HARLEY-DAVIDSON DISAPPOINTED WITH UNION VOTE

February 1, 2007 - York, PA -- Harley-Davidson Motor Company expressed
disappointment at the union vote yesterday that rejected a proposed new
collective bargaining agreement for employees and authorized a strike at its
final assembly operations in York, Pa. A strike at the facility is expected
to occur as early as 12:01 a.m. February 2, when the current contract
expires.


As a result of the pending strike, production of Touring and Softail
motorcycles at Harley-Davidson's operations in York has been suspended.

"We are obviously disappointed by the union's decision," said Fred Gates,
General Manager of Harley-Davidson's operations in York. "The proposed
contract was structured to help manage future costs that could be
detrimental to our business over the long term," Gates said. "While
Harley-Davidson is a strong company today, we don't want to find ourselves
in ten years in the same position that the Detroit auto industry is in now."

The proposed contract provided for a four percent wage increase in each of
the three contract years. Two percent of the increase was dependent on the
union accepting the Company's salaried health care plan or another plan that
would save the Company an equal amount of money. The Company's union
employees in York currently pay no premium for health insurance coverage and
minimal out of pocket costs. The proposal would have doubled the Company's
401(k) contribution match and would have provided a special monthly
retirement supplement for certain employees who retire during the contract
period. The proposal also would have instituted a second-tier wage and
benefit plan for new employees hired after February 2, 2007. For example,
under the two-tier structure, new assembly worker hires would have earned
$18.25 per hour in the first year of the contract, compared to $20.78 per
hour for current assembly workers in the first year of the contract.

Harley-Davidson production employees in York are represented by
International Association of Machinists and Aerospace Workers (IAM) Local
175.



Harley-Davidson, Inc. is the parent company for the group of companies doing
business as Harley-Davidson Motor Company, Buell Motorcycle Company and
Harley-Davidson Financial Services, Inc.  Harley-Davidson Motor Company, the
only major U.S.-based motorcycle manufacturer, produces heavyweight
motorcycles and offers a complete line of motorcycle parts, accessories,
apparel, and general merchandise.  Buell Motorcycle Company produces sport
motorcycles in addition to motorcycle parts, accessories and apparel.
Harley-Davidson Financial Services, Inc. provides wholesale and retail
financing and insurance programs to Harley-Davidson dealers and customers.

Information obtained from a Harley-Davidson press release.