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A gunman killed a neo-Nazi politician as he stood in front of a Dresden-area moviehouse with a bunch of youths who reacted to his murder by smashing the windows of a nearby sex shop, police said Saturday.

A police spokesman said that about 50 to 60 youths led by Rainer Sonntag, 36, had gathered in front of the cinema in a Dresden suburb Friday night when a man stepped out of a car and fired at Sonntag, apparently with a shotgun.Sonntag died on the spot of head wounds and the attacker managed to escape, police said.

The right-wingers draped Sonntag's body in the war flag of the German empire and later smashed the windows of a nearby sex shop.

Police said they could not confirm widespread speculation that the youths were planning an attack against brothels in the Dresden area.

Sonntag, one of Germany's best-known neo-Nazis, had become known in Germany when he took part in 1989 elections in the state of Hesse as a leading candidate for the ultra right-wing "National Gathering" - which called for the "first German state free of foreigners."

The movement was banned four weeks before the elections.

Sonntag was considered a close friend of neo-Nazi leader Michael Kuehnen, who died in hospital in late April. Kuehnen apparently had AIDS.

In another incident near Dresden Friday night police dispersed a group of about 30 ultra right-wingers who tried to storm a hostel housing foreigners.