TROY, Mich., Aug. 6 /EMWNews/ -- Noble International, Ltd.

(Nasdaq: NOBL) ("Noble" or the "Company") reported financial results for

the second quarter ended June 30, 2008.






    SECOND QUARTER HIGHLIGHTS:



    -- Diluted earnings per share of $0.35 versus $0.13 a year ago

    -- Net sales of $314.9 million, up 72.4% versus a year ago

    -- Operating profit of $11.9 million versus $6.3 million a year ago

    -- Free Cash Flow of $31.2 million versus $11.6 million a year ago

    -- Inventory levels were reduced by $13.7 million since March 31, 2008

    -- Net debt levels were reduced by $26.5 million since March 31, 2008



    For the second quarter of 2008, Noble reported net sales of $314.9

million and net earnings of $9.0 million, or $0.35 per diluted share. The

results reflect the negative impact of a $1.0 million after-tax charge, or

$0.03 per diluted share, related to severance for certain executives who

departed the Company. These financial results compare with net sales of

$182.7 million and net earnings of $1.8 million, or $0.13 per diluted

share, for the second quarter of 2007.



    "In the second quarter, we realized the benefits of our geographic and

customer diversification efforts," stated Thomas L. Saeli, Noble's Chief

Executive Officer. "Despite the challenging North American operating

environment which was exacerbated by the UAW strike of American Axle in

April and May, we were still able to deliver solid earnings in the second

quarter due to the strong performance of our overseas operations."



    Total North American light vehicle production in the second quarter of

2008 was down 14.2% versus the second quarter of 2007. Total "Detroit 3"

North American light vehicle production was down 19.9% over the same time

period. This negative market environment was primarily responsible for net

sales in North America decreasing by $37.1 million, a 20.9% decrease versus

the second quarter of 2007. However, the North American sales decrease was

more than offset by $166.2 million of revenue at facilities acquired from

ArcelorMittal ("the Arcelor Business") and a $3.2 million increase in sales

at the Company's Australian operations.



    The North America segment reported operating profit of $1.5 million on

$143.7 million of sales in the second quarter of 2008 versus operating

profit of $8.3 million on sales of $177.5 million in the second quarter of

2007. The decrease in operating profit was primarily driven by the large

reduction in light vehicle production in North America. Corporate and

central costs contributed an operating loss of $4.4 million in the second

quarter of 2008 versus an operating loss of $2.2 million in the second

quarter of 2007. The larger loss was attributable in part to severance

costs for certain departed executives as well as increased professional

costs.



    The Europe/Rest of World segment reported operating profit of $14.8

million on $170.3 million of sales in the second quarter of 2008. In the

first quarter of 2008, the Europe/Rest of World segment reported operating

profit of $5.9 million on $145.3 million of sales. The increase in sales

was driven by higher production volumes and an increase in steel and scrap

pricing. The increase in operating profit was driven by margin on higher

volumes, operational efficiencies, scrap pricing, timing of steel price

increases and a reduction in professional fees.



    Noble's Chief Financial Officer, David J. Fallon commented, "Given the

drastic reduction in North American light vehicle production, management

across the Company focused on cost reductions, managing capital spending

and reducing working capital. The results of these efforts are demonstrated

by our strong Free Cash Flow figures for the second quarter."



    Free Cash Flow in the second quarter of 2008 was $31.2 million. These

figures compare with Free Cash Flow of $11.6 million in the second quarter

of 2007. The Free Cash Flow realized in the second quarter of 2008 was

primarily utilized to pay down net indebtedness by $26.5 million and

distribute approximately $1.9 million of dividends to common shareholders.



    In the second quarter, management implemented cost saving strategies

primarily related to scrap, quality and labor which should yield $12.0

million of annual cost savings in 2009. In addition, the Company progressed

on its rationalization efforts related to the closure of two North American

facilities and the restructuring of two contract manufacturing operations

in Europe. These initiatives, once completed, will result in approximately

$11.0 million of cost savings in 2009. In light of the current and

forecasted economic conditions, management will continue to assess the

appropriateness of the Company's manufacturing footprint, and is ready to

implement further restructuring efforts should they be necessary.



    In addition to the above cost reductions, management initiated other

cash generating activities in the second quarter in response to the

decreasing light vehicle production. Management spent significant time

decreasing working capital levels and scrutinizing capital expenditure

requirements. In the second quarter, the Company generated $15.9 million of

cash from reducing its working capital needs, which included a $13.7

million reduction of inventory levels. Capital expenditures in the second

quarter were $8.1 million, and the Company's year-to-date capital spending

through the second quarter was $16.3 million. Management originally had

estimated full year capital expenditures of $35 million but now anticipates

a significantly lower figure.



    Noble's Chief Executive Officer, Thomas L. Saeli commented, "Despite

the headwinds of the North American light vehicle production environment,

we delivered strong results in the second quarter. The cost savings

initiatives and working capital discipline we implemented in the past six

months will make the Company much stronger when economic conditions provide

for a better operating environment. That being said, there is still

significant uncertainty regarding short term economic conditions and fuel

prices and their impact on global light vehicle production. Given this

uncertainty, we are choosing not to update our previous full year 2008

guidance that we will be profitable for the full year."



    CONFERENCE CALL INFORMATION



    Noble will host a conference call to discuss its operating results for

the second quarter ended June 30, 2008 at 10 AM ET, Thursday, August 7,

2008. The dial-in numbers for the call are (800) 690-3108 or (404) 665-9934

and the conference ID number is 57728525. A replay of the conference call

will be available through August 14, 2008 by dialing (800) 642-1687 or

(706) 645-9291. The passcode for the replay is 57728525.



    USE OF NON-GAAP FINANCIAL INFORMATION



    In addition to the results reported in accordance with accounting

principles generally accepted in the United States ("GAAP") included

throughout this news release, the Company has provided information

regarding EBITDA adjusted for other non-cash items ("Adjusted EBITDA") and

"Free Cash Flow," both non-GAAP financial measures. Adjusted EBITDA

represents earnings from continuing operations before income tax, plus

interest expense, depreciation and amortization as well adjustments for

other non-cash items. Free Cash Flow represents net cash provided by

operating activities less purchases of property, plant and equipment.



    Adjusted EBITDA is not presented as, and should not be considered an

alternative measure of operating results or cash flows from operations (as

determined in accordance with generally accepted accounting principles),

but are presented because they are widely accepted financial indicators of

a company's operating performance. While widely used, however, Adjusted

EBITDA is not identically calculated by companies presenting Adjusted

EBITDA and is, therefore, not necessarily an accurate means of comparison

and may not be comparable to similarly titled measures disclosed by other

companies.



    Management believes that Adjusted EBITDA is useful to both management

and investors in their analysis of the Company's operating performance.

Further, management uses Adjusted EBITDA for planning and forecasting in

future periods and Free Cash Flow is useful in analyzing the company's

ability to service and repay its debt. For a reconciliation of Adjusted

EBITDA to net income from continuing operations, see the attached financial

information and supplemental data.



    SAFE HARBOR STATEMENT



    Noble International, Ltd. is a leading supplier of automotive parts,

component assemblies and value-added services to the automotive industry.

As an automotive supplier, Noble provides design, engineering,

manufacturing, program management and other services to the automotive

market. Noble delivers integrated component solutions, technological

leadership and product innovation to original equipment manufacturers

(OEMs) and Tier I automotive parts suppliers thereby helping its customers

increase their productivity while controlling costs. For more information

see http://www.nobleintl.com.



    Certain statements in this press release are "forward-looking"

statements within the meaning of the Private Securities Litigation Reform

Act of 1995. These forward-looking statements include but are not limited

to statements addressing operating performance, events or developments that

we believe or expect to occur in the future, including those that discuss

strategies, goals, outlook or other non-historical matters, or which relate

to future sales or earnings expectations, cost savings, awarded sales,

volume growth, earnings or a general belief in our expectations of future

operating results. These forward-looking statements are made on the basis

of management's assumptions and estimations when made and speak only as of

the date thereof. As a result, there can be no guarantee or assurance that

these assumptions and expectations will in fact occur. Words such as

"expects," "anticipates," "intends," "plans," "believes," "seeks,"

