GT Bicycles and CSA to Install New AutoBike Derailleurs on Streamline Bicycle.

SANTA ANA, Calif.--(BUSINESS WIRE)--May 12, 1998--GT Bicycles, Inc. (NASDAQ:GTBX) and CSA, Inc. today announced that they have entered into an exclusive distribution agreement by which GT Bicycles will market and distribute a newly patented version of CSA's AutoBike derailleurs on certain models of GT's bicycles to the independent bicycle dealer channel.

The new AutoBike derailleur is a seven-speed system that uses centrifugal force to shift automatically according to the cyclist's speed. Commented Michael Haynes, president and chief executive officer of GT Bicycles, "CSA's new automatic derailleur system offers superior performance and is extremely light weight. The GT Streamline series was designed for comfort and ease of riding, so automatic shifting is a perfect addition to these bikes. We are also looking at the possibility of putting AutoBike derailleurs on other select GT bicycles in the near future."

"The ongoing success of CSA's AutoBike TV infomercial has established the automatic bicycle category through direct-to-consumer channels," said Brian Hawkins, vice president of marketing for CSA, Inc. "We are now excited to partner with GT and move into high-end AutoBike retail distribution via independent bicycle dealer channels. The combination of GT's strong retail brand name recognition, large dealer network and product innovation with CSA's $10 million-plus AutoBike TV advertising campaign is the perfect formula for a bicycle industry revolution."

GT Bicycles plans to introduce the first Streamline bike equipped with AutoBike derailleurs by mid-summer of 1998. The bike will have a retail price of approximately $400, and, in addition to automatic shifting, will come equipped with a swept-back handlebar and ultra-comfortable saddle for a relaxed riding position. The original AutoBike will continue to be marketed by CSA.

GT Bicycles, Inc., is a leading designer, manufacturer and marketer of mid-to-premium-priced mountain and juvenile BMX bicycles sold under the Company's GT(R), Powerlite(R), Robinson(R) and Dyno(R) brand names. The Company's Riteway Products distribution network is a leading distributor of the Company's bicycles, parts and accessories, as well as parts and accessories of other manufacturers, to independent bicycle dealers.

CSA, Inc. is one of the largest privately held fitness companies in the U.S. and is a worldwide market leader in TV-driven fitness retail. CSA is the exclusive distributor of Gold's Gym(R) exercise equipment and sells other products including AutoBike(R), HealthWalker(R), HealthCycle(R), ABMax(R), Gold's Gym Home Trainer(R), and Air Cloud(R) air beds in major retail outlets. CSA products have been featured on TV in more than 50 countries worldwide.

CONTACT: GT Bicycles, Inc.

Charles Cimitile, 714/481-7100

or

CSA, Inc.

Deni Goldman, 508/230-8010 x232

or

Morgen-Walke Associates, Inc.

John Swenson/Elizabeth Snowdon/Doug Sherk, 415/296-7383

Sandra Badurina/Karen Amlong, 212/850-5600