Bikes Belong is the coalition of U.S. bicycle manufacturers, suppliers, and retailers working together to put more people on bicycles more often.

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1 A N N U A L R E P O R T Bikes Belong is the coalition of U.S. bicycle manufacturers, suppliers, and retailers working together to put more people on bicycles more often. Look inside to learn about our 2006 efforts.

2 Bikes Belong is improving bicycling throughout the U.S was a great year for Bikes Belong. Unprecedented support from the bicycle industry enabled us to increase our investment in crucial bicycling projects, form new partnerships, and improve our staff. IN 2006, WE:» Established the Bikes Belong Foundation to focus on bicycle safety and getting more kids riding bikes.» Contributed more than $550,000 in direct cash support to national, state, and local bicycle programs and projects.» Sponsored four of the year s most important national bicycle advocacy events. Bikes Belong membership dollars make this important work possible. BIKES BELONG FINANCIAL SNAPSHOT» Funded research projects to collect important bicycling data.» Strengthened our relationships with key members of the U.S. Congress.» Served as an expert source of bicycling information for the media.» Began work on a national PR campaign to promote bicycling. 76% SUPPLIER DUES $1,037,189 15% EMPLOYEE PRO PURCHASE PROGRAM $202,759 2% DONATIONS & INTEREST $23,573 7% RETAILER DUES $92,361 42% NATIONAL ADVOCACY $504,000 17% PROMOTING BICYCLING $201,000 18% ADMINISTRATION & FUNDRAISING $217,000 23% COMMUNITY GRANTS $280, I N C O M E $1,355,882 I N C O M E G R O W T H 2006 $1,355, $1,212, $801, $375, $144, E X P E N S E S $1,202,000

3 National Leadership BIKES BELONG FOUNDATION In June, we launched the Bikes Belong Foundation, a 501c3 nonprofit arm to focus on:» Bicycle safety projects» Children s bicycling programs The foundation will enable us broaden our impact by facilitating funding from other foundations, government agencies, and individual donors. The Bikes Belong Foundation received 501c3 status from the Internal Revenue Service, which allows it to operate as a charitable organization that can receive tax-deductible donations from individuals. It serves as a separate, complementary organization to the Bikes Belong Coalition. SAFE ROUTES TO SCHOOL NATIONAL PARTNERSHIP We continued as lead sponsor of this partnership, which has grown to more than 240 groups collaborating on the national Safe Routes to School movement and providing resources to state and local SRTS programs. At the end of 2006, we secured a three-year grant of more than $600,000 from the Robert Wood Johnson Foundation. The money will support the Safe Routes to School National Partnership s State Network Implementation Project, an initiative to advance SRTS efforts in 10 key states. BICYCLE FRIENDLY COMMUNITIES We remain the main supporter of this League of American Bicyclists program, which recognizes cities with exemplary conditions for bicycling. The program honored 16 new communities this year. The spirit of competition among big-city mayors is inspiring action nationwide. In total, 63 communities have earned the prestigious designation. In 2006, the program recognized: Gold: Madison, WI San Francisco, CA Tucson/Eastern Pima Region, AZ Silver: Bellingham, WA Jackson, WY Plus 11 bronze. To learn more, visit NATIONAL COMPLETE STREETS COALITION We contributed $15,000 to this effort to promote and develop complete streets roadways that accommodate all users, including bicyclists, pedestrians, automobiles, and public transit. Our grant matched support provided by AARP and the American Society of Landscape Architects, aligning us with influential partners. Visit for more. PAUL DAVID CLARK BICYCLING SAFETY FUND In 2006, we continued to raise money for the Clark fund, which honors Paul Clark a San Francisco cyclist who died in a bicycle-truck collision in The fund works to increase bicycle safety, focusing on Northern California.

