Mark IV Reports
Record Second Quarter Results

Amherst, New York - September, 15, 1997 -- Mark IV Industries, Inc. (NYSE:IV) today reported record sales and earnings for its second quarter ended August 31, 1997. Income from continuing operations rose 14 percent in the quarter, to $27.5 million from $24.2 million last year, while related fully-diluted earnings per share increased 19 percent, to 43 cents from 36 cents.

Sales from continuing operations in the second quarter increased seven percent, to $531.1 million from $494.3 million, while related operating income (income from continuing operations before interest expense and taxes) increased 10 percent, to $60.5 million from $55.1 million last year.

In the first half of fiscal 1998, income from continuing operations increased 12 percent, to $57.6 million, from $51.5 million last year, while related fully-diluted earnings per share increased 16 percent, to 89 cents from 77 cents. Sales from continuing operations in the first half increased five percent, to $1.09 billion from $1.03 billion and operating income increased eight percent to $124.1 million from $114.8 million. Revenue was up nine percent in the quarter and seven percent in the first half, after adjusting for the disposition of two non-core operating units early in the fiscal year. Somewhat dampening growth, however, was the impact of a strong dollar which continues to have a negative effect on revenues and earnings amounting to $.02 and $.03 per share in the second quarter and first half.

All share-related amounts are fully-diluted and have been adjusted for the five percent stock dividend distributed in May 1997.

To date the company has repurchased approximately 2.7 million shares of its common stock for an aggregate cost of $63.6 million, part of a 7.3 million share repurchase program authorized earlier in the year. As a result, fully diluted weighted average shares outstanding decreased four percent in the quarter to 64.2 million and two percent in the first half to 65.1 million from 66.7 million last year.

During fiscal 1997, Mark IV substantially completed a divestiture program aimed at allowing the company to focus on its power transmission, fluid transfer and filtration businesses. Fiscal 1997 results reflect the divested businesses as discontinued operations. Consequently, last year's results have been restated to reflect this treatment.

Net income in the second quarter was $27.5 million, or 43 cents per share, up three and eight percent, respectively, from last year's $26.8million, or 40 cents per share, which includes $2.6 million, or four cents per share from discontinued operations. Net income in the first half of fiscal 1998 was $57.6 million, or 89 cents per share, up four and seven percent, respectively, from last year's $55.3 million or 83 cents per share, which includes $3.8 million, or six cents per share from discontinued operations.

As previously announced, during the second quarter the company sold $250 million of 7-1/2% ten-year Senior Subordinated Notes. The net proceeds were used to repay approximately $140.0 million of outstanding senior debt. The balance was added to working capital and will be used for general corporate purposes, including acquisitions. This transaction increases the financial flexibility of the company, and fixes a portion of the company's interest expense at an attractive rate.

Commenting on the company's operating performance, Sal H. Alfiero, chairman and chief executive officer of Mark IV, said, "Mark IV Automotive's revenue increased 10 percent in the quarter and seven percent in the first half, as compared with last year. Revenue growth for the quarter was led by strength in the company's domestic Automotive OEM business. In addition, Automotive sales got a boost in the period from a new, majority owned manufacturing facility in Brazil, which recently began shipping fuel system components to customers in that area. While year-to-date aftermarket sales were up marginally over-all, domestic aftermarket shipments were strong in the second quarter, showing an improving total result seven percent better than last year's period.

Our Industrial business was a solid performer during the quarter. Revenues increased eight percent in the period and seven percent in the first half, excluding the effects of non-core business sold in the first quarter. Performance was led by strong growth in our domestic business.

We are in the midst of the restructuring activities which are proceeding pretty much in accordance with the original schedule. A great deal of activity will occur during the second half of this fiscal year and into the first half of next, which includes, the completion of some new and/or expanded facilities and the closure and net over-all reduction of operating square footage throughout the company.

Also, during the quarter we have completed the acquisition of Nuova Eletta, a developer and manufacturer of plastic containers for the automotive industry. Nuova Eletta has annual sales of approximately $17 million and is headquartered in Scarperia, Firenze, Italy. The operations will become part of Mark IV Automotive."

Mark IV Industries, Inc, is a $2.1 billion global manufacturing company headquartered in the Buffalo suburb of Amherst, New York, employing 15,800 people worldwide. The company's core technologies include power transmission, fluid transfer and filtration systems and components for global industrial and automotive markets.