First quarter 2000: Excellent beginning for the new financial year

TAKKT AG continues to expand, reporting a 15.2 percent growth in turnover

Stuttgart-based TAKKT AG, the leading business-to-business mail order supplier for office, business and warehouse equipment in Europe and North America, continues on its growth path during the new financial year. In the first three months, turnover increased by 15.2 percent from EUR 164.5 million in 1999 to EUR 189.6 million. EBITDA, i.e. the figure which represents the operational strength of a company after eliminating taxes, finance and investment activities, rose by 12.9 percent from EUR 10.8 million to EUR 12.2 million in the first quarter of 2000. According to the finance director Dr. Felix A. Zimmermann, start-up losses incurred during the establishment of the French subsidiary of TAKKT's Topdeq division were mainly responsible for the fact that EBITDA increased slightly less than turnover.

From January to March 2000, all three divisions of TAKKT AG recorded significant increases in turnover: At KAISER + KRAFT EUROPA, turnover rose by 8.1 percent to EUR 94.7 million compared to EUR 87.6 million in the first quarter of 1999. The Topdeq and K + K America divisions had increases in turnover of more than 20 percent respectively: Topdeq improved its turnover by 22.8 percent to EUR 23.2 million and K + K America by 23.5 percent to EUR 71.7 million. Zimmermann says he believes that the current upward economic trend in Europe and, in particular, Germany is partly responsible for these increases: "We are very happy about our entry into the 21st century. The good start of our Topdeq subsidiary in France is particularly encouraging."

For the remaining nine months of this financial year, TAKKT expects further dynamic growth in the group. Apart from a targeted expansion of its product rage, TAKKT also plans to expand geographically during the year 2000, particularly in south-eastern Europe and central America. Furthermore, TAKKT intends to extend its e-commerce activities. "Due to strategic alliances and partnerships with leading software companies world-wide, we have assumed a pioneering role in the field of e-commerce and e-procurement in Europe," Zimmermann comments on the company's e-commerce activities. "At the same time, we are relatively independent of potential risks stemming from fluctuations in the economic environment because our diversified product portfolio is equally successful in widely differing regions."

Stuttgart, 25 April 2000

Contacts:

Georg Gayer
Phone +49 (0)7 11.50 01-239

Dr. Felix A. Zimmermann
Phone +49 (0)7 11.50 01-861