Indian(R) Motorcycle Announces $30 Million Capital Increase

KINGS MOUNTAIN, N.C.--Sept. 21, 2006--Indian(R) Motorcycle is pleased to announce that it has successfully executed a capital increase of $30 million in order to fund its re-launch of the company and implement its business plan developed over the last 2 years.

This follows the recent announcement that Indian(R) will close on the purchase of a factory near Charlotte, North Carolina, where its world headquarters is now located. The site, located in Cleveland County, 35 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. This same announcement also described the hiring of industry veteran, Geoff Burgess, to the position of Vice President of Product Development and Engineering.

"This capital increase is a clear demonstration of our significant commitment to the successful future of Indian Motorcycle. It ensures that the Company has the proper financial foundation," said Indian Chairman, Stephen Julius. "However, the success of Indian Motorcycle will not be based on capital alone. Recruiting a world-class management team and following the appropriate business strategy are paramount," added Mr. Julius.

In this context, the company also announced that it is formally seeking to hire a seasoned motorcycle executive as General Manager for the company. This executive will assume the role of David Wright, formerly President of the Company, who resigned on August 25, 2006. Steve Heese has taken over as President while Stephen Julius remains executive Chairman of the company. Mr. Heese is a long time investor and partner with Stellican Limited, and currently serves as President of another Stellican Investment, Chris-Craft Corporation.

"We wish David every success in his new venture and thank him for his contribution to the company," commented Mr. Julius who stressed that there would be absolutely no change to the direction and plans for the company following Mr. Wright's departure.

Mr. Julius has a successful track record of re-launching iconic brands through his London firm, Stellican Limited, including Chris-Craft boats of which Mr. Julius is also Chairman.