Good 2008 Start for Accell Except for its Fitness Division

HEERENVEEN, The Netherlands - Accell Group NV announces today during its shareholders meeting, that turnover and profit in the first months of 2008 are higher than in 2007. The demand for bicycles in the higher segment, which includes electric bikes, remained strong. But not everything was again OK at Accell as its fitness division scored lower results than targeted. This will contribute to the pressure put on Accell by investment companies that want the bike maker to sell its fitness business.

Further details on the increase in turnover and profit were not announced. On the performance of its fitness division, Accell stated: “Particularly Fitness equipment sales in the first months of the year lagged in terms of expectations. This impact is relatively minor, as the fitness activities represent less than 10 percent of Accell Group’s total turnover.” That minor share is precisely the main reason why investment companies urge Accell to divest the fitness division.

The acquisition of Ghost Mountainbikes (Ghost), which was announced in February, will be consolidated as from 1 March 2008. It is expected that the recently completed acquisition will contribute to growth in 2008. As indicated earlier, Accell Group expects a further increase in turnover and net profit from ordinary operations in 2008
     
René Takens, Chairman of the Executive Board of Accell Group said about the results: “Last year, the first months were particularly positive, due in part to the relatively high temperatures and dry weather. The fact that turnover and results are higher this year demonstrates the attractiveness of our top brands. The persistently strong demand for premium bikes and electric bikes and the sound availability of our bikes in particular have contributed to the higher result in the first months of 2008. As of March, we also noted a positive contribution from the recently acquired international top brand Ghost.”