"Even prior to this take-over, we were very optimistic for business year 2010/11, anticipating an extremely pleasing growth rate of sales - due to the strategic importance of this acquisition we will see an even higher increase in growth", Eduard Wünscher, the CEO of KNAPP AG, comments on the take-over. "For customers in the fashion sector, who we have served in the past years for folded textiles, we can now position ourselves as all-in-one solution provider on the market, which allows us to meet our single-source approach even more."

KNAPP AG on the fast lane in the fashion sector

KNAPP has already installed numerous reference systems for such well-known customers in the fashion industry as Bonita, QVC or John Lewis Partnership. With the take-over of the market leader in overhead conveyor systems, Dürkopp Fördertechnik, KNAPP succeeds in significantly expanding its service portfolio and can now improve the service for its customers even further. KNAPP will take over all 160 staff members of Dürkopp Fördertechnik and development and production will continue from the German location. Synergy effects are expected for sales, purchasing and development, further increasing the profitability of the, so far highly successful, Dürkopp Fördertechnik.

Besides expanding the company's portfolio by another key technology, KNAPP will also gain further customers in the fashion sector. In addition, Dürkopp Fördertechnik has an excellent order volume, which KNAPP will fulfil in the next couple of months, or years, in the usual high quality.

KNAPP lands major order from Hermes Fulfilment (Otto Group)

The growth strategy KNAPP has elected, especially in the fashion sector, is confirmed by a major project: KNAPP landed the order for installation of the world's largest OSR Shuttle™ System by Hermes Fulfilment, a company of the Otto Group. This system with some 176,000 storage locations distributed among 30 rack lines is realized in the existing dispatch centre of Hermes Fulfilment in Haldensleben, Germany. The system will be the core piece of the new automatic returns system with a storage capacity of approximately 1 million products. The highly dynamic OSR Shuttle™ System supplies 30 work station on two levels, processing up to 15,000 items per hour at peak times. The order value runs into the tens of millions. System startup is scheduled for autumn 2010.

"For this order we were able to score with technology that has been at the centre of our research and development for years. KNAPP has already installed 5,000 OSR ShuttleTM at 100 customer locations, making us market leader in this field. With the further development of this system in the past business year, we have achieved further significant results, that will lead to a number of new installations in the upcoming business year", Eduard Wünscher stresses.

Sales increase in the range of 15% expected for business year 2010/11

Even prior to this take-over, the management of KNAPP AG had anticipated organic growth along the range of 5 to 10% for the current business year. The take-over of this key technology in the fashion sector will increase growth in sales by 15%. CEO Eduard Wünscher sees significant potential for growth for the group in the fashion segment:"While the share of sales in the fashion sector was at 4% in business year 2009/10, this share will be expanded to some 20% of total sales within the next two business years. Due to our wide-ranging product portfolio, we are now the first address worldwide for innovative fashion logistics systems for fashion businesses."

About KNAPP:

The KNAPP AG ranks among the leading system and solution providers in warehouse automation and warehouse logistics software. The range of products includes customer-specific adaptations of patented logistics components for warehouse and automation projects, tailored systems for major customers that meet every demand for more efficient logistics solutions, and the servicing and maintenance of existing warehouses. With the installation of the 5,000th shuttle, KNAPP underscores its world-wide position as pioneer and leader in the area of shuttle technology.