Accell Half Year Results: 41% More Profit

HEERENVEEN, Netherlands (July 16) - Accell Group NV realized a net profit of EUR 2.6 million during the first half year of 2001 which represents an increase of 41% compared to the same period in 2000. Despite a downward trend in consumer spending in Europe, Accell Group managed to increase its turnover with 4% to EUR 124.2 million. In all markets in which Accell Group is active, consumer spending has been under pressure during the first six months of this year. According to the third largest bicycle maker in Europe after Derby Cycle Corp. and Cycleurope, especially sales in Germany were hit by the lagging consumer spending. Nevertheless, Accell Group NV also reports that its was able to profit from the shift in demand from cheaper imports to higher quality bicycles which also led to a further improvement in margins. The bicycle maker which produces in The Netherlands, Germany and France expects substantial cost savings due to the cutting of assembly at Hercules in Germany. Most of the Hercules bicycles will be produced at Accell’s new factory in Hungary . The new factory, for which Accell Group entered into a joint venture with Schwinn Csepel is expected to be operational as of January 2002. Accell Group NV invests EUR 4 million in the new production facility. René Takens, Accell Group NV chairman of the board states about his results expectations for the whole year of 2001, "From September on we will be presenting the new collection for the next season to our dealers. The related marketing efforts and innovations will focus on strengthening consumer preference for our brands. In addition we can respond flexibly to economic conditions by rapidly adjusting our production capacity to the number of bicycles sold." Based on the current market situation and order portfolio, the Accell Group management maintains its earlier forecast to the effect that, barring unforeseen circumstances, net profit will be higher than last year. Accell Group NV markets its bicycles under the brand names Batavus, Hercules, Koga-Miyata, Sparta, Be-One, Mercier, Lapierre, and Lookie/Cool. (JO)