Chairman's Message

To Cybex Shareholders and Supporters

It was announced today that we have reached a settlement in the Barnhard v. Cybex International, Inc. product liability litigation, with Cybex agreeing to pay the plaintiff, net of insurance, approximately $19.5 million. Of that, $18.5 million will be paid at the consummation of the settlement with the balance paid over seven years. As part of the settlement Cybex will be released of all further liability with respect to the litigation. In addition, once the settlement is reflected in the company’s financial statements we are confident that our stockholders’ equity will exceed the minimum required for continued listing on Nasdaq.

Though we remain convinced that Cybex was in no way responsible for this tragic accident, we believe it is in the company’s best interest to resolve the lawsuit at this time.

With this lawsuit behind us we can continue to focus on building our business, establishing Cybex as a leader in the fitness industry, and growing our reputation as an iconic American brand that represents the values we demonstrate every day: Truth, Honesty, Quality, Innovation, Teamwork, Durability, and an unmatched dedication to delivering unparalleled results.onest in its dealings and that our fitness products are the finest in the world – safe and effective.

Thank you for your continued support.

John Aglialoro,
Chairman and CEO