WABCO Europe BVBA
Oct 29, 2008

WABCO Reports Q3 2008 Results; Continues Growth of Quarterly Sales and Net Income Year on Year; Takes Actions to Mitigate Industry Downturn; Updates Full-Year Projections

BRUSSELS, Belgium, Oct 29, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- -- Record third quarter sales of $655 million, up 10 percent over prior year; up 2 percent in local currencies; all organic growth

-- EBIT margin of 10.1 percent, an expansion of 136 basis points over prior year; EBIT margin of 11.4 percent on a performance basis, an expansion of 97 basis points over prior year in local currencies

-- Quarterly diluted EPS of $0.97 on a U.S. GAAP basis; diluted EPS of $0.94 on a performance basis, up 45 percent over prior year

-- Updates full-year 2008 earnings projections; U.S. GAAP diluted EPS range estimated at $3.42 - $3.52, a decrease of $0.29 to $0.33 from prior projection; performance diluted EPS range estimated at $3.85 - $3.95, a decrease of $0.27 to $0.31 from prior projection

-- Initiated a $20 million profit improvement plan for Second Half 2008. Additionally, intends a reduction in workforce of approximately 1,000 positions, nearly half through attrition of temporary workers

WABCO Holdings Inc. (NYSE: WBC), a global technology leader and tier-one supplier to the commercial vehicle industry, today reported Q3 2008 sales of $655 million, up 10 percent over prior year and up 2 percent in local currencies, continuing the Company's long track record of quarterly growth.

"This quarter, we continued to grow sales, increase income and demonstrate our ability to outperform the global commercial vehicle industry in all regions. At IAA Commercial Vehicles 2008, the world's largest trade show for commercial vehicles, we introduced a powerful suite of new technologies and innovative systems, including OnGuardMax(TM), a breakthrough driver assistance technology, and the industry's first autonomous emergency braking system," said Jacques Esculier, WABCO Chief Executive Officer. "In October, we also initiated a major new opportunity in China for further growth in air disc brakes through our intended joint venture with GuangDong Fuwa Engineering Manufacturing Co., Ltd. (Fuwa), the world's largest manufacturer of commercial trailer axles."

WABCO reported Q3 2008 operating income of $62.2 million, up 14 percent over prior year on a U.S. GAAP basis. Performance operating income, which excludes separation and streamlining costs, rose to $71.1 million, up 10 percent over prior year and up 1 percent over prior year in local currencies.

"We continued to improve execution through the implementation of our WABCO Operating System. We achieved $15 million of productivity during Q3 2008 in spite of a decrease in production volume," said Esculier. "We also realized $4 million out of a $20 million profit improvement plan for second half 2008 that was launched in Q3 in rapid response to reports of a potential slowdown in the demand for new commercial vehicles."

WABCO reported Q3 2008 EBIT of $65.9 million, up 27 percent over prior year. Performance EBIT, which excludes separation and streamlining costs, rose to $74.8 million, up 21 percent over prior year and up 11 percent over prior year in local currencies.

WABCO's EBIT margin in Q3 2008 increased to 10.1 percent, expanding 136 basis points over prior year. Performance EBIT margin increased to 11.4 percent, expanding 97 basis points over prior year in local currencies.

On a U.S. GAAP basis, Q3 2008 net income increased to $63.7 million, or $0.97 per diluted share from a net loss of $0.3 million, or $0.00 per diluted share a year ago. Included in reported net income for Q3 2008 was a one-time tax benefit of approximately $10.0 million for the reduction in a provision stemming from WABCO's separation from the former American Standard Companies Inc. Excluding separation and streamlining costs, and one-time and discrete tax items, Q3 2008 performance net income increased by 36 percent to $61.3 million versus $45 million a year ago. Performance earnings per diluted share increased by 45 percent to $0.94 versus $0.65 per diluted share a year ago.

