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Cannondale Resumes Motorcycle Production

21 December 2000

Cannondale Reduces Debt, Eliminates Warrants, And Resumes Motorcycle Production

    BETHEL, Conn., Dec. 19 Cannondale Corporation
has paid down approximately $12,000,000 in long-term debt, and
resumed production of its MX400 motorcycle.
    The pay-down also terminates the warrant granted in June 2000 to Ableco
Finance LLC, one of the Company's lenders.  The warrant would have allowed
Ableco to purchase 393,916 shares of the Company's common stock beginning
June 30, 2001 at $0.01 per share under certain circumstances.  The pay-down
follows Cannondale Founder and President Joe Montgomery's full repayment of
notes totaling $12,000,000 and all related accrued interest to the Company.
    Cannondale also announced today that it has resumed production of its
MX400 motocross motorcycle.  Production had been halted in October while the
Company completed testing of improved components.  "Our core bicycle business
continues to be strong, and now we're excited to have the motorsports division
back on-line," said Montgomery.  "With the MX400 on its way to dealers and
customers, and with the FX400 waiting in the wings, we're looking forward to
an exciting 2001."
    The FX400 is Cannondale's much-anticipated four-wheeled ATV
(All-Terrain Vehicle).  The FX400 uses the same basic engine platform
developed for the MX400.  The Company is testing FX400 prototypes every day in
a variety of conditions, as documented on Cannondale's web site at
http://www.cannondalemotorcycle.com/gallery/.  Shipments of production units
are expected to begin in the first quarter of calendar 2001.

    Cannondale Corporation is the world's leading manufacturer of
high-performance bicycles.  The Company's bicycles and bicycle accessories,
which include clothing, packs and bags, HeadShok suspension forks and CODA
components, are marketed under the Cannondale brand name and "Handmade in USA"
logo, and are sold in the U.S. and in more than 60 foreign countries.  The
Company has also entered the motorsports industry with its MX400 motocross
motorcycle.  In addition to the FX400 ATV, the Company has also announced
plans to develop two additional motorcycle models.

    This press release contains certain forward-looking statements, as defined
under the Private Securities Litigation Reform Act of 1995.  Actual results
may differ materially from those anticipated as a result of various risks and
uncertainties, including risks and uncertainties described in this press
release, as well as those detailed from time to time in the Company's periodic
reports on Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange
Commission.  Readers are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date hereof.  The
Company undertakes no obligation to publish revised forward-looking statements
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.