscal 2008 is estimated to result in a $0.10 per share change in our reported earnings. The company continues to use hedging instruments from time to time, and seeks to maximize recovery of increased commodity prices from customers through pass-through agreements and hardship pricing.

Modine will conduct a conference call and live webcast, with a slide presentation, on Thursday, October 18, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss the fiscal 2008 second quarter. The webcast and accompanying slides will be available on the investor section of the Modine website at www.modine.com. The dial-in phone number for the audio portion of the call is 866-578-5784; passcode: 67676046. The international call-in number is 617-213-8056; passcode: 67676046. Participants are encouraged to log on to the webcast and conference call about 10 minutes prior to the start of the event. A replay of the audio and the slides will be available on the investor relations section of the Modine website at www.modine.com, after October 18, 2007. A call-in replay will be available through October 25, at 888-286-8010; passcode: 72328389 or for international callers at 617-801-6888; passcode: 72328389.

Modine, with fiscal 2007 revenues of $1.7 billion, specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, heating, ventilation and air conditioning equipment, industrial equipment, refrigeration systems, fuel cells, and electronics. The company employs approximately 7,800 people at 33 facilities worldwide. For more information about Modine, visit www.modine.com.

Statements made in this press release regarding future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those regarding a positive impact from new business programs, increased sales, acceleration of technology, achievement of cost reductions, changes in prices of raw materials, seasonality, refocus in global manufacturing footprint and continued financial returns are based on Modine’s current expectations. Modine’s actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including market acceptance and demand for new products and technologies; the ability of Modine, its customers and suppliers to achieve projected sales and production levels; unanticipated product or manufacturing difficulties; impairment of assets; ability to realize future tax benefits; international economic changes and challenges; and other factors affecting the company’s business prospects discussed in filings made by the company, from time to time, with the Securities and Exchange Commission including the factors discussed in Item 1A, Risk Factors, and in the “Cautionary Factors” section in Item 7 of the company’s most recent Annual Report on Form 10-K and its periodic reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Modine’s financial results, as reported herein, are preliminary and subject to possible adjustments.

Financial information excluding the impact of foreign currency exchange rate changes in this press release are not measures that are defined in generally accepted accounting principles (GAAP). These items are measures that management believes are important to adjust for in order to have a meaningful comparison to prior and future periods and to provide a basis for future projections and for estimating our earnings growth prospects. Non-GAAP measures are used by management as a performance measure to judge profitability of our business absent the impact of foreign currency exchange rate changes. Management analyzes the company’s business performance and trends excluding these amounts. These measures, as well as EBITDA and ROACE, provide a more consistent view of performance than the closest GAAP equivalent for management and investors. Management compensates for this by using these measures in combination with the GAAP measures. The presentation of the non-GAAP measures in this press release are made alongside the most directly comparable GAAP measures.

Definition – Return on average capital employed (ROACE) Net earnings adding back after-tax interest (interest expense less the tax benefit at the total company effective tax rate), divided by the average, total debt plus shareholders' equity: this is a financial measure of the profit generated on the total capital invested in the company before any interest expenses payable to lenders, net of any tax effect.

	Three months ended September 26,						Six months ended September 26,
	2007			2006			2007			2006
Net sales	$	431,494		$	427,583		$	875,567		$	849,501
Cost of sales		368,778			359,551			741,881			703,435
Gross profit		62,716			68,032			133,686			146,066
Selling, general, & administrative expenses		55,550			59,200			110,512			112,259
Restructuring (income) charges		(79	)		1,375			(319	)		1,465
Income from operations		7,245			7,457			23,493			32,342
Interest expense		(2,965	)		(2,417	)		(5,754	)		(4,427	)
Other income - net		147			1,411			4,276			2,950
Earnings from continuing operations before income taxes		4,427			6,451			22,015			30,865
(Benefit from) provision for income taxes		(5,503	)		657			(311	)		4,170
Earnings from continuing operations		9,930			5,794			22,326			26,695

Earnings from discontinued operations (net of income taxes)		132			6,575			386			1,971
Cumulative effect of accounting change (net of income taxes)		-			-			-			70
Net earnings	$	10,062		$	12,369		$	22,712		$	28,736

Earnings per share of common stock - basic:
Continuing operations	$	0.31		$	0.18		$	0.70		$	0.83
Earnings from discontinued operations		-			0.20			0.01			0.06
Cumulative effect of accounting change		-			-			-			-
Net earnings - basic	$	0.31		$	0.38		$	0.71		$	0.89

Earnings per share of common stock - diluted:
Continuing operations	$	0.31		$	0.18		$	0.69		$	0.83
Earnings from discontinued operations		-			0.20			0.01			0.06
Cumulative effect of accounting change		-			-			-			-
Net earnings - diluted	$	0.31		$	0.38		$	0.70		$	0.89

Weighted average shares outstanding:
Basic		32,099			32,171			32,105			32,192
Diluted		32,294			32,230			32,231			32,288

Dividends paid per share	$	0.1750		$	0.1750		$	0.3500		$	0.3500

Comprehensive earnings, which represents net earnings adjusted by the post-tax change in foreign-currency translation, the effective portion of cash flow hedges and change in SFAS No. 158 benefit plan adjustment recorded in shareholders' equity, for the three month period ended September 26, 2007 and 2006, were $30,564 and $11,314, respectively, and for the six month period ended September 26, 2007 and 2006, were $50,141 and $39,860, respectively.

