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Standard Motor Products, Inc. Annual Meeting of Shareholders May 21, 2009

Standard Motor Products, Inc. Annual Meeting of Shareholders May 21, 2009. 2009 Annual Meeting of Shareholders. Larry Sills, Chairman and CEO Jim Burke, VP Finance & CFO. Forward Looking Statements.

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Standard Motor Products, Inc. Annual Meeting of Shareholders May 21, 2009

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  1. Standard Motor Products, Inc. • Annual Meeting of Shareholders • May 21, 2009

  2. 2009 Annual Meeting of Shareholders • Larry Sills, Chairman and CEO • Jim Burke, VP Finance & CFO

  3. Forward Looking Statements • You should be aware that except for historical information, the matters discussed herein are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ materially from those discussed herein. You are urged to review our filings with the SEC and our press releases from time to time for details of these risks and uncertainties.

  4. Larry Sills Chairman and Chief Executive Officer

  5. Aftermarket versus OE SMP is an aftermarket company • There are major differences • Aftermarket • Original Equipment Market

  6. Aftermarket versus OE • Aftermarket • Based on 250 million vehicles on the road • Highly stable • Slow and steady growth • Tens of thousands of SKUs • OE • Based on new car production • Minimal number of SKUs • High degree of automation

  7. Aftermarket Growth

  8. SMP Breakdown of Sales Volume

  9. Current Operating Environment • Favorable Macro Trends for Aftermarket • New Car Sales Down • Aging Fleet of Vehicles • Car Dealerships Closing • Leasing Availability Down • Fuel Prices Down • Commodity Prices Coming Down

  10. Jim Burke Vice President and Chief Financial Officer

  11. SMP Overview – 40,000 Foot View • Stable Revenues – $700 to $800 MM • Restructuring Efforts – Maintain Global Competitiveness • 2003-2005 • Dana Integration • 2006-2007 • Exit UK Manufacturing • Establish Low Cost Poland Manufacturing Site • 2007-2008 • REMFG Compressors to Reynosa, MX • Puerto Rico & LIC, NY MFG to Reynosa, MX

  12. Restructuring Impact on EBITDA • Restructuring Impact on EBITDA w/o Special Items • Key Takeaway is the Health of our Core Business in the $45-50 MM Range Excluding Integration Years

  13. SMP Debt Load

  14. Key Priorities • Generate Cash • Reduce Debt • Redeem Convertible Debentures • Original Issue $90 MM • 6.75% Coupon • 10 Year Life • Due July 15, 2009

  15. Key Priorities • 2008 Actions • Generate Cash/Reduce Debt • Sale of LIC HQ Building • Reduced Inventory by $20 MM • Reduced AR • Closed DC in Reno • Reduced Headcount • Total Debt Reduction in 2008 $61 MM • Repurchased $45 MM Bonds at Discount

  16. Key Priorities • 2009 Actions • Generate Cash/Reduce Debt • Reduced Inventory by $27 MM • Additional AR Reduction • Suspend 2009 Quarterly Dividend • 2009 Salary Increase Eliminated • Capex Reduction • Early Retirement Program • Debt Reduction Through April $26 MM

  17. Key Priorities • 2009 Actions • May 6, 2009 exchanged $12.3 MM old bonds for new bonds • Coupon 15% • Due April 15, 2011 • Strike Price $15.00

  18. Key Priorities • The Result of 2008 and 2009 Actions • Remaining $32 MM Bonds Will Be Retired on Schedule – July 15, 2009 • Debt : EBITDA Ratio Significantly Improved

  19. First Quarter 2009 Results

  20. 1st Quarter Income Statement

  21. 1st Quarter Income Statement Non - GAAP

  22. Condensed Balance Sheet

  23. Reconciliation of GAAP and Non-GAAP Measures

  24. Plans For Future • Expand Low Cost Manufacturing • Expand Low Cost Purchasing • New Business

  25. Accomplishments and Trends • Low Cost Manufacturing 46% 38% 29% 16% 2005 2007 2008 2009 Estimate % production labor hours in low cost facilities

  26. Accomplishments and Trends • Low Cost Purchasing 50% 47% 42% 38% 2005 2007 2008 2009 Estimate % purchased from low cost suppliers

  27. Accomplishments and Trends • New Business • Wire and Cable • Acquired FM Wire & Cable Product Line • New Aftermarket Business • Engine Management • Temperature Controls

  28. Thank You • Standard Motor Products, Inc. • Annual Meeting of Shareholders • May 21, 2009

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