SRAM has signed a Definitive Agreement to purchase Truvativ

AMERSFOORT, Netherlands (September 24) - SRAM Corporation and Truvativ are pleased to announce that SRAM has signed a Definitive Agreement to purchase Truvativ. The transaction is expected to close by mid October. Stan Day, the President of SRAM said, "Truvativ is a great company with a remarkable track record of growth and innovation. SRAM is excited to bring the Truvativ Team and products into our organization. Cranksets and bottom brackets complete SRAM' s drivetrain product line." "Truvativ was at a crossroads to either make a complete drivetrain ourselves or team up with SRAM. I am excited that we now have a complete drivetrain and all the necessary human and financial resources to make it the best in the industry. Great products will be coming your way", comments Micki Kozuschek, the President of Truvativ. Truvativ headquarters will remain in San Luis Obispo, California, as SRAM' s product development arm for cranksets and bottom brackets. In the future it may take on additional development activities. Micki Kozuschek will lead the Truvativ organization as General Manager responsible for product development, sales and marketing. Truvativ' s factory in Taichung, Taiwan will continue to be the manufacturing location for cranksets. Gary Peng will lead it. There will be no transaction related layoffs. Truvativ will behave no changes to order processing or customer service for this model year. We will be linking order processing and customer service for SRAM and Truvativ for the 2006 model year. The specific changes will be will be announced at the Taipei show 2005.