HB Performance Systems Inc. Acquires Sun Metal Products (Sun Ringlé Brand)

Mequon, Wis. – July 11, 2005 – After its own management buyout less than 30 days ago, HB Performance Systems Inc. (formerly Hayes Brake), has acquired Sun Metal Products Inc. of Warsaw, Ind., a worldwide leader in the design, manufacture and sales of Sun Ringlé brand wheels, wheel sets, hubs and other bicycle and wheelchair components. The deal was finalized on July 8. Details of the private sale were not disclosed. Rhonda Kirkwood, vice president and general manager at HB Performance Systems, will manage the new acquisition now named Sun Components under the company’s Hayes Bicycle Group division. Bob Piecuch, former owner of Sun Metal Products, will continue to operate the business and report to Kirkwood.

According to Rand McNally, president and CEO of HB Performance Systems Inc., the acquisition brings together complementary businesses and combines premium brands in the bicycle and motorcycle industries. It launches HB Performance Systems into the medical (wheelchairs) and lawn and garden industries now served by Sun. In addition, it provides added manufacturing capacity for the company in Asia Pacific.

“We are proud to make Sun Metal Products the first acquisition of HB Performance Systems,” said McNally. “It’s a good example of how we plan to grow in the future. By bringing in complementary businesses it provides for a relatively seamless ownership transition and allows us to ramp up new product development because of the disciplined, technical processes already in place at HB.”

Sun Metal Products bicycle products are known and used worldwide by professional bike racers in BMX and mountain bike competitions around the world.

“We are excited to be able to offer another strong brand of bicycle products to our existing base of customers,” said Kirkwood.

Sun Metal Products dates back to 1946 when Ken-Jen Metal Products started production of tricycle seats. In 1948, Ken-Jen became Sun Metal Products and started a wire-spoke wheel line. In 1954, it developed wheels for lawnmowers, garden utility vehicles and stationary bicycles. In 1974, Sun Products began production of alloy rims for high performance, off-road motorcycle racing. By the early 1980s, half of the world’s professional racers were using Sun’s aluminum rims. In the 1980s, Sun also began developing high-end alloy bicycle rims. In the 1990s, Sun expanded production facilities in Indiana for high-end alloy rims, and built manufacturing plants in China to provide products for the growing Asian bicycle manufacturing industry. In 1996, Sun Products was recognized as one of the world’s best rim makers with numerous victories in the World Cup, NORBA Nationals and a silver medal at the Olympic Games held in Atlanta. In 1997, Sun Products purchased Ringlé Racing Components and increased product development for the Ringlé brand.

HB Performance Systems Inc. is a worldwide leader in the design, testing, manufacture and sales of non-automotive custom engineered brake systems. Net revenue for the company was nearly $100 million in 2004 and the company plans to grow in the future as fast as it has in recent years. Since 2000, the company has doubled in size.

The company was started in Milwaukee in 1946. Since 1969, the corporate headquarters has been located in Mequon, Wis., where it employs 350 people in its 155,000 square foot modern manufacturing facility. It also has manufacturing and sourcing capabilities in Asia. It currently holds 25 patents with 20 more in process. It uses a unique lean enterprise system for manufacturing and assembly, and is supported by ISO 9001:2000 quality controls and the latest Advance Product Quality Planning (APQP) techniques. The company’s many years of experience and development in the field have led to a comprehensive range of products for recreational, construction, agricultural and military vehicles, motorcycles, bicycles, as well as other types of mobile and stationary equipment.