TAKKT continues on a steady growth trajectory

Topdeq expands into France

TAKKT AG of Stuttgart, Germany, a leading business- to- business mail order supplier for office, business and warehouse equipment in Europe and North America, is expanding its position in the European market. In early 2000, a new Topdeq subsidiary will start operating in France. With sales of more than EUR 63 million, Topdeq is the leading specialty mail order company for designer office furniture and accessories in Germany, the Netherlands and Switzerland.

"The establishment of the French subsidiary of Topdeq is proof of our systematic growth strategy," said Georg Gayer, chairman of TAKKT AG's Management Board, explaining the Group's investment in the neighbouring country. "We expect a further positive development of sales from this subsidiary. After all, France is currently experiencing the second largest economic growth within the European Union." Since September 15, 1999, TAKKT AG has been listed on the Frankfurt and Stuttgart stock exchanges. In the first nine months of 1999, TAKKT AG has total sales of EUR 461.3 million, an 18.2 percent increase over the previous year.

The Pfungstadt-based TAKKT subsidiary Topdeq was established in 1989. The first catalogue was mailed in January 1990. In just four years, Topdeq evolved from a mail order retailer for high-quality designer office furniture to the industry's leading specialty mail order company. Within eight years of its establishment, Topdeq boosted its sales to more than EUR 63 million (DM 123 million). In the first nine months of 1999, sales increased once more by 17.5 percent from EUR 43.3 million (DM 84.8 million) to EUR 50.9 million (about DM 100 million) compared to the same period last year. This makes Topdeq the fastest growing corporate division within TAKKT AG. With the establishment of subsidiaries in Switzerland in 1995 and the Netherlands in 1996, Topdeq began its international expansion.

Topdeq's service and logistics performance is unique in Europe: All orders received by 4:30 p.m. are delivered to the customer the next business day. A 60-month quality warranty and a 30-day return period free of charge are proof of the company's focus on customer service. "Of course, this quality and service commitment also applies to the French market from the outset," said David Murray, managing director of Topdeq Holding GmbH.

According to the holding company's managing director, the French market is a particularly interesting challenge for Topdeq, since designer office furniture is not nearly as popular yet as it is in Germany. "We first need to create a market for these products and then develop it." The first issue of the French catalogue will feature the same products as the German, Dutch and Swiss catalogues and include, among others, products designed by Philippe Starck. Murray: "This does not mean that this won't change. We are flexible enough to develop products customized for the French market, if such an adjustment is required by the market." The French launch is accompanied by a broad media campaign with inserts in all business-oriented publications and leading daily newspapers.

Stuttgart, November 18, 1999

Contact:
Georg Gayer
Tel. +49 (0)711 5001-239

Dr. Felix A. Zimmermann
Tel. +49 (0)711 5001-861