Eller Motorcycle Team Remains Intact and Committed to its Projects
1 February 1999
Eller Motorcycle Team Remains Intact and Committed to its Development Projects NIWOT, Colo., Jan. 29 -- Eller Industries, Inc. ("Eller")
(OTC Bulletin Board: ELRI). Despite losing its contract to purchase the
Indian Motorcycle trademarks, Eller Industries continues to move forward
toward production of its full line of American-made heavyweight motorcycles.
Since an adverse ruling on its contract to purchase the trademarks by the U.S.
District Court for the District of Colorado on December 7, 1998, Eller has
redoubled its efforts to move to production for both the U.S. and overseas
markets. The team behind Eller's well-received concept prototype remains
intact.
"For over five years I have been working to rebuild the Indian Motorcycle
Company," said Eller president Leonard S. Labriola. "It's not easy to walk
away from that kind of commitment. Still, the common sentiment out there
seems to be that the popularity of the Indian name is not about a company that
has been out of business since 1953; it's about the motorcycle that changed
the industry and about the community of people behind it. So to find
overwhelming support for our efforts within the industry and from that same
community has been very gratifying. In particular, the enthusiastic reception
by the motorcycle press has been terrific. Even though it would have been
nice to latch on to that history, I guess we will save the $20 million we were
prepared to pay for the trademarks, and instead rest our future on our product
quality, product appeal, and management. I believe that the craftsmanship and
design demonstrated by Eller's first prototype effort, together with Robert
Lutz, James Parker, Roush Industries, Jeff Karr, the Cow Creek Umpqua tribe,
and the other members of Eller's team, make it obvious that our future success
will run much deeper than whatever name is on the gas tank."
Designed by James Parker, the prototype was built by respected Roush
Industries of Livonia, Michigan, and received extensive media coverage in the
February '99 issues of Cycle World, Rider, and Motorcycle Cruiser, and
appeared on the covers of February issues of American Iron and Motorcyclist
magazines. "I'm absolutely committed to the Eller effort," says Parker, "and
am working right now on another, entirely different, sport-oriented design
aimed at providing Eller with a broad model range. We have great plans for
the future, and I'm excited to be a part of it."
Robert Lutz, retired vice chairman of the Chrysler Corp., and chairman,
president and CEO of Exide Corp., continues to be an enormous asset to Eller
in his advisory role with the company. As Lutz says, "I'm behind this project
long-term. I'm not a bit worried about the viability of Eller and our
motorcycle effort. Whether it's got an 'Indian Motorcycle Company' logo on
the tank or not, it's a knockout, and the talent this team brings to the table
will ensure many new and exciting products for years to come." Lutz recently
met with key project team members and prospective overseas distributors to
explore export strategy, market viability without the Indian brand, and
overall planning. For the near term the Eller group is engaged in strategic
planning of the model line, and is actively exploring worldwide marketing and
branding options.
In addition to the highly favorable response from key media outlets, the
Internet has been buzzing with positive comments on Eller's project. George
Yarocki, an established restorer of classic motorcycles reports that, "what
Eller is going to do next is the hot topic of many bulletin boards and chat
rooms I visit. There's a vocal community of motorcycle enthusiasts who seem
to have one clear message for Eller's motorcycle development efforts: 'We
don't care what you call it -- just build it.'"
The discussion in this press release contains forward-looking statements.
Although Eller believes that the expectations reflected in these statements
are reasonable, it can give no assurance that such expectations will prove to
be correct. The forward-looking statements involve risks and uncertainties
that may affect the company's ability to consummate the transactions and plans
described above.
