The bankruptcy court filings were prompted by various repayment demands and other disputes that Easyriders was having with its primary secured lender, Nomura Holding America Inc. ("Nomura").

Notwithstanding these disputes, the parties entered into a cash collateral stipulation prior to Easyriders' bankruptcy filings, which will enable Easyriders to continue to operate in the ordinary course of business and pay all necessary operating expenses. Easyriders intends to seek emergency Bankruptcy Court approval of its cash collateral stipulation with Nomura.

Easyriders plans to emerge from their Chapter 11 cases with a comprehensive restructuring of all of their debt. With Nomura's consent, Easyriders has engaged the Westlake Village-based investment banking firm of Murphy Noel Capital to provide financial advisory services to them and to assist them in connection with their debt restructuring.

"It is unfortunate that we were forced to take this action, particularly when the company reported positive earnings for the first time during the operating period ended March 31, 2001. However, recent actions by our senior lender left us with no other alternative," stated Bob Fabregas, chief executive officer.

"We hope to remain a public company and emerge quickly from these Chapter 11 proceedings," explained Joe Teresi, chairman of Easyriders Inc. and founder of Paisano Publications Inc. "I express regret to our creditors that we were forced to take this action. Nevertheless, in the long run, I expect the company to have a much more rational capital and debt structure, which will provide future business opportunities for our creditors," continued Teresi. "Recently, Paisano Publications experienced its 30th anniversary, and I anticipate that it will continue as a market leader for another three decades."

Easyriders is a publicly traded, diversified company with publishing, retail and entertainment interests dedicated to serving the independent, free-spirited motorcycling and related lifestyles market.

Easyriders currently publishes more than a dozen popular motorcycle, special-interest and lifestyle magazines, with a total worldwide readership of more than 6 million. The company also licenses Easyriders retail stores throughout the United States and Canada; Easyriders Events; and the Bros Club road service company.