DUARTE, California — August 2002 — Dahon California, Inc., a world leader in mobility solutions, today announced that 2002 gross revenues have increased by more than 30% relative to the same period in 2001. Increased revenues from patent licensing and sales of complete bicycles contributed to the growth. Dahon recorded robust growth in sales in all major markets.

"2002 has been a very difficult year for the bicycle industry so our results are extremely encouraging" stated Dr. David Hon, Dahon president. "Our healthy growth shows us that consumers are responding to our products and that the underlying demand for quality folding bicycles is not only strong but accelerating."

2002 revenues were given a big boost by Dahon's patent enforcement program in Japan and elsewhere. Over the last several years, several of Dahon's patents have been widely infringed upon by dozens of manufacturers in Asia. Dahon's commitment to protect its intellectual property against patent violators has resulted in many companies paying patent royalties to Dahon. In addition, many distributors who were unknowingly duped into buying patent-infringing bicycles have chosen to switch to Dahon as a supplier.

Dahon also experienced strong growth in mid/high priced folding bicycles in all major markets. Features in high demand included suspension, light weight designs, and new Dahon folding technology.

"Environmentally-responsible transportation is becoming an ever more important issue around the world," continued Dr. Hon. "We're proud that our bicycles are an important part of the solution. With better weather in Europe and the global economy poised for an upswing, we are looking forward to an even better 2003."