Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results of Head NV for the Three and Nine Months ended 30th September 2011.

Head N.V. / Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results of Head NV for the Three and Nine Months ended 30th September 2011. . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement. Amsterdam - 10(th) November 2011 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a leading global manufacturer and marketer of sports equipment, and HTM Sport GmbH, a subsidiary of Head NV, announced the following results today. In Winter Sports, for the first nine months of 2011, sales were 1.9% or €1.5m ahead of 2010 driven by earlier delivery of snowboard and higher binding sales, offset in part by a small decline in ski and boot sales. Our Racquet Sports sales for the first nine months of 2011 were 3.1% or €3.1m behind 2010. The decline was primarily due to the weakening of the US dollar against the Euro and lower sales of tennis balls. The volume of racquets sold has increased compared to 2010 and this allowed the division to reverse the trend of the first two quarters and report a growth of 0.8% in the third quarter. While the diving market has been severely impacted by both political turbulence in key dive destinations in North Africa and natural disasters in Australia and Japan our division has managed to achieve a slight growth in sales on a currency neutral basis for the first nine months of 2011 compared to 2010. The unfavourable development of exchange rates has led to an overall decline of 0.3% or €0.1m over the same period. Our newly introduced Sportswear Division generated sales of €3.8m for the first nine months of 2011. Overall, sales for the group for the first nine months of the year declined by just 0.1% or €0.3m. The adjusted operating profit for the nine month period declined by €2.7m compared to prior year. This was mainly due to a negative €1.5m impact of lower gross margins (41.4% in 2011 compared to 42.1% in 2010) as a result of higher raw material prices and higher selling and marketing expenses of €1.5m offset by general and administration expenses being lower by €0.3m. The reported operating profit for the nine month period declined by €6.0m compared to the prior year. The further decline of €3.2m compared to the adjusted operating profit came from the accounting for our stock option plans. In 2010 we recorded a non-cash income of €3.3m for the plans, compared to an income of €0.1m in 2011. In both the three month period and the nine month period, interest and other financial costs increased significantly. This was due to the acceleration of the amortisation of the non-cash disagio costs as a result of the buy back and redemption of the Senior Secured Notes during 2011. Excluding this non-cash disagio cost, interest and other financial expenses would have decreased from €2.4m to €2.3m for the three month period to September 2011 compared to 2010, and increased just slightly from €7.0m to €7.1m for the nine month period. Overall the net loss for the nine months increased by €9.2m in the nine months to September 2011 compared to the nine months to September 2010. Operating cashflow for the nine months to September 2011 compared to 2010 declined by €15.5m due predominantly to movements in working capital of €12.9m and the lower operating result. During 2011 we have continued to work at producing excellent products and marketing them effectively. We are delighted with the performance of our athletes. The Ski World Cup season has got off to a great start with Lindsey Vonn winning the opening Giant Slalom womens race, and Ted Ligety winning the opening Giant Slalom mens race. In mens tennis we now have two of the top three players in the world with Novak Djokovic ranked world number one, and Andy Murray, ranked third and two of the top four womens players with Victoria Azarenka and Maria Sharapova. In addition during 2011, we have been restructuring our financing and have redeemed our Senior Secured Notes and replaced them with lower interest more flexible working capital lines in Austria and the US. The macro economic factors, however, have not improved and raw material prices have been increasing at the same time as consumers are spending more cautiously. We continue to forecast a lower operating profit in 2011 than we achieved in 2010. About Head HEAD NV is a leading global manufacturer and marketer of premium sports equipment. HEAD NV's ordinary shares are listed on the Vienna Stock Exchange ("HEAD"). Our business is organized into five divisions: Winter Sports, Racquet Sports, Diving, Sportswear and Licensing. We sell products under the HEAD (tennis, squash and racquetball racquets, tennis balls, tennis footwear, badminton products, alpine skis, ski bindings and ski boots, snowboards, bindings and boots and sportswear), Penn (tennis and racquetball balls), Tyrolia (ski bindings) and Mares (diving equipment) brands. For more information, please visit our website: Analysts, investors, media and others seeking financial and general information, please contact: Clare Vincent, Investor Relations Tel: +44 207 499 7800 Fax: +44 207 491 7725 Gunter Hagspiel, Chief Financial Officer Tel: +43 5574 608 Fax +43 5574 608 130 Forward-Looking Statements This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases, including references to assumptions, as they relate to Head NV, its management or third parties, identify forward-looking statements. Forward- Looking statements include statements regarding Head NV's business strategy, financial condition, results of operations, and market data, as well as any other statements that are not historical facts. These statements reflect beliefs of Head NV's management as well as assumptions made by its management and information currently available to Head NV. Although Head NV believes that these beliefs and assumptions are reasonable, the statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These Factors include, but are not limited to, the following: the still possible impact of the global economic turmoil, weather and other factors beyond our control, competitive pressures and trends in the sporting goods industry, our ability to implement our business strategy, our liquidity and capital expenditures, our ability to obtain financing, our ability to compete, including internationally, our ability to introduce new and innovative products, legal proceedings and regulatory matters, our ability to fund our future capital needs, and general economic conditions. These factors, risks and uncertainties expressly qualify all subsequent oral and written forward-looking statements attributable to Head NV or persons acting on its behalf. Head NV Prins Bernhardplein 200, 1097 JB Amsterdam Shares: ISIN: NL0000238301 Stock Market: Official Market of the Vienna Stock Exchange Notes: HTM Senior Notes ISIN: XS0184717956 and XS0184719143 HTM Senior Secured Notes ISIN: XS0447202218 and XS0447202309 Listing: Luxembourg Stock Exchange The full press release including tables can be downloaded from the following link: --- End of Message --- Head N.V. Prins Bernhardplein 200 Amsterdam The Netherlands WKN: 577203 ;ISIN: NL0000238301; Results Q3 2011 : This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Head N.V. via Thomson Reuters ONE [HUG#1562536]