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Norton Motorcycles Announces Material Changes Are Likely

28 October 1999

Norton Motorcycles Announces That Material Changes to its Product Line Are Likely and the Existence of Material Litigation

    MINNEAPOLIS, Oct. 27 -- Norton Motorcycles, Inc. ("Norton" or
the "Company") (OTC Bulletin Board: NRTN) announced that material changes to
its product line were likely and that it is involved in material litigation
with its former engineering firm and that certain funding commitments had been
withdrawn.
    On October 1, 1999 the Company commenced proceedings in the English High
Court against its former engineering consultants, MCD, for relief including
delivery up of prototype motorcycles and design drawings.  MCD is defending
that claim and has indicated that it intends to pursue a claim to ownership of
the designs and/or prototypes and a claim for substantial damages that it has
estimated at approximately $1,700,000.  Although the outcome of this dispute
is uncertain, the Company's English solicitors have advised the Company that
they believe that it is unlikely that MCD's claims to the designs and
prototypes and to damages sought will be sustained.
    Since the commencement of these proceedings the Company has received
advice that places in question previous assessments as to the development and
viability of the designs previously provided to the Company. Based on such
advice the Company now believes that it is unlikely that it will complete the
development of its previously announced motorcycle product line. The Company
is seeking an independent third party evaluation of the designs and prototypes
and it will be in a position to provide further details upon receipt of that
evaluation.  The Company may have to make further application to the English
Court in order to secure such an inspection.  Consequently, management is in
discussions with various high quality engine and component suppliers about an
alternative product line.  Although management believes that it can introduce
a successful line of Norton branded motorcycles into the marketplace, it
cannot predict when such line will be introduced.
    Headquartered in Eden Prairie, Minn., Norton Motorcycles is a
development-stage enterprise.  Norton has been engaged in the design and
development of a line of high-performance, premium motorcycles and the
marketing of motorcycle products.  All of the products are intended to be sold
under the famous "Norton" brand name, which will provide its motorcycles with
worldwide appeal and brand recognition among motorcycle enthusiasts.
    Statements used in this Press Release that relate to future plans, events,
financial results or performance are all forward-looking statements as defined
under the Private Securities Litigation Reform Act of 1995.  Actual results
may differ materially from those anticipated as a result of various risks and
uncertainties, including, but not limited to: the Company's ability to raise
short-term and long-term capital; the Company's ability to create product and
brand name awareness; the level of consumer acceptance of the Company's
products; the Company's ability to design, develop and market its products on
a cost-effective basis; economic trends; industry competition; the outcome of
existing litigation with the Company's former engineering firm; as well as
various other risks and uncertainties, including all risks associated with the
Company being a development-stage company with limited assets and no existing
revenues.  The Company has no obligation to publicly update or revise any of
the forward-looking statements that may be in this release.