DORTMUND, July 4 - Striker Miroslav Klose said Germany could still be proud of their side despite a last-gasp 2-0 defeat by Italy in the World Cup semi-final on Tuesday.

"I think we can still be proud of this team. We have a lot of young players and I think we have a future," said Klose after Germany conceded two late goals in extra time.

"Both sides had shots on goal and chances to decide the match, but my compliments to the Italians. They played hard and scored a nice goal," he added.

Italy went ahead with just over a minute left through fullback Fabio Grosso and then added a second goal almost immediately thanks to substitute Alessandro Del Piero.

"We had good chances to score," said Germany left back Philipp Lahm. "It's bitter to lose so close to the end of the match. We didn't lack any freshness.

"We were still fit, everyone could still run.

"There were two very good teams out there. There weren't many chances. It was a balanced match. We had our chances too.

"It's hard to find an explanation. We're naturally very disappointed. There is a lot of disappointment to lose here in Dortmund against Italy."