WABCO generated $103.9 million in net cash from operating activities in Q3 2008 and $78.4 million of free cash flow. Under its share buy-back program announced on August 1, 2007, the Company repurchased approximately 1.3 million shares for $53.5 million in open market transactions in Q3 2008, bringing the total number of repurchased shares year-to-date to 3.4 million shares for $153.5 million. Since commencement of this program, WABCO has repurchased 6.0 million shares, or 8.8 percent of diluted shares outstanding at the time of spin-off. WABCO also paid $4.5 million in dividends in Q3 2008.

Recent Highlights

WABCO recently announced it has signed a letter of intent with Fuwa, the world's and China's largest manufacturer of commercial trailer axles, to form a joint venture for production of air disc brakes in China. The agreement is expected to be finalized by year-end. By partnering with Fuwa, WABCO expects to further enhance its development of the Chinese market as a major driver of growth as the Company prepares for the future expansion of the market for air disc brakes in China.

Also as reported, WABCO won a multi-year contract with ZF to supply commercial vehicle transmission automation systems. WABCO's contract with ZF, one of the world's leading automotive industry suppliers specializing in driveline and chassis technologies, is worth several hundred million U.S. dollars in cumulative sales into the next decade.

During the IAA 2008 trade show, WABCO introduced 14 new products and systems, including OnGuardMax(TM), a breakthrough driver assistance technology, and the commercial vehicle industry's first system for autonomous emergency braking (AEB) in collision imminent situations with moving or stopped vehicles. WABCO's revolutionary AEB system will be available worldwide to truck and bus original equipment manufacturers in 2010.

Updated Full-Year 2008 Projections

Due to current global economic conditions affecting industrial markets, WABCO has updated its expectation for 2008 sales growth to be between 5.5 and 6.5 percent in local currencies. WABCO has also updated its full-year U.S. GAAP and performance diluted EPS projections. The revised range for U.S. GAAP diluted EPS is $3.42 to $3.52, a decrease of $0.29 on the low end to $0.33 on the high end from prior projection; the revised range for performance diluted EPS is $3.85 to $3.95, a decrease of $0.27 on the low end to $0.31 on the high end from prior projection, $0.05 of which is due to updated foreign exchange rates. EPS on a performance basis excludes separation and streamlining costs, and one-time and discrete tax items. Additionally, WABCO has suspended share repurchases under the buy-back program.

In anticipation of further market declines, WABCO is initiating a process to reduce its total workforce by approximately 1,000 positions, nearly half through attrition of temporary workers, in accordance with local labor laws and practices.

"We are confident in our ability to continue outperforming the market, powered by our pipeline of new technologies, continuous global expansion, and increasing content-per-vehicle," said Esculier. "Near term, we are taking the necessary actions to secure the continued success of WABCO."

Conference Call

WABCO CEO Jacques Esculier and CFO Ulrich Michel will discuss WABCO's results and outlook on a conference call at 8 a.m. Eastern Time today. It will be webcast at www.wabco-auto.com/investor-relations where the press release and financial information will be available under "WABCO Q3 2008 Results."

The call is also accessible by telephone in listen only mode. Dial-in number is +1 719 325 2281 and U.S. toll-free dial-in number is 888 539 3613.

A replay of the call will be available from 11:00 a.m. Eastern Time on October 29 until midnight November 5, 2008. Replay dial-in number is +1 719 457 0820 and U.S. toll-free dial-in number is 888 203 1112. Pass code is 6412254.

About WABCO

WABCO Vehicle Control Systems is one of the world's leading providers of electronic braking, stability, suspension and transmission automation systems for heavy duty commercial vehicles. Customers include the world's leading commercial truck, trailer, and bus manufacturers. Founded in the U.S. in 1869 as Westinghouse Air Brake Company, WABCO was acquired by American Standard in 1968 and spun off in 2007. Headquartered in Brussels, Belgium, WABCO employs more than 7,700 people in 31 countries worldwide. In 2007, WABCO's total sales were $2.4 billion. WABCO is a publicly traded company and is listed on the New York Stock Exchange with the stock symbol WBC. Website: www.wabco-auto.com

Forward-Looking Statements

Comments in this document contain certain forward-looking statements, which are based on management's good faith expectations and beliefs concerning future developments. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the risks and uncertainties described in the "Risk Factors" section and the "Forward Looking Statements" section of WABCO's Form 10-K, as well as in the "Management's Discussion and Analysis of Financial Condition and Results of Operations - Information Concerning Forward Looking Statements" section of WABCO's Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such forward-looking statements. All market and industry data are based on Company estimates.

Non-GAAP Financial Measures

To facilitate understanding of Q3 and year-to-date 2008 results, several tables follow this news release. Sales excluding the effects of foreign exchange and EBIT are non-GAAP financial measures. Additionally, operating income, EBIT, net income and net income per diluted share on a "performance basis" are non-GAAP financial measures that exclude separation and streamlining costs, and one-time and discrete tax items, as applicable. Lastly, "free cash flow" presents our net cash provided by operating activities less net cash used in investing activities. These measures should be considered in addition to, not as a substitute for, GAAP measures. Management believes that presenting these non-GAAP measures is useful to shareholders because it enhances their understanding of how management assesses the operating performance of the Company's business. Certain non-GAAP measures may be used, in part, to determine incentive compensation for current employees.

Media, investors and financial analysts contact

Mike Thompson, +32 (2) 663 9854, mike.thompson@wabco-auto.com

Jason Campbell, +1 732 369 7477, jason.campbell@wabco-auto.com

                               WABCO HOLDINGS INC.
                        Consolidated Statements of Income

                               Three Months Ended         Nine Months Ended
                                    Sept. 30,                 Sept. 30,

                                2008         2007         2008         2007
                                ----         ----         ----         ----
    (Amounts in             (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
     millions, except
     share data)
    Sales                     $655.0       $595.5     $2,133.3     $1,736.6
    Cost of sales              480.2        437.6      1,550.2      1,274.1
                               -----        -----      -------      -------
    Gross profit               174.8        157.9        583.1        462.5
    Cost and expenses:
      Selling and
       administrative
       expenses                 86.1         73.8        267.0        217.0
      Product
       engineering
       expenses                 23.3         23.3         74.8         64.4
      Other operating
       expense, net              3.2          6.2         11.1         14.1
                                 ---          ---         ----         ----
    Operating income            62.2         54.6        230.2        167.0

      Equity
       (income)/loss of
       unconsolidated
       joint ventures           (5.0)         1.8         (8.1)        (7.0)
      Other
       non-operating
       expense, net              1.3          1.0          5.7          7.7
      Interest
       (income)/expense,
       net                      (1.8)         2.1         (2.8)         5.0
                                ----          ---         ----          ---
    Income before
     income taxes               67.7         49.7        235.4        161.3

    Income taxes                 4.0         50.0         43.4         90.2
                                 ---         ----         ----         ----
    Net income/(loss)          $63.7        $(0.3)      $192.0        $71.1
                               =====        =====       ======        =====


    Net income per
     common share
      Basic                    $0.99           $-        $2.93        $1.04

      Diluted                  $0.97           $-        $2.89        $1.02


    Common shares
     outstanding
      Basic               64,501,931   68,064,081   65,499,553   68,109,003
      Diluted             65,350,990   68,064,081   66,477,898   69,564,303



                              WABCO HOLDINGS INC.
                      Condensed Consolidated Balance Sheet

                                                       Sept. 30,    Dec. 31,
    (Amounts in millions)                                2008         2007
                                                         ----         ----
    ASSETS                                            (Unaudited)
    Current assets:
      Cash and cash equivalents                         $306.9       $183.2
      Accounts receivable, less allowance for
        doubtful accounts: $6.6 in 2008; $6.4 in 2007    442.7        464.6
      Inventories                                        187.2        177.4
      Future income tax benefits                           7.9          8.0
      Other current assets                                62.2         54.2
                                                          ----         ----
      Total current assets                             1,006.9        887.4

    Facilities, less accumulated depreciation            337.1        336.2
    Goodwill                                             369.4        376.8
    Capitalized software costs, net of accumulated
     amortization: $141.8 in 2008; $129.1 in 2007         26.6         35.1
    Long-term future income tax benefits                  40.8         40.7
    Investments in unconsolidated joint ventures          78.5         83.0
    Other assets                                          28.4         35.0
                                                          ----         ----
    Total Assets                                      $1,887.7     $1,794.2
                                                      ========     ========

    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Current liabilities:
      Loans payable to banks                              $6.9        $10.2
      Accounts payable                                   172.0        193.5
      Accrued payroll                                    113.5        100.1
      Current portion of warranties                       56.9         49.7
      Taxes on income                                      5.9         12.8
      Indemnification liabilities                         11.7         26.4
      Other accrued liabilities                          104.6         91.6
                                                         -----         ----
      Total current liabilities                          471.5        484.3

    Long-term debt                                       202.3        116.0
    Post-retirement benefits                             327.7        334.1
    Deferred tax liabilities                              25.6         25.6
    Minority interests                                    15.0         13.5
    Long-term indemnification liabilities                 51.3         55.6
    Long-term income tax liabilities                      92.7         95.6
    Other liabilities                                     65.9         61.9
                                                          ----         ----
    Total Liabilities                                  1,252.0      1,186.6

    Total Shareholders' Equity                           635.7        607.6
                                                         -----        -----
    Total Liabilities &
     Shareholders' Equity                             $1,887.7     $1,794.2
                                                      ========     ========



                               WABCO HOLDINGS INC.
                       Consolidated Statement of Cash Flows
                                   (Unaudited)

                                                                Three Months
                                                                    Ended
                                                                  Sept. 30,
                                                               --------------
    (Amounts in millions)                                       2008    2007
                                                                ----    ----

    Operating activities:
      Net income/(loss)                                        $63.7   $(0.3)
      Adjustments to reconcile net income to net
       cash provided by operating activities:
          Depreciation                                          19.9    16.7
          Amortization of capitalized software and
           other intangibles                                     4.9     7.2
          Equity in earnings of unconsolidated joint
           ventures, net of dividends received                  (0.7)    1.9
          Non-cash stock compensation                            2.1     1.6
          Loss on disposal of facilities                           -     0.9
      Changes in assets and liabilities:
          Accounts receivable                                   59.9    (2.8)
          Inventories                                           (2.7)  (13.4)
          Accounts payable                                     (21.3)   (0.8)
          Other accrued liabilities and taxes                   (4.4)   33.7
          Post-retirement benefits                              (2.1)    3.7
          Other current and long-term assets                    (7.0)   (3.9)
          Other long-term liabilities                           (8.4)    1.9
                                                               -----    ----
    Net cash provided by operating activities                  103.9    46.4
                                                               -----    ----
    Investing activities:
      Purchases of property, plant and equipment               (24.1)  (14.0)
      Investments in capitalized software                       (1.4)   (3.0)

                                                               -----   -----
    Net cash used in investing
     activities                                                (25.5)  (17.0)
                                                               -----   -----
    Financing activities:
      Net borrowings/(repayments) of long-term debt              2.4   (53.1)
      Net borrowings of short-term debt                          0.8    67.9
      Purchases of treasury stock                              (57.1)  (29.3)
      Dividend payments                                         (4.5)   (4.8)
      Proceeds from exercise of stock options                    3.1     4.4
      Net change in balance due from/to
       Trane or Trane affiliated entities                          -    92.5

                                                               -----    ----
    Net cash used in financing activities:                     (55.3)   77.6
                                                               -----    ----

    Effect of exchange rate changes
     on cash and cash equivalents                              (26.0)    3.8
                                                               -----     ---
    Net increase/(decrease) in cash
     and cash equivalents                                       (2.9)  110.8
    Cash and cash equivalents at beginning of period           309.8    54.3
                                                               -----    ----
    Cash and cash equivalents at end of period                $306.9  $165.1
                                                              ======  ======



                    Consolidated Statements of Income
        Reconciliation of Net Income to Performance Net Income and
                 Performance Net Income per Diluted Share
                               (Unaudited)

                                                         Three Months
                                                            Ended
                                                           Sept. 30
    (Amounts in millions, except per share data)         2008   2007
                                                         ----   ----
    Net Income/(Loss)                                   $63.7  $(0.3)

    Adjustments:
    Streamlining cost, net of tax                         3.5    2.0
    Tax items                                            (0.6)  (0.9)
    Separation costs, net of tax and separation
     related taxes                                       (5.3)  44.2
                                                         ----   ----
    Performance Net Income                              $61.3  $45.0
                                                        =====  =====

    Performance Net Income per Diluted Common Share     $0.94  $0.65

    Common Shares Outstanding - Diluted                  65.4   69.5



                                                         Nine Months
                                                            Ended
                                                          Sept. 30
    (Amounts in millions, except per share data)         2008   2007
                                                         ----   ----
    Net Income/(Loss)                                  $192.0  $71.1

    Adjustments:
    Streamlining cost, net of tax                         9.8    8.4
    Tax items                                             1.9    2.0
    Separation costs, net of tax and separation
     related taxes                                        3.4   57.5
                                                          ---   ----
    Performance Net Income                             $207.1 $139.0
                                                       ====== ======

    Performance Net Income per Diluted Common Share     $3.11  $2.00

    Common Shares Outstanding - Diluted                  66.5   69.6

    Note:  The presentation of performance net income and
     performance net income per diluted common share is not in
     conformity with generally accepted accounting principles (GAAP).
      These measures may not be comparable to similar measures of
     other companies as not all companies calculate these measures in
     the same manner.



                               WABCO HOLDINGS INC.
                       Reconciliation of Net Cash Provided
                    By Operating Activities to Free Cash Flow
                                   (Unaudited)



                                                             Three Months
                                                                 Ended
                                                               Sept. 30
      (Amounts in millions)                                  ------------
                                                              2008   2007
                                                              ----   ----
      Net Cash Provided by Operating Activities             $103.9  $46.4

      Deductions or Additions to Reconcile to Free
       Cash Flow:
      Purchases of property, plant, equipment and computer
       software                                              (25.5) (17.0)
                                                             -----  -----

      Free Cash Flow                                         $78.4  $29.4
                                                             =====  =====

      Note:  This statement reconciles net cash provided by operating
       activities to free cash flow.  Management uses free cash flow,
       which is not defined by US GAAP, to measure the Company's operating
       performance.  Free cash flow is also one of the several measures
       used to determine incentive compensation for certain employees.



                              WABCO HOLDINGS INC.
                         Q3 2008 Data Supplement Sheet
                                  (Unaudited)

                                                  Quarter Ended Sept. 30,

    (Amounts in millions)                        2008  % of Sales/    2007
                                                        Adj Sales
                                                 ----   ---------     ----
    Sales
    -----
    Reported                                   $655.0               $595.5
         Foreign exchange translation effects   (48.7)                   -
                                                -----                    -
    Adjusted Sales                             $606.3               $595.5
                                               ======               ======
    Gross Profit
    ------------
    Reported                                   $174.8     26.7%     $157.9
         Streamlining costs                       1.5                    -
         Separation costs                         0.3                  0.3
                                                  ---                  ---
    Performance Gross Profit                   $176.6     27.0%     $158.2

         Foreign exchange translational
          effects                               (15.0)                   -
                                                -----                    -
    Adjusted Gross Profit                      $161.6     26.7%     $158.2
                                               ======               ======

