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                                                   CONTACT:
                                                   WILLIAM A. LUCA
                                                   VICE PRESIDENT OF FINANCE
                                                   (203) 749-7000

FOR IMMEDIATE RELEASE

                                CANNONDALE CORPORATION
                     ANNOUNCES NEW STOCK REPURCHASE PROGRAM

Bethel, CT (August 3, 1998) -- On July 31, 1998, Cannondale Corporation's Board
of Directors authorized a new stock repurchase program by the Corporation to
repurchase up to 1,000,000 shares of its common stock. Shares repurchased under
the new program will be additional to the shares repurchased pursuant to the
repurchase program announced September 3, 1997. 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 Bethel, Connecticut,
Cannondale operates one factory in Pennsylvania and has subsidiaries in Europe,
Japan and Australia.