Excelsior-Henderson Motorcycle Manufacturing Company Announces New Senior Management Team And Engagement of A Business Consultant.

BELLE PLAINE, Minn.--(BUSINESS WIRE)--Aug. 17, 1999--

Excelsior-Henderson Motorcycle Manufacturing Company (Nasdaq: BIGX) today announced that it will be taking a new direction in its Senior Management Team. The new Excelsior-Henderson company was re-launched in 1993, and has overcome significant barriers-to-entry in producing the world's first new proprietary heavyweight American heritage motorcycle, and is now transitioning from a milestone driven development stage firm, to a predictable operational results driven company.

"We have had some significant challenges over the last six years, and we maintain the belief of bringing into our organization the necessary new skills as we continue to meet the challenges of the future", stated the Co-Founders Dan, Dave and Jennie Hanlon.

The Company will be making the following changes in its Senior Management Team. The Company is recruiting for its first President, who will lead the day-to-day operations of the Company. The Company also has been recruiting for a new Chief Financial Officer, and Senior Vice President of Sales and Marketing. Continuing on the Senior Management Team will be Allan Hurd, Senior Vice President of Manufacturing and Engineering, and the Co-Founders.

The Hanlons further added, "with our new leadership team, which will now include the addition of a President, we believe we will have the right leadership to bring predictability to our operations." "In a start-up company, there will often be changes because the organization constantly evolves," they added. "At Excelsior-Henderson, we have had to make difficult leadership decisions in the past and may be required to do so in the future. We appreciate those who have assisted us in the past, and we look forward to the future contributions of those who will be joining us."

Joining the Senior Management Team, the Company today announced that it has hired Gary "Jet" Johnson as its new Senior Vice President of Sales and Marketing. Gary has over thirty years of industry sales and marketing experience. Mr. Johnson currently is Vice President of Sales and Marketing for LeMans Corporation, the largest aftermarket motorcycle parts and accessory company in the United States, whose sales quadrupled during the eight years he was Vice President. LeMans Corporation is the parent company of Drag Specialties and Parts Unlimited. Gary was previously a Senior Vice President of Mercury Marine, a division of Brunswick Corporation, and prior to that was Vice President of Sales at Kawasaki USA. "We look forward to having Gary Johnson's strong experience in forming and managing sales organizations at Excelsior-Henderson," stated Co-Founders Dan, Dave and Jennie Hanlon. "Gary will be instrumental in the Company's push to expand sales and to add to and manage our dealer distribution network," they added. Mr. Johnson will join the Company in late September 1999.

The Company also added that Steve Leverenz has previously joined the Company as Director of Manufacturing. Steve was most recently the Plant Manager of the Cresco, Iowa production facility for Donaldson Company, where he managed a staff of over 450 people. Previously, he held production positions with Oshkosh Truck and John Deere. The Company also recently added Victor Van Dyke as its Director of Engineering. Victor was most recently an Engineering Supervisor with Kohler Company. Mr. Van Dyke was with Kohler for almost ten years working in engine development. Victor was previously with the Government of Romania, where he worked in engine design on military tanks.

Finally, the Company announced that it has engaged a business consulting group to assist in analyzing and implementing various management strategies. The group is comprised of business managers who are working closely with the Company's executive management team to support operations.

Excelsior-Henderson Motorcycle Manufacturing Company designs, manufactures, markets and sells a proprietary brand of premium heavyweight American cruiser motorcycles, as well as related parts, apparel and accessories branded with a name that evokes an authentic American motorcycling heritage and lifestyle. The Company distributes its products through a national dealer network. Excelsior-Henderson is one of only two authentic American motorcycle companies exclusively committed to the manufacture of motorcycles. For additional information, visit the Company's web site at www.excelsior-henderson.com.

Notes Concerning Forward Looking Statements:

This press release contains forward-looking statements regarding the Company's transition from development stage to an operating company, expansion of sales and adding to the dealer distribution network that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements. Potential risks and uncertainties include the ability of the Company to increase production volume, while maintaining high quality and controlling production costs, the ability of the Company to sell all of the motorcycles it produces, the ability of the Company to lower overall expense levels and the ability to obtain additional debt and equity financing. Factors that may affect production volume include the ability of the Company to maintain adequate quantities of high-quality components and supplies, to refine its manufacturing processes, and to solve unanticipated manufacturing problems. Factors that may affect production costs include the ability of the Company to purchase motorcycle components and supplies at reasonable costs and to efficiently utilize personnel. Factors that may affect sales include the ability of the Company to expand its dealer network, the effectiveness of the Company's dealer network and internal sales team, the success of new sales and marketing programs, and ultimately market demand for the Company's motorcycles. Factors that may affect overall expense levels include the ability of the Company to improve management capabilities and improve its sales, marketing and production processes. Investors are also encouraged to review the factors described from time to time in the Company's reports on file with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 1999 and the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 3, 1999.