Feb. 14, 2005 – Distributor Report

S&S UPDATES RESELLER POLICY, PROHIBITS ONLINE ORDERS
S&S Cycle, Inc., Viola, Wis., announced a new Reseller Internet Policy that may change the way some of the company’s distributors and authorized dealers do business.

The new retailer agreement, found at www.sscycle.com/iframes/login.php, highlights Prohibited Internet Tactics and Practices; among them, that resellers may not solicit or accept orders for any S&S Engine Products on or through the Internet.

However, while a reseller may not advertise the price of any S&S engine product on the Internet, S&S says the reseller may advertise in general terms on the Internet that they have S&S engine products available.

“As a leader in the industry, we need to make sure the retail customer receives proper service and support of the products they purchase,” said S&S Cycle Sr. Sales Executive Kurt Peterson.

“Purchasing a high performance product from a Web site does not provide an opportunity to establish the type of relationship we feel customers need. We want the customer to have a qualified dealer to purchase from; making sure S&S products are being installed and serviced properly.”

S&S says compliance with the policy — already broadcast to all S&S distributors and dealers — is a requirement that will be “enforced across
the board.”

In other S&S Cycle news, Brian Conyers has been promoted to Senior Manager of Communications & Marketing. Conyers joined S&S in June 2004 as Logistics & Customer Systems Interface Specialist.

NICHOLS PICKS UP LEDRIE, CABERG
Nichols Motorcycle, Inc., Alsip, Ill., has been tapped to supply Ledrie motorcycle accessories to more than 4,500 dealers in the United States and Canada.

Ledrie Sales BV is a Dutch wholesale and production company founded in 1992. The company specializes in products for the cruiser and sportbike markets with its Customwings, Superpole and Circui brands.

Mark Wickler, president of Nichols, says company sales reps have samples and will conduct product training in coming months. Nichols also plans to display Ledrie products from booth #1919 at the Dealer Expo in Indianapolis.

In other product news from Nichols, the company now also distributes Caberg motorcycle helmets, produced by P. technology SpA under license by Helm International Srl. Nichols plans to have the helmets available as of March.

For more information, visit Nichols at
the Dealer Expo, Booth #1919, or go to www.nicholsmotorcycle.com, www.ledrieusa.com and www.cabergusa.com.

VAN LEEUWEN ADDS SUOMY, ONGUARD
Privately owned Van Leeuwen Enterprises, Inc., Arleta, Calif., says it achieved record sales for the second year in a row. The company has been a national distributor of aftermarket motorcycle parts and accessories for more than 30 years.

Van Leeuwen distributes brands including EBC, K&N, Kenda, Dowco, EMGO, Castrol, Twin Air, RK/Vortex, Excel, Progressive Suspension, THH, XPEED, Kerker, SuperTrapp, Olympia, VP, Willie & Max, Maxima and Progrip. The company’s full-color 2005 catalog is 25% larger than the 2004 version. New brands for 2005 include Suomy and OnGuard.

“The Suomy Spectre, THH TX-30 MX, and the hot XPEED 904 MX helmet are new products due to be released at Indy, and we’re really looking forward to working with the newest player in the security market, OnGuard Locks,” said Robert Rendall, Van Leeuwen marketing director. OnGuard products include armored cables, disc locks, U-locks, and the company’s Beast Hex Chain with lock.

In other news from the distributor, Frank Muro has been hired as an addition to the company’s sales team.

Van Leeuwen was formed in 1973 by Skip Van Leeuwen, a veteran Triumph factory flat-track racer with five National Championships to his name. He remains owner/CEO, and is joined in the operation by his two sons Curt Van Leeuwen, president, and Eric Van Leeuwen, vice president of operations.

Van Leeuwen’s entire catalog, and dealer applications, are available online at www.vleonline.com.

TR NAMES URQUHART DIRECTOR OF ATV SEGMENT
Tucker Rocky Distributing has promoted long time employee, Glen Urquhart, to Director of ATV Segment, a newly created position.

“Glen has done an outstanding job building our ATV segment over the past five years,” explained Bill Carter, Tucker Rocky VP of Marketing and Strategic Planning. “He has done far more than just ‘manage’ the business, and it was time to publicly recognize his leadership with a more accurate title and position.”

Urquhart will assume his new director role immediately. He joined Tucker Rocky in 1988, and most recently served as ATV product manager.
Tucker Rocky is based in Fort Worth, Texas.

MOTONATION OFFERS NEW CATALOG, SWEEPSTAKES
Featuring 68 pages of product, the 2005 Motonation catalog is the largest book ever produced by the company. Available in hard copy and online, the catalog features Sidi and Set Up boots and associated product as well as Spidi brand road apparel.

In other news from Motonation, the distributor is offering customers a sweepstakes opportunity entitled Sierra & Surf.

The company says adult consumers who purchase a pair of Sidi or Set Up boots between January 1, 2005, and June 30, 2005, should mail a copy of their receipt to Motonation for official entry to the sweepstakes, which offers opportunities for road and off-road riders.

The winner of the “Street Rider” contest will receive round trip airfare, loan of a motorcycle, all local transportation, lodging and meals for a two-day ride around San Diego with Sidi and Set Up’s top dealers, factory reps, sponsored riders and media personnel.

The winner of the “Dirt Rider” contest receives the same perks, but is picked up at the San Diego airport and taken on a two-day adventure through the mountains and valleys of Northern Baja California Mexico along with Sidi and Set Up’s top dealers, factory reps, sponsored riders and media personnel.

