New 5-Year Labor Agreement Reached at Harley-Davidson Facility in Kansas City

KANSAS CITY, Mo., July 30 -- The International Association of Machinists and Aerospace Workers (IAM), the United Steelworkers (USW) and Harley-Davidson , have reached a new five-year collective bargaining agreement, effective Aug. 1, 2007, covering unionized employees at the Company's Vehicle and Powertrain Operations in Kansas City.

The agreement provides for improvements in wages, hours and working conditions for all hourly employees while ensuring the ongoing joint success of employees and the Company in a competitive global market.

The new agreement, which runs through July 30, 2012, replaces the existing five-year contract.

The contract provides 3.5 to 4.0 percent wage increases in each of the five contract years and employees continue to pay no monthly premium contribution for healthcare coverage.

Together, the IAM and USW represent about 850 Harley-Davidson employees in Kansas City, where the Company's Dyna(TM), Sportster(R) and VRSC motorcycles are produced.

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.