Indian Motorcycle Company News

Update to the Indian Motorcycle Community (KINGS MOUNTAIN, N.C.--(BUSINESS WIRE)--July 20, 2006)

Indian® Motorcycle Company is pleased to announce that it will be revving up its engine in a new home. After carefully reviewing location options throughout the United States, Indian® has selected a factory in Kings Mountain, North Carolina, where it will place its world headquarters.

The site, located in Cleveland County, 37 miles west of downtown Charlotte, includes 11 acres of property and a 40,000 square foot manufacturing facility which is expandable to 125,000 square feet. "We believe Cleveland County and the greater Charlotte area are a perfect fit for Indian® Motorcycle Company and we're proud to call this area home," said Indian Chairman, Stephen Julius. "We are in the heart of our nation's powersports industry, with access to design, engineering and mechanical talent, world-class suppliers, motorsport education centers and year-round motorcycle riding weather.

In addition, this area provides us with economic advantages, including a low overall cost of doing business, which was aided by a strong incentive package provided by Cleveland County and by the State of North Carolina."

The announcement of the factory site marks the official re-launch of Indian® Motorcycle Company, America's oldest and most iconic motorcycle brand, founded in 1901. In preparation for Indian's re-launch, management has spent considerable time over the last two years researching the American motorcycle market and learning from the successes and failures of other market entrants. In particular, Indian has studied the tremendous growth of Harley-Davidson from near-bankruptcy in the early 1980's to a multi-billion dollar success story today. However, Indian is intent on slowly carving out its own niche in the large and growing heavyweight cruiser motorcycle market. There is a considerable consumer base for a premium line of motorcycles under the Indian Motorcycle brand, which has an almost cult-like status amongst many consumers. The company will focus on supplying genuine, American made, motorcycles which are beautifully designed, made of the highest quality materials, reliable and supported by a qualified dealer network.

Over the next 12 months, Indian will focus on design, engineering and testing activities, with the objective of introducing the famed Indian® Chief® motorcycle in the second half of 2007. To head up its product development team, Indian has hired Geoffrey Burgess, a world-renowned motorcycle engineer and product development expert. Geoff was most recently the Chief Technology Officer at Global Motorsports Group ("GMG"), owner of Custom Chrome, a provider of parts and accessories to the American V-twin motorcycle market. Prior to GMG, Geoff was head of product development at S&S Cycle, Inc., a leading V-twin engine manufacturing company, where he drove product innovation and process improvement to new levels. Prior to joining S&S, Geoff was the first employee and Chief Engineer at the Victory Motorcycle division of Polaris Industries, Inc., in Roseau, Minnesota. Geoff has also served in various senior engineering capacities at General Motors, Bombardier Recreational Products (Valcourt, Quebec), BSA-Triumph Motorcycles and Norton-Villiers Motorcycle Group. "Having Geoff on our team is a big win for Indian®," commented Indian President, David Wright. "His breadth and depth of knowledge of the American motorcycle market is impressive and his technical capabilities unsurpassed. He has outstanding powertrain and chassis design and development experience which we will put to good use. He is the perfect person for this role."

Mr. Burgess commented, "I know that the executive management of Indian® understand the importance of product development, engineering and testing to current industry OEM standards. I have been very impressed with their thoughtful and long-term approach to this exciting opportunity."

Indian is presently seeking to expand its team of engine and chassis engineers, technicians and CAD designers. "Our team will focus on design, quality, craftsmanship and service," commented Mr. Wright. "Indian remains among the most powerful brands in the U.S. motorcycle market, and our team is committed to re-building the extraordinary legend of Indian®."

In the first half of 2007, Indian® will begin the process of developing a small but highly qualified network of motorcycle dealers who understand and appreciate the heritage of Indian® and recognize the growth potential of this opportunity. The controlling shareholder of Indian® Motorcycle Company is London based Stellican Limited which has an impressive track record of resurrecting classic brands, including, most recently, the successful re-launch of Chris-Craft® boats, which was founded in 1874 and is among the oldest boat brands in the United States. "We will apply the same practical and long-term approach to Indian as we have employed successfully at Chris-Craft," commented Stephen Julius, Chairman of both Indian Motorcycle and Chris-Craft. "We are confident we will repeat our success with Indian® by remaining true to the rich heritage of this incredible brand and doing things slowly and thoroughly. We are certain that there is an important role for Indian® in the future of the American motorcycle market," added Mr. Julius.

