Covering the News S p ec i a l E urobike New s l e t t e r Each Day – Every Day EUROBIKE Day 2

August 31, 2011 www.bicycleretailer.com SRAM details reasons for IPO; still no timetable

RAM president Stan tention to become the leader Day spoke publicly for in the urban bike category in Sthe first time Wednes- the next five years through day about the component internal gear hubs, external company’s plans to go public, drivetrains for trekking and saying the move would lay commuter-style bikes, and a An electric SRAM? the financial foundation new e-bike drivetrain, now in for future growth, improve development. For those of you who wonder whether transparency in the industry SRAM will launch electronic shifting for SRAM is working with and ensure SRAM’s existing several OEM partners the the road, the answer is—keep wonder- management would steer the electric-assist components, ing. But Stan Day, SRAM’s president, company’s fate in the long and expects the group to be said the company has been tinkering term. on the market next year, said with electronic shifting for years, noting Although limited from David Zimberoff, SRAM’s that when SRAM bought Sachs in the talking about company global marketing director. late 1990s it also bought the Sachs S7, operations or financial details “It’s primarily going to an internal hub with electronic shifting. by a “quiet period” required be a European initiative,” Day, ever the gentleman, complimented by U.S. regulators before Zimberoff said, adding that on its Di2 system. Still, Day issuing an initial public of- American brands still need to pointed out, it’s not clear to him that a fering, Day addressed a few shape the future of the urban motor and a battery pulling cable is the of the reasons behind the category there. way for SRAM to go. But the company company’s decision to list on Another benefit in has some prototypes, he added. “If the Nasdaq stock exchange, becoming publicly traded the market demands it, we’d do it. It’s an announcement first made is increasing influence on not that mysterious,” Day said. SRAM’s in May. government entities during David Zimberoff, in a separate conver- The capital raised by the discussions about cycling sation, was more succinct: “If at some IPO—expected to be about infrastructure improvements. point we have an offering in the road $300 million—will allow the As for when SRAM will SRAM president Stan Day discusses group it will be game changing.” No “me $524 million company to too” products for SRAM, David Z. added. list on the market, it could the state of the component maker’s grow. Day set the stage for plan to go public during a press the first move in that direc- conference Wednesday at Eurobike. Shake, rattle and rain tion by declaring SRAM’s in- Continued on page 2 Yes, U.S. retailers do cross the Atlantic to come to Eurobike, and among them is Scott McAhren, owner of Freshbikes in Arlington, Virginia. And it doesn’t hurt Speedplay mountain to get an invite from Fausto Pinarello to stay at the same hotel. This is McAhren’s second trip to Eurobike, plus a double pedal a fitter’s friend run-in with Mother Nature. First, it was the 5.8-magnitude earthquake that ichard Bryne will not For customers who demand pedal body and shims to adjust shook and rattled the East Coast. And release a pedal before its precision when slapping feet into for cant. The open architecture then, as he was about to cross the pond Rtime. And it has taken the cleats, the Syzer delivers. It is the helps shed mud, and its forward- to Germany, Hurricane Irene hit the East- founder of Speedplay more than most full-featured mountain bike latch-only design keeps riders ern Seaboard. But it’s not all bikes and a year, including a decision to pedal on the market. locked in. German cycling culture. McAhren, who scrap a new mountain bike pedal It’s also Speedplay’s first SPD- But when talking with brought along an employee, sneaked in last year, before introducing the compatible pedal. It’s available Bryne, it’s the pedal’s rotational a day trip to Audi’s factory in Ingolstadt, Syzr at Eurobike Wednesday. with five spindle lengths (50, 53, float—10 degrees of float (5 de- about three hours north of Friedrich- Think of the new Syzer 55, 59 and 65 millimeters), shims (Scissor) as a bike fitter’s dream. to adjust stack height within the Continued on page 4 Continued on page 2 tory issues posed by the Sarbanes-Oxley SRAM Act,” he said. The act, officially known as the Public Company Accounting Reform and Continued from page 1 Continued from page 1 Investor Protection Act, was passed by Con- shafen. A day after the two-hour private gress in July 2002 as a reaction to a number tour, the two were still jawing about how be anywhere from next month to next year, of accounting scandals involving public the luxury cars are made in a 98 percent given the uncertainty in today’s global companies such as Enron and Tyco. automated factory. “It’s so enormous,” economies and the choppy capital market, Meeting the act’s requirements imposes McAhren said of the plant, which includes Day said. additional staff and reporting costs. “Some- roads just for testing. “It was really, really “The timing of our IPO isn’t clear to me times it feels intrusive, like showing that we neat.” as I stand here today,” he said, speaking to a aren’t cheating our shareholders. We’re an room full of journalists gathered for SRAM’s honest company and I find that frustrating,” two-hour new product press conference. he said. As for cost, Day estimates that it will Around the world “We’ll go public when the market calms shave one-third to one-half of a percentage in seven years down, when the U.S. government figures out point off revenue. Still, it requires SRAM to improve its Hiram Chen, a Taiwanese adventurer, its debt, when Europe figures out what to do planning, and while it layers in new internal wore out four frames, a variety of com- with its currency issues.” accounting standards, it will improve the ponents and dozens of tires as he took Day said the regulatory atmosphere company’s financial discipline, he added. seven years to circumnavigate the globe, today poses challenges for any company that goes public. “We’ve had to add another layer to our business so we can meet the regula- —Nicole Formosa News briefs

and China products and they have Patent injunction been duly notified,” concluded Clarke. granted against “To be honest, most of our intellectual property is a matter of public record and Hiram Chen is flanked by SRAM’s Dahon N.A. products anybody with questions is welcome to Hank Kao (left) and Billy Yu. he Munich District Court in Germany contact us for clarification.” Thas granted a preliminary ex parte pedaling every inch of the way. And here injunction against several Dahon North Accell Group increases he was at Eurobike, diligently thanking America products for design patent viola- the companies that supplied him with tion. The design patent covers Dahon’s holding in Derby Cycle gear. “I had to fly home every now and Ios and Vector models, which Dahon ccell Group announced Wednesday then so that my mom would know I was North America has been offering as part Athat it would increase its minority still alive,” said Chen as he dropped by the of its 2012 range. stake in Derby Cycle AG to approximate- SRAM booth to thank the company for With the injunction, Dahon North ly 22 percent. The Dutch Accell Group America is forbidden by the court from its support. It was the freezing weather in acquired shares through the stock ex- selling or marketing based on Tibet that he remembers most. “Every- change, taking advantage of recent lower these frames in Germany. This prelimi- share-price levels, and reached agreement thing I had froze,” he said. Among some nary court order is effective immediately with a third party to acquire an addition- of the Taiwanese companies who helped and bans the display of bikes, frames and al stake in Derby Cycle, Germany’s largest Chen make his dream come true were all marketing material picturing or refer- Kenda tires, Sigma computers, Cionelli encing these products from Dahon North bike manufacturer. saddles, VP pedals and Kinesis frames— America’s Eurobike booth. In late April, Accell acquired a 5.7 just to name a few. Check out his photos “Dahon has always been made up pri- percent interest in Derby. At that time, at tw.myblog.yahoo.com/bike-travel. marily of three independent companies— Accell said it appreciated the strong Dahon Global, Dahon China and Dahon development of Derby and recognized A sales role reversal North America—cooperating closely the underlying positive trends and suc- together. As many people are aware, for cessful strategy of the company. This was As most of you know, our longtime edi- the 2012 season Dahon Global, based in confirmed in Monday’s publication of the tor, Megan Tompkins, left BRAIN in July Taiwan, will no longer be working with third-quarter earnings figures in which to take an OE sales job at Shimano. A Dahon China or Dahon North America,” Derby reported a 38 percent jump in surprising move, but one that Megan is stated Stewart Clarke, Dahon Global sales and a 45 percent increase in operat- handling with grace and style. But it still legal manager. “All of these entities have ing profit. catches a few industry hands by surprise. intellectual property that they have inde- The investment offers Accell the Raleigh’s Chris Speyer said he was in pendently developed and it is important opportunity to further participate in the a product meeting and noticed Megan that ownership is respected. Legal actions future growth of Derby, the company sitting there. “I thought, what’s a BRAIN are always a last resort, but this is a clear said in a press release. Currently there are editor doing here?” he said. Then, snap, indication of our will to protect our intel- no discussions with Derby on a strategic he remembered. “Oh, she’s at Shimano.” lectual property. cooperation and/or public offer. Accell “We have identified additional poten- financed the increase of its stake from an —Marc Sani tial IP issues with Dahon North America additional credit arrangement.

2 Retailer and Industry News Special Eurobike Newsletter 2011 • Day 2 www.bicycleretailer.com SORTIE29 BLACK Weapons Grade Aluminum Sortie 29 4.5” Trail Frame w/ Knuckle Box Suspension Platform, Taper Tube, and 142x12mm Thru Axle Drop Outs Fox 32 Float29 RLC FIT 120mm Fork, Taper,15QR / Fox Float RP23 XV Rear Shock w/KASHIMA COAT Easton EA90 29 Wheelset 15QR / 142x12 E-Thru rear axle Shimano XTR DYNA-SYS Trail Triple Crank, XTR Shadow Plus rear Shimano XTR Hydraulic Disc Brakes

