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Harley-Davidson Updates Shipment Guidance Due to Strike


MILWAUKEE, Feb. 8, 2007 -- Following six non-production days related to a strike at its largest assembly plant, Harley-Davidson, Inc. announced today that motorcycle shipments for the first quarter of the year will not meet previously established guidance. First quarter 2007 shipments of Harley-Davidson motorcycles had been expected to be between 82,000 and 84,000 units.

At this time, the Company is not providing motorcycle shipment guidance for the first quarter, nor is it prepared to predict whether the strike will have an effect on full year financial guidance.

Approximately 2,800 unionized employees who are members of the International Association of Machinists and Aerospace Workers (IAM) Local 175 are currently on strike at the Company's facility in York, Pa. The Harley- Davidson employees in York primarily manufacture and assemble Touring and Softail model motorcycles.

As a result of the strike, the Company has reduced production of engines and transmissions at its facility in Menomonee Falls, Wis. and injection- molded and other components in Tomahawk, Wis. Layoffs could begin as soon as the week of February 12th for some employees. The initial layoffs will be voluntary; involuntary layoffs will be implemented as necessary.

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. 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 provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers.

The duration of the work stoppage at the York, PA facility is one factor that could affect actual results. The Company's ability to meet targets and expectations also depends upon, among other factors, the factors that the Company identified in its January 18, 2007 press release announcing 2006 results. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission.