Derby Cycle AG

EANS-News: Derby Cycle AG: Direct sales launched in the United Kingdom

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
Strategic management decisions

Subtitle: Further push to internationalisation strategy / Additional growth
potential in UK through directly addressing specialist wholesalers/retailers

Cloppenburg (euro adhoc) - Thursday, July 21, 2011 - Derby Cycle AG (ISIN
DE000A1H6HN1, WKN A1H6HN), Germany's largest bicycle manufacturer in terms of
sales, has launched direct sales of its products in the United Kingdom, and is
discontinuing the exclusive sale of the FOCUS brand through a UK distributor.

With immediate effect, Derby Cycle will start to address specialist wholesalers
and retailers directly, thereby tapping further growth potential in the UK. For
this purpose, the company has set up an experienced sales team that is familiar
with the local market, and is thereby continuing to consistently pursue its
internationalisation strategy in the United Kingdom. Chris Needs, a sales
professional with 24 years of experience on the British market, will lead the
team as Head of Sales UK.

Mathias Seidler, CEO of Derby Cycle AG, commented on the company's advancing
internationalisation as follows: "A volume of around 3.7 million bicycles
generates around EUR 800 million of sales per year in Great Britain. The British
market is benefiting particularly from the Congestion Charge that has been
introduced in London, as well as from specific subsidised programmes such as the
"Cycle to Work" initiative, which provides financial support when individuals
purchase bicycles."

Uwe Bögershausen, CFO of Derby Cycle AG, went on to add: "Along with electric
bicycles, our FOCUS brand, which comprises our sports products segment, forms
one of Derby Cycle's key international growth drivers. We will continue to
endeavour to further strengthen and expand our direct sales in the future. 
The internationalisation strategy that we presented at the time of the IPO
continues to gather form as a consequence."

Company profile:

Derby Cycle is Germany's largest bicycle manufacturer in terms of revenues, and
one of the leading manufacturers in Europe. In particular, global demand growth
for high-quality electric and sports bicycles, as well as the company's
advancing internationalisation in all European volume markets, are reflected in
the company's dynamic growth. Derby Cycle's product range comprises electric
bicycles, sports bicycles for leisure and competition purposes, as well as
comfort bikes for everyday and travel use. These bicycles are sold through the
established Kalkhoff, Focus, Raleigh, Univega and Rixe brands. All models are
developed and assembled at the company's base in Cloppenburg, Germany. These
high-quality products are distributed through specialist retailers who provide
their customers with professional advice and extensive service.

With an around 550 employees, Derby Cycle achieved revenue of EUR 173 million in
the 2009/2010 and financial year, 72.6 percent of which was generated in
Germany, and 27.4 percent abroad. Earnings before interest and tax (EBIT)
amounted to approximately EUR 12 million. Derby Cycle sold a total of around
430,000 bicycles, of wet leadership in 2010 with a 20 percent market share. The
company forecasts revenues of EUR 220 million to 240 million, and an EBIT margin
of 8 to 9 percent (2009/10: 7.0 percent) for the 2010/11 financial year that
ends on September 30, 2011.

Further information is available at:

Brand profile - FOCUS:

FOCUS forms the sports product segment of Derby Cycle AG, and offers demanding
professional and leisure cyclists high-quality racing bikes, mountain bikes,
trekking bikes and triathlon bikes. Along with engineers and scientists, former
and active cycling professionals participate in the development process in order
to adapt the bicycles to target group needs. 

FOCUS is fully committed to professional cycling at high-performance level. For
this reason, it equips one of the world's best professional cycling teams, as
well as ambitious amateurs, with first-class material.

Further inquiry note:
cometis AG 
Unter den Eichen 7 
65195 Wiesbaden

Dominic Großmann / Tobias Eberle
Telefon: +49 (0)611-20 58 55-15

end of announcement                               euro adhoc 

company:     Derby Cycle AG
             Siemensstr. 1-3
             D-49661 Cloppenburg
phone:       +49-4471-966-238
FAX:         +49-4471-966-44820
sector:      Consumer Goods
ISIN:        DE000A1H6HN1
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
             Hamburg, Stuttgart, Düsseldorf, München 
language:   English

Weitere Meldungen: Derby Cycle AG

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