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Titan Motorcycle Co. Files for Chapter 11

10 January 2001

Company to Continue Normal Operations During Financial Restructuring

    PHOENIX, Jan. 9 Titan Motorcycle Co. of America filed a petition for relief 
under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court 
for the District of Arizona on January 9, 2001.  The filing was necessitated 
by the Company's inability to meet its secured debt obligations and will allow 
Titan to access new working capital and restructure its finances.  Titan is 
continuing all normal business operations and will continue uninterrupted 
services to its dealers and customers.

    "Titan wishes to reassure our customers and our dealers that the Company
will continue to operate without interruption, and Titan remains dedicated to
serving our customer's needs and turning out the high-quality product that
customers and the industry has come to expect of Titan, all the while
strengthening our ability to provide customers with high-quality service well
into the future," said Mr. Frank Keery, Titan's chairman and chief executive
officer.  "Protecting the integrity of the Titan brand and the interests of
our customers and dealers, and continuing our record of exceptional customer
service remain our top priorities."

    Titan is taking steps to ensure that it will meet its obligations to its
essential vendors and suppliers.  Keery also noted, "We have requested and
expect to receive prompt authorization from the Court to continue to pay all
salaries, wages, and benefits to our valued employees."

    Keery stated that recently, the Company has suffered from insufficient
cash flow to pay vendors timely, resulting in lower than expected materials
cost savings and limited potential margin improvement, which in turn resulted
in a decline in gross profit margin.  "This condition affected our ability to
maintain the anticipated supply of parts, which further constrained sales,"
Keery said.  "We have taken appropriate steps to focus corporate management on
restructuring the balance sheet to allow Titan to become profitable in the
future," Keery continued.  "We believe that our current financial difficulties
exist despite a viable core business based on exceptional reputation and
products.   These difficulties are a short-term problem that can be
successfully managed through the reorganization process."

    "Once we have completed the reorganization process, we expect Titan to
emerge as a stronger company with a sound financial structure," he said.  "The
decision to file for Chapter 11 protection was a difficult one, but absolutely
necessary in order to protect our ability to meet our obligations to our
customers, dealers, suppliers, and our valued employees."

    Founded in 1994, Titan Motorcycle Co. of America is a premier designer,
manufacturer and distributor of high-end, American-made, V-twin engine
motorcycles marketed under various Titan trademarks.  Titan's unique,
hand-built configurations, including the Gecko(TM), Roadrunner(TM),
Sidewinder(TM), and Phoenix(TM), represent the finest available in
custom-designed, volume-produced, performance motorcycles.  Manufactured at
the company's corporate headquarters and manufacturing facility, and available
with a variety of customized options and designs, Titan's large displacement
motorcycles are sold through a network of over 80 domestic and international
dealers.