Revenue for the full year was $5.34 billion, compared with $5.02 billion in 2004, a 6.5 percent increase. Net income for the year was $959.6 million, a 7.8 percent increase versus last year�s $889.8 million, while diluted EPS for the full year were $3.41, a 13.7 percent increase compared with $3.00 in 2004.

�Today Harley-Davidson is celebrating an exciting milestone of twenty consecutive years of record revenue, earnings and retail motorcycle sales,� said Jim Ziemer, Chief Executive Officer. �As we reflect on our performance in 2005, we had many accomplishments. We shipped 329,000 motorcycles, which is a 3.7 percent increase over the previous year. Worldwide retail sales of Harley-Davidson� motorcycles increased 6.2 percent during 2005. Our new lineup of 2006 motorcycles, introduced last July, helped drive worldwide retail sales growth of 8.3 percent in the second half of the year. During 2005, our international motorcycle sales grew significantly and motorcycle sales to women continued to increase, demonstrating that our strategies in these areas are beginning to take hold,� said Ziemer.

�We believe the prospects for retail growth remain strong and support a wholesale unit growth rate in the range of 5 to 9 percent annually and an annual EPS growth rate of 11 to 17 percent,� said Ziemer. �Our Harley-Davidson motorcycle shipment target for 2006 remains in the range of 348,000 to 352,000 units, with planned wholesale shipments of 79,000 motorcycles during the first quarter,� he said.

Motorcycles and Related Products Segment � Fourth Quarter Results
Revenue from Harley-Davidson� motorcycles was $1.09 billion, an increase of $95.7 million, or 9.6 percent over the same period last year. Shipments of Harley-Davidson motorcycles totaled 87,588 units, an increase of 7,001 units, or 8.7 percent over last year�s fourth quarter.

Revenue from Parts and Accessories (P&A;), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $169.9 million, an increase of $12.0 million, or 7.6 percent over the year-ago quarter. Revenue from General Merchandise, which consists of MotorClothes� apparel and collectibles, totaled $60.5 million, an increase of $5.6 million, or 10.2 percent.

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 growth rate is expected to be lower than the motorcycle unit growth rate.

Gross margin for the fourth quarter of 2005 was 38.3 percent of revenue, up from 37.8 percent for the same period in 2004. Consistent with the higher gross margin, operating margin increased from 23.0 percent in 2004 to 23.4 percent in 2005.

Motorcycle Retail Sales Data
Worldwide retail sales of Harley-Davidson motorcycles increased 3.0 percent for the fourth quarter of 2005 compared to the same period in 2004. For the full year, worldwide retail sales increased 6.2 percent compared to 2004.

U. S. retail sales of Harley-Davidson motorcycles increased 0.7 percent in the fourth quarter and 4.2 percent for the full year. For the second six months of the year, U.S. retail sales grew 7.3 percent compared to 1.9 percent for the first six months of 2005.

�We are pleased with retail sales growth in the U.S. market during the second half of the year. The extensive enhancements made to existing models, along with several brand new motorcycles for the 2006 model year, are certainly generating excitement,� said Ziemer.

Internationally, retail sales of Harley-Davidson motorcycles grew 13.0 percent in the fourth quarter and 15.0 percent for the full year compared with 2004. Total retail sales for 2005 increased in all of the Company�s major international markets.