Kapsch TrafficCom AG

Earnings Release • Aug 27, 2008

Report on first quarter of fiscal year 2008/09.

Kapsch Traffi cCom – Key Figures.

Operating Figures (cumulative)		FY09-Q1	FY08-Q1	+/- %	FY08
Revenues	in million EUR	60.4	33.8	79 %	185.7
EBITDA	in million EUR	12.2	4.9	>100 %	39.0
EBITDA margin	in %	20.2	14.4		21.0
EBIT	in million EUR	11.3	3.9	>100 %	34.9
EBIT margin	in %	18.6	11.7		18.8
Profi t before tax	in million EUR	15.4	4.0	>100 %	42.8
Profi t after tax	in million EUR	11.2	2.9	>100 %	32.1
Earnings per share	in EUR	0.85	0.23	>100 %	2.60
Free Cashfl ow 1	in million EUR	-8.0	-7.7	4 %	-14.8
Capital Expenditure 2	in million EUR	1.1	1.4	-23 %	4.0
Employees as of 30 June 2008		854	783	9 %	824
Revenues by Segment		FY09-Q1	FY08-Q1	+/- %	FY08
Road Solution Projects	in million EUR	26.3	7.3	>100 %	47.0
Services, System Extentions, Components Sales	in million EUR	32.1	23.4	37 %	128.8
Others	in million EUR	2.0	3.2	-36 %	10.0
Revenues by Region		FY09-Q1	FY08-Q1	+/- %	FY08
Central & Eastern Europe (incl. Austria)	in million EUR	45.8	20.2	>100 %	124.2
Western Europe	in million EUR	5.5	3.9	39 %	17.6
America	in million EUR	2.7	5.9	-54 %	18.8
Rest of World	in million EUR	6.4	3.9	67 %	25.2
Balance Sheet Data		30 June 2008		+/- %	31. March 2008
Total Assets	in million EUR	341.5		14 %	298.4
Total Equity 3	in million EUR	144.3		8 %	133.4
Equity ratio	in %	42.3			44.7
Net assets (+) /-debt (-) 4	in million EUR	17.6		-38 %	28.4
Capital Employed	in million EUR	194.4		21 %	161.3

Capital Market Data 5
Offer price per share on 26 June 2007	in EUR	32.0	Closing price as of 31 March 2008	in EUR	31.8
Number of shares as of 30 June 2008	in million	12.2	Closing price as of 30 June 2008	in EUR	29.7
Free fl oat as of 30 June 2008	in %	31.6	Market capitalization as of 30 June 2008	in million EUR	362.7

1 operating cashfl ow minus capital expenditure from operations (excl. acquisitions and securities)

2 capital expenditure from operations (excl. acquisitions and securities)

3 incl. minority interests

4 excl. long-term securities

5 for additional capital market data see page 5

SEC – Services, System Extensions, Components Sales OTH – Others

Letter from the Chief Executive Officer.

Georg Kapsch, Chief Executive Offi cer

Dear shareholders,

I am delighted to report about a successful fi rst quarter in the current fi scal year 2008/09 in which the Kapsch Traffi cCom Group signifi cantly increased revenues compared to the same period of the previous fi scal year and improved earnings even in excess of the increase in revenues. Revenues were at EUR 60.4 million for the fi rst quarter of the current fi scal year, up 79 % compared to the same period of the previous fi scal year. EBIT more than doubled to EUR 11.3 million and profi t before tax almost tripled to EUR 15.4 million. We thereby signifi cantly enhanced our profi tability in the fi rst three months compared to the same period of the previous fi scal year with the EBIT margin improving by 59 % to 18.6 % and earnings per share increasing by 270 % to EUR 0.85.

Both large segments – SEC (Services, System Extensions, Components Sales) and RSP (Road Solution Projects) signifi cantly contributed to this positive developments. The performance of the SEC segment has remained strong in the fi rst three months, with a 37 % increase in revenues to EUR 32.1 million and an 59 % increase in EBIT to EUR 6.2 million. Developments in the RSP (Road Solution Projects) segment were also very positive: revenues more than tripled to EUR 26.3 million at an EBIT of EUR 4.8 million.

With total assets of EUR 341.5 million and total equity of EUR 144.3 million, the Kapsch Traffi cCom Group's equity ratio as of 30 June 2008 amounted to 42.3 % (31 March 2008: 44.7 %), resulting in a strong balance sheet structure. As of 30 June 2008, Kapsch Traffi cCom Group held cash and short-term securities in an aggregate amount of EUR 58.7 million.

Signifi cant increase in revenues and earnings

Strong balance sheet structure

In the fi rst quarter we took a further important step in Italy and strengthened our presence through the partnership with Busi Impianti and the establishment of the Kapsch-Busi joint venture. This long-term partnership represents an ideal addition to our activities in Italy and to our portfolio of solutions. Both companies can point to many years of experience in their respective fi elds: Busi as a renown company in system construction with numerous installations in the "city access" fi eld, and Kapsch Traffi cCom in the fi eld of traffi c telematics and tolling systems for motorways and urban areas. The joint venture company will combine these core competences for activities in the Italian market. We see great potential in the area of traffi c telematics solutions in the coming years. Furthermore, Busi Group has the know-how and capabilities for the integration of future systems.

In June 2008, we reported the acquisition of all of the assets of the "Mobility Solutions" business unit of TechnoCom Corporation in the U.S. The "Mobility Solutions" business unit of TechnoCom Corporation conducts a business which, among other things, develops, owns, markets, and licenses vehicle infrastructure integration technologies, including but not limited to multiband confi gurable networking units (MCNU), and related technology for the transportation and automotive industries, systems integrators and federal, state, and local government agencies. The acquisition closed after the end of the fi rst quarter.

As at the end of the fi rst quarter, in Slovakia our appeals in connection with the award for the implementation and operation of the nationwide electronic truck tolling system had not fi nally been decided.

Assuming that economies worldwide continue to perform satisfactorily, and given the growing interest around the world in road traffi c telematics solutions, we take a thoroughly optimistic view of our future prospects. The fi scal year 2008/09 will be shaped by the expected participation in tenders and project awards in Hungary, Slovenia, Italy, Portugal, France, the U.K., in the Middle East, in the Asian-pacifi c region, South Africa, Argentina, and in the U.S.

With all best wishes

Georg Kapsch Chief Executive Offi cer

Joint venture in Italy

Acquisition in the U.S.

Tender in Slovakia

Looking forward with optimism

Disclaimer

Certain statements contained in this report constitute "forward-looking statements." These statements, which contain the words "believe", "intend", "expect" and words of similar meaning, refl ect management's beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.

Die Kapsch TrafficCom Share.

The Kapsch Traffi cCom share closed the fi rst quarter of 2008/09 at a closing price of EUR 29.73 on 30 June 2008, down about 6.6 %, compared to the closing price on 31 March 2008 (EUR 31.82). With the beginning of the fi rst quarter of 2008/09, the share price experienced an increase and closed on 30 April 2008 at EUR 34.99, but declined to EUR 29.0 until 31 May 2008. Since the initial public offering (the offer price per share on 26 June 2007 was EUR 32.0), the price of the share has decreased by approximately 7.1 %, as of 30 June 2008, whereas the ATX Prime was down about 23.6 % in the same period.

Based on a closing price of EUR 29.73 per share on 30 June 2008 and the number of outstanding shares unchanged at 12.2 million, Kapsch Traffi cCom's market capitalization was EUR 362.7m as of June 30, 2008. Approximately 31.6 % of the shares were in free fl oat as of 30 June 2008, whereas the remaining approximately 68.4 % are held by KAPSCH-Group Beteiligungs GmbH.

Share price development in FY09-Q1 and since IPO (Kapsch Traffi cCom AG vs. ATX Prime)

1 Offer price on 26 June 2007 and closing value for ATX Prime on 25 June 2007, each indexed to 100.

Information on the share		Financial calendar
Investor Relations Offi cer	Marcus Handl	26 November 2008	Interim fi nancial report FY09-Q2
E-Mail	ir.kapschtraffi c@kapsch.net	25 February 2009	Interim fi nancial report FY09-Q3
Stock exchange	Vienna, Prime Market	18 June 2009	Results FY09
ISIN	AT000KAPSCH9	10 July 2009	Ordinary Shareholders' Meeting
Trading Symbol	KTCG	17 July 2009	Deduction of dividends (ex-day)
Reuters / Bloomberg	KTCG.VI / KTCG AV	24 July 2009	First day of payment for dividends

Analysis of results and balance sheet.

Revenue and earnings.

