First Annual General Meeting of TAKKT AG

TAKKT continues to record double-digit growth

Georg Gayer, chairman of the management board of TAKKT - the leading business-to-business mail order house for office, business and warehousing equipment in Europe and North America - was pleased to report a successful transition to independence when he addressed the first annual general meeting in Ludwigsburg. Since July 1999, the former mail order division of GEHE AG has been operating as an independent group. Compared with the previous year, the group's sales revenues increased from € 539.2 to € 627.6, an increase of 16.4 percent. In spite of the one-off expenses incurred in connection with the first-ever "classical" spin-off in Germany, the EBITDA (earnings before interest, taxes, depreciation and amortisation) rose by 8.3 percent to € 70.5 million. The chairman of the management board promised the shareholders a sales growth of at least 10 percent for the current financial year.

Gayer summed up the reasons for the company's success in the following terms: "Powerful external expansion and also distinct organic growth were the driving forces behind our excellent performance. With 34 companies in 18 countries in Europe and North America, the TAKKT group has now established itself as a leading mail order house for business equipment and work safety products. Turnover is distributed evenly among Germany, the rest of Europe and North America. All three business divisions, KAISER + KRAFT EUROPA , Topdeq and K + K America are equally profitable." The chairman of the management board was proud to announce that the spin-off had had no negative effects on the company's growth rate or earnings power.

Successful listing on stock exchanges
The TAKKT AG share has been listed on both the Frankfurt and Stuttgart stock exchanges since 15 September 1999. From June 2000 onward, the share will be included in the SDAX. As Gayer pointed out: "The purpose of the restructuring and the spin-off was to ensure a successful flotation of the TAKKT group. This was not to make quick profits, but to give shareholders a stake in the value added potential of the mail order industry." TAKKT is paying its shareholders a dividend of 5 cents per share for the second half of financial year 1999. The management and supervisory boards also proposed to the annual general meeting that of the net profit for the year - roughly € 6.35 million - just under € 2.72 million should be carried forward. Gayer explained the reasons for this proposal, which gained the approval of the annual general meeting, as follows: "TAKKT needs a stronger equity base in order to finance future organic growth from its own reserves."

The shareholders also ratified the creation of new authorised share capital in the amount of approximately € 36.5 million. Seeking the shareholders' support, Gayer stated that "in this way we are then in a position to respond swiftly with new share capital when major takeover opportunities arise. During the present consolidation phase in the business-to-business markets, we need the flexibility to shape the consolidation process on an independent footing."

Clearly defined strategy for continued growth
Looking to the future, Gayer expressed immense optimism: "Independence has given us new self-confidence and new scope for further growth." The chairman of the management board promised shareholders that "TAKKT would be stepping up the pace and achieving all the targets it had set itself." Specifically, the strategy provides for the expansion of existing business activities through continual improvement in product ranges and services and for ongoing regional growth in the shape of new startups and acquisitions. Gayer also referred to several projects which would be undertaken in Mexico and eastern European countries and completed by mid-2000. TAKKT is also pursuing systematically its policy of using the internet as a future channel for sales and marketing: "The statement 'e-commerce is the next logical step for mail order' can certainly be applied to us. We aim to use e-commerce to develop new customer potential and e-procurement systems to boost sales among our large customers."

With sales growth of 15 percent during the first quarter, TAKKT has every reason to be optimistic. In addition to the comparatively healthy economic situation, Gayer made particular reference to the new improved catalogues, to the high growth rates for internet business and to the successful launch of the Topdeq subsidiary in France -which were all contributing to corporate growth. Looking to the future, Gayer assured his audience that "this positive development has been maintained. We are therefore expecting an increase in sales of at least 10 percent in the year 2000."

Stuttgart, 26 May 2000

Contact:

Georg Gayer
Tel. 07 11.50 01-239

Dr. Felix A. Zimmermann
Tel. 07 11.50 01-861