euro adhoc: KTM Power Sports AG / quarterly or semiannual financial statement / KTM - Definite Sales and Profit Plus in the First Quarter 2006/07 (Sept. 1, 2006 - Nov. 30, 2006) • Net sales: EU

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25.01.2007

Consolidated sales: EUR 129.5 million, + 18.1% In the first quarter
KTM Power Sports AG increased its consolidated sales by 18.1 % to
129.5 million EUR compared to the previous year. Considerable
increases in unit sales in offroad motorcycles, an improved model-mix
(higher ratio of the 2-cylinder models), as well as higher sales in
accessories (spare parts, PowerParts and PowerWear) have
substantially contributed to the remarkable sales increase.

The new KTM components / spare parts centre has been completed with
an investment volume of around EUR 10.0 million at the location
Mattighofen. Through this investment, KTM has established the basis
for its further growth in the margin-strong accessories business.

EBIT: EUR 11.5 million, +33.4% In the 1st Quarter 2006/07 gross
margin rose by 15.1 % to 46.0 million EUR and overheads increased by
10.1 % to 34.5 million EUR in the same reference period. Thus the
operating income increased by 33.4 % to 11.5 million EUR.

Increase of the free float On December 22nd, 2006, CROSS Industries
AG, majority shareholder of KTM Power Sports AG, has signed a share
purchase agreement with Polaris Industries Inc. regarding a block of
shares in amount of around 20 % of the capital stock of KTM Power
Sports AG. The interest held by Polaris Industries Inc. in KTM Power
Sports AG’s shares will thus be reduced to less than 5 % and CROSS
intends to increase the free float of KTM substantially.
Independently from this, mutual cooperation-projects will be
continued in the future.

Outlook The market introduction of new models in the offroad as well
as in the sportive street segment will provide further sales
impulses. Except for parts of the USD-exposure, all foreign exchange
risks for the current business year are hedged to a large extent.

Key figures of KTM Power Sports AG (according to IFRS) at a glance:
EUR million (IFRS) 1Q 06/07 1Q 05/06 V %
Net sales 129.5 109.7 + 18
EBIT 11.5 8.6 + 34
EBITDA 16.9 13.3 + 27
Net profit 7.3 5.7 + 28
Total assets/equity and liabilities 462.6 457.0*) + 1
Equity 185.9 178.6 *) + 4
EBIT Margin 8.9 % 7.9 %
EBITDA Margin 13.0 % 12.1 %
Employees (as per November 30) 1,720 1,599 + 8
*) end of fiscal year (August 31, 2006)
Development of the share

During the fi rst quarter of the business year 2006/07 the KTM-stock
was trading between EUR 44.00 and EUR 50.11 and closed at EUR 47.23
by the end of the quarter (November 30th, 2006). Market
capitalization of the 6.9 million shares outstanding reached 325.5
million EUR as of November 30, 2006. Main shareholder with more than
50 % of the voting rights is CROSS Industries AG.

end of announcement euro adhoc 25.01.2007 07:28:00
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ots Originaltext: Cross Holding AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
KTM Power Sports AG
Mag. Michaela Friepess
Telefon +43 (0) 7242 / 694 02
mailto:ir@ktmpowersports.com

Branche: Economy, Business & Finance
ISIN: AT0000645403
WKN: 726812
Index: ATX Prime
Börsen: Wiener Börse AG / official dealing