�Harley-Davidson delivered record results for both revenue and earnings per share during the third quarter,� said Jim Ziemer, Chief Executive Officer, Harley-Davidson, Inc. �In addition, worldwide retail sales of Harley-Davidson� motorcycles grew 8.9 percent during the quarter. With four new models and an all-new Twin Cam 96TM engine with 6-speed transmission on Big Twin motorcycles, the 2007 model line has been a big hit with customers,� he said.

For the first nine months of 2006, the Company�s worldwide wholesale shipments were 256,348 Harley-Davidson motorcycles. For the full year, the Company now expects to ship between 349,000 and 351,000 units.

During the first nine months of 2006, the Company repurchased 17.2 million shares of its common stock at a cost of $911.0 million. On October 11, 2006, the board of directors of Harley-Davidson, Inc. authorized a new share repurchase program for up to 20 million additional shares.

�As we look to the future, the Company believes it will continue to deliver EPS growth in the range of 11 � 17 % annually through 2009. We expect earnings growth to be driven by solid revenue growth, margin improvement and the benefits of strong free cash flow,� said Ziemer.

Motorcycles and Related Products Segment � Third Quarter Results
Revenue from Harley-Davidson motorcycles was $1.29 billion, an increase of $183.2 million or 16.5 percent over the same period last year. Shipments of Harley-Davidson motorcycles totaled 97,046 units, an increase of 9,461 units or 10.8 percent over last year�s third quarter.

Revenue from Parts and Accessories (P&A;), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $248.4 million, an increase of $17.3 million or 7.5 percent over the year-ago quarter. Revenue from General Merchandise, which consists of MotorClothes? apparel and collectibles, totaled $71.3 million, an increase of $6.7 million or 10.5 percent over the year-ago quarter.

Gross margin for the third quarter of 2006 was 39.9 percent of revenue compared to 39.2 percent gross margin for the third quarter last year. Third quarter operating margin increased to 26.5 percent from 25.6 percent in the third quarter of 2005.

Motorcycle Retail Sales Data
During the third quarter, worldwide retail sales of Harley-Davidson motorcycles increased 8.9 percent over the prior year quarter. In the U.S., retail sales of Harley-Davidson motorcycles increased 6.7 percent for the quarter. The heavyweight motorcycle industry in the U.S. increased 0.2 percent for the same period.

Retail sales of Harley-Davidson motorcycles grew 18.7 percent in international markets during the third quarter of 2006 compared to the third quarter of 2005. Third quarter retail sales increased 13.7 percent in Japan; Europe was up 9.9 percent; Canada was up 30.2 percent and all other international markets combined were up 35.4 percent.

During the first nine months of 2006, worldwide retail sales of Harley-Davidson motorcycles increased 8.9 percent compared to the same period in 2005.

Data is listed in the accompanying tables.

Financial Services Segment
Harley-Davidson Financial Services (HDFS) reported third quarter operating income of $55.2 million, an increase of $7.6 million or 16.0 percent compared to the year-ago quarter. The increase is primarily due to higher net interest income and a higher securitization gain compared to the prior year.

Income Tax Rate
The Company's third 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, 2005. Assuming the retroactive reinstatement of this tax credit, the Company expects its full year effective tax rate in 2006 will be 35.5 percent.

Harley-Davidson, Inc. - Nine Month Results
For the first nine months of 2006, revenue totaled $4.30 billion, a 7.5 percent increase over the year-ago period. EPS were $2.96, an increase of 15.2 percent compared to the same period last year.

Through the first nine months of this year, shipments of Harley-Davidson motorcycles were 256,348 units, a 6.2 percent increase compared to last year�s 241,429 units. Harley-Davidson motorcycle revenue was $3.33 billion, up 7.6 percent compared to last year�s $3.10 billion. P&A; revenue totaled $683.1 million, a 5.8 percent increase over last year�s $645.8 million. General Merchandise revenue totaled $206.9 million, a 10.4 percent increase compared to $187.4 million during the same period in 2005.

HDFS operating income was $163.1 million, a 7.2 percent increase over last year�s $152.2 million.

Cash Flow
Cash and marketable securities totaled $952.7 million as of September 24, 2006. Cash flow from operations was $1.29 billion and capital expenditures were $137.5 million during the first nine months of 2006.

Stock Repurchase
The Company repurchased 7.4 million shares of its common stock at a cost of $411.4 million during the third quarter of 2006. For the first nine months of 2006, the Company has repurchased 17.2 million shares of its common stock at a cost of $911.0 million. On October 11, 2006, the board of directors authorized a new share repurchase program for up to 20 million shares, in addition to the 2.8 million shares outstanding under the previous authorization.