"estimates," "may," "would," or "will" or variations of such words and

similar expressions may identify such forward- looking statements. The

forward-looking statements are subject to risks and uncertainties that may

cause actual results to materially differ from those contained in the

statements. Some, but not all of the risks, include our ability to obtain

future sales; our ability to successfully integrate acquisitions; changes

in worldwide economic and political conditions, including adverse effects

from terrorism or related hostilities including increased costs, reduced

production or other factors; costs related to legal and administrative

matters; our ability to realize cost savings expected to offset price

concessions; inefficiencies related to production and product launches that

are greater than anticipated; changes in technology and technological

risks; increased fuel costs; work stoppages and strikes at our facilities

and that of our customers; the presence of downturns in customer markets

where the Company's goods and services are sold; financial and business

downturns of our customers or vendors; and other factors, uncertainties,

challenges, and risks detailed in Noble's public filings with the

Securities and Exchange Commission. Given these risks and uncertainties,

investors should not place undue reliance on forward-looking statements as

a prediction of actual results. Noble does not intend or undertake any

obligation to update any forward-looking statements.










                          NOBLE INTERNATIONAL, LTD.

         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

              (in thousands, except share and per share amounts)





                                   Three Months Ended      Six Months Ended

                                        June 30,               June 30,

                                    2008       2007        2008       2007



    Net sales                     $314,949   $182,657    $629,047   $342,728

    Cost of sales                  283,773    168,650     573,976    315,129

        Gross margin                31,176     14,007      55,071     27,599

    Selling, general and

     administrative expenses        19,247      7,743      40,117     15,256

        Operating profit            11,929      6,264      14,954     12,343

    Interest income                    175         72         260        159

    Interest expense                (5,772)    (3,200)    (11,782)    (6,147)

    Loss on extinguishment

     of debt                          (929)         -        (929)    (3,285)

    Net loss on derivative

     instruments                         -     (1,751)          -     (1,751)

    Other income, net                2,527      1,559       3,047      1,227

        Income before income

         taxes, minority interest

         and equity loss             7,930      2,944       5,550      2,546

    Income tax (benefit) expense    (1,274)       736      (1,990)       129

        Income before minority

         interest and equity loss    9,204      2,208       7,540      2,417

    Minority interest, net of tax     (235)      (289)       (527)      (464)

    Equity loss, net of tax             (6)       (71)        (34)      (291)

        Net Income                  $8,963     $1,848      $6,979     $1,662





    Basic earnings per common

     share                           $0.38      $0.13       $0.30      $0.12



    Diluted earnings per common

     share                           $0.35      $0.13       $0.30      $0.12



      Dividends declared and

       paid per share                $0.08      $0.08       $0.16      $0.16



    Basic weighted average

     shares outstanding         23,660,552 14,138,242  23,633,959 14,132,597

    Diluted weighted average

     shares outstanding         28,502,440 14,157,972  26,655,584 14,156,886



    Reconciliation of Adjusted

     EBITDA to income before

     income taxes:

        Income before income

         taxes, minority

         interest and equity

         loss                       $7,930     $2,944      $5,550     $2,546

        Depreciation                12,001      4,518      23,748      8,648

        Amortization                 1,467        553       2,895      1,122

        Stock compensation              18        313         230        343

        Loss on extinguishment

         of debt                       929          -         929      3,285

        Net loss on derivative

         instruments                     -      1,751           -      1,751

        Net interest expense         5,596      3,128      11,522      5,988

        Adjusted EBITDA            $27,941    $13,207     $44,874    $23,683





    Reconciliation of Free

     Cash Flow to net cash

     provided by operating

     activities:

        Net cash provided by

         operating activities      $39,282    $15,734     $63,946    $22,717

        Less: Purchases of

         property, plant and

         equipment                  (8,071)    (4,178)    (16,314)   (13,890)

        Free Cash Flow             $31,211    $11,556     $47,632     $8,827







                          NOBLE INTERNATIONAL, LTD.

              CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

                                (in thousands)



                                                         June 30, December 31,

                                                           2008       2007

    ASSETS

    Current Assets:

        Cash and cash equivalents                         $14,897     $3,332

        Accounts receivable trade, net                    181,690    160,664

        Inventories, net                                   64,409     81,500

        Unbilled customer tooling, net                      6,909      8,825

        Prepaid expenses                                    3,932      3,804

        Income taxes receivable                             4,705      5,842

        Value added tax receivable                          8,575     11,117

        Deferred income taxes                               3,544      3,781

        Assets held for sale                                2,248          -

        Other current assets                               11,127     12,625

    Total Current Assets                                  302,036    291,490



    Property, Plant and Equipment, net                    264,762    264,163



    Other Assets:

        Goodwill                                          152,312    155,100

        Other intangible assets, net                       79,696     78,330

        Other assets, net                                  15,935     14,608

    Total Other Assets                                    247,943    248,038

    Total Assets                                         $814,741   $803,691



    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities:

        Accounts payable                                 $164,566   $152,868

        Accrued liabilities                                32,386     35,125

        Value added tax payable                             6,774      3,831

        Current maturities of long-term debt               37,413     49,795

        Contingent consideration                           15,705     14,746

        Income taxes payable                                1,074      1,021

    Total Current Liabilities                             257,918    257,386



    Long-Term Liabilities:

        Long-term debt, excluding current maturities      146,522    205,690

        Convertible subordinated notes                     86,216     36,216

        Deferred income taxes                              35,545     35,605

        Other liabilities                                  10,180     10,018

    Total Long-Term Liabilities                           278,463    287,529



    Minority Interest                                       6,168      5,641



    Stockholders' Equity

        Common stock                                           16         16

        Additional paid-in capital                        223,177    222,057

        Retained earnings                                  19,300     16,109

        Accumulated other comprehensive income, net        29,699     14,953

    Total Stockholders' Equity                            272,192    253,135

    Total Liabilities & Stockholders' Equity             $814,741   $803,691







                          NOBLE INTERNATIONAL, LTD.

         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

                                (in thousands)



                                                            Six Months Ended

                                                                June 30,

                                                            2008       2007

    Cash flows from operating activities:

      Net income                                           $6,979     $1,662

      Adjustments to reconcile net loss to net cash

       provided by operating activities:

        Minority interest                                     527        464

        Equity loss                                            34        291

        Loss on extinguishment of debt                        929      3,285

        Net loss on derivative instruments                      -      1,751

        Amortization of financing fees included in

         interest expense                                   1,001        258

        Depreciation and amortization                      26,643      9,768

        Deferred income taxes                              (1,416)      (156)

        Share-based compensation expense                      230        392

        Gain on sale of property, plant and equipment          51         (2)

      Changes in operating assets and liabilities, net

       of acquisitions and foreign exchange:

        Accounts receivable                               (14,762)   (21,234)

        Inventories                                        20,560     (1,353)

        Prepaid and other assets                            7,022      5,128

        Accounts payable                                    7,967     20,985

        Income taxes payable or receivable                  1,313        691

        Accrued liabilities                                 6,684        951

        Excess tax benefit from share-based compensation

         arrangements                                         184       (164)

            Net cash provided by operating activities      63,946     22,717



    Cash flows from investing activities:

      Purchases of property, plant and equipment          (16,314)   (13,890)

      Proceeds from sale of property, plant and equipment   1,230        220

      Investment in joint ventures                           (814)      (187)

      Additional direct costs paid for Pullman acquisition      -        (37)

            Net cash used in investing activities         (15,898)   (13,894)



    Cash flows from financing activities:

      Net (payments) borrowings on revolving credit

       facilities                                         (23,192)     5,390

      Repayments of borrowings under term loans           (86,124)    (7,070)

      Repayments under other debt agreements               (3,829)    (1,178)

      Proceeds from issuance of convertible subordinated

       debt                                                50,000          -

      Proceeds from issuance of subordinated debt          31,249          -

      Proceeds from issuance of common stock                  187      1,163

      Dividends paid on common stock                       (3,788)    (2,262)

      Financing fees                                         (937)       (90)

      Excess tax benefit from share-based compensation

       arrangements                                           148        164

            Net cash used in financing activities         (36,286)    (3,883)



    Effect of exchange rate changes on cash and cash

     equivalents                                             (197)        28



    Net increase (decrease) in cash and cash equivalents   11,565      4,968

    Cash and cash equivalents at beginning of period        3,332      6,587

    Cash and cash equivalents at end of period            $14,897    $11,555