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Non-Tech : CYCY - Cycle Country Accessories Corporation

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To: jmhollen who started this subject5/16/2002 1:15:36 PM
From: jmhollen   of 29
Cycle Country Generates Over $7 Million in Revenues for the First Six Months of Fiscal 2002

MILFORD, Ia., May 16, 2002 (BUSINESS WIRE) -- Cycle Country Accessories Corp. (OTCBB:CYCY), the recognized leader in developing and manufacturing custom-fitted accessories for the all-terrain vehicle (ATV), announces revenues of $7,034,823 for the six-month period ending March 31, 2002. This represents a 5.8% decrease compared with record revenues of $7,447,973 for the same period in 2001. Gross profit for the first and second quarter totaled $1,992,772 verses $2,152,095 for the comparable period in 2001. The Company reported net income from operations of $584,004 compared to $882,465 for the corresponding period last year.

The seasonality of one of Cycle Country's most popular products, the snowplow blade, was significantly impacted due to one of the mildest winters on record. Additionally, during the second quarter of last year the Company had unusually high sales of blade products as their distributors ordered late in the quarter to achieve rebate program goals. This did not occur in the second quarter of this year since most distributors had already achieved rebate program incentive levels. This bodes well for the Company's next two quarters since less product needs to be sold at retail before dealer ordering begins in earnest during the summer and fall.

The Company foresees the selling, general and administrative expenses to remain consistent or to decrease slightly as a percent of revenues during the remainder of fiscal 2002 ending September 30, 2002. This will be achieved from the increased production of new and existing products from the current manufacturing capacity available at their operating facilities in Iowa.

The president of Cycle Country, Ron Hickman stated: "Even though the company experienced decreased sales from the seasonal plow business, sales from new product introductions nearly bridged the gap." Mr. Hickman continued: "Going forward, we anticipate our revenues to increase during the third and fourth quarters, because product inventories within our distribution network are relatively low, which historically leads to increased orders and sales activity. Other key factors contributing to our projection of increased revenues for the remainder of fiscal 2002 include the early success of our new product introductions and the re-engineering of our mainstay products. Additionally, the successful completion of acquiring Perf-Form Products and their premium motorcycle and ATV oil filters should begin to have a positive impact to earnings from our substantially greater distribution channels throughout North America."

On a final note, Mr. Hickman added: "We will continue to address the seasonality of any of our products by continuing our new product expansion efforts while developing several exciting new markets including the lucrative Lawn & Garden category. Cycle Country will record its twenty first year of sustained profitability and our projection for double-digit earnings growth again for 2002 is very much anticipated."

About Cycle Country Accessories Corp.

Cycle Country,, with over 50% of the worldwide market, is the industry leader in the design, engineering and manufacturing of custom-fitting accessories for the utility all-terrain vehicle (ATV).

Since 1981, Cycle Country has developed an extensive line of branded products of mowers, plows, spreaders, sprayers, hitches and many other utility equipment items along with accessories for the recreational user. The Company's accessories custom fit virtually every brand of ATV on the market. Cycle Country's ATV accessories are distributed throughout the U.S. and Canada by a group of 16 distributors who sell their products to essentially all ATV and motorcycle dealers in North America.

The Company has also developed strategic arrangements with 19 international distributors that have sold Cycle Country products in 40 countries throughout Asia, Europe, Central and South America. Additionally, Cycle Country dominates the golf car wheel cover market by manufacturing approximately 90% of all wheel covers sold to original equipment manufacturers (OEM's) worldwide. Through a recent acquisition, Cycle Country also sells high-performance premium oil filters for motorcycles and ATVs throughout the U.S. under the brand name Perf-form Products.

For further information, visit Cycle Country's website at or e-mail to Please direct any financial questions to Scott Gibson at Veritas Capital Group via e-mail to or phone 407/772-7719 from 9am until 5pm (EST). Cycle Country Accessories Corporation Headquarters: 2188 Highway 86, Milford, Iowa 51351, 800/841-2222.

This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of Cycle Country Accessories Corporation, nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Forward looking statements: This press release and other statements by Cycle Country may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "potential," or future/conditional verbs such as "will," "should" and "could."

CONTACT: Veritas Capital Group, Heathrow, Fla. Scott Gibson, 407/772-7719
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