Indian Motorcycle Names Frank O'Connell, Chairman of the Board, and Louis Terhar appointed President

    GILROY, Calif.--July 15, 2002--Indian Motorcycle Corporation ("IMC") announced today the promotion of Frank O'Connell to the position of Chairman of the Board, and named Louis F. Terhar President.
    Strong growth at IMC continues, with retail sales of the company's motorcycles up 61% during the first half of 2002, propelled by demand for the all-new 2002 Chief(TM) model which was introduced in April.
    "We are very pleased to have the combined talents of these two outstanding executives on the IMC team and we have every confidence that they will expand market share for Indian(R) motorcycles and extend the reach of this venerable American icon," commented Steven F. Kaplan, Managing Director of Audax Group, the majority investor in IMC.
    Mr. O'Connell, who joined IMC as President in November 2000, and is a major investor in IMC commented, "The appointment of Lou will bring a strong, seasoned operational executive on board to allow us to execute our plans to live up to the high expectations of the Indian(R) brand. Lou's appointment will also allow us to focus on expanding the Indian lifestyle brand internationally and beyond motorcycling."
    Mr. Terhar was previously President and CEO of the David J. Joseph Company, a $1.1 billion Ohio based steel processing subsidiary of a privately owned Dutch holding company. In the ten years he spent at the David J. Joseph Company, Mr. Terhar doubled sales and developed a new transportation business that grew to $100 million in sales. Mr. Terhar has also served as Director of European Operations for Emhart Corporation/Black & Decker, and has worked for W.R. Grace & Company in various operational roles. He is a graduate of the United States Naval Academy with a B.S. in General Engineering and holds an MBA in Finance from Syracuse University and a Master of Liberal Arts, Government from Harvard University.
    Commenting on the appointments, Timothy J. White, Managing Director of Audax Group, said, "With the successful introduction of the new 2002 Chief(TM) motorcycle with its new Powerplus(TM) 100 V-Twin engine last April and the enormous progress that has been made since Audax's investment 12 months ago, the Board feels that Mr. Terhar's vast experience in operational management will enable the company to build on its past success and move forward into the next phase of its growth. We are pleased with the great consumer acceptance of the new Chief model and the targeted expansion of our dealer network which together have created a strong platform for market growth," Mr. White added.

    About Indian Motorcycle Corporation

    Indian Motorcycle Corporation, based in Gilroy, California, was formed in 1998 to re-launch an American icon. The original Indian Motorcycle Company, which built the first American-made motorcycle in 1901, was a leading motorcycle manufacturer for almost 50 years. Although Indian(R) motorcycles were out of production from 1953 to 1999, the Indian brand is still well known to motorcycle enthusiasts because of its reputation for innovation and distinctive styling. The company currently designs, manufactures and markets three premium heavyweight motorcycles and a broad range of related products, parts, accessories, riding gear and lifestyle apparel. For more information on IMC, please visit www.indianmotorcycle.com.