4 National Leadership (CONTINUED) THUNDERHEAD ALLIANCE S BENCHMARKING PROJECT In 2006, Bikes Belong contributed $10,000 to the Thunderhead Alliance s Benchmarking Project, a data collection and analysis effort designed to measure the success of bicycling programs across the United States. Visit BICYCLE LEADERSHIP CONFERENCE We served as one of the top sponsors of this important annual gathering of bicycle industry leaders. At the 2006 event, Bikes Belong guided attendees on a bicycle tour of Tempe, Arizona, to showcase how the city earned a silver Bicycle Friendly Community designation. TRAILS TO SALES STUDY We completed research on the connection between new bike trails and bike sales. Combining our own online survey of bicycle retailers with a survey commissioned by the A.C. Nielsen Center for Marketing Research (at our request), we learned that:» Bicycle retailers report increased sales after new trails are built nearby.» Individual cyclists spend more on bikes and accessories after they become aware of new trails in their area. We are using this data to increase support for bicycle facilities at the federal, state, and local levels. To learn more, visit bikesbelong.org. BICYCLE COMMUTING STUDY We awarded $10,000 to support a Humboldt State University (California) study to measure the effects of bicycle commuting on health. We expect results in PRO WALK/PRO BIKE For the first time, we provided financial support to this biennial gathering of bicycle and pedestrian program specialists, advocates, and government leaders committed to improving conditions for bicycling and walking. The 2006 conference, held in Madison, Wisconsin, drew a record 645 attendees.

5 Federal Policy & Funding LOBBYING IN WASHINGTON, D.C. We continue to retain the prominent lobbying firm, Tongour Simpson Holsclaw, and meet regularly with federal leaders. In 2006, we promoted the Bicycle Commuters Benefits Act, which would allow employers to give employees who commute by bike a tax-free stipend of $ per month. In addition, we worked to energize the Congressional Bike Caucus to make it larger, more active, and influential. NATIONAL BIKE SUMMIT We again served as lead sponsor of the National Bike Summit, the annual bicycle conference and lobbying effort on Capitol Hill. The 2006 gathering attracted a record 375 attendees, who met with more than 350 members of Congress to push for additional federal support for bicycle facilities and programs. FEDERAL BIKE/PED FUNDING $400 MILLION PER YEAR $1 BILLION PER YEAR >> Bikes Belong helped boost annual federal bike/ ped spending from $400 million to $1 billion. BIKESPAC BikesPAC the bicycle industry s bipartisan political action committee is an important part of our strategy to maximize federal support and funding for bicycling. Through BikesPAC, we support the members of Congress who back bicycling. In 2006, we held two BikesPAC fundraisers and contributed an unprecedented sum of $26,500 to the re-election campaigns of 15 members of Congress almost equally split between Republicans and Democrats. >> An avid cyclist, Rep. James Oberstar (MN) front left is one of bicycling s biggest advocates in Congress. BikesPAC regularly supports Oberstar, who has served in the House of Representatives since 1975 and is now Chair of the House Committee on Transportation and Infrastructure.

6 Community Grants The Bikes Belong Grants Program continues to enhance bicycling throughout the U.S. In 2006, we awarded 21 cash grants in 18 states, distributing $159,850 to the following grassroots bicycling projects:» Florida: Venice Area Beautification, Inc. Venetian Waterway Park» Georgia: City of Carrollton Carrollton Greenbelt Spur» Illinois: Chicagoland Bicycle Federation Sunday Parkways» Indiana: B & O Trail Association B & O Trail» Indiana: Hoosier Mountain Bike Association Brown County State Park Trails» Iowa: Des Moines County Nature Trails Association Gateway Project/Mississippi River Trail Re-Route» Kansas: Community Connection Trail Coalition Community Connection Trail» Massachusetts: City of Fitchburg BMX Park» Minnesota: Minnesota Off-Road Cyclists Organizational Development» Missouri: PedNet From Proficiency to Practice Program» Montana: City of Billings Big Ditch Trail» New York: Concerned Long Island Mountain Bicyclists Cunningham Park Trail System» Ohio: ClevelandBikes Cleveland Bike Station» Oregon: Bicycle Transportation Alliance Bicycle Boulevards Campaign» Oregon: City of Gresham Gresham/Fairview Trail» Tennessee: Outdoor Chattanooga Raccoon Mountain Trail System» Utah: Mountain Trails Foundation Historic Union Pacific Rail Trail» Vermont: City of Montpelier North Branch Park Multi-Use Trail» West Virginia: Friends of the Cheat Preston Rail Trail» Wisconsin: Chequamegon Area Mountain Bike Association Hayward Cluster Singletrack SINCE 1999, WE VE:» Awarded 132 grants in 40 states, totaling more than $1 million.» Leveraged $450 million of other funding.» Helped fund 1,400 miles of bike paths, lanes, and trails.» Helped link close to 6,000 miles of trail facilities GRANTS >> The Historic Union Pacific Rail Trail in Park City, Utah, is an important link in the city s multi-use path system, providing a safe recreation route for riders of all ages and connecting to miles of nearby mountain bike trails.» National: Adventure Cycling Association National Cycling Network

