TAKKT sells Conney Safety Products in the USA

Concentration on durable equipment business

With effect from 30 September 2007 TAKKT Group has sold its US company Conney Safety Products LLC (Conney) to a financial investor. “With this step TAKKT is pursuing its strategy of concentrating on B2B mail order business in durable equipment,” says Georg Gayer, CEO of TAKKT AG.

Conney, which previously belonged to the K + K America division, mainly sells consumables in the fields of occupational safety and first aid. In 2006 Conney reached a turnover of 76.0 million US dollars with 149 full-time equivalent employees.

The agreed sales price (free of financial debts) is around 48 million US dollars. “We do not expect any significant deconsolidation effect on profits from the sale,” says CFO Dr Florian Funck. Since the profit margins of Conney are below the average for the division and the TAKKT Group as a whole, the sale will lead to a structural improvement in the margins of K + K America and of the entire Group in the future. TAKKT does not expect any significant negative impact on the remaining North American companies as a result of the sale of Conney, because synergies with the occupational safety segment have been limited.

Based on the transaction closed as per 30 September 2007, the TAKKT Management Board has confirmed its forecast for the growth in turnover for the financial year 2007. TAKKT will achieve organic turnover growth, i.e. adjusted for currency effects as well as acquisitions and disposals, of around six percent. With respect to operative profitability the Board has again increased its forecast for 2007. “The separation from the occupational safety business results in a structural improvement in the EBITDA margin of the TAKKT Group. It is thus quite conceivable that in 2007 TAKKT will achieve an EBITDA margin above the target corridor of 11 to 13 percent,” says Funck.

Short profile of TAKKT AG
TAKKT AG is the leading B2B mail order company for office, business and warehouse equipment in Europe and North America. The Group is represented in more than 25 countries with its brands. The product range of the TAKKT subsidiaries comprises some 110,000 items from the areas business and warehouse equipment, classical and design-oriented office furniture and sales promotion items for retailers, the food service industry and the hotel market.

TAKKT AG employs around 2,000 staff, has about 3 million customers worldwide and distributes about 70 million catalogues and mailings per year.

The company is listed on the SDAX and was admitted to Deutsche Boerse’s Prime Standard on 1 January 2003.

Conference call
We would like to invite you to put questions personally to our Management Board. A telephone conference is arranged for 2 October 2007 at 3:00 pm (CEST) in which we will be delighted to answer your questions. Please dial in on +49-30-20223191.

Stuttgart, 2 October 2007

Contact:

Georg Gayer, CEO
Phone +49 711 34658-201

Dr Florian Funck, CFO
Phone +49 711 34658-207

E-mail: investor@takkt.de