Sales forecast for 2000 adjusted upward to Euro 745 million

TAKKT AG increases sales by 23 percent in third quarter

The Stuttgart-based TAKKT AG, the leading business-to-business mail order house for office, business and warehousing equipment in Europe and North America, succeeded in maintaining its powerful growth rate during the third quarter of 2000. Between July and September of this year, turnover rose by 23.1 percent from Euro 146.0 million to Euro 179.7 million compared with the corresponding period last year. Total sales of Euro 544.6 million for the first nine months of the current year represent an increase of 18.1 percent over the same period in 1999. In view of the excellent development of sales during the first three-quarters of the financial year and the acquisition of US company Hubert, TAKKT is raising its sales forecast for the year as a whole from Euro 700 million to Euro 745 million. This would signify an increase of 18.7 percent compared with the previous year.

During the third quarter of 2000, the EBITDA figure, which represents the operational business of TAKKT AG irrespective of taxes, types of funding or investment activities, improved 11.9 percent from Euro 15.7 million to Euro 17.5 million. The EBITDA margin eased one percentage point from 10.7 to 9.7 percent. In the third quarter, the pre-tax result rose 20.7 percent to Euro 10.1 million. As Georg Gayer, chairman of the management board, points out: "As in the preceding quarters, the newly established companies had a direct effect on the EBITDA margin. In the medium term, however, these newly founded enterprises form the basis for continued growth and thus enhance the overall quality of our portfolio."

All divisions record strong growth
All three TAKKT divisions have played their part in the achievement of these pleasing group sales results in the present fiscal year. Specifically, sales of KAISER + KRAFT EUROPA rose 12.7 percent to Euro 86.1 million (compared with Euro 76.4 in the third quarter of 1999). Altogether, the turnover during the first nine months of the year in-creased from Euro 240.3 million to Euro 265.0 million. This represents a rise of 10.3 percent over the previous year. Taking the US$ as a basis, K + K America recorded an 8.6 percent increase in sales from $60.8 million to $66.0 million. Because of the high exchange rate of the dollar, the increase in terms of Euro was 38.5 percent. Altogether, the sales figures of TAKKT's American division, at $204.6 million, showed a 12.4 percent improvement over the same period in 1999. As in the second quarter of this year, Topdeq was again the frontrunner among the TAKKT divisions, with sales up 22.1 percent. Between July and September, Europe's number one in the field of design-oriented office outfitting posted turnover amounting to Euro 20.7 million. The company's excellent performance can be ascribed in large measure to the successful launch of business operations in France. In terms of the year as a whole, Topdeq sales climbed from Euro 50.9 million in 1999 to Euro 62.3 million in 2000 for the first nine months.

Sales forecast adjusted upward from Euro 700 million to Euro 745 million
As a consequence of the excellent organic growth during the first nine months of the year, TAKKT has decided to adjust its sales forecast for 2000. According to board member for finance and controlling Dr. Felix A. Zimmermann, the TAKKT AG will anticipate with the inclusion of Hubert, which specializes in B2B mail order business for equipment and supply for food service retailers and restaurants and which was acquired on October 16, 2000, total sales of at least Euro 745 million. Referred to the year as a whole, the EBITDA margin should be at least 10.5 percent.

Stuttgart, 30 October 2000

Contacts:

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

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