DUARTE, California — January 27, 2003 — Dahon California, Inc., the world leader in folding bicycles, today announced that 2002 gross revenues increased by 24% relative to the year ago period. Strong sales of complete bicycles and increased revenues from patent royalties contributed to the growth. Unit volumes of complete bicycles increased by 33%, with growth in all major markets. "2002 was a very difficult year for us and our friends in the industry," stated Dr. David Hon, Dahon president. "But one trend we are happy to see is the return of the bicycle as a transportation tool. We've had many New Yorkers, and also customers from other cities, tell us that they bought a Dahon so that they could feel more secure and self-sufficient. With a bicycle, there's always a transportation option, even in the face of natural disasters, labor strikes, or worse."

Dahon recorded strong sales of complete bicycles in all of its major markets. In particular, medium and high priced folding bikes saw a healthy jump in sales. Demand for Dahon's super light weight bikes was particularly strong. Sales were also boosted by strong growth in the China market.

"In 2002 we saw a clear preference for quality over price," continued Hon. "As the market for folding bicycles matures, consumers and dealers are realizing that since folding bicycles are often used on a daily basis it is usually worthwhile to spend a few dollars more for quality and durability."

Dahon's 2002 revenues were also boosted by patent royalty payments from companies in China, Taiwan, and Japan. Many Dahon patents have been widely infringed upon by manufacturers in Asia. In 2002, Dahon also won a long-standing legal battle with the founder's of Neobike, with the accused found guilty and sentenced to five months in prison.

"Despite our good results in 2002, we expect even stronger growth in 2003", continued Hon. "We're off to our best start ever and our hope is that the global economy can quickly return to stable and steady growth."