Revenues in the fi rst quarter of the current fi scal year 2008/09 were EUR 60.4 million of Kapsch Traffi cCom Group up 79 % of the EUR 33.8 million recorded in the same period of the previous fi scal year. This considerable increase was primarily attributable to the Road Solution Projects (RSP) segment and the development of the Services, System Extensions, Components Sales (SEC) segment, which is also visible from the segment analysis.

Revenues by segment in the fi rst three months were as follows:

• The Road Solution Projects (RSP) segment recorded a signifi cant increase in revenues from EUR 7.3 million in the same period in the previous fi scal year to EUR 26.3 million (plus 260 %) due to increased business volumes.
• The Services, System Extensions, Components Sales (SEC) segment's revenues for the fi rst three months increased by 37 % to EUR 32.1 million compared to the same period of the previous fi scal year (EUR 23.4 million). This increase was primarily attributable to recurring revenues from the technical and commercial operation of the nationwide truck tolling system in the Czech Republic and a high volume of components sales. First quarter sales of nearly 0.6 million on-board units (OBUs) doubled compared to the same period of the previous fi scal year (0.3 million).
• The Others (OTH) segment's revenues declined by 36 % from EUR 3.2 million in the previous fi scal year to EUR 2.0 million.

In the fi rst quarter of the current fi scal year 2008/09, Kapsch Traffi cCom Group recorded an increase in its EBIT from EUR 3.9 million in the previous fi scal year to EUR 11.3 million (plus 189 %) due to higher revenues and improved profi tability: The EBIT margin improved from 11.7 % to 18.6 % (plus 59 %).

During the fi rst quarter of fi scal year 2008/09 EBIT by segment was as follows:

• The RSP segment's EBIT increased from EUR 0.1 million to EUR 4.8 million. The EBIT margin improved from 1.3 % to 18.2 %.
• The EBIT for the SEC segment increased from EUR 3.9 million in the previous fi scal year to EUR 6.2 million (up 59 %). At 19.3 %, the EBIT margin remained at a high level.
• With an improvement to EUR 0.3 million, the OTH segment positively contributed to the EBIT development.

In the fi rst quarter of the current fi scal year 2008/09, Kapsch Traffi cCom Group recorded an increase in its profi t after tax from EUR 2.9 million in the previous fi scal year to EUR 11.2 million with income taxes of EUR 4.3 million compared to EUR 1.1 million in the same period of the previous fi scal year.

Financial position and cash fl ows.

With total assets of EUR 341.5 million (30 June 2007: EUR 275.8 million) and total equity of EUR 144.3 million, the Kapsch Traffi cCom Group's equity ratio as of 30 June 2008 was 42.3 % (31 March 2008: 44.7 %).

Net cash from operating activities was at EUR -6.9 million compared to EUR -6.3 million in the same period of the previous fi scal year including net payments from income tax of EUR 3.5 million. The development in net cash from operating activities continues also throughout this quarter of the current fi scal year due to the payment conditions from the implementation of the nationwide electronic truck tolling system in the Czech Republic. The fi rst instalment from the implementation of the system (phase I) which started operation as of 1 January 2007 in an amount of EUR 30.8 million was received on 1 October 2007, representing 25 % of the total amount. The second instalment for phase I and the fi rst instalment for phase II which started operation as of 1 January 2008 together with the payment of additional deliveries are scheduled for the end of September / beginning of October 2008 in a total amount of approximately EUR 58 million.

As of 30 June 2008, Kapsch Traffi cCom Group held cash and short-term securities in an amount of EUR 58.7 million. This reserve in liquidity serves as a basis to fi nance future projects or strategic acquisitions of companies.

Condensed consolidated interim financial information 30 June 2008 (unaudited).

Kapsch Traffi cCom AG – Consolidated income statement.

All amounts in TEUR	Note	FY09-Q1	FY08-Q1	FY09-Q1 cum.	FY08-Q1 cum.
REVENUE	(4)	60,423	33,842	60,423	33,842
Other operating income		595	486	595	486
Changes in fi nished and unfi nished goods and work in progress		726	5,350	726	5,350
Cost of material and other production services		-28,363	-17,854	-28,363	-17,854
Staff costs		-13,149	-11,180	-13,149	-11,180
Amortisation of intangible assets and depreciation of property, plant and equipment		-919	-925	-919	-925
Other operating expenses		-8,053	-5,773	-8,053	-5,773
Operating result	(4,10)	11,261	3,946	11,261	3,946
Finance income		5,775	2,044	5,775	2,044
Finance costs		1,590	1,867	1,590	1,867
Financial result		4,185	177	4,185	177
Result from associates		0	-132	0	-132
Profi t before tax		15,445	3,991	15,445	3,991
Income taxes	(11)	-4,259	-1,101	-4,259	-1,101
Profi t after tax for the period		11,186	2,890	11,186	2,890
Attributable to:
Equity holders of the Company		10,326	2,806	10,297	2,806
Minority interest		860	83	890	83
		11,186	2,890	11,186	2,890
Earnings per share for profi t attributable to the equity holders of the company (expressed in EUR per share)	(12)	0.85	0.23	0.84	0.23

