EANS-News: Kapsch TrafficCom makes significant project progress in the first quarter

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Financial Figures/Balance Sheet

Vienna (euro adhoc) - -Expansion phase 1 of the major project in
Belarus concluded -Increased revenue thanks to project progress and
operation of the toll system in Poland -EBIT returns to positive
territory despite strains -Fiscal year 2013/14 marked by
implementation projects and project decisions

2013/14Q1:1 April-30 June 2013 2013/14Q1 +/-% 2012/13Q1

Revenues (in million EUR) 121.4 +14% 106.4
EBIT (in million EUR) 3.7 - -5.2
Profit for the period (in million EUR) -1.0 +77% -4.3
Earnings per share (in EUR) -0.23 +50% -0.45

19 August 2013 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in
the Prime Market of the Vienna Stock Exchange, achieved significant
progress on its existing projects in the first quarter of the fiscal
year 2013/14. Expansion phase 1 of the nationwide electronic toll
collection system in Belarus was completed and went into operation
after the balance sheet date. While the toll system in Poland made a
significant contribution to the revenue and earnings of the Kapsch
TrafficCom Group during the reporting period, the completed system in
the South African province of Gauteng still did not go into
operation. The revenue and earnings of the Kapsch TrafficCom Group
improved significantly compared to the same period of the previous
year.

"The quarterly result is not exceptional, and it still leaves us far
from our target EBIT margin. It does, however, demonstrate the
progress in our existing installation and operation projects. It also
shows that the media reports in July regarding our project in South
Africa were overblown," summarizes Georg Kapsch, CEO of Kapsch
TrafficCom AG.

The commissioning of the toll system in South Africa has been
postponed several times over a long period. Since the end of 2012,
the conditions have been established; as before, it remains only for
the corresponding law to be signed by the President of South Africa
and for the starting date to be announced. The installation of the
system has been largely paid for, and the customer is reimbursing the
costs for maintaining the operational readiness. Due to the lack of
operation revenue as well as additional costs, however, this project
is currently a significant drain on the earnings of Kapsch
TrafficCom.

In Belarus, Kapsch TrafficCom completed the first phase of the order
for installation and operation of the nationwide electronic toll
collection system in the quarter under report; the technical
operation began on July 1st, followed by commercial operation on
August 1st. A fluid transition to expansion phase 2 occurred at the
same time. Each individual phase of this major project is being
prefinanced by Kapsch TrafficCom, with full payment to be received
within three years of the start of operations.

Kapsch TrafficCom achieved yet another success in North America.
After our contract with the E-ZPass Group, which operates the world's
largest interoperable toll system in 14 US states, was extended in
July 2011, the company received in June 2013 a new five-year order
from the Canadian toll authority Cantoll to deliver the next
generation of on-board units for the Toronto metropolitan region.
This should secure the high volume of on-board units in North America
for the coming years.

In Chile, Kapsch TrafficCom received an order for a traffic
management system. This shows - if only on a small scale - the
increasing importance of intelligent transportation systems (ITS), an
area in which Kapsch TrafficCom has devoted increased attention for
some time.

Revenue and earnings The revenue of the Kapsch TrafficCom Group
reached EUR 121.4 million in the first quarter, which is 14.1 % above
the previous year's comparison value of EUR 106.4 million. The EBIT,
which was negative in the first quarter of the previous year at EUR
-5.2 million was EUR 3.7 million in the reporting period. The company
therefore achieved a significant improvement in earnings over the
previous year - even despite the burden of the continued delay in
commissioning of the system in South Africa.

The segment RSP (Road Solution Projects) recorded revenues of EUR
36.5 million after EUR 34.9 million in the same period of the
previous fiscal year, an increase of 4.7 %. The greatest contribution
was supplied by the installation project in Belarus, which is also
reflected in the improved operating result. Additional revenue
contributions were made by the projects in Texas, USA, and Sydney,
Australia. The EBIT in the first quarter reached EUR -1.6 million
after EUR -7.2 million in the previous year, whereby the expenditures
attributed to this segment could not be entirely covered.