7 Bicycling Promotion NATIONWIDE PR CAMPAIGN To inspire more people to ride bikes, we need to build a stronger bicycling culture in the U.S. To achieve this, we started working on a nationwide PR effort with Crispin Porter + Bogusky a prominent, award-winning ad agency known for their Burger King, Volkswagen, Sprite, Bell/Giro, and Shimano campaigns. PRESS COVERAGE We have firmly established ourselves as a key source of bicycling information for the national media. In 2006, we provided interviews to newspaper, magazine, TV, and radio reporters nationwide. Our input contributed to positive bicycling coverage in 17 of the top 20 U.S. dailies, hundreds of other media outlets throughout the country, and a live TV interview on CNBC. BICYCLING BOOKLET We printed another 10,000 copies of our booklet, Bicycling: Moving America Forward, which highlights the many benefits of bicycling. Request your copy from avery@bikesbelong.org. PHOTO SHOOT Bikes Belong s second annual professional photo shoot in 2006 generated high-quality images that portray a positive image of bicycling. A selection of these images is available on our website (bikesbelong.org) to groups working to promote bicycling. BIKES BELONG NEWSLETTER We published our inaugural print newsletter in June 2006 and produced a second edition in the fall. Join our mailing list to keep up-to-date on what we re doing. your contact information to avery@bikesbelong.org. Business In The Beltway The Wheel Deal Ashlea Ebeling, , 6:00 AM ET The U.S. Congress is still struggling to fund a bill that would extend such popular, recently expired tax breaks as the research and development credit and deductions for state taxes and college tuition. So now's not the time to be peddling a new tax break, right? Don't tell that to the bicycle lobby. Employers can currently offer employees tax-free reimbursement for up to $205 a month for parking and $105 a month for using mass transit. So the cyclists want a similar benefit of maybe $40 to $100 for employees who bicycle to work. Sen. Ron Wyden (D-Ore.) introduced the Bicycle Commuters Benefits Act of 2006 (S.B. 2635) on April 24, saying that the bill will eliminate "discrimination" against bicycle commuters. Sens. Olympia J. Snowe (R-Me.), Susan Collins (R-Me.) and Maria Cantwell (D-Wash.) co-sponsored the bill. Rep. Earl Blumenauer (D-Ore.), who bikes to work (except for lately, because he tripped and broke a foot carrying out the recycling--really), has introduced similar bills since 2001, with his latest effort in February 2005 (H.R. 807). So far, 47 cosponsors have signed on to the House bill. The Senate bill is before the Senate Finance Committee. The four cosponsoring senators sent out a "Dear Colleague" letter earlier this month asking for others to sign on, but they've gotten only a few takers. Still, they're not giving up. One idea is to tack the bill onto pending energy legislation. That worked last year when Blumenauer's "Conserve by Bicycle" bill was added onto the 2005 energy bill as an amendment. It funded 10 Department of Transportation pilot education and marketing projects aimed at converting car trips to bicycle trips. The bike tax perk has support from regional and national bicycling organizations, including Cycle Oregon, the Bicycle Transportation Alliance, the League of American Bicyclists and the Washington Area Bicyclist Association. "With the big surge in gas prices, the bill seems to be generating a lot of interest," says Tim Blumenthal, executive director of Bikes Belong Coalition, an industry trade group of bicycle suppliers and retailers in Boulder, Colo., who recently made the rounds on Capitol Hill. But, he admits, "anything these days that costs the federal Treasury money is getting an extrahard look this year." Scoring by the Joint Committee on Taxation done in 2002 put the cost of a bicycle commuter benefit at $1.4 billion over ten years. Blumenthal says that is too high, because it's based on all 500,000 bicycle commuters signing up. (First, they would have to work for an employer that offers it). Employers would get to deduct the cost of their fringe benefit payments from taxable income, lowering the amount of taxes they pay. (Alternatively, employers can permit employees to set aside pre-tax income to pay for commuting expenses.) "Financially speaking, the consequences to the federal Treasury are pretty small," Blumenthal contends. "Symbolically, it's great. It gives Americans an opportunity to do something to reduce foreign oil dependence. It's to reward in a small way and inspire Americans to change their behavior in a way that has societal benefits." What, you may ask, does it cost to ride a bike? Sure, there's no monthly train ticket or daily parking fee for a garage spot, but there are costs involved with bicycle commuting. For example, a decent commuter bicycle costs $600 to $800, a lock runs $50 and a helmet runs $30. A few cities have bike stations, where you can park your bike and even shower, for $100 per year. Then there's maintenance, the necessary foul-weather gear, and accessorizing--panniers, drink holders and a host of other literal and figurative bells and whistles. That's more business for bicycle manufacturers like Giant Manufacturing, Trek Bicycle and Pacific Cycle, a division of Dorel Industries. Some employers already offer perks to bicyclists. The City of Palo Alto offers bicycle commuters $20 per month in taxable cash benefits if they commute by bicycle to 60% or more of their scheduled shifts. Google, at its Mountain View, Calif., headquarters, offers employees bike tune-ups once a month. Discovery Communications, owned in part by Discovery Holding, reimburses employees $350 for a bike, and it designed its three offices in the Washington, D.C., area as "bicyclist friendly," with secure bike racks, day lockers and showers. Yahoo! has bike lockers and showers at its Sunnyvale

