Global Motorsport Group, Inc. Agrees to Sale With Dae-Il USA

To attend 8th Annual V-Twin and International Powersports Dealer Expos

MORGAN HILL, Calif., Jan. 31 -- Global Motorsport Group, Inc. (GMG) announced today that it has agreed to sell its assets to Dae-Il USA, Inc. as a going concern. The sale includes all of GMG's US operations -- including its Custom Chrome, Motorcycle Stuff, and Jammer divisions, and the stock of Global Motorsport Group GmbH, which manages all of GMG's European operations. In order to facilitate the sale process, the Company filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filings were made today in the U.S. Bankruptcy Court for the District of Delaware.

The Company announced that it has reached an agreement with its lender to provide debtor -in-possession financing, subject to Bankruptcy Court approval, to fund the Company's business operations while it completes the sale process. This financing will provide the Company the necessary funds to continue operations in the normal course of business, keeping all of the Company's distribution facilities open on normal schedules, and fulfilling customer orders. The Company does not foresee any changes in employee numbers or facility locations.

The purchase agreement is subject to the approval of the Bankruptcy Court. Definitive documents will be filed with the court, along with bidding procedures noting that qualified bidders will be provided an opportunity to make higher and better offers for the purchase. It is anticipated that the sale will be completed within 45 days.

"We are pleased to have entered into an agreement to be acquired by Dae-Il USA and are confident that this transaction will position GMG to reestablish its leadership position in the marketplace," said Scott Avila, Chief Restructuring Officer of GMG. "We have carefully reviewed our options and believe that a sale will provide the best long-term prospects for the Company's customers, vendors, and employees.

"We look forward to supporting GMG's success and continuing operations as a stand-alone business," said Nace Panzica, President of Dae-Il USA and the original founder of Custom Chrome. "We are committed to investing in GMG's product lines and outstanding customer service. With the continued support of our faithful employees, loyal customers and valuable vendors, I am confident GMG's future will be a success."

Senior GMG representatives will attend at the 8th Annual V-Twin Expo by Easyriders held in Cincinnati beginning on February 2, 2008. GMG's exhibit will be located in the Center Main Hall, booth numbers 556 and 669. GMG will attend the International Powersports Dealer Expo in Indianapolis beginning on February 16, 2008, and exhibiting in booth 825, Main Hall

  The transition of control should be concluded by March 2008.

  About Global Motorsport Group

Global Motorsport Group, Inc. markets and distributes aftermarket motorcycle parts and accessories and does business as Custom Chrome, Santee, Custom Chrome Europe and Motorcycle stuff. The Company is one of the largest, independent suppliers of aftermarket parts and accessories for Harley-Davidson motorcycles and commands significant market share in the broader motorcycle industry. With over 50,000 unique product offerings, Global Motorsport Group anticipates and fulfills the aftermarket needs of the entire motorcycle industry through a network of independent dealers throughout North America, Europe and Asia / Pacific. To learn more, please visit www.customchrome.com or www.motorcyclestuff.com.

About Dae-Il USA

Dae-Il USA is a wholly owned subsidiary Dae-Il Corp, a publicly traded (Korea Stock Exchange) manufacturer of parts for automobiles, forklifts and motorcycles. Major customers of Dae-Il include Global Motorsport Group, Hyundai, Kia Motors, Daewoo, Mitsubishi, Clark Forklift, John Deer, Polaris, and Caterpillar. Dae-Il has been a supplier of GMG and its predecessors since 1982 and manufactures the popular Rev-Tech engines, transmissions and related driveline products exclusively for GMG.

   Media Contact:
   Sarah Michael
   310-903-3481