The Accell Group is continuing to show strong growth in the European bicycle and fitness market with sales increasing 17.8% to €341.1 million ($424.3 mm) compared to €289.6 million ($327.9 mm) in 2003. Organic sales grew 7% for the year while income jumped 38.2% to €13.0 million ($16.2 mm) compared to €9.2 million ($10.4 mm) last year. Accell’s EPS jumped 38.2% to €1.50 per share compared to €1.10 per share last year after adjustment for the 2-for-5 share split in December 2004.

The second half of 2004 did not show quite as much momentum as the first half, which posted sales growth in excess of 20%, but Accell sales still jumped 10.1% to €136.8 million ($171.5 mm) versus €124.3 million ($144.2 mm) last year. Second half income jumped 31.0% to €5.5 million ($6.9 mm) compared to €4.2 million ($4.9 mm) last year.

René Takens, Chairman of the Executive Board of Accell Group, said that the European consumer is still willing to spend money on high end products while mid-tier items are experiencing declining demand.

“The bicycle market seems to be changing somewhat. Consumers are making increasingly sharp choices between price and quality,” Mr. Takens said in a prepared statement. “This means that, in the bicycle trade, there is a visible trend towards lower and higher priced bicycles, increasing market share at the expense of mid-range bicycles. The average price per bicycle paid by the consumer remains stable.”

Accell is also seeing the German market stabilize from its recent downward trend, while France continues to be a strong market for the company’s brands, and other countries remain stable.

Accell continues to make progress, mainly through acquisition, in the bicycle parts and accessories market. The company is integrating Juncker and F. Van Buuren into its operations combining the two companies into a single location in January of 2005, which now operates under the name Juncker Bike Parts.

In its future guidance, the company said the general economic outlook for 2005 is “cautiously positive” and it expects a further increase in turnover and earnings per share in 2005. Accell further expects to continue to realize sufficient synergy benefits in 2005. In addition to organic growth, the company said it “may realize growth through acquisitions,” and it will continue to search out candidates.