Harley-Davidson Worldwide Dealer Meeting Showcases New Products

Harley-Davidson Worldwide Dealer Meeting Showcases New Products

    LOS ANGELES, July 12 The Los Angeles Convention Center has
become temporary world headquarters for Harley-Davidson Motor Company as more
than 6,300 members of the Harley-Davidson family attend the Company's largest
ever Summer Dealer Meeting.  The show attendees include dealers and
distributors from around the world who have been invited to the private launch
of the Company's new 2002 model-year products and services.  The show began on
Wednesday, July 11 and runs through Sunday, July 15.
    Motorcycles from Harley-Davidson Motor Company and Buell Motorcycle
Company for 2002 include a new liquid-cooled, performance custom motorcycle
from Harley-Davidson called the V-Rod and a new sport motorcycle from Buell
named the Firebolt.  The Company's Parts & Accessories division is introducing
hundreds of new accessories for Harley-Davidson and Buell motorcycles and the
General Merchandise division is unveiling its new MotorClothes collections for
the Spring, Summer and Fall of 2002.
    While the meeting was in progress the Company also released results of
record second quarter sales and earnings for the quarter ended June 24, 2001
and announced plans for a new $145 million manufacturing facility in York, PA.

    New Product Announcements
    Perhaps the biggest product introduction in a decade took place on
Wednesday of the show.  As the lights dimmed, a blinding flash revealed the
first new member of a new family of Harley-Davidson motorcycles.  Dealers were
the first to view the new liquid-cooled, dragster inspired V-Rod model.
    Due to be unveiled to the public for the first time this Monday, July 16,
at the L.A. Museum of Contemporary Art, the V-Rod is the first member of a
brand new family of liquid-cooled performance custom motorcycles.  Inspired by
the VR 1000 Superbike race program, the V-Rod Revolution engine displaces
1130 ccs and pounds out an impressive 115 hp.  The bike will be in dealer
showrooms beginning in the fourth quarter of this year.
    "The V-Rod is a brand new branch on the Harley-Davidson tree ... by that I
mean that this motorcycle is not intended to replace our line of classic
air-cooled V-Twins.  Rather, it creates a whole new line of motorcycles that
will appeal to a new group of customers," said Jeff Bleustein, Chairman and
CEO of Harley-Davidson, Inc.
    The new Buell motorcycle, called the Firebolt, features a number of
innovative features and premium components and a new air-cooled V-Twin 984 cc
engine.  The bike will be in dealer showrooms in 2002.

    Manufacturing Expansion
    The Company also announced it would build a new $145 million,
350,000-square-foot manufacturing facility on the site of its existing
assembly plant in York, PA.
    "Increasing our manufacturing capacity is a critical component of our
Strategic Plan and this facility will give us the capability to increase
motorcycle production at low double-digit levels," noted Bleustein.  "There's
a strong unmet demand in the marketplace and by building more motorcycles we
can fulfill the dreams of more of those customers."

    Record Second Quarter Sales and Earnings
    Harley-Davidson also reported record second quarter sales and earnings on
Wednesday afternoon.  For the quarter ending June 24, 2001, The Company's
second quarter sales were $850.9 million, an increase of 12.7 percent over the
same period last year.  Diluted earnings per share for the second quarter were
38 cents, a 28.3 percent increase compared to last year.
    "We delivered another record quarter, led by strong motorcycle sales,"
said Bleustein.  "Our consistent performance as well as our ability to bring
new products and services to market reinforce our confidence in sustaining the
Company's growth."
    Several hundred dealers will begin their trip home on a Company-sponsored
ride up the California coast.  These dealers will be riding a brand-new 2002
model picked up at the dealer meeting.

    Harley-Davidson, Inc. is the parent company for 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 and sport-touring motorcycles.
Harley-Davidson Financial Services, Inc. provides wholesale and retail
financing, insurance and credit card programs to Harley-Davidson dealers and
customers.