22.12.2006 – 15:44

KTM Power Sports AG

euro adhoc: KTM Power Sports AG
Strategic management decisions
CROSS buys 20% block of KTM-shares from Polaris/ KTM remains independent

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

22.12.2006

Mattighofen/Wels, December 22nd, 2006 -Today CROSS Industries AG
("CROSS"), majority shareholder of KTM Power Sports AG, has informed
the Board of Directors of KTM Power Sports AG that the CROSS-group
has signed a purchase contract with Polaris Industries Inc.
("Polaris") (NYSE/PSE: PII) regarding a block of shares in amount of
around 20% of the capital stock of KTM Power Sports AG. The interest
held by Polaris Industries Inc. in KTM Power Sports AG’s shares will
be thus reduced to less than 5%. The purchase contract replaces the
existing option agreement between CROSS and Polaris.

Furthermore the Board of Directors of KTM Power Sports AG announces
that the mutual cooperation projects shall be continued in the
future. The purchase of the block of shares through the CROSS-group
enables KTM to secure its independent development in the future.

end of announcement                               euro adhoc 22.12.2006 15:05:00

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