Earnings per share related to 12,2 million shares.

Kapsch Traffi cCom AG – Consolidated balance sheet.

All amounts in TEUR	Note	30 June 2008	31 March 2008
ASSETS
Non-current assets
Property, plant and equipment	(5)	6,417	6,192
Intangible assets	(5)	12,360	8,593
Shares in associates		0	0
Other fi nancial assets		3,354	3,405
Other non-current assets		53,554	55,005
Deferred tax assets		6,357	7,280
		82,042	80,475
Current assets
Inventories		21,892	25,734
Trade receivables and other assets		169,930	135,837
Other current fi nancial assets		9,026	8,895
Cash and cash equivalents		58,654	47,429
		259,502	217,895
TOTAL ASSETS		341,544	298,371
EQUITY AND LIABILITIES
Equity
Share capital	(6)	12,200	12,200
Capital Reserve		70,077	70,077
Currency translation differences		-170	220
Fair value valuation reserve		-912	-971
Consolidated retained earnings and other reserves		60,054	49,728
		141,249	131,254
Minority interests		3,093	2,123
Total Equity		144,342	133,377
Non-current liabilities
Non-current fi nancial liabilities	(7)	26,333	10,581
Liabilities from post-employment benefi ts to employees	(8)	14,058	14,089
Non-current provisions	(9)	1,676	1,694
Other non-current liabilities		27,240	26,150
Deferred tax liability		2,139	2,055
		71,446	54,568
Current liabilities
Trade and other current payables		46,487	39,050
Other liabilities and deferred income		27,924	29,486
Current tax payables		6,054	6,259
Current fi nancial liabilities	(7)	23,980	17,382
Current provisions	(9)	21,312	18,250
		125,756	110,426
Total Liabilities		197,202	164,994
TOTAL EQUITY AND LIABILITIES		341,544	298,371

Kapsch Traffi cCom AG – Consolidated statement of changes in equity.

					Minority Interest	Total Equity
Share capital	Capital reserve	Currency translation differences	Fair Value valuation reserve	Consolidated retained earnings & other reserves
12,200	70,077	220	-971	49,728	2,123	133,377
		-390			110	-280
			59			59
		-390	59		110	-221
				10,326	860	11,186
12,200	70,077	-170	-912	60,054	3,093	144,342
10,000	5,325	914	-114	29,130	340	45,595
		89			-32	57
			-23			-23
		89	-23		-32	33
2,200						2,200
						65,934
						-10,000
						2,890
12,200	71,259	1,003	-138	21,937	391	106,652
		65,934		Attributable to equity holders of the Company	-10,000 2,806	0 83

Kapsch Traffi cCom AG – Consolidated cash fl ow statement.

