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Full Speed Ahead: Delticom Exceeds 2005 Sales Goals

Delticom AG, which recently marked its fifth consecutive year in the online tyre business, again exceeded its sales goals in 2005, registering an anticipated EUR128 million in annual sales. This represents a 60 per cent increase over last year, when the company's sales amounted to EUR80 million.

Wholesaling accounted for an anticipated EUR20 million of Delticom's 2005 sales, while online retail sales totalled an anticipated EUR108 million. Sales growth was particularly robust in Germany, France, Switzerland, Sweden and Great Britain.

"Our snow tyre sales are going great guns, thanks in part to the weather - particularly cold waves and snow," noted Delticom co-CEO Andreas Prüfer.

"At the same time, our customers are becoming ever more savvy and price conscious, and definitely do some price shopping before making a purchase decision. Customers have told us time and time again that they buy tyres from us because we offer very high quality at a reasonable price, on average 25% less than our competitors," said Delticom co-CEO Rainer Binder.

Delticom also optimises its customer service on an ongoing basis. As at Dec. 31 2005, the company had over 3000 tyre mounting centers in Germany, and over 6500 in Europe as a whole. And what's more, Delticom customer service involves far more than just providing information about tyre mounting options and service centers. Customers can now view online evaluations (including customer evaluations) of their chosen tyre mounting centre, and can find out how far the nearest Delticom service centre is from their home. Over 92% of the 33,000 evaluations that have been posted thus far are positive.

Delticom currently operates 56 online stores in 25 European countries. The company also has an outlet in the US at www.tires-easy.com.

As for the possibility of going public, Andreas Prüfer has this to say: "We haven't yet decided whether or not to go public, or when we would make such a move. We're currently having our bankers and consultants assess various options."

Delticom AG
Brühlstr. 11
30169 Hannover
+49-(0)1805-Delticom (+49-(0)1805-335842)
Fax. +49 (0)511 87989071
URL: http://www.delti.com
E-Mail: info@delti.com