Viper Powersports (OTCQB: VPWI) Letter to Shareholders

            Viper Powersports (OTCQB: VPWI) Letter to Shareholders

PR Newswire

AUBURN, Ala., Jan. 9, 2013

AUBURN, Ala., Jan. 9, 2013 /PRNewswire/ --

Dear Shareholders,

Although 2012 was a difficult year for us, the Company is now well positioned
for future success. We are optimistic that our pending 2013 introduction of
new motorcycle models will complete our transformation into a sustainable
American motorcycle enterprise.

Our carefully selected 2013 Diamondback Dealers have uniformly agreed that the
Diamondback is an exceptional motorcycle, although they are concerned that our
Manufacturers suggested retail price (MSRP) is too high to realize a
sustainable volume business. Management has acknowledged this matter and is
formulating a revised pricing schedule. We currently are on schedule to
complete our 2013 Black Diamond Edition production through April.

We are pleased to announce Terry Nesbitt has re-joined us as President of
Viper Motorcycle Company (OTCQB: VPWI). Terry's main focus will be to
concentrate on developing a quality dealer network and work with the
motorcycle enthusiast media in order to get us back in their publications. He
has an extensive background in the powersports industry including working with
Kawasaki in sales and marketing as well as a long career with Polaris/Victory
as a District, Regional and National Sales Manager. Terry developed the
initial Victory motorcycle dealer network before leaving the company after the
better part of 20 years. His previous experience with Viper and product
knowledge will be helpful as we launch and continue to develop new products.
According to Terry, "I'm glad to return and be in a position to help develop
the dealer network. It's an exciting time especially as we're introducing
'Project Mamba.'This will give us an opportunity to compete in a different
segment of the market, greatly enhancing our overall value."

We believe that our "Project Mamba" will produce an exciting future of our
Company. This key Viper project features two all new premium motorcycles
which have been developed with our GT-1 Joint Venture Partners. Our wholly
owned subsidiary, PMFR Inc., is currently developing a NHRA Viper Pro Stock
Motorcycle racing chassis based upon Project Mamba. PMFR will also serve as
the aftermarket distributor of our GT-1 JV performance parts as well as a
vertical manufacturer for the production motorcycles.

We have achieved or established other notable marketing milestones for 2013.
We recently entered into an agreement with GE Capital, which enables us to
provide wholesale floor plan financing to qualified Viper dealers. We
recently received Single Vehicle Approval (SVA) with our Diamondback
motorcycle in the UK, and anticipate sending our first commercial shipment to
the UKin the first quarter of 2013. Domestically, our goal for the first
quarter of 2013 is to sign ten Viper dealers and deliver motorcycle products
to an expanded network of first class dealerships in the US.

Regarding our innovative and powerful V-Twin engine, during the final quarter
of 2012, we entered into a five-year extension of our
development/manufacturing contract with Ilmor Engineering for future
commercial production of the Viper-Ilmor engine. In order to expedite a
substantial cost reduction program, we also prepaid Ilmor $1 Million for
production engines.

As for our public company status, during the last quarter of 2012, the
Depository Trust Company (DTC) imposed a Deposit Chill for our common stock,
which temporarily has limited our shareholders' ability to effectively trade
their common shares. We have engaged an experienced independent legal counsel
to provide necessary legal opinions to DTC to cure this Deposit Chill. Our
counsel has submitted these legal opinions to the DTC, and we are optimistic
for a timely and successful resolution to this matter.

The Company has retained an experienced recognized Investment Banker to review
our capital structure with the goal of maximizing shareholder value and
providing a long term capital solution to support the company's strategic
plans. This quarter's objectives will include working with independent
research analysts to track and report the Company information related to our
new product launch program, and the expectations of current and prospective
shareholders.

We thank all Viper shareholders for your continued patience and support.

John Silseth

Chief Executive Officer

VIPER POWERSPORTS, INC designs, manufactures and markets a line of premium
American built motorcycles related aftermarket products being marketed through
an independent dealer network. Joint venture partner Ilmor Engineering
(www.ilmor.com), provides technical developmental and manufacturing support
for Viper's proprietary V-Twin engine, utilizing their 25 years of engine
design expertise, ensuring Viper's long term success as America's newest
domestic OEM of motorcycles. Viper Motorcycle Company website is
www.vipermotorcycle.com. 

The foregoing material may contain forward-looking statements. We caution that
such statements may be subject to uncertainties and unanticipated events or
circumstances, and that actual results could differ materially from such
forward-looking statements. Readers accordingly should not place undue
reliance on these forward-looking statements, which do not reflect anticipated
or unanticipated events or circumstances occurring after the date of these
forward-looking statements.

Viper Motorcycle Contact:
Timothy C. Kling
(334) 321-4292
Email: tkling@vipermotorcycle.com

SOURCE Viper Powersports, Inc.

Website: http://www.vipermotorcycle.com
 
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