January 1, 1998

Although purchased by Saucony, Inc., less than ten months ago, Merlin Metalworks has enjoyed the biggest 4th quarter in its company's storied history. Both in units sold and in gross revenues, Merlin's Q4 exceeded projections. "We set an aggressive target for Q4," said Merlin GM Federico Larco, "yet we sold twenty percent more than expected. This is a positive change for us, as Q4 has always been a slow quarter."

Part of Merlin's Q4 success is based on robust MTB sales. Unit sales in off-road bikes had shrunk, by mid-year, to less than 20% of all Merlin units sold. The incorporation of three new models, the Echo, Fat Beat, and Fat Ti, incorporating technologies licensed from Cannondale and Moots, have boosted off-road to more than double its mid-year low. Now more than 40% of all Merlin bikes sold are comprised of these off-road models.

Also playing a part is Merlin's new multi-sport bike, the Aerial, which alone is responsible for a double digit percentage of units sold. The Aerial features geometry, a front fork, and a front derailleur clamping system, borrowed from its sister company Quintana Roo, World's largest maker of triathlon-specific bicycles.

The workhorses of Merlin's line, though, are its road bikes, chiefly the Extralight, which continues to be the lightest titanium road race frame worldwide, made of the bike industry's straightest titanium bike tubes (MTS3/2.5), and finished by arguably the finest artisans and craftsmen in the bike building business.

Finally, Merlin's association with Saucony, Inc., has given it the ability to offer business solutions to Independent Bike Dealers it could not previously offer. Merlin bikes will now be more available throughout the year on showroom floors, stocked in bigger numbers, and more easily purchased by end-users with less wait on special order and custom items.

Merlin Metalworks is a division of Saucony, Inc. Merlin builds high-end titanium bicycle frames and complete bikes for the road, off-road, and multi-sport markets, all of which are built in its factory in Cambridge, Massachussetts. Merlin, Quintana Roo, and Real Design are registered trademarks, and together comprise the "hard goods" component of Saucony, Inc.'s bike division. Hind, another Saucony, Inc., company, manufacturers cycling clothing, along with apparel for swimming and running. Saucony, Inc.'s other brands include Saucony footwear for performance running and walking, and Spot-bilt shoes worn by coaches and referees.