Pittsburgh Law Office of Alfred G. Yates Jr., PC Announces Class Action Suit against Harley-Davidson, Inc. - HDI

PITTSBURGH--May 3, 20051, 2005--Notice is hereby given by the Law Office of Alfred G. Yates Jr., PC that a class action lawsuit has been commenced on behalf of purchasers of the publicly traded securities of Harley-Davidson, Inc. ("Harley-Davidson" or the "Company") between January 21, 2004 and April 12, 2005 (the "Class Period") seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").

If you wish to serve as lead plaintiff, you must move the Court no later than July 18, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Alfred G. Yates, Jr. at 1-800-391-5164 or via e-mail at yateslaw@aol.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The action, numbered 2:05cv00579(JPS), is pending in the United States District Court for the Eastern District of Wisconsin. The complaint charges Harley-Davidson and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

The complaint alleges that due to defendants' efforts, Harley-Davidson intentionally kept its motorcycles in short supply and by 2000 Harley-Davidson's dealers were able to charge 20% premiums over MSRP and to keep some customers waiting up to 18 months for delivery. According to the complaint, during the Class Period, as defendants continued reporting quarter after quarter of "record" revenues and earnings, Harley-Davidson's stock price traded at inflated levels, increasing to as high as $63.75 on July 14, 2004. Meanwhile, the Company's top officers and directors sold almost $92 million worth of their own shares, including the Company's Chairman and Chief Executive Officer who sold over $50 million worth of Harley-Davidson stock himself. The complaint alleges that the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) demand for Harley-Davidson motorcycles was declining and the Company's market share was shrinking; (b) the number of unsold 2004 and 2005 model year motorcycles in dealer inventories was growing exponentially; and (c) over-stocked inventories were running down the price dealers could obtain for new motorcycles.

Then on April 13, 2005, defendants disclosed that Harley-Davidson would be forced to cut production of new 2005 motorcycles, cutting 10,000 motorcycles in the second quarter of 2005 alone, due to declining demand and burgeoning inventories at its dealers. On news of this disclosure, the Company's stock price plummeted by 16.7% in a single trading session, or $9.84 per share, and would fall a total of 22% by April 15, 2005. Over $3.6 billion in market capitalization was erased.