All amounts in TEUR	FY09-Q1	FY08-Q1	FY09-Q1 cum.	FY08-Q1 cum.
Cash fl ow from operating activities
Operating result	11,261	3,946	11,261	3,946
Adjustments for non-cash items and other reconciliations:
Depreciation and amortisation	919	925	919	925
Increase/decrease in obligations for post-employment benefi ts	-31	-80	-31	-80
Change in other non-current liabilities and provisions	-18	1	-18	1
Increase/decrease in non-current trade receivables	1,451	-510	1,451	-510
Increase/decrease in non-current trade payables	1,091	-268	1,091	-268
Other (net)	3,755	1	3,755	1
	18,428	4,015	18,428	4,015
Changes in net current assets:
Increase/decrease in trade receivables and other assets	-34,086	6,305	-34,086	6,305
Increase/decrease in inventories	3,843	-5,319	3,843	-5,319
Increase/decrease in trade payables and other current payables	5,836	-8,412	5,836	-8,412
Increase/decrease in current provisions	3,062	-2,877	3,062	-2,877
	-21,345	-10,303	-21,345	-10,303
Cash generated from operations:	-2,917	-6,288	-2,917	-6,288
Interest received	387	985	387	985
Interest payments	-938	-1,025	-938	-1,025
Net payments of income taxes	-3,458	50	-3,458	50
Net cash fl ow from operating activities	-6,926	-6,279	-6,926	-6,279
Cash fl ow used in investing activities
Purchases of property, plant and equipment	-794	-1,381	-794	-1,381
Purchases of non-current intangible assets	-3,528	-62	-3,528	-62
Proceeds from sale of shares in consolidated companies	0	54	0	54
Proceeds from disposal of property, plant and equipment and intangible
assets	69	458	69	458
Net cash fl ow used in investing activities	-4,253	-931	-4,253	-931
Cash fl ow used in fi nancing activities
Contribution from shareholders	0	68,134	0	68,134
Dividends paid to company shareholders	0	-7,000	0	-7,000
Increase/decrease in other non-current fi nancial liabilities	15,751	4,028	15,751	4,028
Increase/decrease in current fi nancial liabilities	6,637	-8,484	6,637	-8,484
Net cash fl ow used in fi nancing activities	22,388	56,678	22,388	56,678
Net decrease/increase in cash and cash equivalents	11,209	49,468	11,209	49,468
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period	47,429	20,183	47,429	20,183
Net decrease/increase in cash and cash equivalents	11,209	49,468	11,209	49,468
Exchange gains/losses on cash and cash equivalents	17	220	17	220
Cash and cash equivalents at end of period	58,654	69,872	58,654	69,872

Kapsch Traffi cCom AG – Selected notes to the condensed consolidated interim fi nancial information.

1. General Information.

The Kapsch Traffi cCom Group operates mainly in the road traffi c telematics market. It holds shares in several domestic and foreign companies. The parent company is headquartered in Vienna.

For fi nancial reporting purposes the business activities of the Kapsch Traffi cCom Group are subdivided into the following 3 segments:

• Road Solution Projects (RSP)
• Services, System Extensions, Components Sales (SEC)
• Others (OTH)

The Road Solution Projects segment relates to the installation of road traffi c telematics solutions.

The Services, System Extensions, Components Sales segment relates to the sale of services (maintenance as well as technical and commercial operation) and components in the area of traffi c telematics solutions.

The Others segment represents the non-core-business. In this segment we offer engineering solutions, electronic manufacturing and logistics services to affi liated entities and third parties, including audio solutions equipment and systems for the Austrian E-Card.

2. Basis of preparation.

This condensed interim fi nancial information for the fi rst quarter ended 30 June 2008 has been prepared in accordance with IAS 34, "Interim fi nancial reporting". The interim condensed fi nancial report should be read in conjunction with the annual fi nancial statements for the year ended 31 March 2008.

3. Accounting policies.

The accounting policies adopted are consistent with those of the annual fi nancial statements for the year ended 31 March 2008, as described in the annual fi nancial statements for the year ended 31 March 2008.

4. Segment Information.

• RSP = Road Solution Projects
• SEC = Services, System Extensions and Components Sales
• OTH = Others

Primary reporting format – business segments

All amounts in TEUR

FY09-Q1	RSP	SEC	OTH	Consolidated Group
Revenues	26,293	32,091	2,039	60,423
Operating Result	4,791	6,187	283	11,261
FY08-Q1	RSP	SEC	OTH	Consolidated Group
Revenues	7,252	23,422	3,168	33,842
Operating Result	91	3,890	-35	3,946

5. Capital Expenditure.

All amounts in TEUR	Tangible and intangible Assets
Opening net book amount as of 1 April 2008	14,785
Additions	4,158
Change in consolidated entities	331
Disposals	-69
Depreciation, amortisation, impairment and other movements	-462
Currency translation differences	35
Closing net book amount as of 30 June 2008	18,777
Opening net book amount as of 1 April 2007	15,417
Additions	1,577
Change in consolidated entities	6
Disposals	-458
Depreciation, amortisation, impairment and other movements	-876
Currency translation differences	-184
Closing net book amount as of 30 June 2007	15,482

6. Share Capital.

The registered share capital of the company amounts to EUR 12,200,000. The share capital is fully paid in. The total authorized number of ordinary shares is 12,200,000. The shares are ordinary bearer shares and have no par value.