    Selling, Administrative, Product
     Engineering Expenses and Other
    --------------------------------
    Reported                                   $112.6     17.2%     $103.3
         Streamlining costs                      (2.7)                (2.7)
         Separation costs                        (4.4)                (6.8)
                                                 ----                 ----
    Performance Selling, Administrative,
     Product Engineering Expenses and Other    $105.5     16.1%      $93.8

         Foreign exchange translational effects  (9.0)                   -
                                                 ----                    -
    Adjusted Selling, Administrative, Product
     Engineering Expenses and Other             $96.5     15.9%      $93.8
                                                =====                =====

    Operating Income
    ----------------
    Reported                                    $62.2      9.5%      $54.6
         Streamlining costs                       4.2                  2.7
         Separation costs                         4.7                  7.1
                                                  ---                  ---
    Performance Operating Income                $71.1     10.9%       64.4

         Foreign exchange translational
          effects                                (6.0)                   -
                                                 ----                    -
    Adjusted Operating Income                   $65.1     10.7%      $64.4
                                                =====                =====

    Equity in Income/(Loss) of
     Unconsolidated Joint Ventures
    ------------------------------
    Reported                                      5.0                $(1.8)
         Foreign exchange translational effects  (0.2)                   -
                                                 ----                    -
    Adjusted Equity in Income/(Loss) of
     Unconsolidated Joint Ventures               $4.8                $(1.8)
                                                 ====                =====


    Income Before Income Taxes                  $67.7                $49.7
         Adjust for interest (income)/expense    (1.8)                 2.1
                                                 ----                  ---

    EBIT (Earnings Before Interest and Taxes)   $65.9     10.1%      $51.8
    -----------------------------------------

         Streamlining costs                       4.2                  2.7
         Separation costs                         4.7                  7.1
                                                  ---                  ---
    Performance EBIT (Earnings Before Interest
     and Taxes)                                 $74.8     11.4%      $61.6

         Foreign exchange translational effects  (6.2)                   -
                                                 ----                    -
    Adjusted  EBIT (Earnings Before Interest
     and Taxes)                                 $68.6     11.3%      $61.6
                                                =====                =====




                                                  Quarter Ended Sept. 30,
     (Amounts in millions)                 % of Sales/   % Chg vs.
                                            Adj Sales      2007
                                            ---------      ----
    Sales
    -----
    Reported                                              10.0%
         Foreign exchange translation
          effects
    Adjusted Sales                                         1.8%

    Gross Profit
    ------------
    Reported                                  26.5%       10.7%
         Streamlining costs
         Separation costs
    Performance Gross Profit                  26.6%       11.6%

         Foreign exchange translational
          effects
    Adjusted Gross Profit                     26.6%        2.1%     9  bps

    Selling, Administrative, Product
     Engineering Expenses and Other
    --------------------------------
    Reported                                  17.3%        9.0%
         Streamlining costs
         Separation costs
    Performance Selling, Administrative,
     Product Engineering Expenses and Other   15.8%       12.5%

         Foreign exchange translational
          effects
    Adjusted Selling, Administrative,
     Product Engineering Expenses and Other   15.8%        2.9%    16  bps

    Operating Income
    ----------------
    Reported                                   9.2%       13.9%    33  bps
         Streamlining costs
         Separation costs
    Performance Operating Income              10.8%       10.4%     4  bps

         Foreign exchange translational
          effects
    Adjusted Operating Income                 10.8%        1.1%    -8  bps

    Equity in Income/(Loss) of
     Unconsolidated Joint Ventures
    ------------------------------
    Reported
         Foreign exchange translational
          effects
    Adjusted Equity in Income/(Loss) of
     Unconsolidated Joint Ventures


    Income Before Income Taxes
         Adjust for interest (income)/expense

    EBIT (Earnings Before Interest and Taxes)  8.7%       27.2%   136  bps
    -----------------------------------------

         Streamlining costs
         Separation costs
    Performance EBIT (Earnings Before
     Interest and Taxes)                     10.3%       21.4%    108  bps

         Foreign exchange translational
          effects
    Adjusted  EBIT (Earnings Before
     Interest and Taxes)                     10.3%      11.4%      97  bps

    Note:  The presentation of the performance measures above are not in
     conformity with generally accepted accounting principles (GAAP).
     These measures may not be comparable to similar measures of other
     companies as not all companies calculate these measures in the same
     manner.



