Harley in China

HARLEY-DAVIDSON NAMES DEALER IN CHINA

Dealership Officially Opens in April in Beijing

MILWAUKEE (March 23, 2006) – Harley-Davidson (NYSE: HDI) today announced the next step in its market entry into mainland China, with the appointment of Beijing Feng Huo Lun (FHL) as the first authorized Harley-Davidson dealer there. Operating as Beijing Harley-Davidson, the dealership will offer Harley-Davidson® motorcycles, related products and after-sales service.

“Harley-Davidson is excited to embark on the journey of selling our motorcycles in China and we are proud to be in Beijing,” said David Foley, Harley-Davidson’s Managing Director in China. “The quality of the Beijing Harley-Davidson dealership experience will be first-class in every respect. Customers will get a real understanding and appreciation of the Harley-Davidson lifestyle.”

Beijing Harley-Davidson will have an initial staff of 14. The dealership is located on the Fourth Ring Road, just outside the downtown area in northeast Beijing. The dealership is headed by FHL founder, owner and Executive Director Wan Jidong.

“Harley-Davidson has selected one of the most well-established retailers of imported motorcycles in China,” said Foley. “Mr. Wan has more than 10 years’ experience selling and servicing imported heavyweight and premium motorcycles. Moreover, he and his management team are motorcycle enthusiasts who share a passion for riding and who understand the market.”

Beijing Harley-Davidson will celebrate its official grand opening in early April, with festivities at the dealership, including an event for motorcycle enthusiasts. The dealership will sell a range of Harley-Davidson Touring, Softail® and VRSC motorcycles, Genuine Parts and Accessories, and General Merchandise, including Harley-Davidson MotorClothes® apparel, and collectibles.

In addition to motorcycle sales and service, the dealer will offer rider training, organized rides and events. The dealer currently has has a large riders’ club in Beijing.

Harley-Davidson has indicated that it expects market entry into China to be a gradual process. According to the Company, the leisure-oriented market for premium, heavyweight motorcycles is just beginning to emerge in China, with market development limited by ownership and riding restrictions in most large cities and on highways, and by limited but growing disposable income. Harley-Davidson’s long-term strategy in China seeks to address the riding restrictions over time and to help lead the development of a leisure-oriented heavyweight motorcycle market as consumer buying power grows.

Company Background

Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services, Inc. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise. Buell Motorcycle Company produces sport motorcycles in addition to motorcycle parts, accessories and apparel. Harley-Davidson Financial Services, Inc. provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers.

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George Obradovich
George Obradovich

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