Manitex International, Inc. Announces Second Quarter 2008 Results

Net Income From Continuing Operations Increases 44%

Strong Performance By Manitex Drives Crane Backlog 22% Higher

Recently Signed International Distribution Agreements To Enable Global Growth Market Penetration

Management Anticipates Full Year 2008 EPS of $0.30-$0.40 on Revenues of $100 MM - $110 MM

BRIDGEVIEW, Ill., Aug. 7 -- Manitex International, Inc. , a leading provider of engineered lifting solutions including boom truck cranes, rough terrain forklifts and special mission oriented vehicles, today announced financial results for the second quarter and six months ended June 30, 2008.

  Results for the Three Months Ended June 30, 2008

  Highlights:

-- Increase in net income from continuing operations(1) for the second quarter ended June 30, 2008 to $0.7 million, or $0.07 per diluted share, from $0.5 million or $0.06 per diluted share for the second quarter of 2007

-- Increase in net income for the second quarter ended June 30, 2008 to $0.9 million, or $0.09 per diluted share, compared to $0.3 million or $0.04 per diluted share for the second quarter of 2007

-- 54% ($0.5 million) decline in interest expense for the second quarter of 2008 compared to the second quarter of 2007 reflecting the actions implemented in 2007 to retire debt and the benefit of lower interest rates

-- Signed international distribution agreements for Russia and Middle East territories

-- Expanded credit facilities and extended maturities on credit facility and term loan.

"Our second quarter produced exceptional results from our Manitex product line against the backdrop of a North American capital equipment market still-challenged by lack-luster demand and rising material costs," commented David Langevin, Chairman and Chief Executive Officer of Manitex International. . "Our backlog continues to rise with global demand for our products, particularly our 50-ton and other high capacity cranes and we are particularly encouraged by the 22% year-to-date increase in our crane backlog this year. We have received in excess of 130 orders for our 50-ton crane since its launch a year ago. On the materials handling side, we have responded to the more difficult market conditions by commencing a streamlining of our operations, and will continue to prudently position ourselves so that we are prepared when this market finds firmer footing."

Mr. Langevin, continued, "We now have good visibility into orders and our expected performance for the remainder of the year and expect to see financial benefits materialize from our international distribution agreements in the second half of 2008 and into 2009. For 2009, we anticipate at least 10% of our revenues will come from our international diversification with our new distributors who sell into the oil, gas and mining markets, particularly within Russia, the C.I.S. and the Middle East. We believe that we can maintain the sales momentum with our large capacity cranes and the profitability that we demonstrated this quarter throughout this year and into 2009. Based on our greater visibility, we would expect our continuing operations' revenues for 2008 to be in the $100 - $110 million range with diluted EPS in a range of $0.30 - $0.40, representing growth of 30% percent to 74% percent from 2007."

Summary of Results for the Three Months Ended June 30, 2008

Net revenues for the quarter were $26.5 million compared to $30.0 million for the three months ended June 30, 2007. The decrease in revenues is primarily due to a decrease in the material handling product lines of military forklifts and specialized carriers that were also particularly strong in the second quarter of 2007.

Second quarter 2008 gross profit was $4.5 million or 16.8% of net revenues compared to $5.8 million, or 19.4% of net revenues in the second quarter of 2007. The decrease in gross margin reflects lower margin for the military and specialized forklift/carrier product line due to lower revenues, the negative impact of a stronger Canadian dollar as well as a change in product mix. Crane product margins showed a slight decrease due to material cost increases not fully recovered by price increases or by the improvement in margin percent from an increase in sales of higher tonnage cranes.

Net income from continuing operations for the three months ended June 30, 2008 rose 44% to $0.7 million, or $0.07 per diluted share (based on 10.3 million diluted weighted average shares outstanding) from $0.5 million, or $0.06 per diluted share (based on 8.6 million diluted weighted average shares outstanding,) for the second quarter of 2007. A $0.5 million reduction in SG&A, a $0.5 million reduction in interest expense and a $0.5 million reduction in foreign exchange transaction losses contributed to this improvement.

Net income was $0.9 million or $0.09 per diluted share (based 10.3 million diluted weighted average shares outstanding) compared to $0.3 million, or $0.04 per diluted share (based on 8.6 million diluted weighted average shares outstanding) for the second quarter of 2007.

EBITDA (2) for the three months ended June 30, 2008 was $1.7 million compared to $2.6 million in the same quarter of last year. The reduction in EBITDA is largely due to the lower gross profit driven by reduced volume and margin primarily in the company's materials handling product line.