Update to the Indian® Motorcycle Community (Sarasota, FL (May 1, 2006))

Happy Spring! As promised, 2006 is shaping up to be an exciting year for Indian Motorcycle Company. As we've said since our acquisition of Indian's assets from liquidation, this will be a long road, but one well worth taking. We remain as committed as ever to building Indian for the long haul. The first four months of 2006 have been spent on the following key activities: (1) Securing a permanent home for Indian Motorcycle Company. This is a complex process that requires coordination of state, county and community-level incentives, private real estate transaction(s), etc. We have not yet finalized our location plans, but are very close to doing so. We were hopeful that we would have an announcement to make in the first quarter of 2006, but it appears as if the second quarter is a more realistic goal. As soon as there is a "final" deal, we will immediately share the great news! (2) Developing our team. We have selected several additional key members of our team, most notably on the engineering front, and will be making announcements in the motorcycle media shortly regarding those team member hires. Our team will reflect, first and foremost, our commitment to design and engineering. (3) Designing the next generation Indian motorcycles. We have been working with our lead designer on the development of the next generation of Indian's products. This designer is exceptionally talented and is developing some incredible products that reflect the great heritage of Indian. These are exciting designs that build off the elements designed in Gilroy, California, but with a better fit and finish and a more highly-engineered product. I am confident that you will be thrilled with our new line-up. (4) Further supply base development. We continue to develop our relationships with our key suppliers and strengthen our supply base. As is the case with any manufacturer, we will be highly-dependent on our supply base and, as such, will work with world-class organizations only.

We were also happy to see the release of The World's Fastest Indian (www.worldsfastestindian.com), a movie starring Sir Anthony Hopkins. I know the movie was not shown in every city in the U.S. (not even all major cities); however, this is a movie worth going out of your way to see. If all else fails, I'm told by the producers of the movie that it will be released on DVD on June 13th.

We continue to appreciate your patience, enthusiasm and commitment to Indian Motorcycles. We look forward to sharing some major announcements with you shortly. See you on the road!

Quarterly Update to the Indian® Motorcycle Community Sarasota, FL (January 1, 2006)

Happy and healthy New Year!

I hope you had a great holiday season. Fortunately, in Florida, we get to ride year round, which we took full advantage of over the holidays. Our 2004 Chiefs are running very well, thanks to Frank Aliano and his team at Blackhawk Motorworks (www.blackhawkmotorworks.com) for ensuring our Powerplus engines are in tip-top shape.

2006 promises to be an exciting year for Indian. We made solid progress in 2005 toward our goal of commencing production in second half of 2006 for the 2007 model year.

In summary, we achieved the following:
(i) worked with previous IMC employees to fully understand the technical issues associated with the Indian product line-up;
(ii) surveyed 2002-2004 Indian Chief owners to ensure we understand their experience with these motorcycles, from a design, functionality and reliability perspective, and rewarded those survey respondents with a beautiful Indian Motorcycle baseball hat;
(iii) began the process of addressing outstanding technical issues to ensure Indian’s motorcycles are reliable, beautiful and fun to ride;
(iv) introduced smart design changes to the bikes that will ensure Indian is true to its rich design heritage, while at the same time “looking forward” to the future;
(v) commenced commercial discussions with our supply base of 100+ suppliers;
(vi) narrowed down our manufacturing site options to a half dozen sites, mostly located in the Southeast;
(vii) hired key members of our team who will form the foundation upon which Indian will be resurrected;
(viii) introduced new merchandise via www.indianmotorcycle.com which will enable riders to continue to wear the Indian colors with pride during this pre-production phase;
(ix) commenced a robust licensing program, which we anticipate will grow significantly in 2006;
(x) begun to “take names” of people and businesses who are interested in an Indian dealership toward the end of 2006, the response to which has been overwhelming;
(xi) communicated with Indian riders and the rest of the Indian community via email, telephone, website, letters, rallies (e.g., Indian Rally at Indian Point – “IRIP”), etc., in an effort to keep everyone “in the loop” regarding our plans for Indian well into the future.

In summary, although we are not in production, it has been an extremely busy and productive year for Indian Motorcycle Company. We are committed to building Indian for the long haul and are taking smart and necessary steps to ensure Indian is built on a solid foundation. Looking out at 2006, we have much to get done. Our key priorities for the new year are as follows:
(i) secure a manufacturing location that maximizes Indian’s exposure and long-term commercial success;
(ii) finalize bike designs;
(iii) develop a complete parts and accessories range for 1999 – 2004 Indian models as well as “new” Indian models;
(iv) secure high quality dealerships;
(v) begin marketing activities;
(vi) commence production.

