euro adhoc: KTM Power Sports AG / Joint Ventures/Cooperation/Collaboration / KTM and Bajaj Agree Upon Joint Projects

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05.11.2007

Mattighofen/Pune - The Second largest European sport motorcycle
manufacturer KTM Power Sports AG, and the Second largest Indian
Motorcycle manufacturer Bajaj Auto Ltd, announced wide-ranging
co-operation on Monday 5th November 2007.

Development of engine and vehicle platforms The KTM Group provides
the know-how for the joint development of high-efficient water-cooled
4-stroke engines (125-ccm and 250-ccm), which provide KTM the basis
for street motorcycles in the new street entry segment. The joint
developments will also be available as basis for Bajaj-products.

Through the cooperation with Bajaj, KTM extends its product portfolio
for the future with a 125-ccm street product line, in addition to the
present 1190-ccm, 990-ccm and 690-ccm platforms developed and
manufactured in Austria. With the introduction of the new EU driving
licence which allows riding of 125-ccm motorcycles with a car driving
licence in all EU member States, KTM will be in a position to offer
innovative premium entry models in the street segment.

Natural hedging-potential due to sourcing of entry motorcycles in
India The sourcing for the production and the assembling of these new
models in the street entry segment will occur in India. Thus the KTM
Group is able to develop a natural hedging-potential for its
USD-exposure in the future.

Strengthening of the KTM sales structure in South - Eastern Asia
Bajaj takes over the sales of KTM products in India and further
countries in South - Eastern Asia. Through this cooperation KTM opens
up the Asian region and receives new opportunities for the sales of
the entire KTM-product portfolio.

Sustained growth in the future The publicly listed Bajaj Auto Ltd.
has emphasized the strategic importance of these projects through the
acquisition over the capital markets, through its 100% Netherlands
subsidiary - Bajaj Auto International Holdings BV - of an interest of
14.5% in KTM Power Sports AG.

Stefan Pierer KTM CEO welcoming Bajaj participation said: "The
Executive Board of KTM Power Sports AG appreciates this measure and
sees in the cooperation a great chance to strengthen the KTM Group in
its sustained growth strategy in a global environment."

Commenting on the co-operation, Bajaj CEO Rajiv Bajaj said: "KTM´s
sharp brand positioning, differentiated designs, and hyper
performance have inspired Bajaj to invest in this participation.

Bajaj is delighted with this opportunity to co-develop a range of
products for manufacture by Bajaj for both KTM and Bajaj brands.
Equally Bajaj is excited by the prospect of introducing KTM products
to India and South East Asia, as also to access the European market
via KTM.

Bajaj is confident that this co-operation represents a long term
win-win situation given the entirely complementary and conflict free
nature of the partners in brand positioning, market presence, product
plans and supply chain structure".

About KTM Power Sports AG KTM Power Sports AG is a worldwide leading
manufacturer of power sports vehicles. KTM has won more than 136
World Championship titles and seven times the Rallye Paris-Dakar. The
operation core company, KTM-Sportmotorcycle AG, develops and
manufactures competition off-road and street motorcycles.
KTM-Sportcar AG builds the light-weight sports car X-Bow, KTM´s first
step into the automotive field. With more than 1,930 employees, the
KTM Group earned revenue of 566.1 Mio. EUR (INR 32 Billion) in fiscal
year 2006/07. Over 23 sales subsidiaries distribute KTM products to
their 1,400 independent KTM dealerships worldwide.

KTM is a Vienna Stock Exchange listed Company with market
capitalisation of Euro 390 million (INR 22 Billion).

KTM is a group company of CROSS Industries AG, indirectly owned by &
managed by Messrs Stefan Pierer and Rudolf Knunz. The Cross-group´s
other businesses include among others racing motorsports systems,
composites, etc

Further information about the KTM Group is to be found at
www.ktm.com.

About Bajaj Auto Ltd. Bajaj Auto Ltd, is India´s second largest
motorcycle manufacturer and ranks among top five motorcycle producer
in the world. In the fiscal year 2006-07 Bajaj produced and sold
about 2.38 million Motorcycles and over 320,000 automotive
3-wheelers. Its Motorcycle brands the Bajaj Pulsar DTSi, the Bajaj
Discover DTSi, the Bajaj XCD DTS-Si are extremely popular in India,
South & South East Asia, Africa and Latin & Central American
Countries. Bajaj exported over 440,000 units (over 16% of its
production) in 2006-07. It achieved consolidated revenues of Rs 166
Billion (Euro 2.9 Billion). Automotive segment accounted for 57% of
Revenues, Financial Services 40% and Investment & other activities
the balance. Consolidated net profits for FY 07 stood at Rs 12.5
Billion (Euro 220 Million)

Bajaj is listed on Bombay Stock Exchange and Indian National Stock
Exchange with market capitalisation of INR 245 Billion (Euro 4.3
Billion). Its GDRs are listed on the London Stock Exchange.

Bajaj Auto is the flagship of the Bajaj group of Companies. Bajaj
Group´s other interests include Life & General Insurance (in
partnership with Allianz of Germany). Retail Financing, Steel and
Electrical Appliances. Mr Rahul Bajaj (Member of the Upper House of
Indian Parliament) heads Bajaj Group of Companies.

Mr Rajiv Bajaj is Managing Director and CEO of Bajaj Auto Ltd.

Further Information about Bajaj Auto Ltd. is to be found at
www.bajajauto.com.

On 14.5% participation transaction Bajaj has been advised by Asian
Capital Partners Group, Hauser Partners & Raiffeisen Centro Bank AG.

Currency rate 1 Euro = 56.88 INR

Press Contact - KTM : wilfried.stock@ KTM.com
Press Contact - Bajaj: amitnandi@ bajajauto.co.in

end of announcement euro adhoc 05.11.2007 10:11:05
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ots Originaltext: Cross Holding AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
KTM Power Sports AG
Mag. Wilfried Stock
Tel.: +43(0)7742/6000-216
mailto:wilfried.stock@ktm.com

Branche: Technology
ISIN: AT0000645403
WKN:
Börsen: Wiener Börse AG / official dealing