GILROY, Calif.--Sept. 22, 2003--Indian Motorcycle announced today that it has ceased production effective immediately in order to conserve cash and preserve its assets. The Company also announced that it has laid off its workforce.

Frank J. O'Connell, Chairman of the Board, said, "These steps were taken in order to allow the board time to explore other options that would permit the Company to continue as a going concern. At present the company is operating with a small group of management in place and will continue to do so until a decision is made concerning Indian's future."

"We have made tremendous progress in the last few years in rebuilding the Indian brand," he continued, "and we are hopeful that a way can be found to maintain the viability of the Company."