euro adhoc: KTM Power Sports AG / quarterly or semiannual financial statement / US-Dollar continues to impact on results

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quaterly report/Result 1st-3rd Q 2007/08

24.07.2008

>> Revenue: 442.7 million EUR (+10.4% compared to last year)
>> EBIT: 7.7 Mio. EUR (-70.3 % compared to last year)
>> Equity ratio: 36.7%
>> Distribution planning for India
>> Completion of X-Bow production facility

Mattighofen, July 24th, 2008 - Despite the difficult economic
surrounding conditions, KTM Power Sports AG, one of the world-wide
leading manufacturers of Off-Road and street motorcycles, ATVs and
the super sports car X-Bow, was able to increase its revenue by 10.4%
to 442.7 million EUR (exchange rate adjusted +14.1%) compared to last
year. Due to the continuing weak US-Dollar, the EBIT decreased by
-70.3% to 7.7 million EUR compared to last year.

Growth driver The growth in revenue is primarily a result of the
expected high demand for the new LC4 models (690 Duke, 690 Enduro,
690 Supermoto Competition), the new LC8 models 1190 RC8 and 990
Supermoto and the higher sales in the Related Products segment (Spare
Parts, Power Wear and Power Parts).

Sustained strengthening of the distribution network The cooperation
with Bajaj Auto Ltd. to develop engine and vehicle platforms for the
beginner level street motorcycle segment runs according to plan.
Furthermore preparations to distribute KTM motorcycles through Bajaj
Auto Ltd.´s dealer network have been initiated. In June, a sales
subsidiary was incorporated in Mexico and the takeover of the former
exclusive importer in South Africa has been initated in order to
effectively strengthen our market position.

Further News In cooperation with Lease Consult GmbH, the KTM
Financial Services GmbH has been incorporated. This company offers
leasing and rent programs for KTM dealership shop systems as well as
leasing and rent programs for the super sportscar X-Bow and
motorcycles. The modifications at the X-Bow production facility and
the establishment of structures for series production have been
finalized. The series production initiated on June 16th. Due to the
sustained weak US-Dollar and the uncertain development, a security
net for around 50% of the USD exposures has been put in place with
call options at a USD/EUR exchange rate of 1.61.

Outlook Until the end of the current business year, an ongoing trend
is anticipated. However a two digit growth in sales with around
95,000 motorcycles sold is expected. Such growth is supported mostly
by the new models (LC4, LC8). Due to the poor economic surrounding
conditions and the decrease in demand for OEM engines in the US, the
margin situation shall further worsen. The projected sales target
shall therefore be missed closely. The EBIT however will be at 50%
below last year´s level with the current USD/EUR exchange rate. The
demand for the super sportscar X-Bow will further develop positively.
As a result of the higher than expected start up costs, a negative
EBIT of -5 million EUR is expected in this segment until the end of
this business year. Also for the business year 2008/09 a positive
contribution to the operating income is not anticipated from the
Sportcar division.On the basis of optimized structures and the
expansion of the model range, KTM is prepared for sustained growth.

The interim financial report on the first three quarters of 2007/08
is available for download on our website www.ktm.com under the
section "Investor Relations > Investor Relations > Reports".

++++

Million. EUR (IFRS) 1.-3. Q 2007/08 1.-3. Q 2006/07 V GJ 2006/07
Revenue 442.7 400.9 10.4% 566.1
EBIT 7.7 26.1 -70.3% 39.8
Equity ratio 36.7% 39.0% - 40.5%
Earings per share 0.21 2.19 -90.4% 3.57
EBIT-Margin 1.7% 6.5% 7.0%
Empolyees

as of closing date) 1,961 1,792 +169
1,931

About KTM Power Sports AG KTM Power Sports AG is a worldwide leading
manufacturer of power sports vehicles. KTM has won more than 140
World Championship titles and seven times the Rallye Paris-Dakar. KTM
Power Sports AG includes the Sportmotorcycle and the Sportcar
division. The KTM-Sportmotorcycle AG, develops and manufactures
competition off-road and street motorcycles. KTM-Sportcar GmbH 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 a revenue of 566.1 Mio. EUR in fiscal year 2006/07. Over 20
sales subsidiaries and five joint ventures distribute KTM products to
their 1,400 independent KTM dealerships worldwide.

end of announcement euro adhoc
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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