dealer recruit

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Introduction to Cannondale

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• Celebrated its 30th birthday, June 2nd, 2001- Cannondale Homecoming Weekend, Bedford, PA

• Known for high performance, hand made mountain androad race bikes- Sold in 65 countries

- Leading market share in the U.S.A., Europe, Japan and Australia

Cannondale

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Strategy:

• Best in class– The product speaks for itself on the test ride.– Product driven: Performance is emphasized over advertising or other types

of marketing.• Hand made in Bedford, PA, U.S.A.

– Over 35 hours of hand labor in each unit

• Cutting edge technology• Sold through the word’s finest enthusiast dealers

“ Our passion is to be the best bicycle and motor sports company in the world.Our focus is people - customers, employees, vendors -

working together to accomplish our mission”.Joe MontgomeryFounder & President

Corporate Vision:

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100,000 square foot motorsports factory, Bedford, PA

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All components are computer designed enabling state of the art performance.

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CNC Precision

Multi million dollar computer numeric control (C.N.C.)machines precisely create many Cannondalecomponents with tolerances up to one thousandthof an inch.

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Hand welded aluminum frames

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Over 6 hours of hand welding in every Cannondale frame

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100% dyno inspection before shipping

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Hand Made, in America

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The Market

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Historical US Dirt Bike Sales (250cc+)

Source: MICSource: MIC

$99.4$109.0

$151.5

$204.8

$272.5

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

1997 1998 1999 2000 2001

U.S

. W

ho

lesa

le R

even

ue

in M

illi

on

s

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Historical US ATV Sales

75% of 75% of utility utility usersusers

ride purely ride purely forfor

recreationrecreation

$1,544

$1,891$2,075

$502

$650

$759

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

1999 2000 2001

U.S

. W

ho

lesa

le D

oll

ars

Mil

lio

ns

Utility Quads Sport Quads

Source: MICSource: MIC

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Our Product

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Engine: Design Features

• Dual overhead cams• Broad, usable, power band• Electric start w/ auto decompression• Fuel Injection

– Electronic engine diagnostics– Programmable fuel injection mapping

• One piece crankcase– Greater rigidity, increased durability

• Reversed cylinder head– Hot exhaust manifold is routed out the back engine

directing less heat to the radiator

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Engine: Design Features

• Cassette transmission– Greatly simplifies access to gearing

• Separate engine/trany oils– Clutch material does not contaminate

engine oil

• “In-the-frame” dry sump oiling system

– Eliminates the vulnerability and weight of an external oil cooler

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• GP Control is the engine control software that manages Cannondale fuel injection.

- Developed on the European Moto Gran Prix racing circuitGP Control has traditionally been used on $25,000+ professional race bikes.

- Cannondale is the first O.E.M. application of G.P. Control.

• Benefits of GP Control- Improved drivability- Electronic engine diagnostics- Programmable mapping

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Improved Drivability• Improved horsepower

• No need to re-jet for changes in weather or altitude

• Better cold/warm start

- No need for hot start Button

• Better idle

- You can dial in a custom idle setting

• Reduced stalling

- More accurate fuel metering.

• Improved throttle response

- No more coughing or stalling when blipping the throttle

• Dramatically less engine braking

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- Fuel pump

- Power supply sensor

- Battery voltage

- Coil

- Ignition key

- Cooling fan

- Injectors

Electronic Engine Diagnostics

• Constantly monitors the following engine systems:

• Records fault codes of inconsistencies in any system

• Status of all engine systems can be accessed via P.C.or Palm Pilot; even at trackside

- Throttle sensor

- Air box pressure

- Stepper motor

- Crank tooth sync

- Air temp sensor

- Engine temp sensor

- Ignition map select

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P.

