Exide Technologies Wins New Supply Agreement from Dazon Motorcycles
PRINCETON, N.J., May 9, 2003 -- Exide Technologies (BULLETIN BOARD: EXDTQ) , a global leader in stored electrical-energy solutions, has secured a new original equipment supply agreement with Dazon Motorcycles. Dazon, based in Tempe, Arizona, is a manufacturer and marketer of motor scooters, motorcycles, all terrain vehicles (ATVs) and generators. According to the terms of the agreement, Exide is the exclusive supplier to Dazon, providing Champion branded motorcycle batteries to this new customer.
"Exide has a reputation for providing the highest quality batteries in the industry, and with the projected growth that we are going to enjoy in the U.S. market, it was crucial for us to select a manufacturer with the capability to provide us with the quality and quantity that we require," said Mike Siglar, National Sales Director for Dazon.
Dazon vehicles are built in China, shipped to the U.S. and fitted with batteries before they go on the market in U.S. distributorships. The company plans to open 125 U.S. dealerships -- selling some 6,000 vehicles by the end of 2003 -- and expects to have 11,000 vehicles on U.S. roads by the end of 2004. While motorcycles and ATVs will be standard part of the company's product line, Dazon intends to make a splash in the market with its line of sporty motor scooters.
Scooters have been a staple of transportation in Europe and Asia for decades, and now are enjoying renewed popularity in the U.S. According to the trade group, Motorcycle Industry Council (MIC), Americans bought 50,000 motor scooters in 2001, as compared to 25,000 vehicles in 1999. Early 2002 reports showed an increase in scooter sales by almost 40 percent despite the caution of consumers in an uncertain economy.
Starting in July of this year, Dazon will expand its U.S. product line from scooters and ATVs to motorcycles, which, according to MIC, have been selling in record numbers for 10 consecutive years. In 2001, the industry sold more than 850,000 new motorcycles, and in 2002, more than 937,000 of the two-wheelers.
"Our new alliance with Dazon is the result of our ability to deliver consistent, world-class products and customer service," said Craig H. Muhlhauser, Chairman and CEO of Exide Technologies. "As Dazon's presence expands, we will support the company in achieving its goal of increased U.S. market penetration."
About Exide Technologies:
Exide Technologies, with operations in 89 countries and fiscal 2002 net sales of approximately $2.4 billion, is one of the world's largest producers and recyclers of lead-acid batteries. The company's two global business groups - transportation and industrial energy -- provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.
Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and 42-volt automotive applications.
Industrial markets include network power applications such as telecommunications systems, fuel-cell load leveling, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.
Further information about Exide, its financial results and other information is available at www.exide.com.
Certain statements in this press release may constitute forward-looking statements as defined by the Securities Litigation Reform Act of 1995. As such, they involve known and unknown risks, uncertainties and other factors that may cause the actual results of the company to be materially different from any results expressed or implied by such forward-looking statements. These are enumerated in further detail in the company's Form 10-K.
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