The Company in the initial public offering in June 2007 issued 2,200,000 new shares at an issue price of EUR 32 per share.

7. Financial Liabilities.

All amounts in TEUR	30 June 2008	31 March 2008	30 June 2007	31 March 2007
Non-Current	26,333	10,581	14,550	10,523
Current	23,980	17,382	13,640	22,124
Total	50,312	27,963	28,190	32,646

Movements in borrowings is analysed as follows:

Opening amount as of 1 April 2008	27,963
Additions	26,625
Repayments of borrowings	-6,183
Currency translation	1,908
Closing amount as of 30 June 2008	50,312
Opening amount as of 1 April 2007	32,646
Additions	6,244
Repayments of borrowings	-10,700
Currency translation	0
Closing amount as of 30 June 2007	28,190

8. Defi ned benefi t plans.

All amounts in TEUR	30 June 2008	31 March 2008	30 June 2007	31 March 2007
Severance payments	5,010	5,001	5,263	5,305
Pension benefi ts	9,049	9,088	9,210	9,247
Total	14,058	14,089	14,473	14,552

Severance Payments

The obligation to set up a provision for severance payments is based on the respective labor law.

Pension benefi ts

Liabilities for pension recognised at the balance sheet date relate to retirees only. All pension agreements are based on past service cost and are not covered by external plan assets (funds). In addition, contributions are paid to external pension fund for employees of the Group.

9. Provisions.

All amounts in TEUR	30 June 2008	31 March 2008	30 June 2007	31 March 2007
Non-Current Provisions	1,676	1,694	1,685	1,684
Current Provisions	21,312	18,250	12,585	15,462
Total	22,988	19,943	14,270	17,146

FY09-Q1
All amounts in TEUR	1 April 2008	Change in consolidated entities	Use/disposal	Additions	Exchange rate differences	30 June 2008
Obligations from anniversary bonuses	464	0	-12	0	0	453
Costs of dismantling and removing
assets	1,130	0	0	0	0	1,130
Other	99	0	0	0	-6	93
Non-current provisions, total	1,694	0	-12	0	-6	1,676
Warranties	4,128	0	-422	0	-14	3,692
Losses from pending transactions and
repairs	910	0	-301	0	0	609
Legal fees, costs of litigation and
contract risks	6,888	0	-4,328	6,009	423	8,993
Other	6,324	0	-2,259	3,781	172	8,018
Current provisions, total	18,250	0	-7,309	9,790	581	21,312
Total	19,943	0	-7,321	9,790	575	22,988

FY08-Q1

All amounts in TEUR	1 April 2007	Change in consolidated Use/disposal Additions entities		Exchange rate differences	30 June 2007
Obligations from anniversary bonuses	457	6	-10	4	0	458
Costs of dismantling and removing
assets	1,227	1	0	0	0	1,228
Non-current provisions, total	1,684	7	-10	4	0	1,685
Warranties	4,165	0	0	0	21	4,186
Losses from pending transactions and
repairs	881	0	0	142	0	1,023
Legal fees, costs of litigation and
contract risks	2,881	0	0	0	0	2,881
Other	7,535	0	-4,009	1,023	-53	4,496
Current provisions, total	15,462	0	-4,010	1,165	-32	12,585
Total	17,146	7	-4,020	1,169	-32	14,270

10. Operations result.

The income statement for the fi rst quarter of FY08 included one-off costs resulting from the IPO in the amount of TEUR 407. There were no comparable costs in the fi rst quarter of FY09.

11. Income Taxes.

Income tax expense is recognised on management's best estimate of the weighted average annual income tax rate expected for the full fi nancial year. The estimated tax rate for the fi rst quarter FY09 used is 28 % (the estimated tax rate for the fi rst quarter FY08 was 28 %).

12. Earnings per share.

Earnings per share attributable to equity holders of the company arises from continuing and discontinued operations as follows:

All amounts in TEUR	FY09-Q1 cum.	FY08-Q1 cum.
Earnings per share for profi t from continuing operations attributable to the equity holders of the company (expressed in EUR per share)	0.85	0.23
Earnings per share for profi t from discontinuing operations attributable to the equity holders of the company (expressed in EUR per share)	0.00	-0.04

Earnings per share is related to 12.2 millon shares.