Programmable Fuel Injection Mapping

• Change power characteristics for different riding conditions

• Modify your existing fuel injection map via P.C. or palm pilot

• Download a variety of available customized maps from Cannondale

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Growth Drivers

• On-the-fly fuel injection trim and map selection

• Engine management strategies for competition events- “Holeshot” map- High rpm power map- Linear torque application map- High rpm power map

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2002 Product Line:Off-Road Motorcycles

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• High performance, 4 stroke, D.O.H.C., 4 valve, fuel injected, electric start engine

• C.A.A.D. twin spar aluminum frame

• GP Control, programmable engine management system

• New for 2002, lighter weight, more narrow body work

• Race tuned, Ohlins suspension

• Hand made in the U.S.A.

• 244 lbs. dry weight

• $5,995 MSRP

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• Cannondale’ s high performance cross-country racing machine

• High performance, 4 stroke, D.O.H.C., 4 valve, fuel injected, electric start engine

• C.A.A.D. twin spar aluminum frame

• GP Control, programmable engine management system

• Max air box, three second air filter access

• Magura Hydraulic clutch

• Ohlins suspension

• 2.7 gallon fuel tank

• 18” rear wheel

• Increased flywheel inertia

• Equipped with 170 watt stator for lighting

• Hand guards, o-ring chain, kick stand

• Quieter silencer with spark arrestor

• Hand made in the U.S.A.

• $7,250 MSRP

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• Cannondale’ s high performance racing Enduro

• High performance, 4 stroke, D.O.H.C., 4 valve, fuel injected, electric start engine

• C.A.A.D. twin spar aluminum frame

• GP Control, programmable engine management system

• Max air box, three second air filter access

• Magura Hydraulic clutch

• Ohlins suspension

• 2.7 gallon fuel tank

• 18” rear wheel

• Increased flywheel inertia

• 170 watt stator with headlight and tail lamp

• Aluminum skid plate

• Hand guards, o-ring chain, kick stand

• Quieter silencer with spark arrestor

• Hand made in the U.S.A.

• $7,495 MSRP

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• Cannondale’s highest performance motorcycle, 56 horsepower

• High performance, 4 stroke, D.O.H.C., 4 valve, fuel injected, electric start engine

• Highest engine output of any Cannondale

• C.A.A.D. twin spar aluminum frame

• GP Control, programmable engine management system

• Max air box, three second air filter access

• Magura Hydraulic clutch

• Lighter, more narrow body work

• Race tuned Ohlins suspension

• Hand made in the U.S.A.

• $6,995 MSRP

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Sport Quads

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2002 Product Line:All Terrain Vehicles

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Our Extended A.T.V. Development Team

• Tim Farr, 2000 GNC, 4th Overall, Open Pro • Steve Holbert, 2000 GNCC, 6th Overall, Open Pro• Rich Travelena, 2000 GNCC, 1st Overall, Pro Utility• Donnie Banks, 1988 Mickey Thompson Champion• John Arens, Arens Bros. Racing• Craig Peterson, Carlisle/ITP Tires

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• The same high performance, 4 stroke, D.O.H.C., 4 valve, fuel injectedelectric start engine used in the Speed, Blaze & Moto

• C.A.A.D. twin spar aluminum perimeter frame

• GP Control, programmable engine management system

• Removable brush guard, sub frame & grab rail

• Magura hydraulic clutch

• 370 pound dry weight

• Highest power to weight ratio of anyA.T.V. in it’s price range

• Hand made in the U.S.A.

• $ 6,995 MSRP

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• The same high performance, 4 stroke, D.O.H.C., 4 valve, fuel injectedelectric start engine used in the Blaze & Moto

• C.A.A.D. twin spar aluminum perimeter frame

• GP Control, programmable engine management system

• Competition 11,600 rpm rev limiter

• Removable brush guard, sub frame & grab rail

• I.T.P. Holeshot tires with aluminum wheels

• Magura hydraulic clutch

• Aluminum handlebar

• Race tuned, Ohlins suspension

• 370 pound dry weight

• Highest power to weight ratio of anyA.T.V. in it’s price range

• Hand made in the U.S.A.

