EANS-News: Derby Cycle AG: Joint venture agreement with Daum Forschung & Entwicklung GmbH

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Joint Ventures/Cooperation/Collaboration

Cloppenburg (euro adhoc) - - Partnership as a basis to further
strengthen the technological leadership in the e-bike segment -
Common track record: Innovative and unique "Impulse Drive" resulting
from the development partnership with Daum

Cloppenburg - Derby Cycle AG (ISIN DE000A1H6HN1, WKN A1H6HN),
Germany's largest manufacturer of bicycles in terms of sales, has
today acquired an interest in Daum Forschung & Entwicklung GmbH
("Daum Research & Development"), thereby underpinning its
technological leadership in the high-growth e-bikes segment.

The interest amounts to 50%, as a consequence of which the company
will be managed as a joint venture in the future. Confidentiality has
been agreed initially concerning the purchase price. The "Impulse
Drive" has already been developed jointly with Daum. This globally
unique drive concept was presented to the specialist public for the
first time in March at the VELOBerlin bicycle trade fair.

The "Impulse Drive" combines a high-performance mid-engine with the
conventional, accustomed backpedal brake. Consumers have been
confronted with only a compromise to date: either to enjoy a
particularly comfortable mid-engine due to its low centre of gravity,
but without a backpedal brake - or to deploy backpedal braking as
accustomed, although to then derive the electro-drive's much-loved
"tailwind effect" from a technically inferior front-engine.

Mathias Seidler, CEO of Derby Cycle AG, commented on the company's
entry into the joint venture as follows: "The e-bike market is
growing. This close cooperation with Daum will enable us to make even
faster progress than previously with the further development of
e-bike technology. Competition is determined primarily by innovative
strength - we regard ourselves as excellently positioned with our
partner Daum."

Uwe Bögershausen, CFO of Derby Cycle AG, went on to add: "This stake
in Daum Forschung & Entwicklung GmbH allows us to successfully
implement a building block in the corporate strategy that we set out
as part of the IPO: the expansion of development activity for
e-bikes. We will also drive further ahead with Derby Cycle's
international expansion over the coming months."

About Daum Forschung & Entwicklung GmbH:

Daum Forschung & Entwicklung GmbH was founded by Wilhelm Daum in
2003. The company currently employs eight staff members who are
exclusively engaged in the development of electronic hardware and
software. Managing Director Wilhelm Daum is also the founder of daum
electronic gmbh, which is based at Fürth in Bavaria, Germany. This
company operates internationally as a manufacturer of technologically
unique cycle, elliptical, and running ergometers in functional and
ergonomic designs. With more than 500,000 machines sold worldwide,
daum electronic is a leading manufacturer in this area today. Daum
Forschung & Entwicklung GmbH develops high-quality machines to the
highest technical standard in close cooperation with sports and
occupational doctors, and ergo-therapists. The hardware and software
that is deployed in this equipment also derives from the company's
own development and production. The products undergo continuous
further development, thereby being adapted to the constant growth in
the market's requirements and wishes.

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