8 Bikes Belong Coalition Leadership B O A R D O F D I R E C T O R S President: Kozo Shimano Shimano American Corporation Vice President: Steve Meineke President of Raleigh America Treasurer: Chris Fortune President of Saris Cycling Group Secretary: Elizabeth Train Bikes Belong Leslie Bohm, CEO of Catalyst Communication John Burke, CEO of Trek Penina Bush (alternate), VP of Shimano American Corporation Fred Clements, Executive Director of the National Bicycle Dealers Association Pat Cunnane, President of Fuji Bicycles Lisa Falvy, VP of Sportworks Steve Flagg, CEO of Quality Bicycle Products Bill Fry, President of Easton-Bell Sports Mike Greehan, CEO of Green Light Media Skip Hess, President of Giant Chris Kegel, Owner of Wheel & Sprocket Chris Lambiase, Publisher of Bicycling Magazine Michael Mercuri, VP of SRAM Corporation Ariadne Delon Scott (alternate), Director for Specialized Patrick Seidler, CEO of WTB Mike Sinyard, CEO of Specialized S T A F F Tim Blumenthal, Executive Director, tim@bikesbelong.org Scott Bowen, Membership Development Director, scott@bikesbelong.org Avery Stonich, Marketing & Communications Director, avery@bikesbelong.org Elizabeth Train, Grants & Research Director, elizabeth@bikesbelong.org Gary Sjoquist, Government Affairs/BikesPAC Director, gary@bikesbelong.org Erik Esborg, Finance Director, erik@bikesbelong.org Mat Barlow, Program Staff, mat@bikesbelong.org Your membership in Bikes Belong is an investment in the future of bicycling. Join or renew your membership today at bikesbelong.org. To learn about our 2007 plans, visit bikesbelong.org. P.O. Box 2359 Boulder, CO / bikesbelong.org

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