Press release

1999 - Excellent year for TAKKT AG
Unimpeded growth in all markets

TAKKT AG, the leading business- to- business mail order supplier for office, business and warehouse equipment in Europe and North America, successfully continued its growth trend in the 1999 financial year. Compared with the previous year, group turnover rose from Euro 539.2 million to Euro 627.6 million, an increase of 16.4%. In spite of the extraordinary expenses relating to the spin-off from GEHE AG and the IPO, EBITDA improved by 8.3 per cent to Euro 70.5 million. Turnover was distributed almost equally between the markets Germany (32.0 per cent), rest of Europe (31.7 per cent) and North America (36.3 per cent).

Georg Gayer, chairman of the management board of TAKKT AG, attributes the company's success equally to acquisitions and internal growth. "In view of the weakness of the economy in some European countries, the excellent results show that TAKKT AG is relatively independent of economic fluctuations. We are successful all over the world in widely differing regions with a diversified product portfolio," added Gayer. Strong growth is a tradition at TAKKT: turnover in 1996 was Euro 394.1 million; in 1997 turnover rose by 19.1 per cent to Euro 469.5 million; and in 1998 it went up by another 14.8 per cent to Euro 539.2 million.

Tax rate reduced from 49 to 37 per cent
TAKKT AG was founded on 1 March 1999 and took over the former Mail Order Division of GEHE AG by way of a spin-off on 1 July 1999. Since 15 September last year, the shares have been listed on the stock markets in Frankfurt and Stuttgart. The route to independence was the first classical spin-off of a company listed on a German stock exchange. As part of the spin-off, tax regulations made it necessary to disclose previously hidden reserves in the respective financial statements of the domestic companies. Goodwill, which increased thereby by Euro 109.5 million to Euro 168.2 million, will be amortised over a 15-year period, affecting profits. This led to a lower taxable domestic income. Due to the relatively low tax rates abroad, this was the main reason why TAKKT AG was able to reduce its overall tax rate from 49% to 37%.

Profit increased by 8.1 per cent
In spite of increased depreciation , interest and the extraordinary expenses associated with the initial public offering (2 million Euro), TAKKT AG succeeded in improving its after-tax profits by 8.1 per cent to Euro 31.9 million, compared with 1998. The earnings per share thus amount to 44 cent.

Growth in all segments
With Euro 326.5 million, an increase of 4.3 per cent, KAISER + KRAFT EUROPA recorded the highest turnover within TAKKT AG in 1999. According to TAKKT's finance director, the Topdeq group also developed very positively: With Euro 73.1 million, the group's turnover was 16.0 per cent higher than 1998. Boosted by a strong US economy, K + K America posted record growth rates. While turnover was Euro 163.2 million in 1998, it soared by 39.7 per cent to Euro 228 million in 1999. After adjustment for the effects of exchange rate changes, the turnover of the North American companies on a US dollar basis was 27.3 per cent higher than the previous year. Excluding the acquisition of Conney Safety Products, which was fully consolidated for the first time in 1999, K + K America improved by 16.2 per cent to Euro 181 million.

Cash flow up by 27.6 per cent
At the same time, the Group maintained its traditionally high cash flow. In 1999, the cash flow after depreciation and tax was Euro 45.8 million - a growth of 27.6 per cent compared with the previous year. As a result of its successful business activities, TAKKT AG was able to create new jobs in 1999. The world-wide number of group employees increased by 12.6 per cent to 1,497, up from 1,330 in 1998.

Due to the positive development of the company, the management board will propose to the Annual General Meeting that a dividend of 5 cent per share be paid for 1999. Including the applicable tax credit, the dividend will amount to 7 cent.

TAKKT plans to expand further
The Group also promises dynamic growth for the future. According to board chairman Georg Gayer, in 2000 the Group plans to extend its range of products in selected product segments and to expand geographically by establishing new subsidiaries and through acquisitions. The focus is on the countries of South-east Europe and Central and North America.

Strong partners ensure market advantage in e-commerce
TAKKT will systematically expand its use of the Internet as a sales channel. Gayer commented on the company's activities in the future market of "virtual trading": "TAKKT already has a structure which is Internet-capable and corresponds to the virtual world of tomorrow. In 1999 we begun specific work to develop integrated e-procurement systems. Together with the well-known, international software company POET we have developed a tool with which we can offer our customers a customised electronic catalogue. Through a strategic alliance with the New York-based global player InterWorld, we are able to offer a portal to a virtual marketplace which makes next-generation e-commerce possible. With these activities we are demonstrating our first-mover role in the field of e-business."

First quarter already exceeds expectations
In view of these matters and the Group's systematic growth strategy, the chairman of the management board also expects the successful development of TAKKT AG to continue in the financial year 2000. The figures, which are becoming apparent for January to March 2000, give good reason for this optimism.

The final figures for the quarter will be published on 25 April.

Stuttgart, 14 April 2000

Contacts:

Georg Gayer: Tel. 07 11.50 01-239
Dr. Felix A. Zimmermann: Tel. 07 11.50 01-861