Harley-Davidson Inc. and U.S. Bancorp Announce Strategic Alliance

20 January 2000
Harley-Davidson Inc. and U.S. Bancorp Announce Strategic Alliance
    MILWAUKEE and MINNEAPOLIS, Jan. 20 --
Harley-Davidson, Inc. and U.S. Bancorp today announced
a strategic alliance under which U.S. Bank will acquire and manage
Harley-Davidson Financial Services' affinity card program, the
Harley-Davidson(R) Chrome Visa(R).
    The new alliance allows Harley-Davidson Financial Services, Inc. to
further develop its core products, while providing Harley-Davidson Chrome Visa
cardholders competitive card programs and full access to U.S. Bank's respected
network of financial resources and services.  The purchase is pending
regulatory approval and it is expected to close by the end of the first
quarter of year 2000.
    "We're delighted to offer an enhanced Harley-Davidson Visa card," said Dan
Frate, president of payment systems for U.S. Bancorp.  "Harley-Davidson has
the highest level of brand awareness of any motorcycle, and its customers have
a strong preference for Harley-Davidson branded products and services.
Through our alliance with Harley-Davidson, we will build on this brand loyalty
and create greater value for existing and new Chrome Visa customers.  Just one
example is the new rewards program we will be rolling out, while continuing
the current Free Ride Sweepstakes through the end of 2000."
    The Harley-Davidson affinity card has grown rapidly since its release in
August 1997, increasing in popularity to a level of $150 million in managed
receivables and more than 190,000 cardholders.
    "The Harley-Davidson Chrome Visa has been a very successful product for
us," said Donna Zarcone, President and COO of Harley-Davidson Financial
Services.  "To make the Harley-Davidson Chrome Visa more attractive to
customers, we must provide certain privileges and benefits, such as a rewards
program.  The economies of scale inherent in the arrangement with U.S. Bank
will generate greater benefit opportunities for our customers.  At the same
time, HDFS will continue to deliver exceptional products and services that
fulfill the financial needs of the Harley-Davidson family."
    Minneapolis-based U.S. Bancorp, with $82 billion in assets, is the 12th
largest bank holding company in the nation and operates approximately 1,000
banking offices in the Midwest and West.  The company provides comprehensive
banking, trust, investment and payment systems products and services to
consumers, businesses and institutions.  It operates a network of 5,300 ATMs
and provides 24-hour, seven-days-a-week telephone customer service.  The
company offers full-service brokerage services at approximately 100 offices
through U.S. Bancorp Piper Jaffray.  The company is the largest provider of
Visa corporate and purchasing cards in the world, and is one of the largest
providers of corporate trust services in the nation.  For further information,
please see the U.S. Bancorp web site at http://www.usbank.com
    Harley-Davidson Financial Services, Inc., a wholly owned subsidiary of
Harley-Davidson, Inc., provides value-added financial services to
Harley-Davidson dealers and owners.  HDFS offers a wide array of financial
services products, including retail and inventory financing, casualty,
credit-life insurance, extended service contracts and leasing in the U.S. and
Canada.  Headquartered in Chicago, HDFS has more than $1 billion in
receivables under management.  The company employs more than 500 people and
has additional offices in Carson City, Nevada, and Plano, Texas.
    Harley-Davidson, Inc., the only major U.S.-based motorcycle manufacturer,
produces heavyweight motorcycles and a complete line of motorcycle parts,
accessories and general merchandise.  For more information, contact
Harley-Davidson's web site at http://www.harley-davidson.com