For Immediate Release
SAN JOSE, Calif. (April 25, 2000) -
ROCKSHOX, Inc. (NASDAQ: RSHX) - the leading developer of high performance mountain bike suspension - today announced that it will move its corporate and manufacturing operations to Colorado Springs, Colorado.
RockShox will move its Sales, Marketing, Engineering, Research and Development, Information Technology, Finance and Human Resources divisions from the Silicon Valley area, to the more active-lifestyle location of Colorado Springs this summer. The Company’s manufacturing operations will remain at its current location in San Jose until a later, to be determined date.
“Earlier this year we made the decision to leave San Jose. The cost of operating in the Silicon Valley area has become burdensome for the business, and the congestion has become less conducive to the lifestyle of many of our employees. We initially searched over 80 potential locations within the Western United States, and ultimately, Colorado Springs best met our criteria," said Chief Executive Officer Bryan Kelln. "Our search criteria were grouped into two categories – key criteria to improve the business, and key criteria to satisfy our employees. In the business category, we believe Colorado Springs provides a strong labor pool at a reasonable cost, a significant support infrastructure for manufacturing operations, and a set of private and public organizations which we have found to be very helpful in the relocation process. In the employee satisfaction category, Colorado Springs was a clear winner. The region offers unlimited outdoor recreation in just about every sport or activity imaginable. Colorado Springs also offers a surprising amount of ‘big city’ appeal, without the disadvantages large cities can bring. The Springs’ proximity to Denver was also rather attractive.”
We believe the location provides opportunities for RockShox to continue to be the leading developer of high performance cycling suspension products, a new business category that it created in 1989. In addition, the proximity of the Olympic Training Center will bode well for the Company, as many athletes on the United States Mountain Bike Team currently race on RockShox products.
Mr. Kelln continued, “This is a significant step toward rebuilding the profitability of RockShox. The move should decrease our operating cost structure, while providing a high level of employee satisfaction.”
For inquiries relating to our relocation program, please direct your e-mail to CSRelo@RockShox.com or telephone Elizabeth Kone in Human Resources at 408-570-4939.
About RockShox, Inc.
RockShox, Inc. is a worldwide leader in the design, manufacture and marketing of performance bicycle suspension products. The Company was founded in 1989, as the pioneer of modern bicycle suspension systems. Since that time, RockShox products have enhanced the comfort and performance of bicycling, as the sport of mountain biking has grown from an enthusiast to Olympic sport. The Company currently markets front suspension forks, rear shocks, and suspension seat posts under its Judy, Jett, Ruby, Boxxer, SID, Metro, and Deluxe product lines. More information is available at the Company's web site www.rockshox.com.
Certain statements made in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors are discussed in detail in RockShox's Annual Report on Form 10-K for the fiscal year ended March 31, 1999. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained in the Annual Report on Form 10-K or this news release.
FOR: ROCKSHOX, INC.
APPROVED BY: Chris Birkett
Chief Financial Officer
(408) 570-3520
CONTACT: Morgen-Walke Associates, Inc.
John Swenson, Leigh Parrish
(415) 296-7383
Sara Martowski
(212) 850-5600
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