Kapsch TrafficCom AG

Earnings Release • Feb 25, 2009

Report on the third quarter of fiscal year 2008/09.

Kapsch Traffi cCom Group – Key Figures.

Operating Figures (cumulative)			FY09-Q3	FY08-Q3	+/- %	FY08
Revenues		in million EUR	160.1	123.6	29 %	185.7
EBITDA		in million EUR	25.2	21.5	17 %	39.0
EBITDA margin		in %	15.7	17.4		21.0
EBIT		in million EUR	21.6	17.7	22%	34.9
EBIT margin		in %	13.5	14.3		18.8
Profi t before tax		in million EUR	17.9	21.2	-16 %	42.8
Profi t after tax		in million EUR	12.7	13.8	-8 %	32.1
Earnings per share		in EUR	0.95	1.03	-8 %	2.60
Free cash fl ow 1		in million EUR	25.5	-5.8	<-100 %	-14.8
Capital expenditure 2		in million EUR	12.3	3.1	>100 %	4.0
Employees as of 31 December 2008			915	793	15 %	824
Revenues by Segment			FY09-Q3	FY08-Q3	+/- %	FY08
Road Solution Projects		in million EUR	50.2	30.7	63 %	47.0
Services, System Extensions, Components Sales		in million EUR	103.8	84.9	22 %	128.8
Others		in million EUR	6.2	8.0	-23 %	10.0
Revenues by Region			FY09-Q3	FY08-Q3	+/- %	FY08
Central & Eastern Europe (incl. Austria)		in million EUR	113.8	81.4	40%	124.2
Western Europe		in million EUR	15.9	12.4	29 %	17.6
America		in million EUR	10.7	12.3	-13 %	18.8
Rest of World		in million EUR	19.7	17.6	12 %	25.2
Balance Sheet Data			31 Dec 2008		+/- %	31. March 2008
Total assets		in million EUR	304.8		2 %	298.4
Total equity 3		in million EUR	131.2		-2 %	133.4
Equity ratio		in %	43.0			44.7
Net assets 4		in million EUR	22.5		-21 %	28.4
Capital employed		in million EUR	167.7		4 %	161.3
Capital Market Data 5
Offer price per share on 26 June 2007	in EUR	32.0	Closing price as of 30 Sep 2008		in EUR	23.3
Number of shares as of 31 Dec 2008	in million	12.2	Closing price as of 31 Dec 2008		in EUR	16.0
Free fl oat as of 31 Dec 2008	in %	31.6		Market capitalization as of 31 Dec 2008	in million EUR	195.2

1 operating cash fl 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 6

RSP – Road Solution Projects

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

FY08-Q3

Letter from the Chief Executive Officer.

Georg Kapsch, Chief Executive Offi cer

Dear shareholders,

even against the background of the currently diffi cult situation on the international fi nancial markets, I am delighted to report about successful three quarters of the current fi scal year 2008/09, in which we continued the controlled growth of the business and the extension of our strong position in the various markets. As can be seen from this interim report, the Kapsch Traffi cCom Group recorded double-digit growth rates in revenues and EBIT despite the tense situation on the fi nancial, commodity and energy markets. We also succeeded to generate a clear positive free cash fl ow and to advance our cash position. With this strengthening of the fi nancial power we regard ourselves as well prepared for further growth in the future and even in a probably more challenging economic environment.

Revenues were at EUR 160.1 million in the fi rst nine months of the current fi scal year, up 29 % compared to the same period of the previous fi scal year (EUR 123.6 million). EBIT increased by 22 % to EUR 21.6 million (fi rst nine months of previous fi scal year: EUR 17.7 million). Due to a negative fi nancial result in the third quarter resulting from currency losses and the impairment of certain short-term fi nancial assets, profi t before tax decreased by 16 % to EUR 17.9 million (fi rst nine months of previous fi scal year: EUR 21.2 million) and profi t after tax also decreased by 8 % to EUR 12.7 million (fi rst nine months of previous fi scal year: EUR 13.8 million). Accordingly, earnings per share slightly decreased by 8 % to EUR 0.95 (fi rst nine months of previous fi scal year: EUR 1.03).

Challenging economic environment

Increase in revenues and EBIT

The Kapsch Traffi cCom Group also improved the free cash fl ow to EUR 25.5 million compared to EUR -5.8 million during the same period of the previous fi scal year. In the fi rst nine months of the current fi scal year, cash and cash equivalents increased to EUR 54.4 million, as of 31 December 2008 (31 March 2008: EUR 47.4 million), even though we distributed dividends of approximately EUR 11.0 million and invested approximately EUR 11.1 million in the acquisition of the "Mobility Solutions" business of TechnoCom Corporation in the U.S.A. and increased capital expenditures. This improves our position in the current situation on the international fi nancial markets.

Both of our large segments – SEC (Services, System Extensions, Components Sales) and RSP (Road Solution Projects) – signifi cantly contributed to these positive developments. The performance of the SEC segment remained strong in the fi rst nine months and, in line with the strategy to increase recurring revenues as presented during our IPO, showed a 22 % increase in revenues to EUR 103.8 million (fi rst nine months of previous year: EUR 84.9 million) and a 31 % increase in EBIT to EUR 20.9 million (fi rst nine months of previous fi scal year: EUR 15.9 million). Developments in the RSP (Road Solution Projects) segment were particularly positive due to a high activity level in projects: revenues increased by 63 % to EUR 50.2 million (fi rst nine months of previous fi scal year: EUR 30.7 million) and already exceeded the level of the entire previous fi scal year (2007/08: EUR 47.0 million) after nine months at an improved EBIT of EUR 2.6 million, up 18 % from the EUR 2.2 million in the same period of the previous fi scal year.

A very pleasant addition was made to our reference list in the third quarter: Among others, a fi rst success in France was achieved. Just over a year after its establishment, our subsidiary Kapsch Traffi cCom France already succeeded in securing signifi cant orders. Over the course of the next three years, Kapsch Traffi cCom France will implement four orders for the large French road operators (Vinci, APRR and Sanef Groups) and their joint venture company Axxès. In total, Kapsch Traffi cCom will supply over half a million on-board units (OBUs) and related accessories to France for a total order value of approximately EUR 10 million. In Italy, Kapsch-Busi S.p.A. achieved another success only a few months after the establishment of the joint venture with Busi Impianti S.p.A., and received an order for a city access control project in Cremona.

Our business with on-board units (OBUs) continued at a high level: The total volume of OBUs delivered during the fi rst nine months of the current fi scal year increased by 31 % to almost 2.1 million units compared with nearly 1.6 million units during the same period of the previous fi scal year.

Clear positive free cash fl ow and advanced cash position

Improvements in both large segments

Additions to our reference list

Business with on-board units (OBUs) continued at a high level

In the U.S.A., we made signifi cant progress in the third quarter: the new 5.9 GHz tolling technology was introduced to the public in New York and completed the performance evaluation with a collection rate of 100 percent on more than 10,500 samples at the trial facility in Denver, Colorado.

With the fi nal quarter of the current fi scal year 2008/09 in mind, we take an optimistic view on our markets even in a changed economic environment and expect a further positive operating development of Kapsch Traffi cCom in the last quarter of the current fi scal year 2008/09.

Progress in the U.S.A.

Outlook

With all best wishes

Georg Kapsch Chief Executive Offi cer

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.

Developments on the international capital markets in the calendar year 2008 and particularly in the last quarter were negatively infl uenced by the fi nancial crisis and the cyclical downturn of the economy. The Kapsch Traffi cCom share was also affected by the signifi cant downturn of the Vienna Stock Exchange. The share closed the fi rst nine months of the current fi scal year 2008/09 at a share price of EUR 16.0 on 31 December 2008, down 31.3 % from the closing price at the end of the previous quarter (30 September 2008: EUR 23.3). During the same period, the ATX Prime decreased by 38.7 %. Since the initial public offering on 26 June 2007, our share price declined by exactly 50 %, as of 31 December 2008, whereas the ATX Prime decreased by 68.3 %.

Based on a closing price of EUR 16.0 per share on 31 December 2008 and the number of outstanding shares unchanged at 12.2 million, Kapsch Traffi cCom's market capitalization was EUR 195.2 million as of December 31, 2008. As of 31 December 2008, approximately 31.6 % of the shares were in free fl oat, whereas the remaining approximately 68.4 % were held by KAPSCH-Group Beteiligungs GmbH.

Share price development in FY09-Q3 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	08 June 2009	Results FY09
E-Mail	ir.kapschtraffi c@kapsch.net	24 June 2009	Ordinary shareholders' meeting
Stock exchange	Vienna, Prime Market	01 July 2009	Deduction of dividends (ex-day)
ISIN	AT000KAPSCH9	08 July 2009	First day of payment for dividends
Trading Symbol	KTCG
Reuters / Bloomberg	KTCG.VI / KTCG AV

Analysis of results and balance sheet.

Revenues and earnings.

Revenues of Kapsch Traffi cCom Group in the fi rst nine months of the current fi scal year 2008/09 amounted to EUR 160.1 million, up 29 % from EUR 123.6 million recorded in the same period of the previous fi scal year. This increase in revenues was in line with optimistic expectations.

In the fi rst three quarters of the current fi scal year, the Services, System Extensions, Components Sales (SEC) segment recorded a signifi cant increase in revenues. At EUR 103.8 million, segment revenues for the fi rst nine months were up 22 % compared to the same period of the previous fi scal year (EUR 84.9 million). The successful technical and commercial operation of the nationwide electronic truck tolling system in the Czech Republic and the signifi cant increase in sales of on-board units (OBUs) in Australia, Spain, Ireland, Denmark, France, Turkey and Austria signifi cantly contributed to the segment's encouraging performance. The Road Solution Projects (RSP) segment also showed a positive development in revenues with an increase by EUR 19.5 million (63 %) compared with the same period of the previous fi scal year to EUR 50.2 million. This segment also accounted for the delivery of the interface for a future satellitebased toll collection system on 1st class, 2nd class and 3rd class roads as well as the supply of the interface for telematics applications and the implementation of a traffi c regulation system for the D1 motorway route in the Czech Republic. The Others (OTH) segment's revenues declined by 23 % from EUR 8.0 million to EUR 6.2 million.

In the fi rst nine months of the current fi scal year, Kapsch Traffi cCom Group reported an operating result (EBIT) up 22 % from EUR 17.7 million to EUR 21.6 million. Operating results (EBIT) by segment were as follows:

• In the fi rst nine months of the current fi scal year the EBIT for the SEC segment improved from EUR 15.9 million in the same period of the previous fi scal year to EUR 20.9 million (up 31 %).
• In the same period, project realizations led to an increase of RSP segment's EBIT from EUR 2.2 million to EUR 2.6 million.
• OTH segment's EBIT slightly declined from EUR -0.5 million to EUR -2.0 million.

Due to a negative fi nancial result in the third quarter resulting from currency losses and particularly from an impairment of certain shortterm fi nancial assets (securities), profi t before tax decreased by 16 % to EUR 17.9 million (previous fi scal year: EUR 21.2 million) and profi t after tax also decreased by 8 % to EUR 12.7 million (previous fi scal year: EUR 13.8 million).

Financial position and cash fl ows.

Total assets of EUR 304.8 million as of 31 December 2008 were up 2 % from EUR 298.4 million as of 31 March 2008. The increase in assets was particularly due to an increase in current assets whereas the increase in equity and liabilities was attributable to an increase in current fi nancial liabilities as well as trade and other current payables. At 43 %, the equity ratio was almost at the same level as of 31 March 2008.

The cash fl ow from operating activities increased from EUR -2.6 million in the fi rst nine months of the previous fi scal year to EUR 37.8 million in the same period of the current fi scal year 2008/09. Besides the increased operating result (EBIT), a decrease in trade receivables as well as an increase in trade payables positively contributed to this development. The cash fl ow used in investing activities was at EUR -25.8 million in the fi rst nine months of the current fi scal year compared with EUR -12.5 million in the same period of the previous fi scal year and in particular resulted from payments for acquisitions of companies and asset deals as well as from purchases of property, plant and equipment and from purchases of non-current intangible assets due to the move of the Austrian entities to new business premises and the expansion of our production facilities. Within the cash fl ow used in fi nancing activities an increase in current fi nancial liabilities did not offset the dividends distributed to shareholders (approximately EUR 11.0 million) and the reduction of non-current fi nancial liabilities. At EUR 54.4 million as of 31 December 2008, cash and cash equivalents increased by EUR 7.0 million compared to 31 March 2008 (EUR 47.4 million).

Net working capital decreased from EUR 131.4 million as of 31 March 2008 to EUR 124.8 million as of 31 December 2008 and is still burdened by the long-term payment conditions in connection with the nationwide electronic truck tolling system in the Czech Republic.

Condensed consolidated interim financial information 31 December 2008 (unaudited).

Kapsch Traffi cCom AG – Consolidated income statement.

All amounts in TEUR Note	FY09-Q3	FY08-Q3	FY09-Q3 cum.	FY08-Q3 cum.
REVENUE (4)	51,610	54,828	160,092	123,627
Other operating income	1,576	3,207	2,372	3,901
Changes in fi nished and unfi nished goods and work in progress	-14,553	-11,009	-1,547	-77
Other own work capitalized	149	0	149	0
Cost of material and other production services	-8,290	-14,239	-67,288	-52,398
Staff costs	-13,926	-12,075	-39,533	-33,553
Amortization of intangible assets and depreciation of property, plant and equipment	-1,616	-965	-3,569	-2,911
Other operating expenses	-11,702	-8,803	-29,090	-20,914
Operating result (4,10)	3,249	10,945	21,587	17,675
Finance income	1,041	3,937	9,211	8,093
Finance costs	-9,055	-2,242	-12,900	-4,495
Financial result	-8,014	1,695	-3,689	3,599
Result from associates	0	-20	0	-51
Profi t before tax	-4,765	12,620	17,898	21,223
Income taxes (11)	251	-5,139	-5,170	-7,447
Profi t after tax for the period	-4,515	7,481	12,728	13,776
Attributable to:
Equity holders of the Company	-5,666	7,119	11,570	12,584
Minority interest	1,151	362	1,158	1,192
	-4,515	7,481	12,728	13,776
Earnings per share for profi t attributable to the equity holders of the company (expressed in EUR per share) (12)	-0,46	0,58	0,95	1,03

Earnings per share related to 12.2 million shares.

Kapsch Traffi cCom AG – Consolidated balance sheet.

All amounts in TEUR	Note	31 Dec 2008	31 March 2008
ASSETS
Non-current assets
Property, plant and equipment	(5)	11,350	6,192
Intangible assets	(5)	25,470	8,593
Shares in associates		0	0
Other fi nancial assets		3,758	3,405
Other non-current assets		24,776	55,005
Deferred tax assets		7,279	7,280
		72,632	80,475
Current assets
Inventories		28,713	25,734
Trade receivables and other assets		144,345	135,837
Other current fi nancial assets		4,627	8,895
Cash and cash equivalents		54,444	47,429
		232,129	217,895
TOTAL ASSETS		304,761	298,371
EQUITY AND LIABILITIES
Equity
Share capital	(6)	12,200	12,200
Capital reserve		70,077	70,077
Currency translation differences		-3,445	220
Fair value valuation reserve		-135	-971
Consolidated retained earnings and other reserves		49,461	49,728
		128,158	131,254
Minority interests		3,036	2,123
Total equity		131,195	133,377
Non-current liabilities
Non-current fi nancial liabilities	(7)	2,556	10,581
Liabilities from post-employment benefi ts to employees	(8)	13,867	14,089
Non-current provisions	(9)	444	1,694
Other non-current liabilities		21,722	26,150
Deferred tax liability		1,736	2,055
		40,324	54,568
Current liabilities
Trade and other current payables		52,850	39,050
Other liabilities and deferred income		25,880	29,486
Current tax payables		7,143	6,259
Current fi nancial liabilities	(7)	33,972	17,382
Current provisions	(9)	13,398	18,250
		133,242	110,426
Total liabilities		173,566	164,994
TOTAL EQUITY AND LIABILITIES		304,761	298,371

