Dahon: Plus 25%

IRWINDALE, USA, (August 16) - Dahon California, Inc., the world leader in portable folding bicycles, today announced that 2001 revenues are on course to grow by at least 25% compared to the previous year. Dahon recorded healthy growth in all of its key markets, including North America, Europe and Japan. "We are seeing strong underlying growth in the folding bicycle segment of the market, despite less than ideal market conditions," stated Dr. David Hon, Dahon President. "Consumers are being won over by the function and utility of our bicycles. The good news is that macro economic forces such as skyrocketing gasoline prices and government support for 'clean transportation will only intensify the demand for our products in the coming years." Revenues were boosted in part by licensing fees paid by the increasing number of companies now licensing Dahon’s patents. Many of Dahon’s patented designs have been violated in the past. Last year, at least 500,000 folding bicycles were sold in Japan that violated a key Dahon patent. Many of these bicycles were sourced from Taiwan and China. This year, Dahon initiated an aggressive patent enforcement program in Japan. The legal action has resulted in numerous patent licensing agreements and the addition of new customers. Dahon plans to increase investment in R&D in coming years. New corrosion-resistant plating technology, new suspension technology, and electrical vehicles are all areas currently being studied. Sales of Dahon’s mid/high priced models were particularly strong in all markets in 2001. Models with suspension, aluminum frames, and high quality components were most popular. Due to poor weather, sales in Europe slowed for several months, but since June, sales have resumed their previously strong growth. For 2002, Dahon will introduce an expanded range of portable folding bicycles that includes a 17 kg. folding electric bicycle and new models using Dahon’s new VAX suspension technology. Dahon will exhibit at Eurobike, InterBike and the Tokyo Cycle Show. (JO)