Cannondale Corporation (BIKEQ.PK)

Cannondale Corporation is a manufacturer of high-performance bicycles and an emerging player in the off-road motorsports industry. The Company offers 89 bicycle models in the 2003 model year, all of which are hand assembled and constructed with hand-welded aluminum frames. Cannondale also sells other bicycle-related products including clothing, shoes and bags, and components, some of which are manufactured for the Company by third parties. In addition, for its 2003 model year, Cannondale is offering five all-terrain vehicle (ATV) models and six motorcycle models. The Company's bicycle products are sold in approximately 60 foreign countries. In January 2003, the Company filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. In May 2003, the Company concluded its transition through the Chapter 11 bankruptcy process with the closing on the sales of the assets of its bicycle and motorsports divisions to affiliates of Pegasus Partners II, L.P.

Cannondale Corporation manufactures and distributes high performance bicycles, clothing, shoes and bags, and a line of bicycle-related components. For the 3 months ended 9/28/02, net sales rose 9% to $37.3M. Net loss rose from $4.1M to $8.4M. Revenues reflect the growth in motorsport segment sales and favorable foreign exchange rates. Higher loss reflects increased SG&A expenses and a $1.8M write-off of deferred finance cost.