September 30, 2006 (Toronto, Ont.) — Cervélo Cycles Inc., in cooperation with the U.S. Consumer Product Safety Commission, and in accordance with Health Canada guidelines today announced a voluntary recall of a limited number of 2005 R2.5 Model Carbon Fiber Bicycles and Bicycle Frames. Cervélo has identified a potential safety issue involving the down tube loosening or separating from the head tube on certain R2.5 frames. Although the 2005 R2.5 carbon road frame passed all the standard industry frame tests, this particular problem was not uncovered during those standard frame tests.

Cervélo has since discontinued the R2.5 model and has developed new improved quality and process controls that go beyond the industry standard so that the same problem will not occur again. All current Cervélo models pass both the industry tests as well as our new internal quality and process controls. No similar problems have been reported on any other Cervelo model.

We have undertaken this voluntary recall because we stand solidly behind the quality of the products we build and we care about our customers as it relates to the safety and enjoyment of our products. Consumers should stop using recalled products immediately unless otherwise instructed. To access color photos of the following recalled products, visit www.cervelo.com/R25recall.