Linamar Announces First Quarter Results

Linamar Corporation (TSX: LNR), a diversified global manufacturing company of highly engineered products, today announced its financial results for the first quarter ended March 31, 2008. The company's Powertrain and Driveline divisions ("Powertrain/Driveline") are world leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle markets. The company's Industrial division ("Industrial") is a world leader in the design and production of innovative mobile industrial products, notably its class-leading aerial work platforms. With over 12,000 employees in 37 manufacturing locations, 5 R&D centres and 12 sales offices in Canada, the US, Mexico, Germany, Hungary, China, Korea and Japan, Linamar generated sales of close to $2.3 billion in 2007. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com .

(CDN dollars in thousands except per share figures)
                                                     Three Months Ended
                                                               March 31
                                                       2008        2007
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                                                          $           $

Sales                                               614,516     579,419
Gross Margin                                         80,378      70,763
Operating Earnings(1)                                49,937      44,827
Earnings from Continuing Operations                  29,487      26,742
Net Earnings                                         29,487      26,742
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Diluted Earnings per Share
 from Continuing Operations                            0.43        0.38
Diluted Earnings per Share                             0.43        0.38
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First Quarter Operating Highlights

Sales for the first quarter of 2008 at $614.5 million were up $35.1 million compared to $579.4 million for the first quarter of 2007. Powertrain/Driveline sales were up 7.6% to $484.1 million compared to $449.8 million in the same quarter last year. The major contributor to the sales increase was the ramping up of key programs that were in the start up phase in the first quarter of 2007, our acquisition of the driveline plant in Mexico in late 2007, the strong growth in Europe, and the continuing ramp of our Asian operations. Industrial sales remained stable at $130.4 million for the quarter compared to $129.6 million for the same quarter in 2007.

(1) "Operating earnings", as used by the chief operating decision makers and management, monitors the performance of the business specifically at the segmented level. Operating earnings is calculated by the company as gross margin less selling, general and administrative expenses.

                                          Three Months Ended
                                                    March 31
                                           2008         2007
------------------------------------------------------------
                                              $            $

Gross margin                             80,378       70,763
Selling, general and administrative      30,441       25,936
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Operating earnings                       49,937       44,827
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Under Canadian generally accepted accounting principles ("GAAP"), this financial measure does not have a standardized meaning and is unlikely to be comparable to similar measures presented by other issuers.

The company's operating earnings increased to $49.9 million for the first quarter of 2008 compared to $44.8 million for the first quarter of 2007, an increase of $5.1 million. Significant growth in Powertrain/Driveline sales with strong gross margins led to operating earnings of $31.1 million for the quarter compared to $21.1 million for the same quarter last year, an increase of 47.4%. Operating earnings for Industrial were lower in the first quarter of 2008 at $18.8 million as compared to $23.7 million for the same quarter of 2007. Industrial operating earnings decline were largely attributable to increased sales, marketing and research and development costs related to the new Booms and Telehandler product offerings, continued startup costs for Linamar Consumer Products, increased research & development costs and increased raw material component and outsourcing costs.

Earnings from continuing operations for the quarter were $29.5 million (4.8% of sales) versus $26.7 million (4.6% of sales) in 2007, an increase of 10.5%.

Dividends

The Board of Directors today declared an eligible dividend in respect to the quarter ended March 31, 2008 of CDN$0.06 per share on the common shares of the company, payable on or after June 6, 2008 to shareholders of record on May 26, 2008.