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                                                   CONTACT:
                                                   WILLIAM A. LUCA
                                                   VICE PRESIDENT OF FINANCE
                                                   (203) 544-9800

FOR IMMEDIATE RELEASE

                                CANNONDALE CORPORATION
                          ANNOUNCES STOCK REPURCHASE PROGRAM

Georgetown, CT (September 3, 1997) -- Cannondale Corporation's Board of
Directors today authorized the repurchase by the Corporation of up to 1,000,000
shares of its common stock. Purchases by the Corporation may be made from time
to time in the open market or in private transactions. The repurchase program
may be suspended or discontinued at any time. Shares repurchased by the
Corporation will be available for general corporate purposes, including
issuance upon the exercise of employee options.

Cannondale (NASDAQ: BIKE) is a leading manufacturer of high-performance
aluminum bicycles. The Company's bicycles and bicycle accessories, which include
clothing, packs and bags, bike trailers and components, are marketed under the
Cannondale brand name and "Handmade in USA" logo. Based in Georgetown,
Connecticut, Cannondale operates two factories in Pennsylvania and has
subsidiaries in Europe, Japan and Australia.