• $7,995 MSRP

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Value

• Consumer expense to upgrade Honda 400EX to Speed level:

• Consumer expense to upgrade Yamaha Raptor 660R to Speed level:

Suggested Retail: $5,699Suspension Upgrades: $2,000Engine Upgrades: $1,500Tires: $200Misc perf/lightening upgrades: $550Total out-of-pocket Expense: $9,949(Includes: +2 a-arms, F/R shocks, braided line, ITP tires, engine mod’s for equal pwr to weight, misc alum. components)

Suggested Retail: $6,499Suspension Upgrades: $2,350Engine Upgrades: $730Tires: $200Total out-of-pocket Expense: $9,779(Includes: +3 axle, +2 a-arms, F/R shocks, ITP tires, engine modification to simulate equal power to weight)

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• G.N.C.C. level competition machine

• High performance, 4 stroke, D.O.H.C., 4 valve, fuel injected, electric start engine

• C.A.A.D. twin spar aluminum perimeter frame

• GP Control, programmable engine management system

• Competition 11,600 rpm rev limiter with competition engine mapping

• Ohlins race shock with external, remote reservoir featuring externalcompression and rebound adjustment

• Nerf bars, hand guards, number plates,tether kill switch

• I.T.P. Holeshot XC tires with Beadlock wheels

• Magura hydraulic clutch

• Race tuned titanium exhaust pipe & silencer

• Hand made in the U.S.A.

• $10,450 MSRP

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• G.N.C. level competition machine

• High performance, 4 stroke, D.O.H.C., 4 valve, fuel injected, electric start engine

• C.A.A.D. twin spar aluminum perimeter frame

• GP Control, programmable engine management system

• Competition 11,600 rpm rev limiter with competition engine mapping

• Ohlins race shock with external, remote reservoir featuring externalcompression and rebound adjustment

• Full 50” width

• Race ready plastic

• Magura hydraulic clutch

• Nerf bars, hand guards, number plates

• I.T.P. Holeshot MX tires w/Beadlock wheels

• Race tuned titanium exhaust pipe& silencer

• Hand made in the U.S.A.

• $12,450 MSRP

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Competitive Advantages: Speed

• Lightest production ATV available• Highest power-to-weight ratio of any production ATV• Longest fuel range of any sport ATV• First twin spar, aluminum, perimeter frame on a production ATV• 2” greater ground clearance than Yamaha Raptor• Race ready chassis• Only fuel injected ATV on the market• Engine servicing simplified due to removable engine rails• High strength forgings used in critical stress areas• All front suspension components are isolated from direct metal-to-metal

contact. Increases rider comfort and reduces fatigue.• Forged steering knuckles and hubs for increased strength• Linkless rear suspension (fewer bushings, fewer parts), fewer problems,

less maintenance…

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Value

• Consumer expense to upgrade Speed to Blaze440:

• Consumer expense to upgrade Speed to Moto440:

Speed Retail: $7,995Shocks, Wave Rotors, Brake Line: $2,500Exhaust: $ 500Bars, Grips, Tether Parts, # Plates: $ 250Wheelset, Damper, Sprocket, Nerf bars: $1,100Total out-of-pocket Expense: $12,400

Speed Retail: $7,995Shocks, Wave Rotors, Brake Lines: $2,600Exhaust: $ 500Bars, Grips, Tether Parts, # Plates: $ 250Wheelset, Damper, Sprocket, Nerf bars: $1,100Axle, A-Arms $1,100Total out-of-pocket Expense: $13,545

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Testing

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Testing: Required Tests

• Chassis Pull Down: Jump Landing Simulation• Subframe Side load: Simulates Seated

cornering loads• Swingarm Torsion: Endurance Testing• Chassis Torsion: Endurance Testing• Front Corner Impact: ATV Tree Hit Simulation

E.S.A.L.: Experimental Stress Analysis Lab

Dyno Testing: 1 min simulates 18 hrs. in the field

Field Testing: 3 wks. simulates 1 yr. for the average consumer

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Subtitle, size 26 to 28. All text aligned left.