(In thousands)
	September 26, 2007		March 31, 2007
Assets
Cash and cash equivalents	$	36,217	$	21,227
Short term investments		2,903		3,001
Trade receivables - net		253,732		248,493
Inventories		121,040		108,217
Assets held for sale		8,547		9,256
Other current assets		80,458		66,663
Total current assets		502,897		456,857
Property, plant and equipment - net		518,621		514,949
Assets held for sale		6,243		9,281
Other noncurrent assets		141,202		120,486
Total assets	$	1,168,963	$	1,101,573
Liabilities and shareholders' equity
Debt due within one year	$	11,487	$	3,493
Accounts payable		187,627		194,734
Liabilities of business held for sale		3,535		3,478
Other current liabilities		123,207		106,248
Total current liabilities		325,856		307,953
Long-term debt		202,755		175,856
Deferred income taxes		17,604		18,291
Liabilities of business held for sale		97		94
Other noncurrent liabilities		94,604		106,112
Total liabilities		640,916		608,306
Shareholders' equity		528,047		493,267
Total liabilities & shareholders' equity	$	1,168,963	$	1,101,573

(In thousands)
Six months ended September 26,	2007			2006

Cash flows from operating activities:
Net earnings	$	22,712		$	28,736

Adjustments to reconcile net earnings with net cash provided by operating activities:
Depreciation and amortization		38,423			34,965
Other - net		(18,522	)		(6,440	)
Net changes in operating assets and liabilities		(28,370	)		(23,496	)
Net cash provided by operating activities		14,243			33,765

Cash flows from investing activities:
Expenditures for plant, property and equipment		(34,348	)		(38,958	)
Acquisitions, net of cash		-			(11,096	)
Proceeds from dispositions of assets		8,435			19
Settlement of derivative contract		194			(128	)
Other - net		241			146
Net cash used for investing activities		(25,478	)		(50,017	)

Cash flows from financing activities:
Net increase in debt		34,931			24,600
Cash proceeds from exercise of stock options		664			1,175
Repurchase of common stock, treasury and retirement		(5,962	)		(12,580	)
Cash dividends paid		(11,337	)		(11,351	)
Other - net		7,172			2,685
Net cash provided by financing activities		25,468			4,529

Effect of exchange rate changes on cash		757			(649	)

Net increase (decrease) in cash and cash equivalents		14,990			(12,372	)

Cash and cash equivalents at beginning of the period		21,227			30,798

Cash and cash equivalents at end of the period	$	36,217		$	18,426

	Three months ended September 26,						Six months ended September 26,
	2007			2006			2007			2006
Sales:
Original Equipment - North America	$	119,744		$	179,645		$	247,894		$	351,823
Original Equipment - Europe		168,414			135,669			345,820			282,855
Original Equipment - Asia		62,916			42,018			134,082			97,951
South America		33,561			21,570			62,172			29,528
Commercial Products		50,896			49,953			95,171			89,312
Fuel Cell		868			493			1,307			1,410
Segment sales		436,399			429,348			886,446			852,879
Corporate and administrative		839			1,343			2,140			2,396
Eliminations		(5,744	)		(3,108	)		(13,019	)		(5,774	)
Total net sales	$	431,494		$	427,583		$	875,567		$	849,501

Operating income/(loss):
Original Equipment - North America	$	(4,197	)	$	13,906		$	(3,154	)	$	32,038
Original Equipment - Europe		17,006			14,494			40,974			33,682
Original Equipment - Asia		(731	)		(3,733	)		164			(2,726	)
South America		3,957			715			6,224			1,230
Commercial Products		4,128			2,132			5,775			3,882
Fuel Cell		(201	)		(685	)		(852	)		(724	)
Segment income from operations		19,962			26,829			49,131			67,382
Corporate and administrative		(12,732	)		(19,323	)		(25,694	)		(35,011	)
Eliminations		15			(49	)		56			(29	)
Income from operations	$	7,245		$	7,457		$	23,493		$	32,342

(Dollars in thousands)
Trailing four quarters ended September 26,	2007			2006

Net earnings	$	34,551		$	54,398
Plus interest expense, net of tax benefit at total company effective tax rate		10,938			7,207
Net return	$	45,489		$	61,605

Divided by:
Average capital (debt + equity, last five quarter ends / divided by 5)	$	713,128		$	688,536

Return on average capital employed		6.4	%		8.9	%

Interest expense	$	11,490		$	8,293
Total company effective tax rate		4.8	%		13.1	%
Tax benefit		552			1,086
Interest expense, net of tax benefit	$	10,938		$	7,207

(In thousands)
	Three months ended September 26,						Six months ended September 26,
	2007			2006			2007			2006
Net earnings	$	10,062		$	12,369		$	22,712		$	28,736
(Benefit from) provision for income taxes ^(a)		(5,503	)		657			(311	)		4,215
Interest expense		2,965			2,417			5,754			4,427
Earnings from discontinued operations ^(b)		(132	)		(6,575	)		(386	)		(1,971	)
Depreciation and amortization ^(c)		19,198			17,216			38,224			34,112
EBITDA from continuing operations	$	26,590		$	26,084		$	65,993		$	69,519

	Fiscal 2008		Fiscal 2007

Net sales	$	431.5 million	$	427.6 million
Earnings per share (EPS)	$	0.31 per share	$	0.18 per share
Earnings before interest, taxes, depreciation and amortization (EBITDA)*	$	26.6 million	$	26.1 million