Pankl Racing Systems AG - Investments

Pankl Racing Systems AG is a public limited company according to Austrian law seated in Bruck/Mur, Austria and having the following business address: Kaltschmidstr. 2-6, A-8600 Bruck/Mur. The company's ID in the commercial register is FN 143981m. The shares of Pankl Racing Systems AG (ISIN: AT0000800800) are listed in the Prime Market of Vienna Stock Exchange under the symbol PKL.

Information about Pankl Racing Systems AG is available on the company's website www.pankl.com.

The equity capital of Pankl Racing Systems AG equals EUR 3.888.000 and is divided into 3.888.000 common shares with a nominal value of EUR 1. The distribution of ownership is as follows:

*Voting rights according to Voting Agreement with the Qino group 52.8%

Pankl Racing Systems AG is the dominating company of the Pankl Group, which consists of 19 other companies. Pankl Racing Systems develops, produces and distributes engine systems, drive systems and chassis components for motor racing, high performance cars and aerospace. In these niche markets, Pankl scores with lightweight components made from high-grade and innovative materials designed to withstand extreme mechanical stress.

The business fields of Pankl Racing Systems AG are engine- and drivetrain systems for racing, for exclusive road cars and the aerospace industry. As an ISO 9001 certified system supplier, Pankl offers an extensive range of products and services. With its own research and development department and a separate department for special testing facilities Pankl covers everything from development to manufacture and from assembly to maintenance. As a supplier of engine systems Pankl develops and produces connecting rods, pistons and crank shafts as well as a system of these components - the crank mechanism. For the drivetrain segment Pankl develops and produces components such as drive shafts, uprights, prop shafts as well as gearbox components.

Assemblies of these components are also offered as a complete system to the customers. A significant milestone in the racing segment was the development of a separate gearbox for different race categories. For the aerospace segment Pankl produces drivetrain systems (tail- and main rotor shafts), engine shafts for fixed-wing aircrafts as well as tubes for air refueling systems and complete drivetrain systems for unmanned helicopters (the main rotor shaft, the main rotor assembly, the main gearbox, a tail rotor shaft, the tail rotor assembly as well as the tail rotor gearbox). Race classes all over the world, manufacturers of exclusive roadcars, helicopter manufacturer and manufacturer of air refueling systems as well as engine manufacturers represent the main target groups of Pankl Racing Systems AG.

Pankl realizes nearly 90% of its turnover in the racing and automobile segments. This turnover is characterized by high product involved operational margins as well as by high overall non-traceable development and infrastructure costs. In the business year 2006/2007 (from Okt. 1st, 2006 till Sep. 30th, 2007) Pankl Racing Systems AG has realised with 808 employees a turnover of EUR 100.1 mil.

Pankl Racing Systems AG aims for a market position where it can generate growth from multiple factors, which do not necessarily depend on physically produced quantities. The company aims to achieve this through the following: