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HUFFY CORPORATION'S BOARD OF DIRECTORS APPROVES PLANS FOR NEW BICYCLE FACILITY

 DAYTON, Ohio, Dec. 10 /PRNewswire/ -- Huffy Corporation (NYSE: HUF) announced today the approval by its board of directors of plans to establish an additional bicycle manufacturing facility. Site selection is in the final stages and a decision is expected to be made in the next several weeks.
 Huffy Bicycle Company is one of the leading bicycle manufacturers in the world and maintains the largest share of the U.S. bicycle market. Huffy Bicycle Company currently operates from a single, 822,000-square- foot manufacturing facility in Celina, Ohio.
 Richard L. Molen, president and chief executive officer, stated, "The additional facility is scheduled to begin production in late 1994. The new facility will require an ultimate investment of $15 million to $20 million. The additional capacity will enable Huffy Bicycle Company not only to improve its customer service through greater manufacturing flexibility, but also to increase its market share."
 Barry J. Ryan, president, Huffy Bicycle Company, commented, "Huffy Bicycle Company currently operates the most efficient bicycle manufacturing plant in the world in Celina, Ohio. Over the past 10 years we have doubled our capacity and improved the quality of our products through enhanced mechanization and extraordinary improvements in operating efficiency. We will continue to work hard to improve our cost position, quality and customer service levels from our Celina facility.
 "The new facility is planned to add highly flexible capacity in excess of one million units at a lower incremental cost. The additional capacity will enable us to improve customer service levels, increase market share, and maintain our industry leadership position. Production levels in Celina could be impacted after start up of production in the new facility is completed, but much will depend on future product demand. We feel that the new facility will play an integral part, along with the Celina facility, in maintaining a highly efficient, cost effective operating structure that is necessary in an increasingly competitive marketplace."
 In other actions, the board of directors increased the regular quarterly dividend from $.075 per share to $.085 per share, an increase of 13.3 percent, reflecting the board's confidence in the future earnings potential of the corporation. The dividend is payable Feb. 1, 1994, to holders of record Jan. 17, 1994. The board of directors also authorized the continuation of the stock repurchase program allowing management to purchase up to 1,000,000 shares of Huffy Corporation Common Stock in the open market from time to time.
 Huffy Corporation is a diversified manufacturer and supplier of bicycles, basketball backboards, lawn and garden tools, juvenile products, and inventory, assembly and supplier services.
 -0- 12/10/93
 /CONTACT: Pamela J. Whipps, assistant treasurer and manager investment relations, of Huffy Corporation, 513-866-6251/
 (HUF)


CO: Huffy Corporation ST: Ohio IN: HOU LEI SU: DIV

KL-DA -- CL015 -- 2784 12/10/93 16:49 EST
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Publication:PR Newswire
Date:Dec 10, 1993
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