EANS-News: Derby Cycle reports significant revenues and earnings growth in first half of 2010/2011

- Revenues of EUR 114.4 million (+40.3% year-on-year)
- Operating
profit (EBIT) up 65.4% to EUR 10.5 million
- Ongoing
internationalisation: foreign share boosted
to 32.0%
- Electric
bike sales more than double year-on-year to almost 39,000 units

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6-month report

Subtitle: - Revenues of EUR 114.4 million (+40.3% year-on-year) -
Operating profit (EBIT) up 65.4% to EUR 10.5 million - Ongoing
internationalisation: foreign share boosted to 32.0% - Electric
bike sales more than double year-on-year to almost 39,000 units

Cloppenburg (euro adhoc) - Cloppenburg, May 23, 2011 - Derby Cycle AG
(ISIN DE000A1H6HN1, WKN A1H6HN), Germany's largest bicycle
manufacturer in terms of sales, has published its financial report
for the first half of the 2010/2011 financial year.

Revenue climbed by more than 40%, rising from EUR 81.5 million to EUR
114.4 million. An even stronger increase was reported in terms of
operating profit (EBIT), which was up by around 65% over the same
period to reach EUR 10.5 million (previous year: EUR 6.3 million).
This generated a 9.1% EBIT margin in the first half of 2010/2011,
compared with 7.8% in the corresponding prior-year period.
Consolidated net income in the reporting period also rose at a
disproportionately rapid rate of 42.9%, increasing from EUR 4.2
million to EUR 6.0 million. This corresponds to EUR 0.80 of earnings
per share (previous year: EUR 0.56).

This excellent trend in the first half of the year is primarily based
on the company's strong position in the electric bicycle trend
product area, as well as its ongoing internationalisation. In March
2011, Derby Cycle further strengthened its market-leading position
with the presentation of the globally unique Impulse drive for
electric bikes. Whereas total sales in the electric bikes segment
amounted to around 17,000 bicycles in the prior-year period, around
39,000 units were sold in the period under review (+134%). In overall
terms, approximately 244,000 bicycles from the Kalkhoff, Raleigh,
Rixe, Focus and Univega brands were shipped at Group level. This
represents 17.0% growth compared with the previous year's figure of
209,000 units. The share of foreign sales increased to 32.0%
(previous year: 29.0%). This underscores the success of the
internationalisation strategy that the company has been pursuing.

Mathias Seidler, CEO of Derby Cycle AG, expressed his satisfaction
accordingly: "We were able to continue the previous years' success
story in the first half-year. We succeeded in further enhancing
profitability to more than 9% compared with the same period of the
previous year, which already represented a record half-year. We
naturally take a particularly positive view of the fact that we were
able to further extend our outstanding market position in the
electric bikes area, in particular."

According to Uwe Bögershausen, the company's CFO, the operating
result also offers grounds for further optimism: "Operating growth in
the first half of the year has prompted us to further specify our
full-year forecast. We anticipate revenues of between EUR 220 million
and EUR 240 million for the 2010/2011 financial year. At the same
time, we are assuming a higher EBIT margin of between 8% and 9%. As a
result, the 2010/2011 financial year is developing into a further
record year."

The complete 2010/11 half year report can be downloaded from today
from the company's website at www.derby-cycle.com, within the
"Investor Relations" area.

Company profile: Derby Cycle is a 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 which 44,000
comprised e-bikes. As a consequence, Derby Cycle has asserted a
position of clear market 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: www.derby-cycle.com

end of announcement euro adhoc
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company: Derby Cycle AG
Siemensstr. 1-3
D-49661 Cloppenburg
phone: +49-4471-966-238
FAX: +49-4471-966-44820
mail: u.boegershausen@derby-cycle.de
WWW: http://www.derby-cycle.de
sector: Consumer Goods
ISIN: DE000A1H6HN1
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English

ots Originaltext: Derby Cycle AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

cometis AG
Unter den Eichen 7
65195 Wiesbaden
www.cometis.de

Henryk Deter / Dominic Großmann
Telefon: +49 (0)611-20 58 55-15
E-Mail: grossmann@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