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

All amounts in TEUR
		Minority Interest	Total Equity
	Share capital	Capital reserve	Currency translation differences	Fair Value valuation reserve	Consolidated retained earnings & other reserves
Carrying amount at 1 April 2008	12,200	70,077	220	-971	49,728	2,123	133,377
Currency translation differences			-3,665			-245	-3,910
Fair value gains/losses realized				1,105			1,105
Fair value gains/losses (net of tax)				-269			-269
Net income/expenses recognised directly in equity			-3,665	836		-245	-3,074
Dividend for 2007/08					-11,836		-11,836
Profi t for the year					11,570	1,158	12,728
Carrying amount at 31 December 2008	12,200	70,077	-3,445	-135	49,461	3,036	131,195
Carrying amount at 1 April 2007	10,000	5,325	914	-114	29,130	340	45,595
Currency translation differences			-915			86	-830
Fair value gains/losses realised (net of tax)				-64			-64
Net income/expenses recognised directly in equity			-915	-64		86	-894
Capital increase from initial public offering	2,200						2,200
Premium from initial public offering less expenses relating to the initial public offering		65,323					65,323
Effects of business combinations					185		185
Dividend for 2005/06					-10,000	0	-10,000
Profi t for the year					12,584	1,192	13,776
Carrying amount at 31 December 2007	12,200	70,648	-1	-178	31,899	1,617	116,185

Kapsch Traffi cCom AG – Consolidated cash fl ow statement.

All amounts in TEUR	FY09-Q3	FY08-Q3	FY09-Q3 cum.	FY08-Q3 cum.
Cash fl ow from operating activities
Operating result	3,249	10,945	21,587	17,675
Adjustments for non-cash items and other reconciliations:
Depreciation and amortisation	1,616	965	3,569	2,911
Increase/decrease in obligations for post-employment benefi ts	-82	-68	-222	-287
Change in other non-current liabilities and provisions	1,041	1	-119	-50
Increase/decrease in non-current trade receivables	43,009	-2,783	30,261	17,327
Increase/decrease in non-current trade payables	-5,821	3,148	-4,428	5,069
Other (net)	-2,915	215	-648	262
	40,096	12,423	49,999	42,906
Changes in net current assets:
Increase/decrease in trade receivables and other assets	-29,055	-914	-8,508	-28,402
Increase/decrease in inventories	-947	11,341	-2,979	-2,151
Increase/decrease in trade payables and other current payables	-5,623	-1,837	10,155	-5,226
Increase/decrease in current provisions	-2,901	171	-4,852	-2,773
	-38,525	8,761	-6,184	-38,553
Cash generated from operations:	1,571	21,184	43,815	4,354
Interest received	694	532	1,976	1,139
Interest payments	-1,432	-289	-3,355	-2,242
Net payments of income taxes	-1,270	-4,726	-4,604	-5,879
Net cash fl ow from operating activities	-437	16,701	37,831	-2,628
Cash fl ow used in investing activities
Purchases of property, plant and equipment	-4,947	-591	-9,949	-2,446
Purchases of non-current intangible assets	-247	-550	-5,612	-696
Purchases of securities and shares	0	0	-343	-30,000
Payments for acquisition of companies (less cash and cash equivalents of
these companies) and for asset deals	-299	-35	-11,074	-70
Proceeds from sale of shares in consolidated companies	0	0	0	54
Proceeds from disposal of property, plant and equipment and intangible
assets Net cash fl ow used in investing activities	578	81	1,148	635
	-4,916	18,905	-25,830	-12,522
Cash fl ow used in fi nancing activities
Contribution from shareholders	0	-56	0	67,523
Dividends paid to shareholders	0	-6,500	-10,980	-13,500
Increase/decrease in other non-current fi nancial liabilities	-5,157	-3,955	-8,026	1,785
Increase/decrease in current fi nancial liabilities	-9,755	1,374	16,630	-5,716
Net cash fl ow used in fi nancing activities	-14,912	-9,137	-2,376	50,091
Net decrease/increase in cash and cash equivalents	-20,264	26,470	9,625	34,941
Change in cash and cash equivalents
Cash and cash equivalents at beginning of period	77,535	28,651	47,429	20,183
Net decrease/increase in cash and cash equivalents	-20,264	26,470	9,625	34,941
Exchange gains/losses on cash and cash equivalents	-2,827	-180	-2,610	-184
Cash and cash equivalents at end of period	54,444	54,941	54,444	54,941