Winners will be determined in a random drawing to be held July 18, 2005, and notified by mail no later than August 15, 2005. Motonation’s co-sponsors for the event include IMS, Spidi, Set Up, Acerbis, SCOTT, Kenda, Race Tech, AGV Helmets and Velocity Tear Offs.

For more information, or to view the entire 2005 Motonation catalog, visit www.motonation.com.

BREMBO SIGNS WITH HARLEY-DAVIDSON
Italian brake systems manufacturer Brembo S.p.A. signed a deal to supply a brake system to Harley-Davidson Inc.

Financial details weren’t disclosed. Brembo says the deal is worth several million dollars annually. However, Paolo Magri, director of Brembo’s motorcycle business unit, said the company hopes to expand the partnership.

Published reports citing sources within the company say the deal will probably contribute less than EUR 10 million in its first year.

Brembo, headed by Alberto Bombassei, already cooperates with Harley-Davidson’s Buell unit. The company also provides braking product for two-wheeler brands Ducati, Aprilia, Piaggio and Yamaha, and auto brands BMW, Porsche, Ferrari and Honda.

The deal represents a “giant leap forward,” Bombassei told Dow Jones Newswires. “In North America, either you’re in Harley, or you’re out,” he said.

Brembo had sales of around EUR 634 million in 2003, up 12% from EUR 566 million in 2002.
The company registered a net profit of EUR 5.8 million ($7.6 million) for the third quarter of 2004, compared to EUR 6.4 million ($8.4 million) for the same period of 2003. Sales from its motorcycle segment had fallen 7% in the third quarter to EUR 16.9 million from EUR 18.2 million in the same period in 2003.

For the first nine months of 2004, the company’s consolidated net revenue dropped by 0.8% year-on-year to EUR 155.2 million ($202.6 million).

HARVEST PARTNERS ACQUIRES STAKE IN CYCLE GEAR
Harvest Partners, Inc., a New York-based private equity investment firm specializing in management buyouts and growth financings of middle-market companies, says it has acquired an equity interest in Benicia, California-based Cycle Gear, Inc., a retailer of motorcycle and ATV riding gear, parts and accessories. Terms were not disclosed.

This is Harvest’s third consumer products deal in the past year, following the July 2004 acquisition of Evenflo Company, Inc. and the November 2004 purchase of Levlad, Inc. and Arbonne International Inc., manufacturers of personal care products.

Cycle Gear has pursued an aggressive store expansion campaign in recent years, growing from six stores in the United States in 1998 to 45 stores in 2004. Cycle Gear CEO David Bertram — a motorcycle industry veteran and former champion racer — the management team, and the company’s ESOP have maintained their significant ownership in the company.

Focused on specialty services, consumer, manufacturing and value-added distribution businesses, Harvest Partners has over $1 billion of invested and committed capital under management from its limited partners, which include numerous pension funds, domestic and international industrial corporations, and various financial institutions. The company was founded in 1981.

“Dave Bertram and his team have done an excellent job refining the unit economics while growing the store base to 45 stores, all of which are profitable and were so in their first 12 months of operations,” said Merrick Axel, Harvest Vice President. “The Cycle Gear concept has proven the ability to travel with successful openings in 13 states, and with Harvest’s capital, management will be able to achieve a significant store rollout plan over the next five years.”

Visit www.harvpart.com for more information about Harvest Partners.

BARCO INTRODUCES NEW INDOOR LED DISPLAY
Utah-based Barco Media recently launched the Solaris LD, plug-and-play large screen digital signage that directs people’s attention to the messages companies want to deliver at conventions, in retail stores, corporate lobbies, entertainment venues, museums, shopping malls and other indoor venues.

Barco says the full-color indoor LED display solution is easy to set up, configure and operate, and says the Solaris LD is virtually maintenance-free and offers flexible mounting options. Customers choose the system they want based on their specific environment. The solution is available in three models (120-, 140- and 150-inches) and two resolutions (8mm and 10mm). All the components required for the set-up of a functional Solaris LD display are included in the package.

“Solaris LD is a high impact packaged display solution that does not require an engineering degree to install and operate,” said Nico Vernieuwe, general manager, Barco Media. “The very attractive price point makes it the perfect product for customers who would otherwise have to settle for an alternative technology for their digital signage solution.”

Solaris LD is part of Barco’s line of Solaris solutions, available through Barco regional offices as well as a network of worldwide
distributors. Barco, headquartered in Kortrijk, Belgium, has facilities in Europe, North America and Asia Pacific. Worldwide, Barco employs more than 4,200 people. It had sales in 2003 of approximately Euro 630 million.

In the U.S., Barco is represented by nine
subsidiaries. Barco Media LLC is based in Logan, Utah.

For more information, call Barco Media at 435/753-2224 or visit www.media.barco.com.

REVTECH HONORED BY V-TWIN MAGAZINE
The RevTech 110-inch engine won the 2004 Motor of the Year Award from V-Twin Magazine in a ceremony at the V-Twin Expo in Cincinnati on January 29.
The RevTech 110-inch comes completely assembled and all components are made from new tooling, including the crankcases, flywheels and connecting rods. The 110 comes with a one-year, 10,000 mile warranty and is available in natural, black and polished.

RevTech says it plans to produce its 25,000th engine and 50,000th transmission in February.

TRACK DAY TIRES FROM STT
SportbikeTrack Time (STT) has become a national distributor for Michelin performance tires. For more information, call 888/390-4020 or visit www.SportbikeTrackTime.com.