Eller Motorcycle Team Remains Intact and Committed to its Projects
1 February 1999Eller Motorcycle Team Remains Intact and Committed to its Development Projects
NIWOT, Colo., Jan. 29 -- Eller Industries, Inc. ("Eller") (OTC Bulletin Board: ELRI). Despite losing its contract to purchase the Indian Motorcycle trademarks, Eller Industries continues to move forward toward production of its full line of American-made heavyweight motorcycles. Since an adverse ruling on its contract to purchase the trademarks by the U.S. District Court for the District of Colorado on December 7, 1998, Eller has redoubled its efforts to move to production for both the U.S. and overseas markets. The team behind Eller's well-received concept prototype remains intact. "For over five years I have been working to rebuild the Indian Motorcycle Company," said Eller president Leonard S. Labriola. "It's not easy to walk away from that kind of commitment. Still, the common sentiment out there seems to be that the popularity of the Indian name is not about a company that has been out of business since 1953; it's about the motorcycle that changed the industry and about the community of people behind it. So to find overwhelming support for our efforts within the industry and from that same community has been very gratifying. In particular, the enthusiastic reception by the motorcycle press has been terrific. Even though it would have been nice to latch on to that history, I guess we will save the $20 million we were prepared to pay for the trademarks, and instead rest our future on our product quality, product appeal, and management. I believe that the craftsmanship and design demonstrated by Eller's first prototype effort, together with Robert Lutz, James Parker, Roush Industries, Jeff Karr, the Cow Creek Umpqua tribe, and the other members of Eller's team, make it obvious that our future success will run much deeper than whatever name is on the gas tank." Designed by James Parker, the prototype was built by respected Roush Industries of Livonia, Michigan, and received extensive media coverage in the February '99 issues of Cycle World, Rider, and Motorcycle Cruiser, and appeared on the covers of February issues of American Iron and Motorcyclist magazines. "I'm absolutely committed to the Eller effort," says Parker, "and am working right now on another, entirely different, sport-oriented design aimed at providing Eller with a broad model range. We have great plans for the future, and I'm excited to be a part of it." Robert Lutz, retired vice chairman of the Chrysler Corp., and chairman, president and CEO of Exide Corp., continues to be an enormous asset to Eller in his advisory role with the company. As Lutz says, "I'm behind this project long-term. I'm not a bit worried about the viability of Eller and our motorcycle effort. Whether it's got an 'Indian Motorcycle Company' logo on the tank or not, it's a knockout, and the talent this team brings to the table will ensure many new and exciting products for years to come." Lutz recently met with key project team members and prospective overseas distributors to explore export strategy, market viability without the Indian brand, and overall planning. For the near term the Eller group is engaged in strategic planning of the model line, and is actively exploring worldwide marketing and branding options. In addition to the highly favorable response from key media outlets, the Internet has been buzzing with positive comments on Eller's project. George Yarocki, an established restorer of classic motorcycles reports that, "what Eller is going to do next is the hot topic of many bulletin boards and chat rooms I visit. There's a vocal community of motorcycle enthusiasts who seem to have one clear message for Eller's motorcycle development efforts: 'We don't care what you call it -- just build it.'" The discussion in this press release contains forward-looking statements. Although Eller believes that the expectations reflected in these statements are reasonable, it can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that may affect the company's ability to consummate the transactions and plans described above.