Milwaukee, Wis., July 17, 2008 — Harley-Davidson, Inc. (NYSE: HOG) today announced its results for the second quarter ended June 29, 2008. Revenue for the quarter was $1.57 billion compared to $1.62 billion in the year ago quarter, a 2.9 percent decrease. Net income was $222.8 million compared to $290.5 million in the year ago quarter, a decrease of 23.3 percent. Second quarter diluted earnings per share (EPS) were $0.95, a 16.7 percent decrease compared to last year’s $1.14. “During the second quarter we shipped 80,326 Harley-Davidson® motorcycles to our dealers and distributors around the world. While this result exceeds our guidance range of 76,000 to 80,000 units for the quarter, it is a decrease of 15.6 percent from the year-ago period. This decrease reflects the impact of the shipment reduction we announced April 17th in response to ongoing weakness in the U.S. economy,” said Jim Ziemer, Chief Executive Officer of Harley-Davidson, Inc. “We expect U.S. economic conditions and ongoing consumer concerns to continue to create challenges at least through the end of the year,” said Ziemer. “We believe the actions we took to reduce shipments to our U.S. dealers and our related workforce reduction position us appropriately for the current economic environment. I am confident about our future as we continue to manage and reinvest in the business for the long-term.” “Last week, we announced our planned acquisition of the MV Agusta Group and celebrated the grand opening of the Harley-Davidson Museum. Next Tuesday, we introduce our exciting new 2009 motorcycles. A month from today, we kick off our 105th Anniversary Celebration with the launch of the first of 105 motorcycle rides to Milwaukee from around the U.S. These are just some of the ways we are positioning the Company for the future, strengthening bonds with current customers and reaching out to new customers,” Ziemer said. The Company expects to ship between 74,000 and 78,000 Harley-Davidson motorcycles during the third quarter of 2008. For the full year of 2008, Harley-Davidson still plans to ship between 303,500 and 307,500 units. The Company continues to expect full-year EPS of $3.00 to $3.18, a decrease of 15 to 20 percent compared to 2007. Motorcycles and Related Products Segment Second Quarter Results Revenue from Harley-Davidson motorcycles was $1.19 billion, a decrease of $67.0 million or 5.3 percent versus the same period last year. Shipments of Harley-Davidson motorcycles totaled 80,326 units, a decrease of 14,791 units or 15.6 percent compared to last year’s second quarter. Revenue from Parts and Accessories (P&A), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $265.7 million, an increase of $2.3 million or 0.9 percent over the year-ago quarter. Revenue from General Merchandise, which consists of MotorClothesâ apparel and collectibles, totaled $76.8 million, an increase of $4.1 million or 5.6 percent over the year-ago quarter. Gross margin for the second quarter of 2008 was 35.7 percent of revenue compared to 37.4 percent for the second quarter last year. Second quarter operating margin decreased to 20.1 percent from 23.9 percent in the second quarter of 2007. The Company’s gross and operating margins were adversely impacted this quarter by the shipment volume reduction. Motorcycle Retail Sales Data During the second quarter, worldwide retail sales of Harley-Davidson motorcycles decreased 3.6 percent compared to the prior year second quarter. In the U.S., retail sales of Harley-Davidson motorcycles decreased 8.7 percent for the quarter. The heavyweight motorcycle market in the U.S. increased 0.8 percent for the same period. Retail sales of Harley-Davidson motorcycles grew 11.2 percent in international markets during the second quarter of 2008 compared to the second quarter of 2007. Second quarter retail sales increased 8.7 percent in Canada; the Europe Region was up 9.0 percent; the Asia Pacific Region was up 7.3 percent; and the Latin America Region was up 67.1 percent. Data is listed in the accompanying tables. Financial Services Segment Harley-Davidson Financial Services (HDFS) reported second quarter operating income of $37.1 million, a decrease of $28.1 million or 43.0 percent compared to the year-ago quarter. The decrease is primarily due to a $19.5 million reduction in securitization gain and a $6.3 million write-down of retained securitization interests. Last year’s second quarter benefited from a $950 million securitization transaction compared to no securitization transaction during the second quarter of 2008. Income Tax Rate The Company’s second quarter effective income tax rate was 36.0 percent compared to 35.5 percent in the same quarter last year. This increase was due to the expiration of the federal research and development tax credit as of December 31, 2007. Assuming the retroactive reinstatement of this tax credit, the Company expects its full year effective tax rate in 2008 will be 35.5 percent. Harley-Davidson, Inc. – Six Month Results For the first six months of 2008, revenue totaled $2.88 billion, a 2.9 percent increase over the year-ago period. Earnings per share were $1.74, a decrease of 7.9 percent compared to the same period last year. Through the first six months of this year, shipments of Harley-Davidson motorcycles were 152,194 units, a 6.6 percent decrease compared to last year’s 162,878 units. Harley-Davidson motorcycle revenue was $2.20 billion, up 2.7 percent compared to last year’s $2.15 billion. P&A revenue totaled $447.6 million, a 0.9 percent decrease from last year’s $451.6 million. General Merchandise revenue totaled $160.8 million, an 8.0 percent increase compared to $148.8 million during the same period in 2007. HDFS operating income was $72.1 million, a 42.0 percent decrease from last year’s $124.1 million. Cash Flow Cash and marketable securities totaled $803.9 million as of June 29, 2008. Cash used by operations was $39.0 million during the first six months of 2008 compared to $1.06 billion of cash provided during the first half of 2007. This decrease in cash flows from operations was a result of net proceeds from securitization being $1.27 billion less than the same period in 2007. During the first half of 2008, HDFS funded a greater percentage of its business with proceeds from commercial paper and medium term notes than in the same period last year. Capital expenditures were $99.6 million during the first six months of 2008. For the full year of 2008, capital expenditures are expected to be between $235 million and $250 million. Stock Repurchase The Company repurchased 1.3 million shares of its common stock at a cost of $50.0 million during the second quarter of 2008. On June 29, 2008, the Company had 235.3 million shares of common stock outstanding. As of June 29, 2008, there were 19.3 million shares remaining on a board-approved share repurchase authorization. An additional board-approved share repurchase authorization is in place to offset option exercises. Bank Credit Facilities On July 16, 2008, Harley-Davidson, Inc. and Harley-Davidson Financial Services entered into new bank credit facilities totaling $1.9 billion which replace existing bank credit facilities of $1.7 billion. The new facilities are comprised of a $950 million, 364-day facility and a $950 million, 3-year facility. Company Background Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company (HDMC), Buell Motorcycle Company (Buell) and Harley-Davidson Financial Services (HDFS). Harley-Davidson Motor Company produces heavyweight motorcycles and offers a line of motorcycle parts, accessories, general merchandise and related services. HDMC manufactures five families of motorcycles: Touring, Dyna®, Softail ®, Sportster ® and VRSC™. Buell produces premium sport performance motorcycles and offers a line of motorcycle parts, accessories, and apparel. HDFS provides wholesale and retail financing and insurance programs primarily to Harley-Davidson and Buell dealers and customers. Forward-Looking Statements The Company intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. The Company’s ability to meet the targets and expectations noted depends upon, among other factors, the Company’s ability to (i) continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead, (ii) manage production capacity and production changes, (iii) manage supply chain issues, (iv) provide products, services and experiences that are successful in the marketplace, (v) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, (vi) sell all of its motorcycles and related products and services to its independent dealers, (vii) continue to develop the capabilities of its distributor and dealer network, (viii) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (ix) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, (x) manage access to reliable sources of capital and adjust to fluctuations in the cost of capital, (xi) adjust to regional and worldwide demographic trends and economic and political conditions, including healthcare inflation, pension reform and tax changes, (xii) anticipate consumer confidence in the economy, (xiii) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio, (xiv) retain and attract talented employees, (xv) detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation and (xvi) implement and manage enterprise-wide information technology solutions and secure data contained in those systems. Assuming the agreement to purchase MV Agusta Group is consummated in a timely manner, Harley-Davidson may have challenges successfully integrating and profitably operating it. In addition, the Company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission. The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s independent dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company’s independent dealers and distributors may experience difficulties in selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.