Exhibit 99.1

MARCH 2, 2011

SAUER-DANFOSS INC. REPORTS FOURTH QUARTER 2010 RESULTS

·                  Earnings Exceed Expectations

·                  Sales Increase by 56%

·                  Strong Cash Flow and Significant Debt Reduction

·                  Outlook Strong for 2011

AMES, Iowa, USA, March 2, 2011 — Sauer-Danfoss Inc. (NYSE: SHS) today announced its financial results for the fourth quarter ended December 31, 2010.

Fourth Quarter Review

Net sales for the quarter increased 54 percent to $428.9 million, compared to net sales of $278.9 million for the fourth quarter of 2009.  Excluding the impact of changes in currency translation rates, sales in the fourth quarter increased 56 percent over the same quarter last year.  Sales for the fourth quarter increased 53 percent in the Americas, 42 percent in Europe, and 100 percent in the Asia-Pacific region, excluding the impact of changes in currency translation rates.  Sales increased 71 percent in the Propel segment, 49 percent in the Work Function segment, and 33 percent in the Controls segment, excluding the impact of changes in currency translation rates.

The Company reported net income of $126.0 million, or $2.60 per share, for the fourth quarter of 2010, compared to a net loss of $74.7 million, or $1.55 per share, for the fourth quarter of 2009.  Fourth quarter 2010 results include restructuring costs of $2.8 million, or $0.06 per share.  In addition, fourth quarter 2010 results were favorably impacted by $82.8 million, or $1.71 per share, relating to the net reversal of deferred tax asset valuation allowances.   Results for fourth quarter 2009 were negatively impacted by restructuring and severance costs of $18.0 million, or $0.35 per share, and by a charge of $18.2 million, or $0.38 per share, to establish non-cash deferred tax asset valuation allowances relating to operating losses which could not be tax benefited.  In addition, fourth quarter 2009 results were negatively impacted by unusually high costs of certain product field recall activities, primarily related to the Propel segment, of $9.3 million, or $0.19 per share.

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Sven Ruder, President and Chief Executive Officer, commented, “We are pleased with our fourth quarter results, which clearly exceeded our expectations.  Our year-over-year growth in sales continues to exceed 50 percent, as it has the past two quarters.  We believe the mobile equipment market is still catching up to pre-crisis levels, which is driving much of this exceptional growth.  While we are projecting continued strong growth, it will not be at these high levels.  We are also pleased with the Company’s operational performance that shows operating margins exceeding 15 percent, also for the third quarter in a row.  Our restructuring and reorganization have allowed us to deliver new higher levels of return to the shareholders.  We are transitioning from responding to the downturn to feeding our very sizable growth opportunities and will do so in a controlled and disciplined manner.”

Continued Strong Orders and Backlog

The Company received new orders of $577.7 million for the fourth quarter of 2010, an 81 percent increase compared to fourth quarter 2009 orders of $319.4 million.

Total backlog at December 31, 2010, was $814.2 million, a 60 percent increase compared to the same period last year of $509.5 million.  Excluding the impact of changes in currency translation rates, backlog increased 63 percent.

Twelve Month Review

The Company reported net sales for the twelve months ended December 31, 2010, of $1,640.6 million, compared to net sales of $1,159.0 million for the twelve months of 2009.  Net sales for the twelve months of 2010 increased 42 percent over the prior year period, excluding the impact of changes in currency translation rates.

Net income for the full year 2010 was $213.4 million, or $4.40 per share, compared to a net loss of $345.8 million, or $7.15 per share, for the same period last year.  Results for the twelve months of 2010 include restructuring costs of

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$10.8 million, or $0.23 per share.  In addition, 2010 results were favorably impacted by $101.6 million, or $2.10 per share, relating to the net reversal of deferred tax asset valuation allowances.  Results for the twelve months of 2009 include restructuring costs of $60.0 million, or $1.19 per share, product field recall activities of $15.5 million, or $0.31 per share, valuation allowances on deferred tax assets of $126.9 million, or $2.63 per share, and a non-cash charge related to goodwill impairment of $50.8 million, or $1.05 per share.

Strong Cash Flow and Debt Reduction

Cash flow from operations for full year 2010 was $269.3 million, compared to $86.8 million for 2009. Capital expenditures for full year 2010 were $26.2 million compared to $43.0 million for the same period last year.  The Company reduced its debt, net of cash, by $257.0 million, from $494.4 million on December 31, 2009, to $237.4 million at the close of 2010.  The debt to total capital ratio, or leverage ratio, was 43 percent at December 31, 2010, compared to 78 percent at December 31, 2009.

“One clear goal we set ourselves at the outset of 2010 was to strengthen our balance sheet and reduce debt.  As we progressed through the year we met our goals in controlling capital expenditures and reducing working capital, along with improving our operating performance.  This has led to a significant reduction in our debt levels and improvement in our leverage ratio.  I am very proud of all of our employees who worked very hard throughout the year to meet this challenge,” stated Ruder.

2011 Outlook

Ruder concluded, “As we move into 2011 we see a very different environment when compared to a year ago.  Our backlogs have increased significantly from last year in all three regions, in total up 63 percent.  This gives us confidence that we will continue to see strong sales growth, though not at the same growth levels as last year.  As I mentioned earlier, we are increasing our spending and investing for future growth, but we are doing so in a controlled and disciplined way.

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Unless we experience unexpected softening in our markets, we expect our operating margins for the full year to end up in the 14 to 16 percent range.”

