EANS-Adhoc: KTM Power Sports AG / KTM confirms earning rise in the third quarter

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9-month report

23.07.2010

• EBIT: 12.4 m EUR (+69.2 m EUR compared to last year)
• Net profit: +3.9 m EUR (+70.7 m EUR compared to last year)
• Free cash flow: 13.9 m EUR (+81.5 m EUR compared to last year)
• Turnover 318.3 m EUR (-7.3% compared to last year)
• Sales: 43,189 vehicles (-3,086 vehicles compared to last year)

Mattighofen, July 23, 2010

Operative result improved by EUR 69.2 million Due to the focus on
KTM´s core business and its efficient cost management, KTM managed to
find the fastest track out of the crisis despite slightly lower
sales. KTM has paved its way into a positive business year 2009/10.

KTM was able to significantly improve its EBIT by EUR 69.2 million to
EUR 12.4 million, which can be attributed to a timely and consistent
adjustment of all capacities and cost structures.

Launch of new products In spite of the still difficult market
conditions, KTM increased their market share in the off-road segment
and in the street segment. The launch of the new KTM motocross
generation resulted in a significant strengthening of KTM´s market
position in the core segment "off-road competition". In the first
three quarters of 2009/10 it was possible to reduce dealers´ and KTM
stock levels.

Further increase of liquidity reserves In the first three quarters of
2009/10 KTM managed to generate a positive free cash flow and thus
further minimise the company´s net indebtedness. Apart from the
capital increase of EUR 29.8 million, carried out in the third
quarter, additional liquidity reserves were established from the
operative business.

Outlook For the business year 2009/10 KTM is expecting a turnover at
last year´s level. Compared to last year EBIT will increase
significantly to a double-digit range. Compared to the previous year
with sales of 64,080 vehicles, sales levels will increase to 65,000
or 66,000 vehicles. In addition to the already entered KTM markets,
new market opportunities in emerging markets come along with the
serial production of entry-level street motorcycles (125cc to 350cc),
which will be launched in late fall 2010 in cooperation with Bajaj
Auto Ltd. The fist step will be Brazil, where the market offensive is
already in the preparation stage.

RESULT Q3 2009/10

in EUR million Q3 09/10 Q3 08/09 V absolut V %
Sales revenues 318.3 343.5 -25.2 -7.3
EBITDA 36.5 6.2 30.3 488.1
EBIT 12.4 -56.7 69.2 -
Net profit 3.9 -66.8 70.7 -
Earnings per share1 (in EUR) 0.48 -8.8 9.3 -
EBITDA Margin 11.5% 1.8% - -
EBIT Margin 3.9% -16.5% - -

1) calculated on the basis of the average of shares in the reporting period

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The Interim Statement for the first three quarters of 2009-10 is available for
download on our website at www.ktm.com under "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:
Index: mid market
Börsen: Wien / official market