Bajaj Auto to launch KTM Bikes in 2008

* Bikes to be retailed through exclusive Pro-biking Showrooms

* KTM bikes for Indian market to be selected from those displayed at the Auto-Expo 2008

New Delhi, January 10, 2008: Bajaj today presented a range of KTM bikes at its stall in the Auto-Expo 2008 some of which will be progressively introduced in the Indian Market. These models will be retailed through Bajaj's Probiking showrooms in key markets across the country.

The vehicles that are being considered for the domestic market were on display at the Bajaj Presentation in Hall no 3 at the Auto-Expo in N. Delhi. These were the rally tested 690 Supermoto, the superior street bike the 690 Duke, the powerful 990 Adventure, the light and agile 250 EXC-F and the ultra-precise performer the 990 Superduke.

Bajaj Auto also announced the increase in its stake in "KTM Power Sports AG", Europe's second largest sport motorcycle manufacturer to 20.89 %. Earlier Bajaj had taken a 14.5 % stake in KTM through its 100% Netherlands subsidiary-Bajaj Auto International Holdings BV with Rajiv Bajaj, MD, Bajaj Auto Ltd. being inducted on the board of KTM. Bajaj has funded the current stake increase from its internal accruals. The co-operation agreement with KTM covers product development, technology, vendor sourcing and distribution.

Commenting on the occasion, Mr. Stefan Pierer, CEO, KTM said, "We see this as a long-term partnership with Bajaj Auto & we are very positive about it. This cooperation with Bajaj Auto is a great opportunity to strengthen the KTM Group in its sustained growth strategy in a global environment."

Mr.Rajiv Bajaj, MD, Bajaj Auto Ltd., added "This partnership is also another step in our globalization strategy. KTM's sharp brand positioning, differentiated designs, and hyper performance have inspired us to increase our stake in this participation. We are delighted with this opportunity to co-develop a range of products for both KTM and Bajaj brands and also excited by the prospect of introducing KTM products to India and South East Asia, as also to access the European market via KTM."

The alliance with KTM covers joint development of street bikes for both Indian & overseas markets. The partnership will also jointly develop a high-performance, water-cooled engine platform for 125 and 250 cc bikes. Bajaj Auto will also take up distribution of KTM products in South Asia.

Through this cooperation with Bajaj, KTM would extend its product portfolio for the future with a 125-ccm street product line, in addition to the present 1190-ccm, 990-ccm and 690-ccm platforms developed and manufactured in Austria.

About KTM Power Sports AG

KTM Power Sports AG is a worldwide leading manufacturer of power sports vehicles. With Products "� in Motocross, Supermoto, Enduro classes and with On road bike products like Super Duke KTM is a strong brand in Europe and The United States. KTM has won more than 136 World Championship titles and seven times the Rallye Paris-Dakar. The operationcore company, KTM-Sportmotorcycle AG, develops and manufactures competition off-road and street motorcycles. KTM-Sportcar AG builds the light-weight sports car X-Bow, KTM's first step into the automotive field.

With more than 1,930 employees, the KTM Group earned revenue of Euro 566.1 Mio. (INR 32 Billion) in fiscal year 2006/07. Over 23 sales subsidiaries distribute KTM products to their 1,400 independent KTM dealerships worldwide.

KTM is a Vienna Stock Exchange listed Company with market capitalisation of Euro 390 million (INR 22 Billion). KTM is a Group Company of Cross Industries AG, indirectly owned by & managed by Messrs Stefan Pierer and Rudolf Knunz. The Cross-group's other businesses include racing motorsports systems, composites, etc

Further information about the KTM Group is to be found at www.ktm.com.

About Bajaj Auto Ltd.

Bajaj Auto Ltd, is India's leading two and three wheeler manufacturer and ranks among the top five motorcycle producers in the world. In the fiscal year 2006-07, Bajaj produced and sold about 2.38 million Motorcycles and over 320,000 3-wheelers. Bajaj achieved consolidated revenues of Rs 166 Billion (Euro 2.9 Billion) with net profits of Rs 12.5 Billion (Euro 220 Million).

Bajaj is also India's largest exporter of two and three wheelers with over 440,000 units (over 16% of its production) exported in 2006-07. Its Motorcycle brands are extremely popular in India, South & South East Asia, Africa and Latin & Central American Countries.

Bajaj has many leading motorcycle brands to its credit and has pushed motorcycle performance benchmarks to new limits with innovative path-breaking technologies such as DTS-i, ExhausTEC, Throttle responsive ignition control system (TRICS), etc. It has also been the first to introduce Fuel Injection technology in the country with the 220 Pulsar DTS-Fi. A young motivated team is constantly exploring new technologies to bring "Distinctly Ahead" products into the market.