euro adhoc: KTM Power Sports AG / Financial Figures/Balance Sheet / Despite economic crisis positive operating profit in the first quarter

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3-month report

29.01.2009

First quarter 2008/09 >> Revenue: 132.2 million EUR (-11.5% compared
to last year) >> EBIT: 4.5 million EUR (-76.3 % compared to last
year) >> Vehicle sales: 20,300 >> Development for series production
of a Sport Enduro with electric drive >> capital increase agreed

Mattighofen, Nov. 13, 2008 - KTM Power Sports AG, Stallhofnerstrasse
3, 5230 Mattighofen, Austria (ISIN 0000645403), one of the world-wide
leading manufacturers of Off-Road and street motorcycles, ATVs and
the super sports car X-Bow, reduced sales to 20,300 vehicles (-4,465
compared to last year) due to a deterioration of market conditions in
the automotive and motorcycle industry. Revenue was down 11.5% on the
previous year from 149.4 million EUR to 132.2 million EUR. Despite
the economic crisis and the decreasing demand on the automobile and
motorcycle markets, KTM was able to achieve a positive EBIT of 4.5
million EUR (previous year 18.9 million EUR), due to the early
initiated counter measures like the selective product policy towards
high margin vehicles, price increases as well as adjustments in
capacity.

Business Development In the Sportmotorcycle Division sales of 126.2
million EUR (-15.5% compared to last year) were achieved. The drop in
sales was caused by the reduction in the Offroad segment, especially
in the Enduro models in the United States. Admitted EBIT dropped by
33.7% from 19.2 million EUR last year to 12.7 million EUR. If
extraordinary and non-recurrent income are discounted a 13.8%
increase from 8.7 million EUR last year to 9.9 million EUR can be
reported. In the Sportcar Division sales of 6.5 million EUR and EBIT
of minus 7.9 million EUR were achieved. The loss is due to material
and manufacturing costs that were higher than planned for the first
series running until the end of January 2009. In the first quarter of
2008/09 114 vehicles were sold.

Other Events In the first quarter of 2008/09 the prototype of the KTM
Zero Emission Bike, a noiseless and emission-free Enduro motorcycle,
was presented. KTM sets another important step for future
developments with this new drive concept. Mass production is planned
for 2010. The project focusing on developing new small-engined Street
motorcycles together with Bajaj Auto Ltd. is running according to
plan. Bajaj Auto Ltd. increased its stake in KTM to 25.86% in
September 2008 and indicated its interest in raising it to 30%.
Towards the end of business year 2007/08, KTM began to hedge USD/EUR
exposure in particular for a planning period of several years. Given
the US dollar's strong gain against the euro during the first quarter
2008/09, we recorded a loss in value in the financial result totaling
28.1 million EUR. The average hedging rate for these transactions is
however much more favorable than the USD/EUR exchange rate forming
the basis for our budgets and calculations.

Outlook KTM´s Management Board plans to implement a capital increase
from authorized capital in the second quarter of business year
2008/09 in order to be prepared despite the continuing difficult
surrounding conditions and to drive the further development of future
technologies in the two and three wheel segments. Last year's
forecasts for 2009 of a decline in GDP in real terms of -0.3% in the
United States and -0.1% in Europe are no longer realistic from
today's point of view. KTM therefore assumes that purchasing power
will continue to fall over the remaining business year. The economic
environment for the automotive and motorcycle industry in particular
could continue to worsen in the United States and Europe. KTM has
responded to this szenario by scaling back production by up to 20%
from last year and will continue implementing the ongoing
improvements and cost-cutting measures in order to reduce the capital
tied up in the short term to an optimal level in the second half of
the year. From today's perspective, KTM aims to sell 600 X-Bows in
the Sportcar Division over the 2008/09 fiscal year. If this figure
can be achieved, the operating result will stabilize at around the
projected minus 14 million EUR. In the Sportmotorcycle Division KTM
is planning to reduce turnover by around 20%. In view of the drop in
sales, the planned operating result in the Sportmotorcycle Division
will compensate to a great extent for the operating loss in the
Sportcar Division despite the catchier economic environments. ++++
The interim financial report on the first quarter of 2008/09 is
available for download on our website www.ktm.com under the section
"Investor Relations > Investor Relations > Reports".

Million EUR (IFRS) Q1 2008/09 Q1 2007/08 V
Revenue 132.2 149.4 -11.5%
EBIT 4.5 18.9 -76.3%
Earnings per share -4.1 2.2 -
EBIT Margin 3.4% 12.7% -
Employees (as of closing date) 1,966 1,863 +103

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