Wackenhut, Quantum Cycles and U.S. Technologies Inc. Form Venture

29 October 1999

Wackenhut, American Quantum Cycles, Inc. and U.S. Technologies Inc. Form Venture for Finishing of Motorcycle Parts

    WEST PALM BEACH, Fla.--Oct. 27, 1999--Wackenhut Corrections Corporation , American Quantum Cycles (AMEX: AFV) and U.S. Technologies Inc. (OTC BB: USXX) have signed a contract forming a Venture for the finishing of motorcycle parts.
    The work will take place at the South Bay and Moore Haven Correctional Facilities, State of Florida correctional facilities that are managed by Wackenhut. The project will be co-managed by American Quantum which will be responsible for quality control and training; U.S. Technologies which will be responsible for operations supervision. U.S. Technologies has been approved by the State of Florida, Pride Enterprises and the Federal Bureau of Justice Assistance to operate a new Prison Industry Enhancement (PIE) Project at the two facilities.
    The work will include polishing of aluminum and stainless steel parts, fabricating fiberglass parts along with custom painting of fenders, gas tanks and instrument consoles. The contract has an option phase, which is based on performance of the first phase that includes motorcycle assembly. American Quantum's Director for Quality Assurance will be their General Manager for the Project on site and will be responsible for operations management, quality control and worker training.
    Rich Hagen, CEO of American Quantum Cycles stated, "this Venture will allow American Quantum to expand their production of quality motorcycles with substantial cost savings and will also teach the inmates skills that will serve them well upon release. We pay market wages for the work but a portion of each inmate's wages goes directly to spousal support, child support and a state fund for victim restitution. We consider this a triple win with American Quantum, the inmates and society benefiting from the Venture."
    Wackenhut Corrections, based in Palm Beach Gardens, Florida is a world leader in the privatized corrections industry and has contracts or awards to manage 55 correctional and detention facilities in North America, Europe and Australia. Twelve of the facilities have PIE or government industry programs in place or under development.
    American Quantum Cycles manufactures American-made, high performance, custom-made, cruisers and touring style motorcycles with state-of-the-art engines utilizing a patented four-valve head for greater power and lower pollutant emissions. Using a PC-based kiosk Intranet/Extranet system installed in dealer showrooms, customers can select a precise motorcycle design with options tailored to their requirements. For more information visit the Company's Web site at www.quantumcycle.com.
    U.S. Technologies, based in Washington, DC, is a national outsourcing company, which solicits labor-intensive work from Fortune 1000 companies to be performed by its manufacturing subsidiary, Labor-to-Industry Inc. (LTI) or by its service subsidiary, Service-to-Industry Inc. (STI). The Company performs its work utilizing detention facility inmates under the guidelines of the Prison Industry Enhancement Program (PIE).

    This release contains forward-looking statements that are subject to risks and uncertainties. Although American Quantum Cycles believes that the expectations reflected in its forward looking statements are reasonable, actual results could differ materially from those expectations. Important cautionary statements and risk factors that would affect actual results are discussed in materials filed by American Quantum Cycles with the Securities and Exchange Commission.