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

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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: www.derby-cycle.com

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
www.cometis.de

Dominic Großmann / Tobias Eberle
Telefon: +49 (0)611-20 58 55-15
E-Mail: grossmann@cometis.de

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