---

Harley-Davidson, Inc. Acquires Buell Motorcycle Company and Declares Dividend

20 February 1998

Harley-Davidson, Inc. Acquires Buell Motorcycle Company and Declares Dividend

    MILWAUKEE, Feb. 20 -- Harley-Davidson, Inc.
announced today that it has acquired substantially all of the stock of Buell
Motorcycle Company (BMC) that it didn't already own.  Harley-Davidson owned a
49% interest in BMC since the company's formation in 1993, with the remaining
stock owned by company founder Erik Buell.  Erik Buell has retained a minority
interest in BMC and remains chairman and chief technical officer.  He has also
entered into a long-term employment agreement with Harley-Davidson.
    "We are excited about this acquisition and are confident that the Buell
Motorcycle Company will continue to be successful in the sport/performance
segment of the motorcycle market," said Jeff Bleustein, president and chief
executive officer of Harley-Davidson, Inc.  "Buell is an integral part of our
strategy for expanding into new markets and attracting new customers into the
sport of motorcycling."
    The Company also announced that its Board of Directors approved a
quarterly cash dividend of $0.035 per share, payable March 27, 1998 to
shareholders of record March 17, 1998.  The company currently has
151.7 million shares of common stock outstanding.
    Harley-Davidson Motor Company, the only major U.S.-based motorcycle
manufacturer, produces heavyweight motorcycles and a complete line of
motorcycle parts, accessories, and general merchandise.  Buell Motorcycle
Company produces sport and sport-touring motorcycles.  Eaglemark Financial
Services, Inc. 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.