EANS-News: Derby Cycle reports strong growth in Q1 2010/2011

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3-month report

Cloppenburg (euro adhoc) - NOT FOR DISTRIBUTION IN THE UNITED STATES
OF AMERICA, JAPAN, CANADA AND AUSTRALIA

- Revenue grows 30.5% to EUR 37.8 million
- EBIT up 52.3% to EUR 1.9 million
- Export share of revenue rises to 32.6%
- Around 11,000 electric bicycles sold in Germany (+139% y-o-y)

Cloppenburg, February 24, 2011 - Derby Cycle AG (ISIN DE000A1H6HN1,
WKN A1H6HN), Germany's largest manufacturer of bicycles in terms of
sales, has today published its financial report for the first quarter
of the 2010/2011 financial year, ending December 31, 2010.

Revenue increased to EUR 37.8 million during the period under review,
representing 30.5% growth compared with the corresponding prior-year
period (EUR 29.0 million). Earnings before interest and taxes (EBIT)
were up by 52.3%, thereby outstripping the rate of revenue growth.
EBIT amounted to EUR 1.9 million in the first quarter (comparable
prior-year period: EUR 1.2 million). As a consequence, the EBIT
margin improved from 4.3% in the first quarter of the 2009/10
financial year to 5.0% in the first quarter of the 2010/11 financial
year. Consolidated net income was up by 28.4% from EUR 0.8 million in
the first quarter of the 2009/10 financial year to EUR 1.0 million in
the first quarter of the 2010/11 financial year. Due to pre-ordering,
the October to December months in the bicycle sector traditionally
comprise a weaker quarter in terms of sales, and consequently
earnings, compared to the January to June months, in other words, the
second and third quarters of Derby Cycle's financial year.

Through its five brands, Kalkhoff, Raleigh, Rixe, Focus and Univega,
Derby Cycle sold a total of 80,500 bicycles in the 2010/2011 first
quarter (+5.8% compared to the prior-year period). Around 11,000
electric bicycles were sold in Germany between October and December
2010 (+139% compared to the previous-year period). A total of 1,700
electric bicycles were sold outside Germany (+91.4% compared with the
prior-year period).

Sales abroad continued to rise at a disproportionately fast rate.
Revenue generated outside Germany was up by 53.1%, from EUR 8.1
million to EUR 12.3 million. As a consequence, the foreign share of
revenue climbed from 27.8% in the first quarter of the 2009/10
financial year to 32.6% in the first quarter of the 2010/11 financial
year.

"We are on track - as shown by the first-quarter figures," commented
Mathias Seidler, CEO of Derby Cycle AG. "We continue to report strong
growth - and also profitable growth. This should continue over the
course of the full year, especially where electric and sports bikes
are concerned. The strategy we have adopted of focusing our sales
through specialist wholesalers and retailers, the expansion of our
good positioning in the electric bikes area, and our continued
internationalisation, continues to bear fruit."

Due to orders that are already on hand or that have been notified,
Derby Cycle anticipates that the positive trend will continue over
the full 2010/11 financial year with respect to both consolidated
revenue, and consolidated earnings before any effects arising from
the IPO. The company will publish a more specific forecast over the
further course of the current financial year.

Disclaimer

This publication constitutes neither an offer to sell nor
an invitation to buy securities. The shares in Derby Cycle AG (the
"Shares") may not be offered or sold in the United States or to or
for the account or benefit of "U.S. persons" (as such term is defined
in Regulation S under the Securities Act of 1933, as amended (the
"Securities Act")) absent registration or an exemption from
registration under the Securities Act. The Shares have not been and
will not be registered under the Securities Act.

No offer or sale of securities is being made to the public outside
Germany. The offer in Germany will be made exclusively by means of
and on the basis of a prospectus published on the website of Deby
Cycle AG www.derby-cycle.com

This document is only being distributed to and is only directed at
(i) persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)
(the "Order") or (iii) high net worth companies, and other persons to
whom it may lawfully be communicated, falling within Article 49(2)(a)
to (d) of the Order (all such persons in (i), (ii) and (iii) above
together being referred to as "relevant persons"). The securities are
only available to, and any invitation, offer or agreement to
subscribe for, purchase or otherwise acquire such securities will be
engaged in only with, relevant persons. Any person who is not a
relevant person should not act or rely on this document or any of its
contents.

Company profile:

In terms of revenues, the company is the largest
bicycle manufacturer in Germany and one of the leading manufacturers
in Europe. The Derby Cycle Group´s top-quality product range includes
e-bikes, sport bikes for leisure cycling and competition, and comfort
bikes for every day and travel use. These are sold using the
well-established brands of Kalkhoff, Focus, Raleigh, Univega and
Rixe. Derby Cycle sells models under each of its brands that are
tailored to different target groups. All of the models are developed
in Germany, the frames are made by contract manufacturers in Asia,
the further components, such as forks, rechargeable batteries and
gears are bought in and assembled in Cloppenburg. Derby Cycle
attaches great value to the high quality of its bicycles and a
differentiated brand presence. This allows Derby Cycle to sell its
products via specialist retailers, who offer their customers
professional advise and extensive service. They are thus the most
important sales channel for normal bicycles and e-bikes.

In fiscal year 2009/2010 Derby Cycle recorded revenues of EUR 173
million with an average of approx. 550 employees. Of this figure, it
recorded 72.6% in Germany and 27.4% abroad. Derby Cycle sold a total
of around 430,000 bicycles last fiscal year, including around 44,000
e-bikes.

On the Internet at: www.derby-cycle.de

end of announcement euro adhoc
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ots Originaltext: Derby Cycle AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

cometis AG

Unter den Eichen 7

65195 Wiesbaden

Henryk Deter

Telefon: +49 (0)611-20 58 55-13

E-Mail: deter@cometis.de

Dominic Grossmann

Telefon: +49 (0)611-20 58 55-15

E-Mail: gremmler@cometis.de

Branche: Consumer Goods
ISIN: DE000A1H6HN1
WKN: A1H6HN
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade