Positive development in Europe offsets fluctuation in the US economy

TAKKT continues to grow with Hubert

Stuttgart-based TAKKT AG, the leading business-to-business mail order supplier for office, business and warehouse equipment in Europe and North America, continued on its growth path in the first quarter of 2001 by reporting an increase in turnover of 18.6 percent to EUR 224.9 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) reached EUR 12.9 million, up 5.4 percent compared to the first quarter of last year. The EBITDA margin declined slightly to 5.7 (6.5) percent. In this context it must be noted that the first quarter of 2001 was influenced by the costs of starting up the subsidiary Topdeq USA, and also by additional investments aimed to attract new customers. "Despite the high speed of expansion in the past two years, the TAKKT group will remain strong in regards to income and cash flow in 2001", said Georg Gayer, chairman of the management board of TAKKT AG.

Earnings before interest and tax (EBIT) totalled EUR 5.6 million in the first quarter, resulting in an EBIT margin of 2.5 percent. These earnings figures are only partially comparable to those of last year's first quarter, because the EBIT in the first three months of 2001 was adversely affected by the goodwill write-off of the Hubert acquisition in the amount of EUR 2.4 million. The first quarter of 2000 did not have to shoulder this burden because Hubert was acquired in October of 2000. Profit before taxes declined to EUR 0.1 (5.6) million, representing a margin of 0.1 (3.0) percent. "What must be pointed out here in the comparison with last year's result is that this year's figure includes the interest for financing the acquisition of Hubert in the amount of EUR 3.1 million", said Dr. Felix A. Zimmermann, the board member for controlling and finance of TAKKT AG.

The growth in turnover in the first three months of 2001 was driven by KAISER + KRAFT EUROPA and the newly consolidated K + K America subsidiary Hubert. Without the Hubert acquisition, the group turnover would have increased by 5.1 percent to EUR 199.1 million.

KAISER + KRAFT EUROPA continues to gain market share
KAISER + KRAFT EUROPA profited from the stable economy in Europe and from additional advertising measures. With an increase of 14.8 percent to EUR 108.7 (94.7) million, KAISER + KRAFT EUROPA was once again able to gain market share with mail order business, mainly at the expense of retail and wholesale trade. The quarterly success was also accelerated by the e-procurement systems established with major customers in the last financial year as well as by the new, interactive website, which makes selection and ordering over the Internet even easier.

Topdeq anticipates double-digit growth for the entire year
In the first quarter, the Topdeq group achieved a turnover of EUR 21.6 (23.2) million. The 6.7 percent decline in sales is due primarily to the extremely strong first quarter of 2000. As a result of sales and marketing activities surrounding the 10-year company anniversary of Topdeq Germany, there had been an exceptionally strong increase in turnover of 23 percent. In the first quarter of 2001, there was no cause to repeat advertising measures with comparable extraordinary sales success. In addition to this, small and young companies of the so-called "New Economy" are displaying noticeable caution in the acquisition of high-quality, design-oriented office equipment. Despite the recent economically climate, the launch of Topdeq USA proceeded satisfactorily. The European product range is being very well-accepted there. The Topdeq branches in Switzerland, the Netherlands and France also achieved excellent results. Due to the planned advertising activities, Topdeq anticipates double-digit growth for the entire year.

K + K America: Hubert defies weak US economy
In the first quarter of 2001, K + K America suffered under the continually deteriorating economic situation in the USA. Due to their diversified product portfolios and customer structure, however, the individual US companies were affected by this to varying degrees. C&H Distributors, which mainly supplies the manufactoring industries with its product range, was hit the hardest. Conney Safety Products, with its work safety product range, was only slightly affected, while Hubert's focus on the service industry enabled it to resist the general downward trend. In total, K + K America was able to increase its turnover by 31.8 percent to EUR 94.5 (71.7) million. On a dollar basis, the increase amounted to 23.4 percent. Without Hubert, the turnover of K + K America is reduced by 10.2 percent (on a US dollar basis).

For the entire financial year 2001, the TAKKT group is once again anticipating a double-digit growth in turnover. The group expects to post an EBITDA margin of over 10.5 percent, thus following up on the positive development of previous years.

Stuttgart, 27 April 2001

Contacts:

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

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