                                WABCO HOLDINGS INC.
                         Q3 2008 YTD Data Supplement Sheet
                                    (Unaudited)

                                                  Nine Months Ended Sept. 30,

    (Amounts in millions)                        2008   % of Sales/     2007
                                                         Adj Sales
                                                 ----    ---------      ----
    Sales
    -----
    Reported                                  $2,133.3               $1,736.6
         Foreign exchange translation effects   (224.6)                     -
                                                ------               --------
    Adjusted Sales                            $1,908.7               $1,736.6
                                              ========               ========
    Gross Profit
    ------------
    Reported                                    $583.1     27.3%       $462.5
         Streamlining costs                        2.0                    2.5
         Separation costs                          0.9                    0.4
                                                   ---                    ---
    Performance Gross Profit                    $586.0     27.5%       $465.4

         Foreign exchange translational
          effects                                (67.0)                     -
                                                 -----                  -----
    Adjusted Gross Profit                       $519.0     27.2%       $465.4
                                                ======                 ======

    Selling, Administrative, Product
     Engineering Expenses and Other
    --------------------------------
    Reported                                    $352.9     16.5%       $295.5
         Streamlining costs                       (9.1)                  (8.8)
         Separation costs                        (13.3)                 (14.9)
                                                 -----                  -----
    Performance Selling, Administrative,
     Product Engineering Expenses and
     Other                                      $330.5     15.5%       $271.8

         Foreign exchange translational effects  (38.1)                     -
                                                 -----                      -
    Adjusted Selling, Administrative, Product
     Engineering Expenses and Other             $292.4     15.3%       $271.8
                                                ======                 ======

    Operating Income
    ----------------
    Reported                                    $230.2     10.8%       $167.0
         Streamlining costs                       11.1                   11.3
         Separation costs                         14.2                   15.3
                                                  ----                   ----
    Performance Operating Income                $255.5     12.0%        193.6

         Foreign exchange translational effects  (28.9)                     -
                                                 -----                      -
    Adjusted Operating Income                   $226.6     11.9%       $193.6
                                                ======                 ======

    Equity in Income of Unconsolidated Joint
     Ventures
    ----------------------------------------
    Reported                                       8.1                   $7.0
         Foreign exchange translational effects   (0.4)                     -
                                                  ----                      -
    Adjusted Equity in Income of
     Unconsolidated Joint Ventures                $7.7                   $7.0
                                                  ====                   ====


    Income Before Income Taxes                  $235.4                 $161.3
         Adjust for interest (income)/expense     (2.8)                   5.0
                                                  ----                    ---

    EBIT (Earnings Before Interest and Taxes)   $232.6     10.9%       $166.3
    -----------------------------------------

         Streamlining costs                       11.1                   11.3
         Separation costs                         14.2                   15.3
                                                  ----                   ----
    Performance EBIT (Earnings Before
     Interest and Taxes)                        $257.9     12.1%       $192.9

         Foreign exchange translational effects  (28.4)                     -
                                                 -----                      -
    Adjusted  EBIT (Earnings Before Interest
     and Taxes)                                 $229.5     12.0%       $192.9
                                                ======                 ======




                                                   Nine Months Ended Sept. 30,
     (Amounts in millions)                        % of Sales/  % Chg vs.
                                                  Adj Sales      2007
                                                  ---------      ----
    Sales
    -----
    Reported                                                    22.8%
         Foreign exchange translation effects
    Adjusted Sales                                               9.9%

