Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.

9-month report

17.07.2007

Mattighofen, July 17th 2007 - The first three quarters of business 
year 2006/07 were influenced by a significant increase in sales and 
profit. Compared to the previous business year, sales have risen 50.4
million EUR to reach 400.9 million EUR, the EBIT increased by 33.4% 
from 19.5 million EUR last year to 26.1 million EUR.

Best Q3 performance since KTM went public in 2003 In the frist three 
quarters 2006/07, gross margin rose by 10.1% to130.7 million EUR 
whereas overheads increased by 5.5% to 104.7 million EUR compared to 
the previous year. Gross margin, adjusted by the effects of the 
change in sponsorship and promotional income in the current business 
year, rose by 15.6% and the overheads rose by 11.9%. The free 
cash-flow in the amount of  -23.7 million EUR results from a major 
increase in investments and the periodically contingent increase of 
the working capital.

Sales increase in on-road segment Due to the market introduction of 
the 690 Supermoto, the 990 Super Duke and the new R-Models, sales 
could be increased in the on-road segment. The business case for the 
series production of the sports concept car "X-BOW" has been 
developed. The projected units for business year 2006/07 have already
been ordered in the third quarter.

Preview The new Enduro Racing engine generation shall further boost 
the growth in the fourth quarter 2006/07. All foreign exchange risks,
except for parts of the US- Dollar exposure, were hedged for 2006/07.
Also for business year 2007/08, all relevant exchange rate risks have
been hedged to a large extent. The Board expects a two-digit growth 
rate for the entire year 2006/07. The impulses given in the current 
year shall further sustain the successful business development in the
year 2007/08.

About the KTM Power Sports AG KTM Power Sports AG is a world-wide 
leading manufacturer of power sports vehicles. KTM may claim 120 
World Championship titles and 7 victories at the prestigous Rally 
Paris-Dakar. The main manufacturing operations are conducted by 
KTM-Sportmotorcycle AG, who develops and produces competitive race 
motorcycles for off-road and on-road usage. KTM Sportcar GmbH is home
of the light weight sports car X-BOW, which was KTM's first step 
towards the automotive sector. In the business year 2005/06, the KTM 
group with its 1,600 employees realized sales in the amount of 504.5 
million EUR. 17 sales subsidiaries distribute the KTM products to 
around 1,400 authorized KTM dealers world-wide.

end of announcement                               euro adhoc 17.07.2007 08:28:13

Further inquiry note:

KTM Power Sports AG
Wilfried Stock
Telefon +43 (0) 7742 / 6000-216
mailto:wilfried.stock@ktm.com

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