Level 3-Comprehensive Credit Rating Report : Supplied on 16/01/2004             
                                                                                
Attention: EUROGATE                                                             
Reference: EUROGATE REPORT                                                      
                                                                                
                                                                                
Company Identification Details                                                  
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Subject Reported on   : BROMPTON BICYCLE LIMITED                                
Registered Number     : 01261512                                                
Address               : KEW BRIDGE DISTRIBUTION CENTRE, LIONEL ROAD             
                        SOUTH, BRENTFORD, MIDDLESEX, TW8 9QR.                   
Telephone             : 02082328484                                             
                                                                                
Creditline Recommendations                                                      
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Graydon Rating        :  4A                                                     
                        GBP 1m-5m financial strength rating based on net        
                        worth plus net current assets/liabilities               
Monthly Credit Guide  : GBP 100,000                                             
Risk Category         : LOW RISK                                                
                                                                                
Official Company Data                                                           
~~~~~~~~~~~~~~~~~~~~~                                                           
Legal Form            : Private Limited                                         
Registration Number   : 01261512                                                
VAT Number            : GB646228334                                             
Date of Incorporation : 03/06/1976                                              
Registered Office     : ROWAN HOUSE, NEW LA HILL TILEHURST, READING,            
                        BERKSHIRE, RG30 4JJ.                                    
History               : 26/01/2000 The Registered Office address changed        
                        from ROWAN HOUSE, NEW LANE HILL, READING, RG3           
                        4JJ.                                                    
                        02/02/1994 The Registered Office address changed        
                        from MARINERS, BRADFIELD, BERKSHIRE, RG7 6HU.           
Date of Last Annual                                                             
Return to Registry    : 14/12/2003                                              
Registered Objectives : TO CARRY ON BUSINESS AS TO ACQUIRE PATENTS              
                        BREVETS                                                 
Accounts              : The last filed accounts at Companies House              
                        are those to 31/03/2003                                 
                                                                                
Known Directors                                                                 
~~~~~~~~~~~~~~~                                                                 
Director              : TIMOTHY WHITMORE NEWTON GUINNESS                        
Address               : 19 LORD NORTH STREET, WESTMINSTER, LONDON, SW1P         
                        3LD.                                                    
Country of Origin     : UNITED KINGDOM                                          
Other Directorships   : GUINNESS ATKINSON ASSET MANAGEMENT, LLC,                
                        GROCERS'TRUST COMPANY LIMITED(THE), FRANKRATE           
                        LIMITED, S.R. PAN-EUROPEAN INVESTMENT TRUST PLC,        
                        GFEIT SECURITIES LIMITED, INVESTEC EXTRA INCOME         
                        TRUST PLC, NEW BOATHOUSE CAPITAL LIMITED                
                        INVESTEC HIGH INCOME TRUST PLC, INVESTEC HIGH           
                        INCOME SECURITIES PLC, INVESTEC HIGH INCOME             
                        TRADING LIMITED, SR EUROPE INVESTMENT TRUST PLC.        
                                                                                
Director              : CHRISTOPHER DUDLEY STEWART SMITH                        
                                                                                
                                                                                
Subject Reported on   : BROMPTON BICYCLE LIMITED                                
                                                                                
Address               : 52 WESTBOURNE TERRACE, LONDON, W2 3UJ.                  
Country of Origin     : UNITED KINGDOM                                          
Other Directorships   : GARTMORE SNT PLC, GROCERS'TRUST COMPANY                 
                        LIMITED(THE), DESIGNED INTERIORS LIMITED,               
                        GROCERS' PROPERTY COMPANY LIMITED, CAUTLEY              
                        LIMITED, GSNT SECURITIES LIMITED, COURT BASED           
                        PERSONAL SUPPORT                                        
                                                                                
Secretary             : MR ANDREW WILLIAM RITCHIE                               
Address               : 53 EGERTON GARDENS, LONDON, SW3 2DA.                    
Country of Origin     : UNITED KINGDOM                                          
                                                                                
Director              : MR ANDREW WILLIAM RITCHIE                               
Address               : 53 EGERTON GARDENS, LONDON, SW3 2DA.                    
Country of Origin     : UNITED KINGDOM                                          
                                                                                
