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Moto Guzzi Production Up After Merger

14 June 1999

Moto Guzzi Production Levels Accelerate Following Merger Close With North Atlantic; 
Announces First Quarter 1999 Results

	NEW YORK--Moto Guzzi Corporation (OTC BB:GUZI) today announced operating
results for the first quarter ended March 31, 1999.  

	Net sales for the three months ended March 31, 1999 were Lit. 17.6 billion
(US$ 9.8 million), down 31.3 percent from the comparable 1998 period.  Net
loss was Lit. 5.3 billion (US$ 3.0 million loss) compared with a loss of
Lit. 0.8 billion (US$ 0.47 million loss) for the same period last year.

	The decrease was a result of a) lower production and sales due to
non-supply of components consequent to liquidity difficulties prior to the
arrival of funds from the merger with North Atlantic Acquisition
Corporation on March 5, 1999, and b) an exceptional public administration
order for 312 motorcycles during the first quarter of 1998 resulting in net
sales of Lit. 3.8 billion (US$ 2.1 million) and margins of Lit. 1.0 billion
(US$ 0.6 million) for that period.

	The closing of the merger with the Company on March 5, 1999 provided
needed liquidity to Moto Guzzi. A lack of liquidity had led to component
supply shortages in the last quarter of 1998 and the first two months of
1999. Following the arrival of the proceeds of the merger, production and
sales were stabilized in May 1999 at more than 30 units per day. The 654
units produced in May were, however, still lower than current demand from
the market.

	In April 1999, Moto Guzzi introduced its California Jackal model. This
"stripped down" model extols the basic elegance of Moto Guzzi's unique
engine and design. In addition, its reduced weight further enhances
handling. Also in April, Moto Guzzi's California Special model was awarded
second place in the "cruiser" category by the premier Italian motorcycle
magazine Motociclismo.

	In late March 1999, Mario Scandellari joined the company as Managing
Director of Moto Guzzi S.p.A. Mario has had a successful executive career
in the motorcycle industry, initially with Harley Davidson and later with
Cagiva/Ducati, as well as in turnaround situations. Mario was named COO of
Moto Guzzi Corporation in May of this year.

	Also at the end of March, John Porter joined the company to head up
operations in North America. John is an experienced recreation industry
executive with many years of experience with Yamaha and in marketing and
research studies in the sector.

	Mr. Scandellari commented: "The past few months have confirmed my strong
belief in the tremendous potential of Moto Guzzi. With production now
stable and the new Jackal launched, I look forward to initiating actions to
strengthen the business and improve results in the coming quarters."

	Mr. Hauser added: "The closing of the North Atlantic transaction and the
arrival of Mario Scandellari represent significant steps forward. I am very
pleased with the rapid return to higher production levels and look forward
to continuing progress."

	Moto Guzzi is one of the oldest, most storied motorcycle manufacturers in
the world. Headquartered in Mandello del Lario, Italy, the company produces
several models of heavyweight and high-performance motorcycles. With unit
sales of about 5,700 in 1998, Moto Guzzi sells its products through a
network of over 750 wholly and partially owned importers and independent
dealers worldwide. In addition to motorcycles for the general consumer,
Moto Guzzi also manufactures models targeted at government agencies,
national and local police forces and highway patrols.

	Current Moto Guzzi models include the California, Nevada Club, V10
Centauro, and 1100 Sport Corsa. New models available in 1999 include the
California Stripper and the V11 Sport. Some projects on the longer-term
horizon include a new generation for the California family and a new line
of 750cc's with a new engine and chassis.



                        MOTO GUZZI CORPORATION
                         Operating Highlights
              For the Three Months Ended March 31, 1999

                      Three Months Ended    Three Months Ended
                      March 31   March 31   March 31   March 31
                        1999       1998       1999        1998
                      -------------------   -------------------
              In millions of Italian Lire   In thousands of US Dollars
                 except loss per share       except loss per share (a)
                      -----------------------------------------

Net sales              17,573     25,586      9,812     14,286

Gross margin              124      4,664         70      2,604

Operating
 (loss)/profit         (4,263)       477     (2,380)       266

Finance costs, net     (1,064)      (986)      (594)      (551)

Net loss               (5,305)      (835)    (2,961)      (466)
                       =======    =======    =======    =======

Net loss per share (b) (1,333)      (251)     (0.74)     (0.14)
                       =======    =======    =======    =======


(a)  Translated in U.S. Dollar equivalents at the approximate exchange
     rate prevailing at March 31, 1999 of $1.00 : Lit. 1,791

(b)  Calculated on weighted average number of shares outstanding in
     period.