Cybex International, Inc. has entered into an agreement with eNova Group Limited pursuant to which eNova will provide product design and development, marketing and sales concept consulting services to CYBEX on an exclusive basis over a multi-year period. As part of this arrangement, CYBEX has acquired eNova's rights to a contemplated new line of strength products in a conceptual stage of development. CYBEX currently projects that this new line will be ready for introduction in mid-2008.
The principals of eNova include Roy Simonson and Stephen M. Williams, two of the most recognized names in the US fitness industry. Mr. Simonson is responsible for designing several fitness equipment lines that have made a significant impact on the fitness industry and has a number of important patents to his credit. Mr. Williams is an experienced executive with a great deal of global marketing, branding and technology development experience with several well regarded fitness and non-fitness related companies.
John Aglialoro, Chairman and CEO of CYBEX, stated: “We are excited about gaining the expertise of eNova, led by Roy Simonson and Steve Williams. Steve and Roy, both of whom once worked for CYBEX, are among the most talented individuals in our industry. Their combination with our talented and proven product development and marketing staff will create exciting opportunities for our company.”
Simonson stated, “We intend to bring to CYBEX what we and the industry have learned over the past 25 years to develop breakthrough fitness equipment.” Williams continued, “Roy and I are looking forward to supporting the CYBEX organization and accelerating the CYBEX mission. We invite our many industry colleagues to reconnect with us at the CYBEX booth during the upcoming IHRSA convention.” IHRSA, the International Health and Racquet Sports Association, convenes at San Francisco's Moscone Center on March 29-31, 2007.
CYBEX anticipates that upfront costs under this arrangement will result in first quarter 2007 pre-tax expenses of around $500,000.
