DUARTE, California — September 2003 — Dahon California, Inc., the world's leading manufacturer of folding bicycles, today announced that UK sales had jumped more than 40% over the year earlier period since the implementation of the London congestion charge. Put into effect on February 17, 2003 the London congestion charge requires motorists to pay £5 for driving within the city center. The objective is to reduce gridlock in the city and encourage people to use alternative forms of transportation.

"The congestion charge was a bold move by the city of London and by almost all accounts, it's been a huge success," stated Dr. David Hon. "Cycling has become faster and safer and the city more "livable". We expect that a lot of other cities are watching London's example closely and will follow suit in the near future. We need more people like Ken Livingstone to push for sustainable transport. Naturally we are very pleased that our bicycles are part of the solution and are playing an important alternative transport role." Dahon expects the London congestion charge to provide a continuing positive impact to folding bicycle sales. For 2004, Dahon expects to introduce several new commuter models.