The Company completed the quarter ended June 30, 2008 with $21.8 million in working capital and a current ratio of 2.2 to 1. Working capital increased in the quarter principally attributable to raw material for crane production, work in process relating to a specialized carrier under construction and a small increase in finished goods inventory of crane product. Total outstanding debt less cash in hand was in line with December 31, 2007 at $24.4 million. Net earnings of $1.6 million for the six months ended June 30, 2008 and the conversion of $1.1 million of debt to equity are the principal factors that resulted in a $2.7 or 8.7% increase in shareholder's equity to $33.3 million as of June 30, 2008 from $30.7 million as of December 31, 2007. See the financial tables that accompany this press release for a complete definition of working capital and current ratio.

Andrew Rooke, Manitex International President and Chief Operating Officer, commented, "Against the backdrop of an industry that has seen a significant decline during 2008, we are pleased with our performance to date and with the 16% increase we have seen in our consolidated backlog. However, the second quarter financials do not fully articulate the enthusiasm we have right now with respect to the opportunities directly in front of us. The strength of our crane business is moving us forward and our expectation is that we will see continued growth in this group as we increase production and manage the supply chain to deliver our larger cranes to our global markets. This growth will be combined with expected profitability improvements from the streamlining that is underway in the material handling group that should help these operations to be properly positioned when these markets recover.

Increasing material costs and supply chain shortages are challenges we are working on together with a stronger focus on inventory management. We have recently announced a price increase for our crane products due to the rapid material inflation over the first half of the year and continue to pursue sourcing opportunities to help offset these cost increases. Certain key materials are also under supply pressure which has a disruptive impact on production and inventory levels and we have initiated actions internally and with our suppliers to progressively address these.

Good progress was made during the quarter regarding our international expansion plans that form a key part of our overall growth strategy and which will provide some cushion against the slow North American economy. We obtained Russian certification on our larger cranes and have shipped a 50-ton crane to our newly appointed Russian distributor that they will demonstrate at the ConExpo Russia trade show in Moscow in September where we will also have a presence. We have now announced two international distribution agreements and we continue to aggressively pursue partnerships and distribution around the globe to participate in the appropriate growth markets."

  Results for the Six Months Ending June 30, 2008

  Highlights:

-- Net income from continuing operations for the six months ended June 30, 2008 was $1.2 million, or $0.12 per diluted share, compared to $0.6 million or $0.07 per diluted share for the six months ended June 30, 2007.

-- Net income for the six months ended June 30, 2008 was $1.6 million, or $0.16 per diluted share, compared to a net loss of $(0.7) million or $(0.08) per diluted share for the six months ended June 30, 2007

For the six months ended June 30, 2008, net sales were $50.0 million compared to $53.1 million in the six months ended June 30, 2007. As noted above, the decrease in revenues is primarily due to a decrease in military forklift/ specialized carrier product line revenues offset by an increase in commercial forklift sales. The increase in commercial sales is largely driven by the introduction of Noble rough terrain forklift product line. The decrease in military and specialized carrier sales is attributable to timing of orders.

For the six months ended June 30, 2008 gross profit was $8.7 million, or 17.4% of net revenues, compared to $10.0 million, or 18.9% of net revenues in the year-ago period. The decrease in gross margin percent reflects a slight decrease in margins of crane products, due to material cost increases not offset by price increases and improved mix, and a decrease in margin percent for the forklift/specialized carrier product line due to the negative impact of a stronger Canadian dollar as well as a change in product mix.

Net income from continuing operations for the six months ended June 30, 2008 was $1.2 million, or $0.12 per diluted share (based on 10.3 million diluted weighted average shares outstanding) compared to $0.6 million, or $0.07 per diluted share (based on 8.6 million diluted weighted average shares outstanding in the year-ago period.

Net income was $1.6 million or $0.16 per diluted share (based on 10.3 million diluted weighted average shares outstanding) compared to a loss of $(0.7) million, or $(0.08) per diluted share (based on 8.6 million diluted weighted average shares outstanding for the year-ago period).

EBITDA (2) for the six months ended June 30, 2008 was $2.8 million compared to $4.1 million in the same period last year. The reduction in EBITDA is primarily due to the lower gross profit driven by reduced volume and margin in the company's materials handling business

  (1) The financial data for all years presented reflects the former Testing
      and Assembly Equipment segment as a discontinued operation.
  (2) EBITDA is a non-GAAP (generally accepted accounting principles in the
      United States of America) financial measure.  This measure may be
      different from non-GAAP financial measures used by other companies.
      We encourage investors to review the section below entitled "Non-GAAP
      Financial Measures."

  Conference Call

Management will host a conference call on Thursday, August 7, 2008 at 4:30 p.m. Eastern Time to discuss its 2008 second quarter financial results with the investment community. Anyone interested in participating should call 800-762-8932 if calling within the United States or 480-629-9031 if calling internationally. A replay will be available until August 14, 2008, which can be accessed by dialing 800-406-7325 if calling within the United States or 303-590-3030 if calling internationally. Please use pass code 3906851 to access the replay.