Share Capital                                                                   
~~~~~~~~~~~~~                                                                   
Shares                : Ordinary GBP 1.00                                       
Issued Number         : 49,148                                                  
Principal Shareholder : 20,220 Shares A.W. Ritchie                              
                        4,294 Shares S. Ritchie                                 
                        3,130 Shares A.A.M. Fraser                              
                        2,000 Shares Roger Maran                                
                        2,000 Shares T.W.N. Guinness                            
                        2,000 Shares P.A. Costley White                         
                        1,699 Shares Barry Baker                                
                        1,000 Shares C.D. Stewart-Smith                         
                        1,000 Shares D. Pearce Higgins                          
                        1,000 Shares N. Ouroussof                               
                                                                                
The above reflects the principal shareholder(s) by number of shares held,       
irrespective of share classification type.                                      
                                                                                
Public Record Information                                                       
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Summary of CCJs/Scottish Decrees since January 2002                             
                                                                                
Number of CCJs/Decrees       : 0                                                
                                                                                
Total Amount of CCJs/Decrees : GBP 0                                            
                                                                                
                                                                                
Payment Analysis                                                                
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No Payment Analysis Data is Available.                                          
                                                                                
To contribute sales ledger information to Graydon, please contact Specialist    
Product Division - mail@graydon.co.uk                                           
                                                                                
Subject Reported on   : BROMPTON BICYCLE LIMITED                                
                                                                                
Operations                                                                      
~~~~~~~~~~                                                                      
Activities            : The development, manufacture and sale of the            
                        'Brompton' folding bicycle.                             
                                                                                
Nace Code             : 3542 (1992)                                             
Premises              : Leased, Offices, Factory.                               
Staff Employed        : 18                                                      
Product Names         : BROMPTON.                                               
Import countries      : EUROPE.                                                 
Export countries      : ALL OVER THE WORLD.                                     
Branches              : KEW BRIDGE DISTRIBUTION CENTRE LIONEL ROAD SOUTH        
                        BRENTFORD MIDDLESEX TW8 9QR                             
Bankers               : LLOYDS BANK PLC, LONDON.                                
Auditors              : John S. Morris                                          
                                                                                
Financial Data                                                                  
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Profit & Loss Account                                                           
~~~~~~~~~~~~~~~~~~~~~                                                           
The following figures are shown in 000's                                        
                                                                                
Number of weeks                     52           52           52           52   
                            31/03/2003   31/03/2002   31/03/2001   31/03/2000   
Currency                           GBP          GBP          GBP          GBP   
                                                                                
SALES                             3092         2467         2635         2047   
  UK sales                        1388         1004          951          770   
  Export                          1704         1463         1684         1277   
Cost of goods sold                1830         1546         1663         1233   
GROSS PROFIT                      1262          921          972          814   
Directors Emoluments                85          129           72           25   
Auditors Fees                        3            3            1            1   
Trading Profit                     473          251          364          318   
Depreciation                       108          139          116          112   
OPERATING PROFIT                   365          112          248          206   
Non Trading Income                  11           17-          16           18   
Interest payable                                                            5   
PRE TAX PROFIT                     376           95          264          219   
Taxation                            63           28           60           47   
PROFIT AFTER TAX                   313           67          204          172   
Dividends Payable                   67           59           59           49   
RETAINED PROFITS                   246            8          145          123   
                                                                                
Balance Sheet                                                                   
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The following figures are shown in 000's                                        
                                                                                
Number of weeks                     52           52           52           52   
                            31/03/2003   31/03/2002   31/03/2001   31/03/2000   
Currency                           GBP          GBP          GBP          GBP   
                                                                                
TOTAL FIXED ASSETS                 164          168          201          396   
  Tangible Assets                  164          168          201          396   
    Fixed Assets                   164          168          201          264   
    Intermediate assets                                                   132   
                                                                                
Subject Reported on   : BROMPTON BICYCLE LIMITED                                
                                                                                
TOTAL CURRENT ASSETS              1769         1606         1526          935   
  Trade debtors                    146           99          110          127   
  Stocks                          1180         1085          669          680   
  Other Current Assets             443          422          747          128   
    Misc. Current Assets            55          108          162           84   
    Cash                           388          314          585           44   
                                                                                
TOTAL ASSETS                      1933         1774         1727         1331   
                                                                                
TOTAL CURRENT LIABILITIES          426          513          480          289   
  Trade creditors                  176          186          182           54   
  Other Liabilities                250          327          298          235   
                                                                                
WORKING CAPITAL                   1343         1093         1046          646   
                                                                                
NET ASSETS/(LIABILITIES)          1507         1261         1247         1042   
                                                                                
SHARE CAPITAL & RESERVES                                                        
  Share Cap. & Sundry Res.         167          167          161          200-  
    Issued Share Capital            49           49           49           47   
    Sundry Reserves                118          118          112          247-  
  Profit and Loss account         1340         1094         1086         1242   
                                                                                
SHAREHOLDERS FUNDS                1507         1261         1247         1042   
                                                                                
CAPITAL EMPLOYED                  1507         1261         1247         1042   
                                                                                
Financial Comparison                                                            
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The following Profit/Loss & Balance sheet figures are shown in 000's            
                                                                                
Number of weeks                     52           52           52           52   
                            31/03/2003   31/03/2002   31/03/2001   31/03/2000   
Currency                           GBP          GBP          GBP          GBP   
                                                                                
Directors Remuneration              85          129           72           25   
Auditors Remuneration                3            3            1            1   
Liquid Assets                      534          413          695          171   
Net Working Capital               1343         1093         1046          646   
Tangible Net Worth(T.N.W)         1507         1261         1247         1042   
Equity                            1507         1261         1247         1042   
                                                                                
                                                                                
Number of Years Trading             27           26           25           24   
                                                                                
Key Credit Ratios                                                               
~~~~~~~~~~~~~~~~~                                                               
                                                                                
