Quantum Cycles Inc. Enters Into Investment Banking Agreement

15 October 1998

Quantum Cycles Inc. Enters Into Investment Banking Agreement for a Firm Secondary Offering of $5 Million Minimum

    MELBOURNE, Fla.--Oct. 15, 1998--American Quantum Cycles Inc. (OTC BB:AMQC) today announced that it has entered into an Investment Banking Agreement with an NASD member firm for a Secondary Offering to raise the Company a minimum of $5 million.
    The Offering Document is expected to be filed within three weeks and the Offering is expected to close in approximately 75 days. The Company has raised just over $5.8 million since operations began on May 9, 1997. Those funds were used to develop and test the Liberty Cruiser and Pioneer Touring models, build-out the productions facility, develop DealerNet and TechNet, as well as receive EPA certification for 49 states.
    Richard K. Hagen, Chairman and CEO, stated "The additional funds will be used to fulfill orders that we have received from our 25 Dealers, which represent approximately $4.5 million in sales. This will also give us the working capital to continue to add new Dealers. AMQC is presently processing over 20 twenty new Dealer applications. Furthermore, this capital will enable AMQC to qualify for a listing on an exchange."
    American Quantum Cycles is a new entrant into the worldwide motorcycle industry with a state-of-the-art engine utilizing a patented four-valve head for greater power and lower pollutant emissions. For further information contact Melissa Kirkpatrick at 407-752-0008 or go to the AMQC Web site at www.microcap1.com/quantum.

    Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate," "project," "intend," "expect," "believe," and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties.