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Excelsior-Henderson Closes Sale of $7.1 Million Minnesota Small Business Development Program Loan

22 December 1997

Excelsior-Henderson Closes Sale of $7.1 Million Minnesota Small Business Development Program Loan

    BELLE PLAINE, Minn., Dec. 22 -- Excelsior-Henderson
Motorcycle Manufacturing Company and the State of Minnesota Department of
Trade and Economic Development today announced the completion of the sale of
$7,145,000 of revenue bonds under the Minnesota Small Business Development
Loan Program.  The bonds are payable over a ten year period and carry interest
of 9.5%. The proceeds from the bonds will be available to the Company upon
installation and acceptance of certain manufacturing equipment and product
tooling.
    "The sale of the Minnesota Bonds represents the completion of another
Milestone as we progress toward the sale of the first Excelsior-Henderson
Super-X motorcycle during the fourth quarter of 1998," said brothers Daniel
and David Hanlon, Co-Founders and Co-CEOs of the Company.
    During November, 1997 the Company moved to its newly completed 160,000
square foot manufacturing and administrative facility in Belle Plaine,  Minn.
The facility has been designed to have a production capacity of up to 20,000
motorcycles per year, prior to any facility expansion.
    Excelsior-Henderson Motorcycle Manufacturing Company is a pre-revenue
company which plans to manufacture, market, and sell premium heavyweight
cruisers and touring motorcycles with a brand that evokes an authentic
American motorcycling heritage and lifestyle.

SOURCE  Excelsior-Henderson Motorcycle Manufacturing Company