Visteon Announces Second Quarter 2008 Results

In this press release the Company has provided information regarding certain non-GAAP financial measures including "EBIT-R" and "free cash flow." Such non-GAAP financial measures are reconciled to their closest US GAAP financial measure in the schedules below.

EBIT-R: EBIT-R represents net (loss) income before net interest expense and provision for income taxes and excludes asset impairments, gains and losses on business divestitures and net unreimbursed restructuring expenses and other reimbursable costs. Related amounts included in loss from discontinued operations are reflected in the totals below. Management believes EBIT-R is useful to investors because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company's continuing operating activities.

                      Three-Months Ended  Six-Months Ended        FY 2008
                            June 30            June 30            Estimate
                        2008       2007     2008     2007

    Net loss            $(42)      $(67)   $(147)   $(220)    $(506) to (456)
    Interest expense,
     net                  42         41       84       81            175
    Provision for
     income taxes         49         28      100       45            170
    Asset impairments
     and loss on
     divestitures         11         13       51       63             66
     and other
    reimbursable costs    36         53       83       94            140
    Reimbursement from
     Escrow Account      (18)       (53)     (42)     (94)           (70)

    EBIT-R               $78        $15     $129     $(31)      $(25) to 25

EBIT-R is not a recognized term under GAAP and does not purport to be an alternative to net (loss) income as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation of EBIT-R may not be comparable to other similarly titled measures of other companies. Additionally, EBIT-R is not intended to be a measure of cash flow available for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements.

    Free Cash Flow: Free cash flow represents cash flow from operating
activities less capital expenditures. Management believes that free cash flow
is useful in analyzing the Company's ability to service and repay its debt,
for planning and forecasting future periods and as a measure for compensation

                        Three-Months Ended  Six-Months Ended       2008
                            June 30             June 30          Estimate*
                         2008      2007      2008      2007

    Cash provided
     from operating
     activities          $133      $146        $7       $15     $(40) to 60
     expenditures         (80)      (80)     (154)     (144)        (310)
    Free cash flow        $53       $66     $(147)    $(129)   $(350) to (250)

Free cash flow is not a recognized term under US GAAP and does not reflect cash used to service debt and does not reflect funds available for investment or other discretionary uses.

*As of June 30, 2008 Visteon had $105 million of total receivable sales, which is equal to the balance at December 31, 2007 after adjusting for exchange. Full year 2008 estimates are based on receivables sales equal to the December 31, 2007 level.

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