�We are pleased to report that Harley-Davidson has once again produced record revenue and earnings for the quarter,� said Jeffrey L. Bleustein, Chairman and Chief Executive Officer of Harley-Davidson, Inc. �Our financial results for the first nine months of the year position us to deliver another record year and are in line with our previously stated long-term targets.�

�Retail sales of Harley-Davidson� motorcycles in the U.S. are up 7.1 percent on a year-to-date basis through September. As expected, third quarter retail sales were down compared with last year�s third quarter. In 2003, our dealers had a phenomenal third quarter as our 100th Anniversary celebration drove motorcycle sales up 27 percent versus the prior year�s performance,� added Bleustein.

�We are enthusiastic about the reception of our recently introduced 2005 model year motorcycles, in particular the new Softail� Deluxe, the Screamin� Eagle� Custom Vehicles, the Sportster� 883 Low, and the redesigned Softail� Springer� Classic. Looking ahead to 2005, we expect demand for Harley-Davidson motorcycles to continue to grow and support a wholesale unit target of 339,000 motorcycles, which represents a 7 percent increase over this year�s target,� said Bleustein.

Motorcycles and Related Products Segment - Third Quarter Results

Third quarter revenue from Harley-Davidson motorcycles was $996.6 million, an increase of $152.3 million or 18.0 percent over last year. Worldwide shipments of Harley-Davidson motorcycles in the third quarter totaled 80,578 units, consistent with the Company�s previously announced target of 80,500. The Company�s 2004 shipment target for Harley-Davidson motorcycles remains 317,000 units.

Third quarter revenue from Parts & Accessories (P&A;), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $224.4 million. This is an 8.0 percent increase, or $16.6 million more than the same quarter a year-ago.

Third quarter revenue from General Merchandise, which consists of MotorClothes� apparel and collectibles, totaled $61.4 million, up 1.4 percent or $0.8 million over the same period last year.

Growth rates for P&A; and General Merchandise fluctuate from quarter to quarter. However, for the long term the Company expects the growth rate for P&A; revenue to be slightly higher than Harley-Davidson�s motorcycle unit growth rate, and the General Merchandise revenue growth rate is expected to be lower than the motorcycle unit growth rate.

Third quarter gross margin improved to 38.0 percent of revenue in 2004 compared to 35.6 percent of revenue in 2003. The increase in margin was primarily driven by a combination of foreign currency exchange rates, the full integration of the new Softail Plant in York, Pennsylvania and other operational efficiencies. Consistent with the higher gross margin, operating margin increased from 21.3 percent in 2003 to 23.6 percent in 2004.

Motorcycle Retail Data

�U.S. Harley-Davidson motorcycle retail sales for the third quarter were down 9.8 percent versus the same period last year, which was the largest retail sales quarter ever. Standing up to the challenge, our dealers recorded the second largest third quarter in Company history this year, even with the adverse weather-related issues that have plagued the Southeast during much of that time,� said Bleustein. Retail sales of Harley-Davidson motorcycles in the United States were up 7.1 percent for the period January through September 2004 when compared to the same period last year.

In markets outside the U.S., retail sales of Harley-Davidson motorcycles were down slightly during the first nine months of 2004, declining 0.9 percent or 400 units from the same period last year. While retail sales of Harley-Davidson motorcycles are growing in many of the Company�s international markets, dealers in select markets have seen decreases due to difficult economic and market conditions. Harley-Davidson retail motorcycle sales were down 5.1 percent in Europe, due largely to weakness in the German economy, and down 10.2 percent in Japan.