Analysis

Max. Principal StressSSM Crankcase

Max. Principal StressModified SSM Crankcase

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Product Testing Summary - Performance

• Engine dynamometer testing

• Field testing

• Engine performance- Handling- Braking- Suspension

Product Overview

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Testing

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Testing

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Only via Authorized Cannondale dealers

Extended terms and special pricing

Local Pro Program

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Product Testing Summary - Durability

• Dynamometer testing

- Maximum load, component life, accelerated life

• Field testing – Professional & intermediate riders

- Peak load data acquisition, maintenance intervals, component life, climate testing

• Laboratory testing

- Maximum load, fatigue, accelerated life, failure mode analysis

Product Overview

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Product Testing Summary – Pre-Production and Production

Pre-Production

• Production parts

• Production assembly

Production

• End-of-line testing

- Function

- Electrical

• Production unit field testing

Product Overview

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Marketing Support

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• Industry’s first factory sponsored G.N.C.C. & G.N.C. race team.

• Fox Sports coverage

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Local Pro Program

Only via Authorized Cannondale dealers

Extended terms and special pricing

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Motorsports Press

`

“Like any Cannondale, the engine is bone stock factory race ready! Usually, a shop will spend a fair amount of time at great expense building an engine for a race series. On our Cannondale, we added our custom pipe and tuned the fuel injection system using a laptop computer - jetting with a PC is awesome.”

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ATV Print Ad – Aug.

Advertising

Off-road Advertisement

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Motorsports Press

As of January, 2002

Total Covers 37

• Motorcycle: 14

• ATV: 23

‘98/’99/’00 = 14 Total

’01/’02* = 23 New

*Not pictured 4-Wheel ATV Action Feb. 2002

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“…..in a contest of all-out performance with Cannondale, it looks like Honda, Yamaha and Bombardier brought knives to a gun fight.”

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“If you’re looking to race, the top machine is the Cannondale Cannibal, hands down. Never before has a machine been so thoroughly designed with the track in mind. Believe it or not, in stock trim, the Cannibal eclipses the original Honda FourTrax 250R in terms of race-worthiness. Its high-revving, fuel injected 432cc four stroke engine demands to be ridden hard. The light weight Cannibal is predictable in the air, stable over whoops, and accelerates harder than any other sport machine on the market.”

Which has the strongest engine?

- Cannibal 440

Which one jumps the best?- The nod goes to Cannondale.

Which one is the best Mxer?

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Motorsports Press

“…The attention to detail is obvious. Cannondale is almost obsessive about producing the highest-quality product.”

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Motorsports Press

“…This isn’t your ordinary four stroke… It sounds like a four-stroke, has torque and power like a four-stroke, but it has the throttle response and the quick revving of a two-stroke engine…

…The best, we felt, of both worlds!”

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Motorsports Press

“Accompanying this potent power plant was one of the smoothest-shifting transmissions on the market.”

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Motorsports Press

“Overall, the heart of the Cannibal is years ahead of any performance machine out there in terms of technology, and no other ATV can touch it in power-to-weight comparisons….

After riding the Cannibal, we’ve fallen in love !”

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Motorsports Press

“To sum it up, if performance and quality are two items you are looking for in a new machine, this is the model for you.

The Cannibal is technologically ahead of any other model and is second to none in craftsmanship and quality.”

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Motorsports Press

“Cannondale is the new kid on the block in the ATV market. If you want to think of the company as David fighting Goliath (the well established OEMs) then we believe that Cannondale is carrying a large enough stone to knock off the giants of the market!

This aptly named Cannibal is more than capable of eating up the competition!”

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