Kapsch TrafficCom acquires Mark IV IVHS

November 9, 2010

Kapsch TrafficCom acquires Mark IV IVHS, the largest supplier of electronic toll collection (ETC) equipment in North America.

Vienna, November 5, 2010. Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed on the Vienna Stock Exchange in the prime market segment, has agreed to acquire through subsidiaries the businesses of MARK IV IVHS, part of MARK IV, LLC (U.S.), in the United States, in Canada and in Mexico for a purchase price of USD 70 million (approximately EUR 50 million), subject to certain closing conditions and subject to certain potential price adjustments based on working capital included with the business. The transaction is structured as a stock purchase of the holding companies which own the Mark IV IVHS business, and closing is targeted for 30 November 2010.

MARK IV IVHS is a designer and manufacturer of dedicated short-range communication (DSRC) devices that are widely used by highway, toll, turnpike, tunnel, and bridge authorities to enable intelligent transportation systems (ITS) such as electronic toll collection (ETC) and automated weigh station bypass. With more than 21.8 million transponders on-the-road and more than 3,700 lanes equipped, MARK IV
IVHS is the largest supplier of ETC equipment in North America. MARK IV IVHS has enabled many landmark ITS deployments, including: the world’s first non-stop, all-electronic toll road (Highway 407 ETR, Canada); interoperability between truck electronic preclearance systems and toll collection (PrePass); and, the E-ZPass® system of the 24 toll authorities in 14 states who comprise the E-ZPass® Group in the Northeastern United States. E-ZPass® is a regional ETC system that can be used throughout the Northeast and Midwest regions of the United States. MARK IV IVHS also recently announced a contract award in exico. With 142 employees, MARK IV IVHS generated in its last fiscal year 2009/2010, ended February 28, 2010, net sales of approximately USD 50 million (approximately EUR 36 million) at a clear positive free cash flow and at an EBITDA margin accretive to the EBITDA margin of Kapsch TrafficCom Group generated in its last fiscal year 2009/2010, ended March 31, 2010.

Kapsch TrafficCom is an international supplier of superior intelligent transportation systems (ITS). Its principle business is the development and supply of electronic toll collection (ETC) systems, in particular for the multi-lane free-flow (MLFF) of the traffic, and the technical and commercial operation of such systems. Kapsch TrafficCom also supplies traffic management systems, with a focus on road safety and traffic control, and electronic access systems and parking management. With approximately 240 references in 39 countries on all five continents, and with more than 19 million transponders (on-board units – OBUs) delivered and nearly 13,000 lanes equipped, Kapsch TrafficCom has positioned itself among the leading uppliers of ETC systems worldwide. Kapsch TrafficCom is headquartered in Vienna, Austria, and has ubsidiaries and representative offices in 25 countries. With currently almost 1,500 employees, Kapsch TrafficCom Group generated revenues of EUR 216 million (approximately USD 300 million) in its last fiscal year 2009/2010, ended March 31, 2010.

For more information, please contact:
Marcus Handl
Investor Relations
Kapsch TrafficCom AG
Phone: +43 (0) 50 811 1120
Am Europlatz 2, A-1120 Vienna, Austria
E-mail: [email protected]
www.kapschtraffic.com
www.kpasch.net