13. Business Combinations.

Kapsch Traffi cCom AG and the Italian Busi Impianti Group announced their cooperation on 15 May 2008. The two companies will establish Kapsch-Busi S.p.A., domiciled in Bologna, under a joint venture. The new company will focus on the Italian traffi c telematics market in the urban area. Busi Impianti will outsource the respective business unit, including a group of about 10 employees, Kapsch Traffi cCom will complement the team by own personnel.

The assets and liabilities arising from the aquisition:

Kapsch-Busi S.p.A

All amounts in TEUR
Purchase price:
paid in cash	80
fair value of the liability resulting from put-option	3,214
	3,294
Fair value of net assets acquired (on a provisional basis)	120
Goodwill	3,174

The assets and liabilities arising from the acquisition:

All amounts in TEUR	Fair Value (on a provisional basis)
Intangible assets	327
Property, plant and equipment	4
Receivables and other assets	459
Cash and cash equivalents	90
Payables, other liabilites and accruals	-760
Net assets acquired	120

The fair value of the net assets acquired was determined on a provisional basis. In the course of the acquisition of the controlling interest, put/call options over the remaining non-controlling interest were entered into between the group and the seller. The put option was disclosed at its fair value under liabilities.

14. Contingent liabilities.

The Group's contingent liabilities primarily result from major projects. Other commitments mainly relate to contract and warranty bonds, bank guarantees, performance und bid bonds, sureties and acceptance of guarantees for subsidiaries vis-à-vis third parties.:

Details of contingent liabilities and other commitments are as follows:

All amounts in TEUR	30 June 2008	31 March 2008
Contract and warranty bonds
City Highway Santiago	853	860
City Highway Sydney and Melbourne	2,359	2,377
	3,212	3,237
Performance, bid and other bonds
Truck Tolling System Austria	12,500	12,500
Truck Trolling System Czech Republic	62,348	48,899
Tolling System New Zealand	2,084	2,101
Other	4,643	4,306
	81,575	67,806
Bank guarantees	3,432	3,290
Sureties	25	25
	3,458	3,315
Total	88,245	74,359

15. Related-Party transactions.

All amounts in TEUR		Sales to Related Parties Q1 (cum.)	Sales from Related Parties Q1 (cum.)	Amounts owed by Related Parties 30 June	Amounts owed to Related Parties 30 June
Affi liated companies outside the Kapsch Traffi cCom Group	FY09	3,046	2,995	749	1,063
	FY08	1,000	2,374	2,405	10,477
Others	FY09	16	67	0	9,339
	FY08	6	338	0	9,364

Additionally, the related party KAPSCH-Group Beteiligungs GmbH, Vienna, issued a payment guarantee in the amount of EUR 40 million, in relation to the Czech truck tolling system.

Members of the executive and supervisory boards have management functions or are member in supervisory boards of other companies of the Kapsch Group.

16. Events occurring after 30 June 2008.

As of 4 July 2008, Kapsch Traffi cCom AG acquired through its subsidiary Kapsch Traffi cCom Inc, all of the assets of the Mobility Solutions business unit of TechnoCom Corporation, a corporation organized under the laws of the State of Delaware and with its primary place of business in Encino, California.

Vienna, 27 August 2008

Board of Management

Georg Kapsch, CEO Erwin Toplak, COO

Kapsch Traffi cCom is an international supplier of innovative road traffi c telematics solutions. Its principle business is the development and supply of electronic toll collection (ETC) systems, in particular for the multi-lane free-fl ow (MLFF) of the traffi c, and the technical and commercial operation of such systems. Kapsch Traffi cCom also supplies traffi c management systems, with a focus on road safety and traffi c control, and electronic access systems and parking management. With more than 140 installed tolling systems in 30 countries in Europe, Australia, Latin America, in the Middle-East, in the Asian/Pacifi c region and in South Africa, and with almost 12 million on-board units (OBUs) and nearly 11,000 equipped lanes, Kapsch Traffi cCom has positioned itself among the leading suppliers of ETC systems worldwide. Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and representative offi ces in 20 countries.

Kapsch Traffi cCom AG I Wagenseilgasse 1 I A-1120 Vienna, Austria I www.kapschtraffi c.com Investor Relations I Marcus Handl I Phone: +43 (0)50811 1122 I Fax: +43 (0)50811 99 1120 I E-Mail: ir.kapschtraffi c@kapsch.net Public Relations I Brigitte Herdlicka I Phone: +43 (0)50811 2705 I Fax: +43 (0)50811 99 2705 I E-Mail: brigitte.herdlicka@kapsch.net