euro adhoc: KTM Power Sports AG / quarterly or semiannual financial statement / KTM to adjust result expections for current business year due to US-Dollar 1st Half Year 2007/08 >> Revenue: 288.1 mil

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6-month report/Result 1st HY 2007/08

24.04.2008

Mattighofen, April 24th, 2008 - Despite the difficult economic
surrounding conditions, KTM Power Sports AG, Stallhofnerstraße 3,
5230 Mattighofen, (ISIN 00000645403), one of the world-wide leading
manufacturers of Off-Road and street motorcycles, ATVs and the sports
car X-Bow, was able to increase its revenue by 9.5% to 288.1 million
EUR (exchange rate adjusted +13.4%) compared to last year. The EBIT
in the amount of 15.7 million EUR has been significantly influenced
by the weak US-Dollar and decreased by 30.4% compared to last year.
The book profit in the amount of 10.5 million EUR resulting from the
sale of the WP group in the first Quarter 2007/08 is included in the
other operating earnings.

Growth driver The growth in revenue is once more a result of
increased sales in the Enduro Racing segment and the expected
increase in sales of Related Products (Spare Parts, PowerWear und
PowerParts).

Expansion of model range The product range has been expanded with the
Superbike 1190 RC8, furthermore the Dualsport segment with a 690
Enduro model and the Supermoto segment with a 690 SMC and a 990
Supermoto model. The new models were delivered at the end of the
first half of 2007/08 and shall contribute to the growth of the KTM
group in the third quarter of 2007/08. The joint project between the
KTM group and Bajaj Auto Ltd. to develop liquid cooled 125 cc and 250
cc four-stroke engines, which has been agreed upon in November 2007,
initiated as planned.

Further News The KTM group has been restructured in the first half of
2007/08 and separated into a Sportmotorcycle (KTM-Sportmotorcycle AG)
and a Sportcar division (KTM-Sportcar GmbH). Mr. Werner Wilhlem is
responsible for the development and production of the Sportcar
division and has been a member of KTM Power Sport AG´s Management
Board since February 1st, 2008. At the International Motor Show
Geneva, the X-Bow series model was featured as the limited edition
"Dallara", which experienced once again a very positive feedback from
the public.

Outlook Due to the expansion of the product range in the Off-Road and
street segments, an increase in sales to around 95,000 units is again
expected for the current business year. The weak US-Dollar and a
decreasing demand in the US for OEM engines caused by the general
economic surrounding conditions, will negatively influence the margin
situation in the remaining business year. Unless the US-Dollar
becomes stronger until the end of the business year, the projected
EBIT of around 40 million EUR may not be realized. The joint project
with Bajaj Auto Ltd. promises a lot of potential for the further
development of KTM. The production of the new 125 and 250cc street
bikes, in the not yet covered street beginner segment, shall start
running 2010 at Bajaj Auto Ltd. in India.

The semi annual financial report can be downloaded on our website
www.ktm.com under the section "Investor Relations > Investor
Relations > Reports".

Million EUR (IFRS) 1. HY 2007/08 1. HY 2006/07 V BY 2006/07
Revenue 288.1 263.0 9.5% 566.1
EBIT 15.7 22.6 -30.4% 39.8
Equity ratio 38.8% 39.4% - 40.5%
Earnings per share 1.60 1.98 -19.2% 3.57
EBIT-Margin 5.5% 8.6% - 7.0%
Employees

as of closing date) 1,910 1,753 +157
1,931

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