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 three 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 engineering solutions, electronic manufacturing and logistics services are offered 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 third quarter of the current fi scal year 2008/09 ended 31 December 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-Q3	RSP	SEC	OTH	Consolidated Group
Revenues	50,160	103,778	6,154	160,092
Operating result	2,601	20,949	-1,963	21,587
FY08-Q3	RSP	SEC	OTH	Consolidated Group
Revenues	30,689	84,948	7,991	123,627
Operating result	2,236	15,948	-508	17,675

5. Capital Expenditure.

All amounts in TEUR	Tangible and intangible assets
Opening net book amount as of 1 April 2008	14,785
Additions	26,121
Change in consolidated entities	484
Disposals	-2,297
Depreciation, amortization, impairment and other movements	-2,068
Currency translation differences	-206
Closing net book amount as of 31 December 2008	36,820
Opening net book amount as of 1 April 2007	15,417
Additions	2,665
Change in consolidated entities	477
Disposals	-635
Depreciation, amortization, impairment and other movements	-2,626
Currency translation differences	-216
Closing net book amount as of 31 December 2007	15,081

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 number of ordinary shares is 12,200,000. The shares are ordinary bearer shares and have no par value.

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

7. Financial Liabilities.

All amounts in TEUR	31 Dec 2008	31 March 2008	31 Dec 2007	31 March 2007
Non-current	2,556	10,581	12,307	10,523
Current	33,972	17,382	16,407	22,124
Total	36,528	27,963	28,714	32,646

Movements in borrowings is analysed as follows:

Opening amount as of 1 April 2008	27,963
Additions	45,786
Repayments of borrowings	-35,401
Currency translation	-1,820
Closing amount as of 31 December 2008	36,528
Opening amount as of 1 April 2007	32,646
Additions	10,812
Repayments of borrowings	-14,744
Currency translation	0
Closing amount as of 31 December 2007	28,714

8. Defi ned benefi t plans.

All amounts in TEUR	31 Dec 2008	31 March 2008	31 Dec 2007	31 March 2007
Severance payments	4,898	5,001	5,131	5,305
Pension benefi ts	8,969	9,088	9,135	9,247
Total	13,867	14,089	14,266	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.

31 Dec 2008	31 March 2008	31 Dec 2007	31 March 2007
444	1,694	1,634	1,684
13,398	18,250	12,689	15,462
13,841	19,943	14,323	17,146

FY09-Q3
All amounts in TEUR	1 April 2008	Change in consolidated entities	Use/disposal	Additions	Exchange rate differences	31 Dec 2008
Obligations from anniversary bonuses	464	0	-21	0	0	444
Costs of dismantling and removing
assets	1,130	0	-1,130	0	0	0
Other	99	0	-88	0	-10	0
Non-current provisions, total	1,694	0	-1,240	0	-10	444
Warranties	4,128	0	-1,339	172	-250	2,711
Losses from pending transactions and
repairs	910	0	-364	157	0	702
Legal fees, costs of litigation and
contract risks	6,888	0	-4,315	2,236	-207	4,602
Other	6,324	0	-4,791	3,927	-77	5,383
Current provisions, total	18,250	0	-10,809	6,492	-535	13,398
Total	19,943	0	-12,049	6,492	-545	13,841

FY08-Q3

All amounts in TEUR	1 April 2007	Change in consolidated entities	Use/disposal	Additions	Exchange rate differences	31 Dec 2007
Obligations from anniversary bonuses	457	7	-21	9	0	452
Costs of dismantling and removing
assets	1,227	0	-46	0	0	1,181
Non-current provisions, total	1,684	7	-66	9	0	1,634
Warranties	4,165	0	0	0	30	4,194
Losses from pending transactions and
repairs	881	0	0	142	0	1,023
Legal fees, costs of litigation and
contract risks	2,881	0	-1,607	2,406	41	3,721
Other	7,535	0	-5,553	1,585	12	3,579
Current provisions, total	15,462	0	-7,160	4,134	82	12,517
Total	17,146	7	-7,227	4,142	82	14,151

10. Operations result.

The income statement for the fi rst three quarters of FY08 included one-off costs resulting from the IPO in the amount of approximately TEUR 963. There were no comparable costs in the fi rst three quarters 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 fi rst three quarters of FY09 used is 28 % (the estimated tax rate for the fi rst three quarters of FY08 was 35 %).

