Blackwells Capital Continues to Call For Urgent Action at Peloton, Comments on Reported Changes

Issues Comprehensive Presentation Demonstrating John Foley’s Mismanagement of Peloton and Calls Upon the Board to Remove Him Entirely From Company

CEO John Foley Appears to Have Promoted Himself to Executive Chair, Which Does Not Address Fundamental Lack of Leadership at Company

Highlights Strategic Value of Peloton to Range of Potential Buyers and Urges Board to Begin Sale Process

Calls for Reformed Governance and Enhanced Board Composition

NEW YORK--(BUSINESS WIRE)-- Blackwells Capital LLC (together with its affiliates “Blackwells”), an alternative investment management firm that is a significant shareholder of Peloton Interactive, Inc. (“Peloton” or the “Company”) (NASDAQ: PTON), yesterday sent the Peloton Board of Directors a comprehensive presentation outlining the need for immediate change in leadership and demand for the Board of Directors to initiate a strategic alternatives process to maximize value for the benefit of all shareholders.

In response to this morning’s reports of leadership changes at the Company, Jason Aintabi, Chief Investment Officer of Blackwells, said, “Peloton CEO John Foley naming himself Executive Chairman and hiring a new CFO does not address any of Peloton investors’ concerns. Mr. Foley has proven he is not suited to lead Peloton, whether as CEO or Executive Chair, and he should not be hand-picking directors, as he appears to have done today.”

Blackwells’ full presentation to the Peloton Board is available at https://tinyurl.com/26mv65hz. The presentation outlines the intrinsic value of Peloton, the Company’s severe underperformance, the mismanagement of the Company by John Foley, the poor governance and Board composition and the rationale for immediately commencing a sale process.

Blackwells also disclosed that yesterday it exercised its rights to review the books and records of Peloton Interactive, Inc. in a request made to the Company (the “Demand”), pursuant to Section 220 of the Delaware General Corporation Law. Blackwells intends to determine whether the lack of effective oversight at the Company was the direct result of the Company’s dual-class share structure, which may have precluded independent directors from exercising their fiduciary duties to the Company’s Class A common stockholders. The particulars of the Demand letter are available as part of the presentation and at https://tinyurl.com/yckssta9.

About Blackwells Capital

Blackwells Capital was founded in 2016 by Jason Aintabi, its Chief Investment Officer. Since that time, it has made investments in public securities, engaging with management and boards, both publicly and privately, to help unlock value for stakeholders, including shareholders, employees and communities. Throughout their careers, Blackwells’ principals have invested globally on behalf of leading public and private equity firms and have held operating roles and served on the boards of media, energy, technology, insurance and real estate enterprises. For more information, please visit www.blackwellscap.com

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Gagnier Communications

Dan Gagnier / Jeffrey Mathews

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Source: Blackwells Capital LLC