euro adhoc: KTM Power Sports AG
Strategic management decisions
Polaris & KTM
to Continue Strategic Partnership As Independent Companies
CROSS Industries AG has decided: KTM remains independent
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
28.07.2006
Minneapolis/Wels, July 28, 2006 Polaris Industries Inc. (NYSE/PSE:
PII) and KTM Power Sports AG ("KTM") today jointly announced that
they will continue their strategic partnership at an operational and
technical level but that they no longer anticipate that Polaris will
acquire a majority equity interest in KTM. On July 19, 2005 the
companies announced that Polaris purchased approximately a 25 percent
interest in KTM and that Polaris and KTMs largest shareholder, Cross
Industries AG ("Cross"), had entered into an option agreement which
provided that, under certain conditions in 2007, either Cross could
purchase Polaris interest in KTM or, alternatively, Polaris could
purchase Cross majority interest in KTM. On July 19, 2005 the
companies also announced that during the first phase of the
partnership each company would be run independently and that Polaris
and KTM would work on several specific cooperative projects."Our teams have worked well together over the past year. The strategic partnership has accomplished a tremendous amount so far and achieved nearly all our goals during the first 12 months of its existence." said Tom Tiller, Polaris CEO. "For instance, in February of this year Polaris and KTM entered into a long-term exclusive engine supply agreement for ATV applications and in March of this year KTM became Polaris distributor in Germany. Additionally, our co-development projects are progressing nicely and we expect to make an exciting announcement in the near future. These and other joint cooperation projects will continue into the future. I expect the technical cooperation between our companies to continue to be strong in the coming years."
"We are very pleased with the results of the first phase of the strategic partnership and look forward to continue the relationship" said Stefan Pierer, KTMs CEO. "Nevertheless, Rudolf Knünz (the other principal in Cross) and I have recently informed Polaris of our intention not to sell Cross interest in KTM to Polaris. We wish to remain in control of KTM and for KTM to remain an independent company."
Tom Tiller concluded, "When we structured Polaris path toward complete ownership of KTM as a 2-staged process, we recognized that this was a possible outcome. Polaris continues to own a 25 percent equity interest in KTM and we continue to have confidence in the KTMs management team and their ability to execute the KTM operational plan."
end of announcement euro adhoc 28.07.2006 07:30:00
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