12. Earnings per share.

Earnings per share attributable to equity holders of the company arises as follows:

All amounts in TEUR	FY09-Q3 cum.	FY08-Q3 cum.
Earnings per share for profi t attributable to the equity holders of the company (expressed in EUR per share)	0.95	1.03

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 have established Kapsch-Busi S.p.A., with its seat in Bologna, as a joint venture to focus on the Italian traffi c telematics market in the urban area. Busi Impianti has outsourced the respective business unit, including a group of about 10 employees, Kapsch Traffi cCom has complemented the team by own personnel.

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.

Business area "Mobility Solutions" of TechnoCom Corporation.

As of 4 July 2008, Kapsch Traffi cCom AG acquired through its subsidiary Kapsch Traffi cCom Inc, 100 % 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.

All amounts in TEUR
Purchase price:
paid in cash	11,074
contingent considerations	2,383
	13,457
Fair value of net assets acquired (on a provisional basis)	614
Goodwill	12,843

The assets and liabilities arising from the acquisition:

All amounts in TEUR	Fair value (on a provisional basis)
Intangible assets	104
Property, plant and equipment	49
Receivables and other assets	557
Cash and cash equivalents	0
Payables, other liabilites and accruals	-97
Net assets acquired	614

The fair value of the net assets acquired was determined on a provisional basis. The purchase price is determined according to IFRS 3 and consists of a fi xed cash component amounting to approximately EUR 11.1 million and contingent considerations totalling approximately EUR 2.4 million which contain payments contingent on realisation of milestones in certain projects and expected sales. Both components were measured at their fair value (present value) and disclosed under liabilities. The third contingent element was not considered in determining total acquisition costs as it is contingent on future tax amortization benefi ts which cannot be measured reliably.

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	31 Dec 2008	31 March 2008
Contract and warranty bonds
City highway Santiago	846	860
City highway Sydney and Melbourne	2,333	2,377
	3,179	3,237
Performance, bid and other bonds
Truck tolling system Austria	12,500	12,500
Truck tolling system Czech Republic	19,721	48,899
Tolling system New Zealand	2,025	2,101
Other	5,314	4,306
	39,561	67,806
Bank guarantees	3,158	3,290
Sureties	28	25
	3,186	3,315
Total	45,926	74,359

15. Related-party transactions.

All amounts in TEUR		Sales to related parties Q3 (cum.)	Sales from related parties Q3 (cum.)	Amounts owed by related parties 31 Dec	Amounts owed to related parties 31 Dec
Affi liated companies outside the Kapsch Traffi cCom Group	FY09	1,155	9,908	1,938	2,394
	FY08	2,300	7,276	1,491	2,939
Others	FY09	84	1,316	0	10,195
	FY08	34	986	0	9,530

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

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 31 December 2008.

On 16 January 2009, Kapsch Traffi cCom AG acquired 11,047,017 shares in Q-Free ASA at a price of NOK 10.00 per share, representing 20.47 % of the out-standing shares in Q-Free ASA. The total purchase price amounted to TEUR 12,302.

Vienna, 25 February 2009

Management Board

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 210 references in 35 countries in Europe, Australia, America, in the Middle-East, in the Asian/Pacifi c region and in South Africa, and with almost 14 million delivered on-board units (OBUs) and more than 11,600 equipped lanes, Kapsch Traffi cCom has positioned itself among the leading suppliers of ETC systems worldwide. Kapsch Traffi cCom is headquartered in Vienna, Austria, and has subsidiaries and representative offi ces in 22 countries.

Kapsch Traffi cCom AG I Am Europlatz 2 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 1705 I Fax: +43 (0)50811 99 2705 I E-Mail: brigitte.herdlicka@kapsch.net