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American Quantum Cycles to Merge With American Motorcycle Company

28 August 2000

American Quantum Cycles to Merge With American Motorcycle Company

    MELBOURNE, Fla.--Aug. 28, 2000--American Quantum Cycles, Inc. (ASE: AFV) and American Motorcycle Company (AMC) of Delaware announced today an agreement to merge their business operations.
    The new organization will operate as American Motorcycle Company, with headquarters in Washington, DC. The Company will continue listing on the AMEX under its current symbol, AFV.
    As part of the agreement, Murray Smith, Chairman & Chief Executive Officer of AMC, will assume the position of Chairman of American Motorcycle Company with primary responsibility for mergers & acquisitions and brand development.
    Richard Hagen, Chief Executive Officer of American Quantum, will be the amalgamated company's Chief Executive Officer.
    In making the announcement, Mr. Hagen said, "Murray Smith has an extraordinary record of achievement in the motorcycle industry, having led Indian Motorcycle as Chairman and CEO. During his tenure, he restructured Indian from a domestic non-operating company in 1998 to a company with international operations in the motorcycle, licensing, clothing and hospitality sectors. Indian, is estimated to be valued at about $500 million with year 2000 revenues expected to be approximately $150 million. To have such a visionary leader playing a vital role in the growth of American Motorcycle is to the benefit of all shareholders."
    Mr. Smith said, "I believe that there exists the opportunity today to position American Motorcycle along with Harley-Davidson and Indian Motorcycle in the global marketplace. To achieve this market position we will complete a series of mergers, launch a global licensing program and expand our authorized dealer network. Together with this merging of fine independent American motorcycle companies, we intend to create a global diversified brand that will exceed customer and shareholder expectations. When the market compares our current capitalization, brand name and motorcycle to Indian and Harley-Davidson I am confident that they will agree that there is significant upside for all shareholders."
    Mr. Hagen also announced that, as a result of the merger, the following senior executives will also play key roles with American Motorcycle:

-	Gary Irving will continue in his position as Chief Operating Officer and will take direct responsibility for Strategic Development, Information Technology/Services and e-commerce initiatives.
-	Rick Block, appointed as President of American Motorcycle International. Mr. Block was the court-appointed receiver who consolidated the global trademark rights to Indian Motorcycle before selling it to its current owners. Mr. Block's primary responsibility is the management of global trademark and licensing activity.
-	Lionel Mercier as Vice President responsible for motorcycle design, production and sales. Mr. Mercier joins American as a veteran of the motorcycle industry with over 20 years of diverse experience in senior management positions, most recently as Vice President Of Indian Motorcycle where he designed the new Chief motorcycle and was responsible for establishing Indian's authorized dealer network.