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From the president  of  indian motorcycle


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Quarterly Update to the Indian

 

® Motorcycle Community

Sarasota, FL (July 1, 2005) -

 

Greetings from Florida. I hope everyone is out enjoying their

bikes and the summer weather. I’m looking forward to getting some good riding in over the

upcoming Fourth of July weekend. I’m enjoying my 2004 Chief®, it is a great bike and has

provided me the opportunity to ride with fellow Indian® riders and to get to know these products

better. We believe the product is fundamentally sound, not to mention beautiful, and that these

bikes represent a solid starting point for Indian.

 

I enjoyed a great weekend at the Indian Rally at Indian Point in Branson, Missouri in May –

what a turnout it was! It was great to see so many Indian riders out enjoying their bikes and each

others’ company. I had the fortunate opportunity to address the attendees on Friday night, which

provided a good opportunity for us to “get to know each other.” I will never forget the weekend

as it was our first public event as the owners of Indian. The one thing that continues to inspire us

is the loyalty and the enthusiasm of the Indian riders. We share your enthusiasm and your

excitement about the future of Indian. As I indicated in Branson, the resurrection of Indian will

not happen overnight, but it will happen, and it will be worth the wait. Thanks to everyone who

made it to Branson, some from as far away as Hawaii (I trust they didn’t ride to Branson!). I

enjoyed getting to know many of you into the wee hours of the morning and I look forward to

getting to know the rest of you at future events. The best part about this business is the

opportunity to create great Indian memories, including IRIP III next May!

 

As you know, we’re in a Pre-Production Phase. Admittedly, it is not the most exciting phase, but

it is the most important. We are obsessed with building quality products and quality products

start with a rigorous engineering and testing program. There are issues that need to be resolved –

and will be resolved – but it is genuinely difficult to predict exactly how long this phase will last.

We plan to be in production in 2006, but whether it is early or late in the year will be determined

by the duration of our engineering and testing efforts. We are confident that the results of this

exhaustive process will not disappoint. We are working with a team of people that we believe

were the most highly-regarded engineers at the former Indian Motorcycle Corporation in Gilroy,

California. The fact that these talented people want to work with us is testament to their

continued belief in Indian and in our ability to “get it done.” As the start of production (“SOP”)

date is solidified over the coming months, we will then commence related activities, including

rounding out our team, identifying and outfitting a plant, developing a dealer network,

commencing parts and accessories operations, etc. All elements of the business will be

integrated to ensure a smooth and robust commercial launch.

In an effort to better understand the technical and design issues and satisfaction of Indian

motorcycle owners, we designed and deployed a Chief owners’ survey in May. We were

overwhelmed by the response rate, which approached 50%. We are presently focused on owners

of 2002, 2003 and 2004 Chiefs in order to better understand the issues associated with the

Powerplus™ 100 engine, as well as the Chief chassis. We are reviewing this feedback with our

engineers to ensure our testing efforts are focused on the problems you have experienced in the

field. I want to personally thank each of you for your participation in this survey, this

information is invaluable and will ensure the bikes we build will be beautiful, reliable and fun to

ride. We plan to survey Scout and Spirit owners next, so be prepared!

 

Over the past several months, we’ve been methodically contacting Indian’s former suppliers,

among other important activities. We have over 150 suppliers that hold the keys to our success.

We will work with world-class suppliers who know how to build quality parts, at good prices

and deliver them on time. As you can imagine, it is a significant undertaking to establish a

working relationship with each of these suppliers. Given the proprietary nature of Indian’s

products, suppliers generally don’t have inventory on hand and it will take time before the entire

supply chain is production ready.

 

We will continue to keep you up-to-date via

 

www.indianmotorcycle.com on a quarterly basis.

Thanks again for your patience, support, and interest in this great endeavor.

Happy Fourth!

 

Sincerely,

 

David P. Wright

President

Indian Motorcycle Company

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