July 28 2010.

KTM release:

Q3 Results 2009/10

• 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)

Operating result improved by EUR 69.2 million

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.

Stefan Pierer CEO of KTM Power Sports AG commented: "Due to the focus on our core business and our efficient cost management, we managed to find the fastest track out of the crisis despite slightly lower sales. We have paved our way into a positive business year 2009/10.

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 "off-road competition" segment.

In the first three quarters of 2009/10 it was possible to reduce both 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 operating business.

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 figure.

The previous year's sales figure of 64,080 vehicles is expected to increase to around 65,000 or 66,000 vehicles.

In addition to the existing markets, new market opportunities will also emerge with the production of entry-level street motorcycles, (125cc to 350cc), which will be launched in late fall 2010 in cooperation with Bajaj Auto Ltd. The first step will be Brazil, where the market offensive is already in preparation.