GT Expands Distribution into Sports Specialty Stores

MADISON, Wisconsin USA (March 25) - Pacific Cycle CEO Chris Hornung announced that he will expand the distribution of GT bicycles into sports specialty stores in 2002, next to the independent bicycle dealer (IBD) market in the United States. Pacific Cycle is the largest importer of bicycles in the United States, designs, markets, and imports a full range of bicycles under the GT, Schwinn, Mongoose Pro, Mongoose, Pacific, Roadmaster, and Murray names. Before Schwinn/GT was taken over by Pacific Cycles which took place in the Fall of 2001, Schwinn, GT and Mongoose bicycles were exported to Europe and sold through various channels. Halfords UK was and still is selling GT bikes while Mongoose BMX bikes were sold through Carrefour and Go Sport in France. Hornung said about his decision to expand the distribution base of GT banded bikes, "This brand is best suited for customers who understand and appreciate the features and specifications of a more technical product. Staying with the IBD will allow us to preserve the legacy of GT's performance image. We feel sports specialty stores follow the IBD principals and will compliment that channel through professional merchandising and selection." With regard to Pacific Cycles distribution in Europe, the company is for the 2003 season placing new distributors in the UK, Germany and France. Hot Wheels has taken over distribution of GT in the UK. Hot Wheels distributes Mongoose for Pacific, also. The company will only distribute to independent retailers. The recent decision about the GT distribution does not affect Halfords in the UK. Pacific will continue its relationship with Halfords which is one of the biggest sellers of GT bikes in Europe. Schwinn distribution in the UK will be handled by Moore & Large. Negotiations are under way with distributors in France and Germany. One of Pacific's top priorities for the 2003 selling season is to have adequate distribution in all the major European markets.(OB)