EANS-News: KTM Power Sports AG / Capital increase completed successfully

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Restructuring & Recapitalisations

Mattighofen (euro adhoc) - KTM Capital increase completed
successfully

>> Strengthening of share capital by EUR 14.0 million by issuance of
400,000 new bearer shares

-- thereof EUR 12.4 million capital increase against contribution in
kind -- and EUR 1.6 million capital increase against contribution in
cash -- Main shareholders CROSS Industries AG with 50.1% and Bajaj
with 39.79% of share capital

Mattighofen, 21.06.2011 - KTM successfully completes a capital
increase against contribution in cash and contribution in kind.

As of June 15, 2011 - the end of the subscription period - the share
capital of KTM Power Sports AG was increased against contribution in
cash and contribution in kind from EUR 10,109,000 to a total of EUR
10,509,000. In accordance with the resolution of the General Meeting
of 26 April 2011 the share capital was increased against contribution
in kind by EUR 355,000.00 through the issue of 355,000 bearer shares
at a par value of EUR 1.00 each, and against contribution in cash by
EUR 45,000 through the issue of 45,000 bearer shares at a par value
of EUR 1.00, hence a total of EUR 400,000 through issuance of 400,000
bearer shares at a par value of EUR 1.00. The issue price per share
amounted to EUR 35.00.

The capital increase against contribution in kind was done through a
contribution of 99% of KTM Immobilien GmbH, FN 351879 w, held by
CROSS Industries AG. Thus, the so-called "KTM-real estate" bundled in
KTM Immobilien GmbH and held by CROSS Industries AG were acquired by
KTM Power Sports AG and concurrently strengthened their equity
capital base. The volume of the capital increase against contribution
in kind equals EUR 12,425,000.00

At the time the capital increase against contribution in cash was
decided upon, also the capital increase against contribution in kind
was fixed. The subscription right was addressed solely to existing
shareholders. Since the core shareholders CROSS Industries AG and
Bajaj Auto International Holding B.V. waived their subscription
rights in the run-up, all other existing shareholders had the chance
to compensate the dilution from the capital increase against
contribution in kind. A total of 32,231 new shares were subscribed,
Bajaj Auto International Holding B.V. took over the remaining shares.
The volume of the capital increase against contribution in cash
equals EUR 1,575,000.00

The capital increase was registered June 18, 2011; the first trading
date of the new shares is June 21,2011. As of January 1, 2011 the new
shares are entitled to dividend payments. As of June 21, 2011 a total
of 10,509,000 shares, the total share capital of KTM Power Sports AG,
are admitted to trading at the Vienna Stock Exchange.

Shareholder structure As of today CROSS Industries AG remains the
majority shareholder of KTM Power Sports AG with 50.1 % of the share
capital, the share of Bajaj Auto International Holding B.V. amounts
to 39.79%. The free float of stock including Hofer Privatstiftung
amounts to 10.11 %.

Further inquiry note:
KTM Power Sports AG
Mag. Viktor Sigl MBA
Tel: +43 7742 6000 144
Mail to: viktor.sigl@ktm.at

end of announcement euro adhoc
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company: KTM Power Sports AG
Stallhofnerstraße 3
A-5230 Mattighofen
phone: +43(0)7742/6000-0
FAX: +43(0)7742/6000-5216
mail: ir@ktmpowersports.com
WWW: www.ktm.com
sector: Technology
ISIN: AT0000645403
indexes: mid market
stockmarkets: official market: Wien
language: English