Legal Update on Tern Dahon Dispute

TAIPEI, Taiwan – Joshua Hon, vice-president of Tern Bicycles, presented Bike Europe with an update on the federal lawsuit that Dahon North America Inc. (headed by Dr. David Hon) filed against him and Florence Hon as well as Mobility Holdings, Ltd. and Tern Bicycles.

Bike Europe asked Dahon for comments on the update presented by Joshua Hon. Both statements are presented here.

Joshua Hon says in his update: “My father and his group have already requested that the court in Los Angeles stop us from doing business with our new company. They submitted their arguments to a United States federal judge who read their alleged evidence and denied their request in an order he made on July 19, 2011. We are pleased to receive this favorable ruling at the very start of the case and are very confident that if it is not dropped, the entire case will eventually be resolved in our favour.

“We have decided to form a new company, with new ideas and a new vision. Suffice it to say that there are many good reasons for our team of people to now move in a new direction, on a new path. We could very well have gone to court to wrestle for control and ownership of the Dahon brand worldwide, but we elected not to because we, the team, all of us, did not want to be mired in negativity, and certainly not with a family member. We have a team of people who believe in the bicycle as a transport solution, love designing bikes, and are pretty darn good at it.”

Joshua Hon continues: “The Tern team is full of dedicated, hard-working, and for lack of a better word, “smart” people. We do things deliberately and only after examining an issue from many sides. We are one hundred percent committed to taking the high road as we embark on this new path, always acting properly from an ethical and legal standpoint. On a more pleasant note, the Tern website - www.ternbicycles.com has been updated yesterday.”

Dahon comments on the statement by Joshua Hon with: “As a global corporation, Dahon has a fiduciary responsibility to its shareholders. The unlawful actions of the former officers (Joshua Hon and Florence Hon) left the company with little choice but to file a lawsuit in the matter. Temporary and permanent injunctive relief are being sought. The court has yet to make a ruling on either of these issues. All of the details regarding the lawsuit are available online at www.pacer.gov and at http://vyew.com/502951/Dahon_vs_Tern.”