Zeewolde, 31 August 2007 - Spyker Cars N.V., Formula One constructor and manufacturer of exclusive premium sports cars, announces its results for the first half year of 2007 as well as a significant development relating to a possible sale of its Formula One Team. Additionally, it notes that the AFM has informed Spyker that it challenges Spyker’s 2006 financial accounts.
Spyker Cars N.V. today released its 2007 Half Year results. This was late in the day to allow for inclusion of the latest results of negotiations relating to a possible sale of Spyker’s Formula One Team.
These discussions, completed today, have resulted in an agreement to enter into an exclusive 30 day negotiation period with a consortium consisting of Strongwind, the Luxembourg based investment arm of the Mol family as well as Watson Limited, a company owned and controlled by Dr. Vijay Mallya, an
Indian industrialist. This group has tabled an initial offer in the amount of EUR 80 million (USD 109 million) for the Spyker Formula One Racing Team subject to due diligence and the exact terms and conditions of the offer will be discussed over the coming 30 days. In September 2006 Spyker bought
the Formula One Racing Team for USD 106.6 million.
Spyker Cars N.V.’s results for the first six months of 2007 showed a net loss of EUR 29.9 million. This was made up as follows:
2007 Half Year 2006 Half Year
Spyker F1 Team EUR - 13.0 million EUR N/A
Spyker Automobielen EUR - 5.4 million EUR - 1.0 million
Spyker Squadron EUR - 1.6 million EUR + 0.5 million
Spyker Holding EUR - 5.1 million EUR - 0.4 million
(operating loss)
(deferred tax asset EUR - 4.8 million EUR 0.0 million
provision)
Spyker Cars N.V. EUR - 29.9 million EUR - 1.1 million

Hans Hugenholtz, interim CEO, comments: “The last six months have been a major challenge for all divisions of Spyker’s business as well as for our staff, who have remained focused and positive despite these challenges. While our first half year results are very disappointing they reflect the extremely difficult trading conditions we found ourselves in during this period. Despite this, there have recently been a number of positive developments regarding our future strategy and financial position and I look forward to pursuing these developments with the management team and Supervisory Board.”

Main developments
· Spyker Cars N.V. expanded significantly with the purchase of the Midland F1 Team in September 2006. At the same time it initiated a major growth in the production numbers of its road car division. This growth placed strain on both management resources and operational cash-flow and by April 2007 these factors had begun to effect the liquidity position of Spyker’s businesses.
· Subsequent liquidity pressures and ensuing delayed supplier payments triggered critical reports by certain sections of the media, resulting in a drop in stakeholder confidence and causing a marked reduction in available credit (a “bank run”) from Spyker’s supplier base and exacerbating
the short-term liquidity issues significantly.
· The financial result for Spyker F1 (a loss of EUR 13 million) over the first half year was caused by higher than expected expenditures (also linked to the development of the B-spec car) and by the less than expected income streams from areas such as television rights and sponsor income, in
part due to the devaluation of the US dollar. This increased expenditure and reduced income placed even greater pressure on the short term liquidity position of Spyker Cars N.V. As per 30 June Spyker Cars N.V. had provided loans to Spyker F1 in the amount of EUR 7 million.
· The financial result for the road car division (a loss of EUR 5.4 million in 2007; a loss of EUR 1.0 as per 30 June 2006) over the first half year was caused by less than expected sales results: a direct consequence of the aforementioned “bank run” which resulted in suppliers refusing to
deliver ordered parts for a period of time. Manufacturing had to be cut back to a heavily reduced level in Q2. The result was that in the first six months of 2007 the number of produced cars was only 17 (2006: 43). Additionally, the order level for new cars dropped as dealer and customer confidence fell in light of the continued speculation as to Spyker’s credit worthiness and
survivability. This situation has begun to recover and the road car division has seen a return to orders being placed and production restarted.
· The financial result for Spyker Squadron (a loss of EUR 1.6 million in 2007; a profit of EUR 0.5 on 30 June 2006) over the first half year was mainly due to the loss of several sponsors and the inability to replace them due to the negative associations in the press as well as rumours about a potential sale of Spyker Squadron.

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