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PRESS RELEASE

Harley-Davidson's Pennsylvania Union Ratifies Labor Agreement

3 February 1997

Harley-Davidson's Pennsylvania Union Ratifies Labor Agreement

    MILWAUKEE, Feb. 3 -- Harley-Davidson, Inc. and
its York, Pa. motorcycle production and maintenance employees, represented by
Lodge 175 of the International Association of Machinists and Aerospace Workers
(IAM), jointly announced today that union membership has overwhelmingly
approved a new five-year labor agreement.  The previous labor agreement
expired at 12:01 a.m. on February 2, 1997.  There are currently 2,123 IAM
union-represented employees at the York facility.
    "An important cornerstone of Harley-Davidson's success and growth over the
last several years has been the dedication and involvement of our employees,"
said Jeffrey L. Bleustein, president and chief operating officer,
Harley-Davidson Motor Company.  "We are delighted that York's union membership
supports the new agreement and that, as we go forward, we will continue to
enjoy a solid partnership."
    Under the new contract, employees will receive general wage increases of
three percent per year, with a one-time cash payment.  The contract also calls
for pension benefit and insurance coverage enhancements.  The new contract
facilitates the transition to a high performance work organization, which
significantly increases manufacturing flexibility through the maximization of
employee involvement in planning and decision making.
    Harley-Davidson Motor Company, the only major American-based motorcycle
manufacturer, produces heavyweight motorcycles and a complete line of
motorcycle parts, accessories, apparel, and general merchandise.  Eaglemark
Financial Services provides wholesale and retail financing, insurance and
credit card programs to Harley-Davidson dealers and customers and similar
programs for other leisure products manufacturers.

SOURCE  Harley-Davidson, Inc.

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CONTACT: Rod Copes of Harley-Davidson, Inc., 414-343-8002