In the segment SEC (Services, System Extensions and Components
Sales), revenues increased by 19.3 % from EUR 67.7 million in the
previous fiscal year to EUR 80.8 million in the first quarter of
2013/14. This increase was driven primarily by the operation and
further expansion of the Polish system. The number of on-board units
sold also increased in the quarter under report. On this basis, the
EBIT reached EUR 5.1 million after EUR 1.9 million in the previous
year, despite the drain on earnings due to the project in South
Africa.

The profit before taxes and the profit for the period are still
negative. This results from the decline in the financial result to
EUR -5.3 million due to exchange rate fluctuations concerning the
conversion of group-internal receivables with a negative impact as at
the key date.

Financial position and cash flows The balance sheet of the Kapsch
TrafficCom Group at the end of the first quarter of 2013/14 reflected
the progress and the prefinancing of the project in Belarus: Both
receivables and financial liabilities increased relative to the
balance sheet date of 31 March 2013, as did the net working capital.
The free cash flow is again negative at EUR -37.2 million, in
contrast to the previous quarters. With the conclusion of the first
expansion phase, payment by the customer has now begun.

Outlook The next quarters will be characterized by the continuation
of existing orders. The next expansion phase in Belarus should go
into operation toward the end of the fiscal year in spring 2014. Then
phase 3 begins, which entails a further expansion of the system by
1,500 km. The implementation of the ongoing projects in France,
Australia and Texas should be largely completed by the end of the
fiscal year.

Kapsch TrafficCom looks forward with great interest to the coming
developments in South Africa as well as Slovenia, where the tender
for a toll system was recently canceled. Further invitations to
tender are also expected. In parallel to this, the company is also
actively contacting possible interested parties for toll systems, an
approach that already proved successful in Belarus. The management
can report great interest in other countries as well. With its ITS
strategy and the new company structure, the Kapsch TrafficCom Group
considers itself well-positioned for all growth opportunities.

The report on the first quarter of fiscal year 2013/14 can be found
under http://www.kapsch.net//ktc/investor_relations/reports/download/
Quarterly-reports/2013-14/KTC_IR_Report_FY14-Q1?lang=en-US.

Kapsch TrafficCom is a provider of intelligent transportation systems
(ITS) in the application fields of road user charging, urban access
and parking, road safety enforcement, commercial vehicle operations,
electronic vehicle registration, traffic management and V2X
cooperative systems. Kapsch TrafficCom covers with end-to-end
solutions the entire value creation chain of its customers as a
one-stop shop, from components and subsystems to their integration
and operation. The solutions of Kapsch TrafficCom help to provide
funding for infrastructure projects, to increase traffic safety, to
optimize traffic flow, and to reduce environmental pollution from
traffic. The core business is to design, build and operate electronic
toll collection systems for multi-lane free-flow traffic. References
in 43 countries on all continents make Kapsch TrafficCom a recognized
supplier of electronic toll collection worldwide. As part of the
Kapsch Group, a family-owned Austrian technology group founded in
1892, Kapsch TrafficCom, headquartered in Vienna, Austria, has
subsidiaries and representative offices in 33 countries, has been
listed on the Vienna Stock Exchange (KTCG) since 2007, and generated
with more than 3,000 employees revenues of EUR 488.9 million in
fiscal year 2012/13. For additional information:
http://www.kapsch.net and http://www.kapschtraffic.com

Follow us on Twitter: http://www.twitter.com/kapschnet.

Further inquiry note:
Mag. Marcus Handl
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2
1120 Vienna, Austria
Tel.: +43 50.811 1120
E-Mail: {ir.kapschtraffic@kapsch.net}
[HYPERLINK: mailto:ir.kapschtraffic@kapsch.net]
Press contact:
Mag. Katharina Riedl
Spokesperson
Kapsch AG
Am Europlatz 2
1120 Vienna, Austria
Tel.: +43 50.811 1705
E-Mail: {katharina.riedl@kapsch.net}
[HYPERLINK: mailto:katharina.riedl@kapsch.net]

end of announcement euro adhoc
--------------------------------------------------------------------------------

company: Kapsch TrafficCom AG
Am Europlatz 2
A-1121 Wien
phone: +43 1 50811 1122
FAX: +43 1 50811 99 1122
mail: ir.kapschtraffic@kapsch.net
WWW: www.kapschtraffic.com
sector: Technology
ISIN: AT000KAPSCH9
indexes: Prime Market
stockmarkets: official market: Wien
language: English