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Norton Motorcycles Announces Appointments of a CEO and a President

2 July 1999

Norton Motorcycles Announces Appointments of a Chief Executive Officer and a President and New Financing

    MINNEAPOLIS, July 2 -- Norton Motorcycles, Inc. (Norton or
the Company) (OTC Bulletin Board: NRTN) announced that two senior executives
have joined Norton.  Mr. Robert Kilpatrick is Norton's new Chief Executive
Officer and Mr. John M. Tastad is Norton's new President. Additionally the
Company announced the finalization of new financings.
    Robert Kilpatrick is an executive experienced with start-up and early
growth stage companies.  Most recently, he has been engaged by several venture
capital firms to monitor their investments.  Mr. Kilpatrick has worked with or
for companies such as Harley Davidson, Starcraft Manufacturing, Citicorp,
Calico Commerce, eLoan, Quicken, Banker's Trust and Lawyer's Title.
Kilpatrick stated:  "I look forward to leading Norton back to the forefront of
the motorcycle industry. I come to an enterprise that is in an advanced stage
of developing a new line of world class motorcycles."
    John Tastad was the founder and Chief Executive Officer of Energy
Solutions International (ESI). From 1992 until 1997 Mr. Tastad developed ESI
from a Minneapolis start-up to a nationally recognized energy services
company. During his involvement ESI completed four acquisitions, grew in size
to 500 employees and $25 million annual revenue. In July 1997 ESI was sold to
Northern States Power. Mr. Tastad is an investor in and mentor to several
start-up and turnaround businesses. He is a motorcycle rider and enthusiast.
Tastad stated:  "I could not resist the opportunity to participate in this
exciting venture. The powerful Norton brand coupled with the high performance
model line being developed provides Norton with a strong foundation for
success."
    Mark Osterberg, Norton's former Chief Executive Officer who is assuming
the role of Chief Financial Officer, said: "Rob and John bring an
entrepreneurial spirit and know-how as well as keen enthusiasm for motorcycles
to Norton.  Rob and John have demonstrated their confidence in our venture by
providing significant new financing to Norton." Osterberg stated that NMI
Investments, LLC, an entity owned by Messrs. Kilpatrick and Tastad, had agreed
to provide a $1 million Bridge Loan Facility to Norton.  Additionally, NMI
Investments committed to subscribe to purchase $4 million out of the
convertible preferred stock private placement that the Company is preparing to
also offer to other investors.  The preferred stock is anticipated to be
offered at $7.50 per share with a five year term and will be convertible into
common stock on a one for one basis.

    BACKGROUND
    Headquartered in Plymouth, Minn., Norton Motorcycles, a development stage
enterprise, will market a line of motorcycles and motorcycle products
throughout the world.  Norton is presently engaged in the design and
development of a line of high-performance, premium motorcycles and the
marketing of motorcycle products. All of the products will be sold under the
famous "Norton" brand name, which will provide its motorcycles with worldwide
appeal and brand recognition among motorcycle enthusiasts. Additional
information is contained in the company's new Internet web site at
http://www.nortonmotorcycles.com
    Information provided herein by the Company may contain "forward-looking"
information.  These cautionary statements are made with the objective of
obtaining the benefits of safe harbor provisions of applicable legislation.
The Company cautions investors that any forward-looking statements made by the
Company are not guarantees of future performance and that the actual results
may differ materially from those in the forward-looking statements as a result
of various factors including but not limited to the development stage nature
of the Company.