Prior year net sales and selling, general and administrative expenses have been restated pursuant to EITF Issue 00-
10, Accounting for Shipping and Handling Fees and Costs. In accordance with such, all shipping and handling
billings to customers have been included in net sales, and all freight costs incurred for product shipments have been
included in selling, general and administrative expenses. Previously, the Company offset shipping and handling
charges billed to customers and the related freight costs within selling, general and administrative expenses. For the
quarterly periods ended March 31, 2001 and April 1, 2000, shipping and handling billings of approximately
$373,000 and $442,000, respectively, have been included in net sales. For the nine months ended March 31, 2001
and April 1, 2000, shipping and handling billings of approximately $1,186,000 and $1,368,000, respectively, have
been included in net sales.
The third quarter also saw the official debut of the Cannondale FX400 ATV (All-Terrain Vehicle), and its first test
rides by editors from ATV magazines. The reviews resulting from those test rides have appeared in recent weeks, and
they are exceedingly positive.
"The FX400 is a thrilling addition to the sport quad market," was how ATV Sport magazine's Glenn Hanson rated the
new Cannondale. "If (other ATV manufacturers) want to compete on the high end of the high-performance market,
they better be working on something good or the FX400 will eat them alive." Hansen's comments were echoed by
Adam Campbell of 4-Wheel ATV Action magazine, who dubbed the FX400 "the highest-tech quad ever developed."
Campbell added that, "in a contest of all-out performance with the Cannondale, it looks like Honda, Yamaha and
Bombardier brought knives to a gun fight."
Cannondale's bicycle division also debuted new designs during the third quarter. In March, the Company unveiled
the downhill-specific Gemini and the Scalpel, a lightweight, full-suspension model for cross-country racing. The
Scalpel will be raced by the team's cross-country athletes, and Scalpel models will also make their way into
Cannondale dealerships for resale to consumers in the coming months.
Matt Phillips of Mountain Bike magazine was one of the first editors to ride the Scalpel, and he was wowed by its
technology. After listing the Scalpel's many innovative features, Phillips noted that "this complete full suspension
bike with tubeless tires and disc brakes weighs just 22 pounds. I shake my head and think, `Who else but
Cannondale?'"
This press release contains forward-looking statements, as defined under the Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those anticipated as a result of various risks and uncertainties,
including risks and uncertainties described in this press release, as well as those detailed from time to time in the
Company's periodic reports on Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the
date hereof. The Company undertakes no obligation to publish revised forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Cannondale Corporation is the world's leading manufacturer of high-performance bicycles. The Company's bicycles
and bicycle accessories, which include clothing, packs and bags, HeadShok suspension forks and CODA
components, are marketed under the Cannondale brand name and "Handmade in USA" logo, and are sold in the U.S.
and in more than 60 foreign countries. The Company has also entered the motorsports industry with its MX400
motocross motorcycle and FX400 ATV. Two additional motorcycle models and another ATV are currently in
development.
