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TWST: Let’s begin with an introduction to Eurobike (Frankfurt:570660.F), positioning us with where the Company is today?

Dr. Mrosik: EUROBIKE AG was founded in 1988 and was listed on the Frankfurt Stock Exchange and the Düsseldorf Stock Exchange in 1996. EUROBIKE is the management holding company of 12 domestic and 8 foreign companies. The EUROBIKE Group operates retail and wholesale businesses in the field of motorbike clothing and accessories with operations in Germany, selected countries in Europe and the USA. Its core competencies are product development, design, marketing and sales. The total of 276 shops (Germany: 193, abroad: 83) are managed in most countries by self-employed sales representatives. During the 2000/2001 fiscal year the EUROBIKE Group was on the verge of bankruptcy due to poor sales in the domestic wholesale business, unfavorable developments in the exchange rate and a series of management errors. In May 2001 the former Chairman of the Executive Board was released from office and a new management team was appointed. In order to restore the Company’s ability to act, it was necessary to make a clear break and introduce strict cost and liquidity management. Following the successful initiation of a strategic reorientation and reorganization program, the sales and EBIT for the first nine months of the current fiscal year (06.30.02) reached €205.7m and €5.1m respectively. We are now Europe’s No. 1 in motorcycle apparel, parts and accessories.

TWST: What’s the game plan from here on? Have you plotted a specific strategic direction for the next couple of years?

Dr. Mrosik: The management board has decided to focus on the European business on the retail side. We will continue to strengthen our brands and focus on the three companies POLO, Hein Gericke and GoTo Helmstudio, which are all under the roof of the Eurobike Group. Hein Gericke, for example, is the brand number one for motorbike and leisure accessories in Europe; it’s the most well known brand for motorcycle accessories in Europe and has a market share of 10% in the US market. The retail concept of Hein Gericke will be diversified during the next year. We will have a three layer sales concept in the future. Beside our well established shop partner system and shop-in-shops, we are currently to open up market places or mega stores in large cities where everything a biker needs is available. It will be a kind of event area, a place where everybody can buy everything related to motorcycles. This concept will be realized through a cooperation with Harley-Davidson as a test for European markets. The first project will be realized in Düsseldorf, starting in February of next year and will be 4½ thousand square meters in size. We are talking about repair shops. We are talking about insurance shops, traveling shops. We are talking about restaurants. We are talking about Hein Gericke and POLO shops. And we are also certainly talking about Harley Davidson and Harley Davidson shops, which provide motorcycles and garments for the customers. Brands like Yamaha, Suzuki, Honda, Aprilia and so on will also be present. So this is going to be a real marketplace where customers are able to buy everything for their motorcycles. It will also be supported by special events, so it will be a real magnet for the motorcycle driver. This is the first layer. The second layer is the old and well known shop partner concepts – shops which are located all over Germany and are well known in other European countries. This is very traditional, very efficient and successful concept that will be continued. We also intend to expand this shop partner system in special areas, not only in Germany, but also in other countries where Hein Gericke is located. The third layer is the shop-in-shop concept, which is a classical franchise system which we have penetrated in cooperation with big motorcycle dealers in Germany and other European countries. Here, the motorcycle dealers are responsible for their business and we are the wholesaler, providing those dealers with our A class garments. There is a lot of opportunity and work to do in Germany to execute this concept during the next 24 or 36 months. Looking abroad there is a big opportunity for Hein Gericke, especially in opening up those mega stores or marketplaces I just mentioned in metropolises like Paris, London, Amsterdam, and so on. So this is a completely new concept and my personal opinion is that in every case, regardless of whether we are talking about Berlin or Paris or Amsterdam, these will be real magnets for customers within a 70 kilometers radius. I am convinced that this will be a very successful concept.