DUARTE, California — August 2002 — Dahon California, Inc., the world leader in folding bicycles, today introduced the first folding bicycles equipped with Shimano's new Capreo component group, a group designed specifically for folding bicycles. As a Shimano development partner, Dahon will be one of the first companies to use this new group on its 2003 models.

"Folding bicycles are entering the mainstream and there's no better sign of this than Shimano's interest in this market segment," stated Joshua Hon, Dahon vice president of sales and marketing. "Over the last 20 years, there have never really been specific components for folding bicycles - we've had to custom design and manufacture most of the special components that we use. Obviously it makes it a lot easier for us when Shimano enters the market with components designed specifically for our bikes. We're very honored that Shimano chose to work with us on the development of this new group." "In the coming years, bicycles will play an increasingly important role in transportation, especially in crowded urban centers," stated a Shimano representative. "Folding bicycles in particular, will play a very important part in helping solve the transport problems that already face us. When we decided to work on this project, we approached Dahon, a market leader that has worked for 20 years to build the folding bicycle market to where it is today."

The Shimano Capreo group includes a 9 spd. rear derailleur, shifter, brakes, hubs, cranks, and bottom bracket. All components are customized for the specific requirements of small-wheeled folding bicycles. Standard drive train components are designed for 26" and 700c wheel sizes and so are not ideal for smaller wheels. The most significant feature of the new Capreo group is the 9 spd. drive train featuring a revolutionary 9-26T cassette, allowing for more optimal gearing.

Dahon will feature Capreo components on its Vx 9.0 and Helios P9 models which will be available in January 2003.

"Optimizing the drivetrain has always been a head ache for us," continued Hon. "The new Capreo components give us the freedom to create more innovative designs. This new group is an excellent first step by the biggest name in the industry."