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2 BI 2 RESTRUCTURES OPERATIONS; CUTS COSTS & FOCUSES ON MACGREGOR LINE; SEEKS ADDITIONAL CAPITAL

 ST. LOUIS, Aug. 9 /PRNewswire/ -- 2 Bi 2, Inc. (NASDAQ: BIKEU) said today it was launching a major restructuring program to simplify its organization and marketing structure, and reduce its operating expenses. At the same time, the company said it was seeking additional capital to fund its operations and marketing efforts.
 Ken Beckham, president and chief executive officer, said the company was streamlining its operations and would focus on the sale and distribution of its MacGregor line of bicycles to mass merchandisers in the U.S. He said the move would coincide with downsizing of the company's Legacy bicycle line sold through independent dealers in the U.S. and abroad.
 In terms of the company's efforts to raise capital, Beckham said the company has met with several potential sources who have expressed interest in providing funding, though he cautioned that there is no assurance that the additional financing will be secured.
 Beckham said he felt that the MacGregor bicycle line provided the best potential for 2 Bi 2 at this time and the company intended to focus its efforts in this area.
 "We want to be where the best opportunity is," Beckham noted. "Mass merchants represent roughly 75 percent of all bike sales in the U.S. and are clearly the greatest target of opportunity for our efforts."
 He noted that the company's MacGregor program is being well received, "even though much of the 1993 buying window is closed. We expect to move existing inventory before Christmas and will gear up for the 1994 season, which will be kicked off in the first calendar quarter of 1994."
 Beckham said that to conserve the company's limited cash resources, it was reducing its costs sharply. He said that Legacy Bicycles will close its Denver office and consolidate all operations into 2 Bi 2's St. Louis corporate headquarters office.
 He said that the Legacy U.S. marketing effort would concentrate on locating qualified sub-distributors to maintain product availability for the independent bicycle dealer market. "However, Legacy will not pursue its own distribution of bicycles in this country," Beckham said.
 "We are not abandoning anything that shows potential -- we will follow-up with all established contacts and respond to all international inquiries as they come. However, at this time, we do not intend to make any significant expenditures to penetrate this market further."
 "We believe the organizational changes we are making will strengthen the company," Beckham said. "By focusing on our MacGregor products, we can begin to accelerate efforts to lead to higher revenues and a profitable posture for the company."
 He said too that 2 Bi 2 had signed an agreement with a Hong Kong based trading company that would simplify and improve its procurement of new bicycles and improve its quality control operations.
 2 Bi 2, Inc. is the developer and manufacturer of the world's first two-wheel drive bicycles which it markets under the Legacy and MacGregor brand names. 2 Bi 2, Inc. is headquartered in St. Louis. The company's common stock is traded over-the-counter under the NASDAQ symbol BIKEU, and listed under NASDAQ small cap issues.
 -0- 8/9/93
 /CONTACT: Nicholas G. Biro or Jim Tolan of O'Connor Biro & Associates, 708-498-2284, or Fax 708-498-3144/
 (BIKEU)


CO: 2 Bi 2, Inc. ST: Missouri IN: SU: RCN

SH -- NY060 -- 0781 08/09/93 13:14 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
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