    Gross Profit
    ------------
    Reported                                         26.6%      26.1%
         Streamlining costs
         Separation costs
    Performance Gross Profit                         26.8%      25.9%

         Foreign exchange translational effects
    Adjusted Gross Profit                            26.8%      11.5%

    Selling, Administrative, Product
     Engineering Expenses and Other
    --------------------------------
    Reported                                         17.0%      19.4%
         Streamlining costs
         Separation costs
    Performance Selling, Administrative,
     Product Engineering Expenses and
     Other                                           15.7%      21.6%

         Foreign exchange translational
          effects
    Adjusted Selling, Administrative, Product
     Engineering Expenses and Other                  15.7%       7.6%

    Operating Income
    ----------------
    Reported                                          9.6%      37.8%
         Streamlining costs
         Separation costs
    Performance Operating Income                     11.1%      32.0%  83  bps

         Foreign exchange translational
          effects
    Adjusted Operating Income                        11.1%      17.0%

    Equity in Income of Unconsolidated Joint
     Ventures
    ----------------------------------------
    Reported
         Foreign exchange translational effects
    Adjusted Equity in Income of
     Unconsolidated Joint Ventures                              10.0%


    Income Before Income Taxes
         Adjust for interest (income)/expense

    EBIT (Earnings Before Interest and Taxes)         9.6%      39.9%
    -----------------------------------------

         Streamlining costs
         Separation costs
    Performance EBIT (Earnings Before
     Interest and Taxes)                             11.1%      33.7%

         Foreign exchange translational
          effects
    Adjusted  EBIT (Earnings Before Interest
     and Taxes)                                      11.1%      19.0%

    Note:  The presentation of the performance measures above are not in
     conformity with generally accepted accounting principles (GAAP).
     These measures may not be comparable to similar measures of other
     companies as not all companies calculate these measures in the same
     manner.



                               WABCO HOLDINGS INC.
      Reconciliation of Projected US GAAP EBIT and Net Income to Performance
                             EBIT, Net Income and EPS
                          For Full Year 2008 Projections
                                   (Unaudited)

                              (1 EURO = 1.54   (1 EURO = 1.54  (1 EURO = 1.47
                                    USD)            USD)            USD)

    (Amounts in millions,
     except per share data)  Previous Outlook     Revised         Revised
                                   2008            2008            2008
                                   ----            ----            ----

    EBIT (Earnings Before
     Interest and Taxes)
    ---------------------

    Projected US GAAP EBIT    $316.6 - $327.6 $281.0 - $289.0 $277.5 - $285.5
         Streamlining costs              13.1            23.4            23.1
         Separation costs                14.3            16.6            16.4
                                         ----            ----            ----
    Performance EBIT
     (Earnings Before
     Interest and Taxes)      $344.0 - $355.0 $321.0 - $329.0 $317.0 - $325.0
                              =============== =============== ===============

    Net Income
    ----------
    Projected US GAAP Net
     Income                   $246.8 - $256.1 $229.1 - $235.7 $226.2 - $232.8
       Streamlining costs,
        net of tax                       10.5            20.6            20.3
       Tax items                          5.0             2.9             2.9
       Separation costs, net
        of tax and
        separation related
        taxes                            12.4             5.2             5.1
                                         ----             ---             ---
    Performance Net Income    $274.7 - $284.0 $257.8 - $264.4 $254.5 - $261.1
                              =============== =============== ===============

    Performance Net
     Income per Diluted
     Common Share               $4.12 - $4.26   $3.90 - $4.00   $3.85 - $3.95

    Projected diluted
     common shares
     outstanding                         66.6            66.1            66.1

    Note:  The presentation of the performance measures above are not in
     conformity with generally accepted accounting principles (GAAP).  These
     measures may not be comparable to similar measures of other companies as
     not all companies calculate these measures


SOURCE WABCO Holdings Inc.

http://wabco.client.shareholder.com/

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