                            31/03/2003   31/03/2002   31/03/2001   31/03/2000   
                                                                                
Current Ratio                      4.2          3.1          3.2          3.2   
Profit before Tax        %        12.2          3.9         10.0         10.7   
Gross Profit             %        40.8         37.3         36.9         39.8   
Debtors Days (D.S.O)                17           15           15           23   
Creditors Days (D.P.O)              21           28           25           10   
Quick Ratio                        1.4          1.0          1.8          0.9   
W.I.P/Inventory Days             235.4        256.2        146.8        201.3   
                                                                                
                                                                                
Subject Reported on   : BROMPTON BICYCLE LIMITED                                
                                                                                
Return on Investment     %        25.0          7.5         21.2         21.5   
Return on Assets         %        19.5          5.4         15.3         16.5   
Growth                   %        25.3          6.4-        28.7                
T.N.W/Total Assets       %        78.0         71.1         72.2         78.3   
Return on Capital        %        25.0          7.5         21.2         21.0   
Rtn on Shareholders Funds%        25.0          7.5         21.2         21.0   
Working Capital/Sales    %        43.4         44.3         39.7         31.6   
Equity Gearing           %       353.8        245.8        259.8        360.6   
Stock Turnover                     2.6          2.3          3.9          3.0   
Days Purchases Outstanding        35.1         43.9         39.9         16.0   
                                                                                
Key Industry Sector Trends                                                      
~~~~~~~~~~~~~~~~~~~~~~~~~~                                                      
                                                                                
Year                              2002         2001         2000         1999   
Sample Size                         99          103           90           92   
                                                                                
1) Pre-Tax Profit Margin           1.3-          .8          2.9-        10.2-  
                                                                                
2) Current Ratio                   1.3          1.2          1.2          1.3   
                                                                                
3) Borrowing Ratio                30.7-        13.7-        26.4-        75.1-  
                                                                                
4) Return on Capital              14.6         26.3         28.7         34.9   
                                                                                
5) Creditors Days                 39.0         48.0         53.0         63.0   
                                                                                
Above figures relate to companies in 1992 Standard Industry Classification      
(Nace) sector :  Manufacture of motorcycles and bicycles                        
                                                                                
Financial Summary                                                               
~~~~~~~~~~~~~~~~~~                                                              
Turnover                  Turnover increased by 25 % in the period and now      
                          totals GBP 3,092,000.                                 
                                                                                
Operating Profit          Totalled GBP 365,000. In the year prior a Profit      
                          of GBP 112,000 was achieved.                          
                                                                                
Pre-Tax Profit            The subject's profit increased by 295 % in the        
                          year.                                                 
                                                                                
                                                                                
Working Capital           The company's working capital has increased by 23     
                          % in the period.                                      
                                                                                
Fixed Assets              The subject's fixed assets reduced during the         
                          year by GBP 4,000 to GBP 164,000 and are now 8 %      
                          of total assets compared with 9 % in the previous     
                          year.                                                 
                                                                                
                                                                                
              *** End of report on BROMPTON BICYCLE LIMITED ***