euro adhoc: KTM Power Sports AG / quarterly or semiannual financial statement / KTM group full on speed - Growth in sales revenues and EBIT in 1st Half Year (Sept. 1, 2005 - Feb. 28, 2006) • Net

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27.04.2006

Group sales KTM Power Sports AG: EUR 235.4 million, +65% (KTM Group
GmbH: +11%)

Group sales of KTM Power Sports AG increased by 65 % to EUR 235.4
million in comparison with 1st half year of the previous year
(thereof due to full consolidation +54 %; KTM Group GmbH: +11%). The
increase in sales of the KTM Group was mainly caused by a more
appealing product mix, by the development of the USD and by
successful new product introductions. The backlog of the delayed
deliveries to North America (as a result of hurricane Katrina) could
be made up in full amount in the second quarter of the business year
2005/06.

Gross margin KTM Power Sports AG: EUR 81.4 million, +78% (KTM Group
GmbH: +17%)

Gross margin rose by 78% to 81.4 million EUR (thereof due to full
consolidation +61%; KTM Group GmbH +17% versus previous year). In
addition to the increase in sales in comparison with the previous
year, lower production costs and a better product mix mainly
contributed to this effect.

EBIT KTM Power Sports AG: EUR 18.1 million, +93 % (KTM Group GmbH:
+12 %)

In spite of the increase of the future oriented expenses for motor
sports, sales and development, the operating income increased in the
first half of the business year 2005/06 by 93% to 18.1 million EUR
(thereof due to full consolidation +82%; KTM Group GmbH +12%).

Positive outlook

After the successful introduction of the onroad model 990 Adventure
(Travel Enduro) and further new product introductions (950 Super
Enduro R, Offroad Competition), a double-digit (in %) increase of the
sales revenues is expected to be achieved in the second half of the
business year 2005/06.

Key figures of KTM Power Sports AG (according to IFRS) at a glance*:

EUR million (IFRS) 1HY 05/06 1HY 04/05 V %
Net sales 235.4 143.1 + 65
EBIT 18.1 9.4 + 93
EBITDA 27.7 15.0 + 84
Net profit 11.0 9.2 + 20
Total assets/equity and liabilities 444.3 407.5**) + 9
Equity 162.7 158.8**)
EBIT Margin 7.7 % 6.5 %
EBITDA Margin 11.8 % 10.5 %
Employees (as per November 30) 1,606 1,601 + 0
**) end of fiscal year (August 31, 2005)

*) In the last business year the stake in the KTM Group GmbH has been
increased in several steps to 100% and fully consolidated for the
first time on December 1, 2004. Due to the proportional consolidation
(38.3%) in the previous year, comparability of figures in the
reference period is limited. In the current business year KTM Power
Sports AG’s results are only affected by its participation in the KTM
Group GmbH.

Share development

During the first half of the business year 2005/06, the KTM-stock was
trading between EUR44.9 and EUR 49.98 and closed at EUR 45.55 at the
end of the second quarter (February 28, 2006) This represents a price
development of +80.40% since the IPO and +45.30% since the capital
increase in December 2004. Market capitalization of the 6.892 million
shares outstanding reached 314 million EUR as per February 28, 2006.
Main shareholder with more than 50% is CROSS Industries AG.

end of announcement euro adhoc 27.04.2006 07:25:00
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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 02-113
mailto:ir@ktmpowersports.com

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