KTM Power Sports AG - Record Sales at KTM - for the First Time over EUR 500 million Business Year 2005/06 (9/1/2005

• Strategic decisions in the business year 2005/06
• Sales for the first time over € 500 million
• Unit sales motorcycles 84,421 units; +5% versus previous year
• Equity ratio: 39,1%
• Proposed dividend: € 0,75 per share

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Wels (euro adhoc) - Strategic decisions in the business year 2005/06
After increasing the stake in KTM Group GmbH in several steps to 100
% and thereby implementing the company’s focus on the "power sports"
segment in the last business year, the result of KTM Power Sports AG
has been influenced only by the interest in the KTM-group in the
business year 2005/06.

On operational level the cooperation with Polaris which was started
in the last business year has begun successfully. Since March 2006,
KTM distributes Polaris-products (ATVs) in Germany. Furthermore, an
engine supply contract has been signed (first supplies will follow
shortly) and synergies in purchasing and in technical cooperation
have been achieved.

CROSS Industries AG, the majority shareholder of KTM Power Sports AG,
informed Polaris that in autumn 2007 at the latest and in accordance
with the existing contracts, it will exercise its option to buy the
block of shares Polaris holds in KTM. This enables KTM to secure its
independent development in the future.

Group sales of KTM Power Sports AG: EUR 504.5 million, +32% (KTM
Group GmbH: +12%) Group sales were increased over the previous year
by +32 % (thereof +20 % due to full consolidation, KTM Group GmbH 12
% versus previous year), from EUR 381.9 million to EUR 504.5 million.
Along with the volume growth, the rise in sales resulted from a
changed model mix (less sportminicycles, more 2-cylinder models) and
strong growth in the related products segment (spare parts,
accessories, OEM-products).

KTM-group’s unit sales: 84,421 units, +5 % In the past business year
84,421 motorcycles were sold (+ 5 % over the preceding year). This
positive growth has been caused in the off-road segment by the
introduction of further models and in the street segment by the
successful presentation of the new models (990 Adventure, 950
Superenduro) and the increase in sales (950 Supermoto) in the
2-cylinder segment. The US continues to be the largest sales market
(25 % of total unit sales), followed by Italy, Germany, Australia and
France.

EBIT KTM Power Sports AG: EUR 34.0 million., +92% (KTM Group GmbH:
+38%) In the business year 2005/06, KTM Power Sports AG’s EBIT
amounted to EUR 34.0 million and exceeded the EBIT of the previous
year by +92.1%. This development has especially been caused by a very
good acceptance of the new models in the 2-cylinder and
offroad-segment, higher results in the related products segment, a
positive development of productivity and costs as well as the further
expansion of own distribution subsidiaries.

Equity ratio: 39.1% The equity has increased by EUR 19.7 million in
comparison to the previous year and amounts to 39.1% of the balance
sheet total.

Positive Outlook KTM sees good chances for growth in the business
year 2006/07 in which, besides related products, primarily new and
attractive street and offroad models will carry the future growth. A
slight improvement in results can be anticipated from the growth of
the unit sales as well as the expected enhancement of product margins
especially through the ongoing transition in the direction of
2-cylinder models.

For the upcoming business year further investments in the segments
infrastructure and optimizations in production processes and
capacities are being planed. Regarding research and development the
focus will lie on the development of new street and offroad models on
the basis of the new LC4 engine, on the development of the Superbike
RC8 and new offroad racing models.

Key Figures of KTM Power Sports AG (IFRS):

EUR million (IFRS) BY 05/06 BY 04/05 V %
Sales revenues 504.5 381.9 + 32
EBIT 34.0 17.7 + 92
EBITDA 54.0 32.8 + 65
Net profit 20,0 12.1 + 65
Balance sheet total 457.0 407.5 + 12
Equity 178.6 158.8
EBIT margin 6.7 % 4.6 %
EBITDA margin 10.7 % 8.6 %
Employees (as of 08/31) 1,697 1,584 + 7

Share price development The share price of the KTM-stock showed a
slight decrease and closed on the balance sheet date at EUR 45.00.
Market capitalisation of the KTM-share reached EUR 310.2 million as
of August 31st, 2006. Main shareholder with more than 50% of the
voting rights is CROSS Industries AG.

Dividend The Board of Directors proposes to pay out a dividend of
0.75 EUR/share for the business year 2005/06.

end of announcement euro adhoc 09.11.2006 07:45:00
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ots Originaltext: Cross Holding AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
KTM Power Sports AG
Mag. Michaela Friepess
Telefon +43 (0) 7242 / 694 02
mailto:ir@ktmpowersports.com

Branche: Economy, Business & Finance
ISIN: AT0000645403
WKN: 726812
Index: ATX Prime
Börsen: Wiener Börse AG / official dealing


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KTM Power Sports AG - Record Sales at KTM - for the First Time over EUR 500 million Business Year 2005/06 (9/1/2005 - 8/31/2006)