[DVBC] Specialized to be sold to GM

[Drew Knox]

[image: San Jose News, Silicon Valley / San Jose Business Journal, San Jose
Newspaper] <http://www.bizjournals.com/sanjose/>

Monday, March 31, 2008 - 13:49 PM PDT
 General Motors to purchase Morgan Hill bicycle company
Silicon Valley / San Jose Business Journal

General Motors has announced the acquisition of Specialized Bicycle
Components. The boards of directors of both companies approved the
acquisition on Friday. The acquisition is expected to be completed in the
third quarter of 2008 pending regulatory approval in the US, Canada and
Europe. Terms of the all-share acquisition from Specialized Founder and
President Mike Sinyard and Merida of Taiwan were not disclosed.

The deal does not include GM acquiring any of the 19 Specialized Concept
Stores, a retail formula launched in 2006. All Specialized Concept Stores
are independently owned.

"In light of global concerns about climate change, GM has been at the
forefront in developing new transportation choices that limit our impact on
the environment," said Flora Lopi, GM's vice president, Environment, Energy
and Safety Policy. "GM's engineering, marketing and distribution expertise
combined with Specialized's branding among cycling enthusiasts make this a
winning combination for GM investors and consumers."

Specialized founder and president Mike Sinyard said, "All of us here at
Specialized are thrilled to be a part of GM. While Specialized remains
committed to independent bicycle dealers, our products will also now be
available across the nation in GM dealerships. Specialized will never be
available through mass merchants. The acquisition by GM will enhance the
service to the specialty retail channel, increase investments in dedicated
merchandising programs, introduce sales efforts in mainstream outlets,
support advocacy and the activity of cycling, invest and expand in Europe
and, most important, bolster an already strong research and development
budget."

GM Chairman and CEO Rick Wagoner said, "We're starting our second century at
a time of fundamental change in the way we address our transportation needs.
In addition to our leadership role in developing the next generation of more
sustainable technologies in hybrid and alternative fuel engines, we'll
leverage the unique synergies of the bicycle community to introduce some of
our ideas for addressing critical issues concerning energy, the environment
and globalization."

Sinyard is contracted to stay on through until the end of March 2009. Robert
Kruse, currently executive director of Vehicle Integration, Safety, Regional
Chief Engineers and Performance Division for GM's North America engineering
staff will work alongside Sinyard. No other management changes have been
announced. Kruse is an enthusiastic road cyclist, having three times ridden
RAGBRAI, the annual bike ride across Iowa.

General Motors Corp is the world's largest automaker. Founded in 1908, GM
has 274,000 employees worldwide. With global headquarters in Detroit, GM
manufactures cars and trucks in 35 countries. In 2006, nearly 9.1 million GM
cars and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab,
Saturn, Vauxhall and Wuling.

Specialized Bicycles, founded by Mike Sinyard in Morgan Hill, CA, in 1974,
designs and manufactures a complete line of high-performance bicycles and
components, including the first production mountain bike, which now resides
in the Smithsonian Institute, and its Body Geometry line of medically proven
cycling accessories. Specialized is a company of devout cyclists whose goal
is to create cutting edge, functional and technically advanced products that
provide a performance benefit for the enthusiast cyclist.
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