EANS-Adhoc: KTM Power Sports AG / On track on rocky ground Market development confirms the capacity adjustments carried out and now completed were right

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quaterly report

23.04.2009

1. HY 2008-09
>> Sales: EUR 222.9 million (down 22.6% from previous year)
>> EBIT: down EUR 9.0 million
>> Vehicle sales: 32,034
>> Capital increased

Business development The Sportmotorcycle Division finished making the
capacity adjustments and staff cuts that proved necessary as a result
at the end of April. The new reduced working hours scheme will mean
that we can largely prevent further cutbacks. Liquidity can be also
created by reducing the dealer stocks and KTM stock as planned.

The Sportcar Division responded to the current market trends and
began resizing, which will be completed by the end of July. Central
operations, such as procurement, marketing, sales and administration
will move to headquarters in Mattighofen. Centralization will enable
synergies to be exploited to a greater extent in the future.

Market shares increased Despite the difficult economic situation,
especially for the automotive and motorcycle industry, KTM has
succeeded in substantially increasing shares in the total European
market to 5.2% since the beginning of the fiscal.

Sustainable development projects To ensure sustainable development of
the model range, the company is investing in Research & Development
as planned. Key projects are the development of an electric powered
Enduro and the development of a new small-engined street motorcycle
together with Bajaj Auto Ltd. The first model of the 125 cc street
motorcycle destined for the European market will be presented at the
EICMA international motorcycle exhibition in Milan in November. The
model for the Indian and emerging markets will be unveiled at the
Delhi motor show in January 2010. These projects will point the way
towards the development of other models and vehicles with new drive
concepts for off-road and urban use.

1. HY 2008/09 KTM Power Sports AG announces that sales have fallen to
32,034 vehicles in the first six months of 2008-09 (down 14,498 from
the previous year) due to the global economic downturn. Group sales
therefore dropped 22.6% from the previous year from EUR 288.1 million
to EUR 222.9 million. EBIT was down from EUR 15.7 million (excluding
sale of the WP Group: EUR 5.2 million) last year to minus EUR 9.0
million. ++++

The semi annual financial report of 2008/09 is available for download
on our website www.ktm.com under the section "Investor Relations >>
Investor Relations >> Reports".

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