American Quantum Cycles Announces $43M Distributor Agreement
6 April 2000
American Quantum Cycles Announces $43 Million Distributor Agreement For Four State Region
MELBOURNE, Fla.--April 6, 2000--American Quantum Cycles (AMEX:AFV), a manufacturer of high performance motorcycles, today announced the signing of a four-state distributorship with Action Motorcycle Distributing Company, LLC of Detroit, Michigan. The Agreement gives Action Motorcycle Distributing Company, LLC an exclusive distributorship for the four states of Michigan, Illinois, Indiana and Ohio in exchange for buying annual minimums of motorcycles and providing services to American Quantum Dealers in the region. The five-year Agreement calls for Action Motorcycle Distributing Company, LLC to purchase a minimum (or the Distributor loses the exclusive Agreement) of 200 motorcycles in the first year of operation, 350 in the second, 500 in the third, 600 in the fourth and 700 in fifth. The Agreement can be renewed for another five-year term. "If we sell an equal mix of cruiser and touring motorcycles into the region, this Agreement has a $43 million value to American Quantum Cycles over the five year period", stated Richard Hagen, American Quantum's CEO.Principles of Action Motorcycle Distributing Company, LLC have owned and managed three Harley-Davidson Dealerships in Michigan (Howel, Brighton and Westland) from 1978 - 1997. "I managed successful Harley-Davidson Dealerships before they enjoyed their present popularity, I see the same potential with the American Quantum Cycles products," stated Robert Ricciuti, a principle in Action Motorcycle Distributing Company, LLC. Ricciuti also added, "the American Quantum cruiser has excellent power, a clean style and the best handling on the road today."
About American Quantum Cycles
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.
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.