Cycle Country Acquisition Already Producing Positive Results; Simonsen Iron Works Acquisition Expected to Result in Increased Profits
MILFORD, Iowa--June 7, 2005--Cycle Country Accessories (AMEX: ATC), the industry leader in the design and manufacturing of custom-fitting accessories for utility all-terrain vehicles, today announced that it is already seeing positive results from the recent acquisition of long time supplier Simonsen Iron Works.Cycle Country acquired Simonsen Iron Works in April 2005. The Spencer, Iowa-based Simonsen plant is now being used to manufacture and assemble two major components of Cycle Country's best-selling core product, the snowplow blade for ATV's.
"After the steel parts are made and come off the paint line," explained Ron Hickman, President of Cycle Country, "they go directly to the new assembly line in our Spencer plant instead of being trucked up to our Milford facility for assembly. By having the entire start to finish process in the Spencer facility, we have a complete product in less time and at a significant cost savings. "
Another benefit of the merger is the ability to back haul steel and other raw parts using Cycle Country's own fleet of trucks to the Spencer facility. This will produce significant savings in inbound freight costs.
"There are additional cost-saving opportunities beyond the two described above we have identified that in the future will create even more positive results for our shareholders and us," added Mr. Hickman.
About Cycle Country Accessories Corporation
Cycle Country, with over 50%of the worldwide market in several product categories, is the industry leader in the design and manufacturing of custom-fitting accessories for virtually every brand of utility all-terrain vehicles (ATV's).
To view the company information, updates, the latest SEC filings or past news releases, go to the company's web site at www.cyclecountry.com and click on the Investor Relations heading. Please direct any financial questions Theresia Whitfield, Communications Director at Magellan Financial Media Group, LLC (317) 867-2839.
This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of Cycle Country Accessories Corporation, nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Forward looking statements: This press release and the statements by Cycle Country may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe", "expect", "estimate", "potential", or future/conditional verbs such as "will", "should", and "could".