Speedplay Continued from page 1

grees side-to-side) that may opportunity to work closely be its most compelling fea- with customers who need a ture. The micro-adjustable pedal fit that compensates pivot mechanism has inward for leg-length differences, and outward float-limit cant and a variety of spindle screws so riders can adjust length to improve the Q float without repositioning Factor, Bryne said. Except the cleat on the shoe. for the composite piece sur- “It was just over a year rounding the pedal and sev- ago, just before this show, eral parts inside, key parts and the design I had wasn’t are machined in Los Angeles right, so I started over,” said and assembled in San Diego, Bryne. The Syzr, despite its Speedplay’s headquarters. many features, weighs no Speedplay will debut The SPD-compatible more than most pedals cur- its pedal for U.S retailers Speedplay Syzer rently on the market. With at Interbike. As for now, stainless steel spindle, the final pricing has yet to be cleats and pedals weigh 300 set, but it will range from grams per pair; the titanium $130 (chromoly spindle) spindle drops weight to 266 up to $320 for the titanium grams per pair. version. For retailers who special- ize in fit, it offers them an —Marc Sani

4 Bicycle Retailer and Industry News Special Eurobike Newsletter 2011 • Day 2 www.bicycleretailer.com

Mavic’s Zack Vestal New helmets displays the company’s new pro-level Plasma SLR round out Mavic helmet. accessories line

avic engineers studied measurements from 25,000 heads— data kept by the British military—to come up with the per- Mfect shape for the brand’s new line of helmets. Developers used cranial mapping to identify pressure points and head contours before coming out with its Ergo Shape design. The design is the base for Mavic’s first three models of helmets: the top-of-the-line Plasma SLR, the Plasma and the Syncro, all of which integrate Mavic’s signature yellow-and-black color scheme. Mavic released the array of helmets at Eurobike on Wednesday. headquarters in France over the past three years. Price points range The pro-level Plasma SLR is structurally reinforced with carbon from $125 to $220. Helmets will be available in October. fiber and uses dual-density foam to optimize wicking and breath- Scott McAhren, owner of Freshbikes in Arlington, Virginia, has ability. The rear dial retention system offers six centimeters of already ordered a few of the helmets and thinks they’ll sell well in adjustment, and Ergo Fit pads line the shell’s inside. his high-end road and tri shop. The Plasma SLR weighs 300 grams—not the lightest in the “They’re different enough. They very European,” he said game, but that’s not the point, said Zack Vestal, Mavic’s communica- while cruising through the Mavic booth at Eurobike. tions and PR manager. The helmet line is a natural progression in Mavic’s expanding “The weight war isn’t a battle we wanted to enter off the starting line of apparel and footwear, Vestal said. line,” Vestal said. With the company’s focus on lightweight wheels “The wheel business is mature, so this is a growth opportunity. and shoes, “weight is definitely a topic. It’s hard not to imagine there Helmets continue the progress from head to toe with a complete might be a lighter model [in the future].” outfit,” he said. The Syncro and Plasma models come with visors to adapt to In the first half of the year, Mavic sales have grown 17 percent, trail riding, and lower-level models are reinforced with an alumi- with sales of 27.9 million euros. num glass fiber instead of carbon. Helmets are supplied by a third- party vendor, but the designs were developed in-house at Mavic’s —Nicole Formosa RXC PRO

Performance inspired from a single idea and focus: speed. In 2010 we took the cross scene by surprise by introducing the fastest production SSCX frameset on the market. This year we’re providing the same Colorado Cup-dominating Direct Connect Carbon technology to the rest of the fi eld in the form of multiple gears. In doing so, we created a 1100g mud-shedding, shoulder-bearing, fi nish line-sprinting pure cyclocross race bike.

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RALEIGHUSA.COM EUROBIKE 2011 PHOTO PAGE

Gregg Westmoreland (and daughter Mia), Morgan Nicol, Catherine Westmoreland and Simona Brauns-Nicol enjoy Eurobike’s 20th anniversary party. Gregg and Morgan have attended all 20 Eurobike shows.

Eurobike CEO Klaus Wellmann and project director Stefan Reisinger welcome the crowd at Eurobike’s 20th anniversary Jam party Wednesday night. session at Kona Bikes

A steady stream of riders rounds the bend on the e-bike test track.

Eurobike handed awards to 59 products across 17 categories Wednesday night. Some 430 Eurobike dis- products from played innova- 27 countries tive bikes from around the world over the years competed for the to celebrate its coveted Eurobike 20th anniver- Awards this year. sary. Here, a singlespeed 1991 Ritchey Road Classic set up with Cam- pagnolo Scha- mal wheels.

TAITRA’s Jeremy Horng, Giant CEO Tony Lo and Giant Europe BV president John Koo at Eurobike’s 20th anniversary bash Wednes- day night. Serving up beer and brats at the RadMarkt booth

7 Bicycle Retailer and Industry News Special Eurobike Newsletter 2011 • Day 2 www.bicycleretailer.com