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Harley-Davidson Employees in Wisconsin Approve New Labor Agreements

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MILWAUKEE, April 4, 2008 -- All three unions representing Harley-Davidson employees in Wisconsin voted today to ratify new collective bargaining agreements with the Company. The new four-year agreements, which cover approximately 2,210 employees, became effective retroactive to April 1.

The Company has individual labor agreements with United Steelworkers (USW) Local 2-209, representing about 1,700 employees and International Association of Machinists and Aerospace Workers (IAM) Lodge 78, representing about 150 employees, in the Milwaukee area; and with USW Local 460 in Tomahawk, Wis., which represents about 360 employees.

"Harley-Davidson has a long history of working with our union partners to manage the business. We thank our employees and the union leaders for their important contributions to the success of these negotiations and to the success of Harley-Davidson," said Harold Scott, Harley-Davidson Vice President, Human Resources.

"The new contracts balance Harley Davidson's need to responsibly manage our business for the long term in a competitive global market with our desire to continue to provide a strong wage and benefits package for employees," Scott said.

In addition to improvements in wages, the new contracts provide for the establishment of Health Reimbursement Arrangements (HRA) for bargaining unit employees, under which they can use HRA dollars to help pay for out of pocket health care costs. Other health care plan provisions are designed to moderate the rise in plan costs yet maintain Harley-Davidson's position as a provider of top-tier health care benefits.

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.