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Harley-Davidson Inc. Announces Approval of Strategic Alliance

22 March 2000

Harley-Davidson Inc. Announces Approval of Strategic Alliance

    MILWAUKEE, March 21 Harley-Davidson, Inc.
announced today that the strategic alliance with U.S. Bancorp under
which U.S. Bancorp will acquire and manage Harley-Davidson Financial Services'
affinity card program, the Harley-Davidson(R) Chrome Visa(R), has been
approved by federal regulators.
    The new alliance allows Harley-Davidson Financial Services, Inc. (HDFS) 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 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.  Harley-Davidson, Inc.
estimates a one time net gain of approximately $7 million that will be
recognized in the first quarter.
    "The Harley-Davidson Chrome Visa has been a very successful product for
us," said Donna Zarcone, President and COO of Harley-Davidson Financial
Services.  "We are very excited about the opportunities U.S. Bank provides.
This alliance will make the Harley-Davidson Chrome Visa more attractive to
customers by continuing the popular Harley-Davidson Free Ride Sweepstakes
while also providing new privileges and benefits, such as a rewards program.
Additionally, we are quite pleased to be able to re-deploy our existing
bankcard personnel to our other core business areas allowing us to facilitate
the growth we are enjoying in these venues."
    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.
    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 additional information, contact
Harley-Davidson's web site at http://www.harley-davidson.com