Raleigh Starts Rebuilding Program

NOTTINGHAM, UK (April, 26) - After two difficult years, culminating in a 19% drop in unit sales to 407,000 for the year 2000 and a decrease in net revenues of 12% to US$67.1 million, Raleigh UK is now embarking on a series of major initiatives to build on its inherent strengths as the leading UK branded bicycle builder. The launch of these initiatives heralds the start of a rebuilding program. Executive Chairman of Raleigh UK owner Derby Cycle Corporation, Alan Finden-Crofts, has already announced the outline plan to refinance the Derby Group, and an announcement about the new financial structure will be made within the next three months. The intention will be to reduce dramatically the borrowings of the new entity, enabling it to re-establish its leading position in the major markets of its operations. To this end, two international banks have already started their "due diligence" process and have already completed their assessment of Raleigh UK. A similar process has been carried out at Gazelle, Derby's operation in The Netherlands. Simultaneously, plans for a new site for the Raleigh UK plant in Nottingham are progressing well. The relocation is planned to be finalized in 2003. The next stage is the application for planning permission, which will be put forward to Nottingham City Council shortly; the project is on schedule for building work to commence early in 2002. Two senior Executive Team appointments are also announced as part of the overall regeneration of the Raleigh UK business. Mike Reynolds joins as Director of Product and Sourcing. Reynolds is very well known in the bike industry and brings into the company more than 20 years of Bike Industry experience. His work history includes time at Halfords Ltd and nearly 10 years as Sales and Marketing Director of Tradewinds. More recently he has been a regular contributor to "Bike Europe" and has worked globally on freelance design, sourcing and manufacturing projects. Reynolds also assumes responsibility for manufacturing at Nottingham. Bringing the Executive team to full strength, Keith Tessyman becomes Head of Finance reporting to the Managing Director. This appointment follows the departure of David Fatkin (Finance Director). As a consequence of these key appointments, Raleigh UK will realign the responsibilities of the Executive Team as follows: * Steve Davey, Sales and Marketing Director will also assume responsibility for Distribution. Steve Wigley, Distribution Manager will report to him. Responsibility for brand marketing and sales issues for Raleigh Ireland and Raleigh International - both of which currently report to the Managing Director - will be transferred to Steve Davey. * Mike Reynolds, Product and Sourcing Director, will be responsible for the Product Management team led by Product Director Xavier Redois, for Procurement headed by Chris Weedon and for Manufacturing, led by Steve White the Manufacturing Manager in Nottingham. Allan Spencer, Operations and HR Director, will therefore be released from some of his day to day responsibilities to focus on the new factory project as it moves into the detailed planning phase. Spencer will also assume responsibility for the Business Planning Process, previously managed by David Fatkin, as well as all HR activities across the business. These changes signal the first initiatives of Raleigh UK to revitalize and re-align its business. (JO)