It promises to be another exciting and busy year! We are also looking forward to the release of World’s Fastest Indian (www.worldsfastestindian.com), a movie starring Sir Anthony Hopkins, scheduled to be released nationally on February 3, 2006. I’m confident all Indian riders, as well as other motorcycle enthusiasts will enjoy this great film.

Last, but not least, we are also looking forward to the Indian Rally at Indian Point III (May 14 – 21, 2006; www.huntersfriendresort.com/irip06.htm). This event promises to be a great time for everybody and I look forward to participating again this year. We continue to appreciate your patience, enthusiasm and commitment to Indian Motorcycles. We know Indian has tremendous potential and we intend to use our experience, energy, capital and enthusiasm to ensure Indian is returned to greatness. I wish you, your family and your friends a safe, happy and healthy 2006. I’ll see you on the road!

Sincerely,

David P. Wright, President
Indian Motorcycle Company

Quarterly Update to the Indian® Motorcycle Community Sarasota, FL (July 1, 2005)

Greetings from Florida. I hope everyone is out enjoying their bikes and the summer weather. I’m looking forward to getting some good riding in over the upcoming Fourth of July weekend. I’m enjoying my 2004 Chief®, it is a great bike and has provided me the opportunity to ride with fellow Indian® riders and to get to know these products better. We believe the product is fundamentally sound, not to mention beautiful, and that these bikes represent a solid starting point for Indian.

I enjoyed a great weekend at the Indian Rally at Indian Point in Branson, Missouri in May – what a turnout it was! It was great to see so many Indian riders out enjoying their bikes and each others’ company. I had the fortunate opportunity to address the attendees on Friday night, which provided a good opportunity for us to “get to know each other.” I will never forget the weekend as it was our first public event as the owners of Indian. The one thing that continues to inspire us is the loyalty and the enthusiasm of the Indian riders. We share your enthusiasm and your excitement about the future of Indian. As I indicated in Branson, the resurrection of Indian will not happen overnight, but it will happen, and it will be worth the wait. Thanks to everyone who made it to Branson, some from as far away as Hawaii (I trust they didn’t ride to Branson!). I enjoyed getting to know many of you into the wee hours of the morning and I look forward to getting to know the rest of you at future events. The best part about this business is the opportunity to create great Indian memories, including IRIP III next May!

As you know, we’re in a Pre-Production Phase. Admittedly, it is not the most exciting phase, but it is the most important. We are obsessed with building quality products and quality products start with a rigorous engineering and testing program. There are issues that need to be resolved – and will be resolved – but it is genuinely difficult to predict exactly how long this phase will last. We plan to be in production in 2006, but whether it is early or late in the year will be determined by the duration of our engineering and testing efforts. We are confident that the results of this exhaustive process will not disappoint. We are working with a team of people that we believe were the most highly-regarded engineers at the former Indian Motorcycle Corporation in Gilroy, California. The fact that these talented people want to work with us is testament to their continued belief in Indian and in our ability to “get it done.” As the start of production (“SOP”) date is solidified over the coming months, we will then commence related activities, including rounding out our team, identifying and outfitting a plant, developing a dealer network, commencing parts and accessories operations, etc. All elements of the business will be integrated to ensure a smooth and robust commercial launch.

In an effort to better understand the technical and design issues and satisfaction of Indian Motorcycle owners, we designed and deployed a Chief owners’ survey in May. We were overwhelmed by the response rate, which approached 50%. We are presently focused on owners of 2002, 2003 and 2004 Chiefs in order to better understand the issues associated with the Powerplus™ 100 engine, as well as the Chief chassis. We are reviewing this feedback with our engineers to ensure our testing efforts are focused on the problems you have experienced in the field. I want to personally thank each of you for your participation in this survey, this information is invaluable and will ensure the bikes we build will be beautiful, reliable and fun to ride. We plan to survey Scout and Spirit owners next, so be prepared!

Over the past several months, we’ve been methodically contacting Indian’s former suppliers, among other important activities. We have over 150 suppliers that hold the keys to our success. We will work with world-class suppliers who know how to build quality parts, at good prices and deliver them on time. As you can imagine, it is a significant undertaking to establish a working relationship with each of these suppliers. Given the proprietary nature of Indian’s products, suppliers generally don’t have inventory on hand and it will take time before the entire supply chain is production ready.

