AMHERST, OH - During his annual keynote address to a contingent of KTM
motorcycle dealers, KTM Sportmotorcycle USA president Rod Bush committed to
improve the replacement parts service to KTM dealers and their customers
nationwide.

"A significant portion of this company's resources are to be focused on
reducing backorders, establishing ultra-quick order turnaround times and
introducing more market-competitive pricing. After six months of hard work
and dedication, the opening of a new Parts Distribution Center will
represent the culmination of those activities", said Bush. "And just as we
have positioned ourselves as the leader in performance motorcycle
technology, KTM will also set the quality parts and service delivery
standard for the entire industry."

Backing up his promise this week, Bush unveiled KTM's newly completed
25,500-square foot Parts Distribution Center at KTM Sportmotorcycle USA's
corporate headquarters in Amherst, OH.

The KTM Parts Distribution Center (PDC), which went fully on-line and
operational on Wednesday, March 6, boasts a 4,339-square foot overhead
mezzanine level with three new administrative offices for inventory
managers, complimented by a seven-station workgroup office for rapid parts
order processing.

The centerpiece of the facility's KTM engineered quadrant distribution
layout features a two-story stacked shelving area was designed to increase
linear shelf space by over 60% and intended to facilitate more efficient
parts order picking through KTM's linear simplex programming.

Automated receiving and shipping conveyors, as well as a dedicated parts
receiving station and central zone for parts picking, are among the PDC's
most impressive features. UPS/FedEx, and semi-truck loading docks have been
included to further facilitate parts shipping and receiving.

Behind the scenes the PDC's computer and software systems keep the huge
volume of KTM Sportmotorcycle parts moving toward their final destination. A
total of sixteen new computer workstations, printers, scales, and complete
packaging workstations benefit from this automated technology. Entirely new
parts distribution software programs oversee inventory management and
reporting features, with seamless integration into KTM's current MAS 200
accounting system. This software system has been successfully tested and
developed over the last several months in the Husaberg USA Inc., parts
department environment. Husaberg is a wholly owned subsidiary of KTM.

KTM's revamped DCS website and business-to-business e-commerce software
allows the company's 300-plus national dealers to access "real time" parts
inventory, pricing and ordering information on-line.

"Along with the roll out of this new software system, we are implementing a
new parts pricing strategy, based on a cost/unit sales matrix that will
improve dealer profitability, and increase the price competitiveness of KTM
parts with other OEM brands, and with the third party aftermarket, " Bush
commented.

While KTM Sportmotorcycle USA, Inc. continues to enjoy its success in racing
and off road market sales, the need to provide 100 percent dealer and
customer satisfaction is imperative. Through the launch of the new Parts
Distribution Center, KTM hopes to maintain its already strong relationship
with its dealers, and to build the same with new retailers who want to sell
KTM products.