Bikers Dream Obtains $4.5 Million Loan From Tandem Bank

24 June 1998

Bikers Dream Obtains $4.5 Million Loan From Tandem Bank

    SANTA ANA, Calif.--June 24, 1998--Bikers Dream (OTCBB:BIKR) announced the closing of a three year, $4.5 million senior secured loan (the "Loan") with Tandem Capital. Bikers Dream expects to utilize the proceeds of the Loan, to repay existing debt, expand motorcycle manufacturing production at the Riverside, California factory and for general working capital purposes.
    Under the terms of the Loan, Tandem Capital will receive 370,000 warrants to purchase the Company's common stock at the current market price. Interest on the loan is 12 percent and the Loan is secured by a first lien on all of the Company's assets.
    Herm Rosenman, President and Chief Executive Officer stated, "This is another step in financing the future growth of the Company empowering us to capitalize on the significant opportunities available today. With expanded production, exciting new product offerings and the eventual move into a larger manufacturing facility, the Company will become a more significant player in the American heavyweight motorcycle market."
    Headquartered in Nashville, Tennessee, Tandem Capital provides growth capital to small, rapidly growing public companies with market capitalization's up to $100 million. Tandem typically invests between $2 million and $10 million per company in transactions structured as convertible debt, convertible preferred stock or subordinated debentures with warrants. Tandem seeks to invest in companies that have a strong management team in place, a credible business plan and a requirement for capital to fund the next phase of growth. For more information on Tandem Capital, contact www.tandemcapital.com.
    Bikers Dream is a manufacturer and distributor of American-made heavyweight cruiser motorcycles. Corporate headquarters is located in Santa Ana, California, and manufacturing operations are located in Riverside, California.

    This press release contains forward-looking statements that involve risks and uncertainties, including but not limited to quarterly fluctuations in results, the management of growth, regulatory changes, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein. In addition, the Company's growth is dependent upon, among other things: continuing high demand for cruiser motorcycles, the Company's ability to compete in a highly competitive market, the Company's ability to increase motorcycle production, the Company's ability to satisfy its substantial additional capital requirements, the Company's ability to hire and retain key employees, and the Company's relationships with its customers and vendors. There can be no assurance that the Company will be successful in addressing any of these risks or that its sales and earnings will grow in the future as a result of these risks or others.
    This release is available on the KCSA Worldwide Website at www.kcsa.com.