We will continue to keep you up-to-date via www.indianmotorcycle.com on a quarterly basis. Thanks again for your patience, support, and interest in this great endeavor.

Happy Fourth!

Sincerely,

David P. Wright
President
Indian Motorcycle Company

Quarterly Update to the Indian Motorcycle Community Sarasota, FL (March 31, 2005)
(source article)

Spring has arrived and a new riding season is underway. We enjoyed a great trip to Daytona Beach for Bike Week to kick off the season and we were happy to see many Indian bikes and Indian riders enjoying their time in Daytona. Our experience in Daytona made us even more excited about and convinced of this great opportunity to resurrect Indian®. We look forward to many more exciting Bike Weeks in the years ahead and to sharing good times with Indian riders.

We have decided to make Quarterly Updates available via www.indianmotorcycle.com (under the “News” section). We recognize how important it is to keep the Indian community up-to-date with our plans as they become available. Although we don’t have any “big” news to report this quarter, we are pleased to report that we have made great strides over the previous three months in developing our game plan for Indian®. As we’ve said before, this is a big undertaking, but we continue to make steady progress toward the production of Indian® motorcycles. We are presently in a “Pre-Production Phase” which we expect will last 9-12 months. The output of this phase will be a fully prototyped, sourced, and tested range of motorcycles that is prepared to be manufactured in a production environment. Our focus over the past several months has been on developing our engine strategy, with additional emphasis on motorcycle design and supplier development.

In terms of the engine, we are evaluating the Powerplus engine and have had extensive discussions with Frank Aliano, Steve “Posie” Pfaff, Joe Malfa and others. We have also met with Jerry Korrect of Thunder Heart Performance and Performance Assembly Solution (PAS). There is such an incredible knowledge of this engine, it gives us confidence that the future of the Powerplus is bright, although further tests, etc., will be conducted before we definitively elect this option going forward. The 2008 CARB and 2010 EPA regulations present some complexity for the Powerplus and we are assessing the ability of the Powerplus to meet these more stringent noise and emissions regulations, through modifications such as electronic fuel injection (EFI), and other enhancements. Like many of you, we’re hopeful the Powerplus is “the answer” – we think it’s the most beautiful engine we’ve seen, but we need to be entirely confident of its performance and reliability before proceeding with it.

We’ve also spent considerable efforts understanding Indian motorcycle design issues. Indian has such a rich design heritage that we can draw from to develop bikes that reflect the past of Indian, while being innovative and modern in their styling. We are likely to use the previous (2003/04) bikes as a “starting point” but will make significant improvements to both the design and functionality of these machines to deliver exciting and beautiful products that perform exceptionally well.

On a related note, we have contacted a large number of the former Indian suppliers. By the end, we believe Indian Motorcycle Corporation of Gilroy, California, had assembled a world-class group of suppliers, many of whom we will undoubtedly do business with in the future. In this business, strong suppliers are the key to success and we feel we have some exceptionally strong supplier relationships that we will continue to build over time.

Our “Pre-Production Phase” will take place primarily in Sarasota, Florida. Toward the end of this Phase, we will begin the process of finding a permanent home for Indian. We will explore many location options for Indian and we will select the location that maximizes the probability of Indian’s long-term commercial success. Finding a permanent home for Indian is not a top priority right now, but will become increasingly important as the year progresses.

Similarly, as the Pre-Production Phase is concluded and we prepare for full-scale operations, we will begin to develop our dealership network. We remain committed to working with worldclass dealers who understand the value of the Indian brand and our products and who consistently treat their customers exceptionally well. We will give them everything they need, in particular exceptional products, to deliver a great experience to their customers.

In closing, we remain thrilled about this opportunity. We are the fortunate stewards of this great brand and we will do our best to serve Indian and our riders to the best of our ability. Thanks again for your patience, support, and enthusiasm. Indian will return, once and for all. Before signing off, we are seeking to acquire a 2004 Chief, a 2004 Spirit and a 2004 Scout to be used for prototyping and design purposes. If you can help us locate a genuine 2004 Indian, please contact me, Dave Wright, directly (dave@indianmotorcycle.com). We’ll “reward” anyone who helps us find and acquire a 2004 Indian (reward to be determined!).

Thanks again for your interest in this exciting endeavor.

Sincerely,

David P. Wright
Stephen M. Julius
Indian Motorcycle