The outlook for 2011 is as follows:

·            Annual sales increasing 10 to 20 percent from 2010 levels

·            Expected earnings in the range of $3.00 to $4.00 per share

·            Capital expenditures of approximately $50.0 to $60.0 million

Webcast Information

Members of Sauer-Danfoss’ management team will host a webcast on March 3 at 10 AM Eastern Time to discuss 2010 fourth quarter results.  The call is open to all interested parties on listen-only mode via an audio webcast and can be accessed through the Investor Relations page of the Company’s website at http://ir.sauer-danfoss.com. A replay of the call will be available at that site through March 17, 2011.

About Sauer-Danfoss

Sauer-Danfoss Inc. is a worldwide leader in the design, manufacture, and sale of engineered hydraulic and electronic systems and components for use primarily in applications of mobile equipment.  Sauer-Danfoss, with 2010 revenues of approximately $1.6 billion, has sales, manufacturing, and engineering capabilities in Europe, the Americas, and the Asia-Pacific region.

More details online at www.sauer-danfoss.com.

This press release contains certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.  All statements regarding future performance, growth, sales and earnings projections, conditions or developments are forward-looking statements.  Words such as “anticipates,” “in the opinion,” “believes,” “intends,” “expects,” “may,” “will,” “should,” “could,” “plans,” “forecasts,”

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“estimates,” “predicts,” “projects,” “potential,” “continue,” and similar expressions may be intended to identify forward-looking statements.

Actual future results may differ materially from those described in the forward-looking statements due to a variety of factors.  Readers should bear in mind that past experience is never a perfect guide to anticipating actual future results.  Risk factors affecting the Company’s forward-looking statements include, but are not limited to, the following: general, worldwide economic conditions, including the relative strength or weakness of the commercial and public-sector construction markets, the level of interest rates, crude oil prices; commercial and consumer confidence, and currency exchange rates; specific economic conditions in the agriculture, construction, road building, turf care, material handling and specialty vehicle markets and the impact of such conditions on the Company’s customers in such markets; the cyclical nature of some of the Company’s businesses; the ability of the Company to win new programs and maintain existing programs with its original equipment manufacturer (OEM) customers; the highly competitive nature of the markets for the Company’s products as well as pricing pressures that may result from such competitive conditions; the continued operation and viability of the Company’s significant customers; the Company’s execution of internal performance plans; difficulties or delays in manufacturing; the effectiveness of the Company’s cost-reduction and productivity improvement efforts; the success of the Company’s transition from managing in an environment of shrinking sales to one of sales growth; competing technologies and difficulties entering new markets, both domestic and foreign; changes in the Company’s product mix; future levels of indebtedness and capital spending; the ability and willingness of Danfoss A/S, the Company’s majority stockholder, to lend money to the Company at sufficient levels and on terms favorable enough to enable the Company to meet its capital needs; the Company’s ability to access the capital markets or traditional credit sources to supplement or replace the Company’s borrowings from Danfoss A/S if the need should arise; the Company’s ability over time to reduce the relative level of debt compared to equity on its balance sheet; claims, including, without limitation, warranty claims, field recall claims, product liability claims, charges or dispute resolutions; the ability of suppliers to provide materials as needed and the Company’s ability to recover any price increases for materials in product pricing; the Company’s ability to attract and retain key technical and other personnel; labor relations; the failure of customers to make timely payment, especially in light of the persistence of tight credit markets; any inadequacy of the Company’s intellectual property protection or the potential for third-party claims of infringement; credit market disruptions and significant changes in capital market liquidity and funding costs affecting the Company and its customers; sovereign debt crises, in Europe or elsewhere, and the reaction of other

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nations to such crises; energy prices; the impact of new or changed tax and other legislation and regulations in jurisdictions in which the Company and its affiliates operate; actions by the U.S. Federal Reserve Board and the central banks of other nations; actions by other regulatory agencies, including those taken in response to the global credit crisis; actions by rating agencies; changes in accounting standards; worldwide political stability, including developments in the Middle East; the effects of terrorist activities and resulting political or economic instability; natural catastrophes; U.S. military action overseas; and the effect of acquisitions, divestitures, restructurings, product withdrawals, and other unusual events.

The Company cautions the reader that this list of cautionary statements and risk factors is not exhaustive.  The Company expressly disclaims any obligation or undertaking to release publicly any updates or changes to these forward-looking statements to reflect future events or circumstances. The foregoing risks and uncertainties are further described in Item 1A (Risk Factors) in the Company’s latest annual report on Form 10-K filed with the SEC, which should be reviewed in considering the forward-looking statements contained in this press release.

For further information please contact:

Sauer-Danfoss Inc. — Investor Relations

Internet: http://www.sauer-danfoss.com

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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BUSINESS SEGMENT INFORMATION (1)

(1)  Commencing with the Company’s Form 10-K for the year ended December 31, 2010, which has not been filed as of the date of this release, the Company will begin reporting an additional reportable segment, Stand-Alone Businesses.  This change will better align the Company’s segment reporting with recent changes in its internal organizational structure.  The new Stand-Alone Businesses segment will include products from the Propel, Work Function, and Controls segments that are marketed under separate brand names by subsidiaries operated as independent businesses.  To maintain consistency with prior periods, the segment information reported in this release does not reflect the Company’s new method of reporting segment results.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(1) Free cash flow is calculated by summing net cash provided by operating activities, net cash used in investing activities, and net cash used in financing activities, excluding net borrowings (repayments) on notes payable and debt facilities and cash dividends.

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CONDENSED CONSOLIDATED BALANCE SHEETS

(1) The debt to total capital ratio is calculated by dividing total interest bearing debt by total capital.  Total interest bearing debt is the sum of notes payable and bank overdrafts, long-term debt due within one year, and long-term debt.  Total capital is the sum of total interest bearing debt, noncontrolling interest, and stockholders’ equity.

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