redline and global electric motorcars enter agreement

Redline Performance Products, Inc. has signed a non-binding Letter of Intent with Global Electric Motorcars, LLC (GEM) to negotiate a contract to assemble and ship to Redline's snowmobile dealers the 800 Revolt® snowmobile.

Based in Fargo, ND, GEM is a wholly owned subsidiary of Daimler-Chrysler and is the leading manufacturer of Low Speed Neighborhood Electric Vehicles.

Redline and GEM are currently negotiating the terms of a definitive contract assembly agreement and hope to enter into an agreement by July 31, 2003 or the Letter of Intent will expire. There are no assurances that the parties will enter into a definitive agreement. The signing of a definitive agreement is subject to a number of conditions, which include but are not limited to, reaching agreement on terms, the completion of due diligence by both parties and the approval of the Board of Directors and/or Governors of Redline and GEM.

Mark A. Payne, President and Chief Financial Officer of Redline, commented, "Outsourcing the assembly of the 800 Revolt is a key component of Redline's business strategy. Although it is only a first step, we believe that the signing of this Letter of Intent demonstrates our commitment to achieving this important corporate milestone."

Global Electric Motorcars, based in Fargo, North Dakota, is the largest U.S. producer of street-legal electric vehicles. It has been manufacturing four models of neighborhood electric vehicles since 1998 and has more than 21,000 vehicles in use today. GEM Neighborhood Electric Vehicles are designed for on-road driving in master planned communities, in campus environments such as at universities, industrial and medical parks, and at airports and military bases. They are also used in fleet applications such as city, state and federal parks, and are rented in resort areas.

The sled that GEM is to assemble, Redline's 800 Revolt, is a high-performance, 800cc snowmobile designed for trail riding. It is scheduled for introduction to select dealers for the 2003-04 snowmobile season. The 800 Revolt incorporates patented and patent-pending technology- including a T-15 rear suspension system and clutch isolation drivetrain system - to produce a snowmobile that Redline believes will provide better handling, a smoother ride, more power, greater durability and more attractive styling.