euro adhoc: KTM Power Sports AG / quarterly or semiannual financial statement / KTM - Remarkable Sales and Profit Plus in the First Half Year 2006/07 (09/01/2006 - 02/28/2007) • Net sales: EUR

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6-month report

12.04.2007

Consolidated sales: EUR 263.0 million, + 11.7% In the first half year
KTM Power Sports AG increased its consolidated sales by 11.7 % to
263.0 million EUR compared to the previous year. Considerable
increases in unit sales in offroad motorcycles, a shift in the demand
towards premium models, as well as higher sales in related products
(spare parts, PowerParts and PowerWear) have substantially
contributed to the remarkable sales increase.

EBIT: EUR 22.6 million, +25.0% In the first half year 2006/07 gross
margin rose by 8.7 % to 88.5 million EUR and overheads increased by
4.0 % to 65.9 million EUR in the same reference period. Thus, the
operating income increased by 25.0 % to 22.6 million EUR. The break
down of sponsorship and promotional income has been changed in the
current business year. Adjusted of the effects of this change, the
increase in gross margin amounted to 14.5 % and overheads rose by
11.3 %.

Increase of the free float In the last half year the CROSS Industries
group, main shareholder of KTM Power Sports AG, as well as Hofer
Private Foundation sold approx. 1.5 million (approx. 21.8 %) ordinary
shares of KTM Power Sports AG thereby increasing the free float. The
bulk of the shares being placed originate from a block of KTM-shares
that CROSS has purchased from an Austrian subsidiary of Polaris
Industries Inc. in December 2006.

Outlook The KTM sport car concept "X-Bow" has been showcased for the
first time at the Geneva International Motor Show beginning of March.
Due to the extremely positive feed back the management works on a
business case for the series production with the goal to develop the
"Sport Car" division to another important business segment of the KTM
group.

After the successful market introduction of the 690 Supermoto as well
as of the updated 990 Super Duke, the third quarter will be strongly
affected by sales increases in the street segment. For the forth
quarter we expect significant growth impulses from the presentation
of the new Enduro Racing generation, which will meet the strict
Euro-3 requirements for both 2-stroke and 4-stroke engines. Except
for parts of the USD-exposure, all foreign exchange risks for the
current business year are hedged to a large extent. Due to the high
market acceptance of the current product range we assume that the
trend of a weak USD can be partially offset by price adjustments.

Key figures of KTM Power Sports AG (according to IFRS):

EUR million (IFRS) Half-Year 06/07 Half-Year 05/06 V %
Sales revenues 263.0 235.4 11.7
EBIT 22.6 18.1 25.0
EBITDA 34.6 27.7 25.1
Net profit 13.7 11.0 24.0

Total assets/equity and liabilities 476.0 457.0 *) 4.2
Equity 187.3 178.6 *) 4.9

EBIT Margin 8.6 % 7.7 %
EBITDA Margin 13.2 % 11.8 %
Employees (as of 02/28) 1,753 1,606 9.2

*) End of the fiscal year 08/31/2006

Development of the share
During the first half year of the business year 2006 / 07 the KTM-stock was
trading between EUR 44.00 and EUR 59.00 and closed at EUR 53.60 by the end of
the second quarter (February 28th, 2007). Market capitalization of the 6.9
million shares outstanding reached 369.4 million EUR as of February 28th, 2007.
Main shareholder with more than 50 % of the voting rights is CROSS Industries
AG.

end of announcement euro adhoc 12.04.2007 07:30:00
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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 02-113
mailto: ir@ktmpowersports.com

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