euro adhoc: Restructuring & Recapitalisations / KTM to increase Share Capital

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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11.02.2009

Not intended for distribution in the United States, Canada, Australia
and Japan. This does not constitute an offer to buy or to subscribe
to securities.

KTM to increase Share Capital.

>> Up to 9.99% of existing share capital
>> Safeguarding future developments

Mattighofen, Febuary 11, 2009 - On January 29, 2009, the Management
Board of KTM Power Sports AG, Stallhofner Strasse 3, 5230
Mattighofen, Austria (ISIN: AT0000645403), one of the world's
leading manufacturers of off-road and street motorcycles, ATVs and
the X-Bow sports car, resolved to increase capital stock by up to
687,357 bearer shares, having gained the Supervisory Board's
approval on the same day.

Only existing shareholders have a subscription right on new shares
at a ratio of 10:1 (existing shares to new shares). The Board set
the maximum subscription price at EUR 30.00. The entire issue
volume will be placed on the market, irrespective of the degree
to which shareholders make use of their subscription rights, as
Bajaj Auto International Holdings B.V. has pledged to purchase the
new shares that are not subscribed.

Details of the capital increase

On January 29, 2009, the Management Board of KTM Power Sports AG,
Stallhofner Strasse 3, 5230 Mattighofen, Austria (ISIN:
AT0000645403), having gained the Supervisory Board's approval on
the same day and exercising the powers vested in it, resolved to
increase the share capital from the current nominal value of EUR
6,892,643.00 by up to EUR 687,357.00 to up to EUR 7,580,000.00,
which will be achieved by issuing up to 687,357 new bearer shares
with voting rights and a nominal value of EUR 1.00 , with a
maximum subscription and offer price of EUR 30.00 per new share,
while protecting the subscription rights of existing KTM Power
Sports AG shareholders. The capital increase will involve
Raiffeisen Centrobank AG taking the new shares pursuant to Article
153 (6) Austrian Stock Corporation Law (AktG) to offer them to
shareholders at a ratio of 10:1 at the subscription and offer price
within the subscription period. It will be up to the Management
Board to settle any fractions remaining due to the subscription
ratio.

The subscription period for the new shares begins on February 13,
2009 and ends on February 27, 2009. The company reserves the right
to shorten or extend the subscription period. The new shares have
full dividend rights for the business year 2008/09 and are expected
to be included in the Vienna Stock Exchange's regulated
unofficial market (prime market segment) on/or about March 4,
2009. The offer of the new shares is only available to existing

shareholders , therefore it is not a public offering under the
Austrian Capital Markets Act (KMG) and no prospectus will be
prepared. Due to the fact that less than 10% of the number of
shares as already approved for trading on the same regulated
market will be offered and admitted, no listing prospectus is
required under the AustrianStock Exchange Act (BörseG), either. The
Management Board of KTM Power Sports AG with the approval of the
Supervisory Board will determine the final subscription and
offer price after the end of the subscription period, on/or
about February 27, 2009, and publish it using electronic media
on/or about February 27, 2009.

As the shares of KTM Power Sports AG have not been registered under
the U.S. Securities Act 1933 and does not constitute an exception
from the registration requirement, people from the United States,
Canada, Australia and Japan may not exercise subscription rights.
Non-Austrian shareholders are therefore requested to find out
themselves about any restrictions concerning exercising their
subscription rights.

Key data on capital increase

Issuer: KTM Power Sports AG ISIN: AT0000645403 Issue volume: up to
687,357 new shares Subscription ratio: 10:1 Trading in subscription
rights: there will be no trading in subscription rights. The company
has not appointed the subscription agent or any other people to trade
in subscription rights. Subscription period: February 13, 2009 to
February 27, 2009. The company reserves the right to shorten or
extend the period. Maximum subscription price: EUR 30.00 per new
share Value date: on/or about March 4, 2009 Dividend rights for the
new shares: for business year 2008/09 and following years Initial
listing of the new shares: on/or about March 4, 2009 on the Vienna
Stock Exchange's regulated unofficial market (prime market segment)

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