Harley-Davidson Applauds U.S. Trade Agreement With Vietnam

Agreement Reduces Vietnamese Barriers to Motorcycle Imports and Operation

May 24, 2006, 01:00 ET from Harley-Davidson

    MILWAUKEE, May 24 /PRNewswire-FirstCall/ -- Harley-Davidson (NYSE:   HDI)
 motorcycles can one day roll through the cities and countryside of Vietnam,
 thanks to an agreement in principle on trade that opens the Southeast Asian
 country to more U.S. products.
     During the final round of negotiations in the Bilateral WTO Market
 Access Agreement between the U.S. and Vietnam, officials of the Office of
 the United States Trade Representative were successful in eliminating or
 lowering longstanding barriers to Harley-Davidson's market entry in
     In addition to lifting an outright ban on large displacement
 motorcycles, Vietnam will adopt a basic and transparent motorcycle
 operators licensing system, relax distribution restrictions and reduce
 tariffs on heavyweight (650cc-plus engine displacement) motorcycles by 60%
 over time.
     Harley-Davidson has not yet announced any definitive plans for selling
 motorcycles in Vietnam. However, the Company has long been interested in
 expanding its presence in Asia and considers market access of the kind
 provided by the trade agreement as key to its future expansion into
     In April, 2006, in another move into Asia, Harley-Davidson opened a
 dealership in Beijing -- the Company's first dealership in mainland China
 since at least prior to World War II. And the Company has long been a major
 force in the motorcycle market in Japan, where Harley-Davidson retailed
 more than 11,000 motorcycles in 2005. Harley-Davidson first exported
 motorcycles to Japan in 1912.
     "Harley-Davidson applauds the agreement that USTR reached with the
 Government of Vietnam," said Harley-Davidson Vice President of Government
 Affairs Timothy Hoelter. "The bilateral WTO Accession Agreement opens up
 important new opportunities for Harley-Davidson in the important Asian
     "Harley-Davidson has proven time and again that an American company,
 American workers and a great American product can compete abroad, given a
 more level playing field. With the Vietnam market access agreement, the
 team at USTR has shown what can be accomplished through persistence and
 determination. We especially congratulate Ambassador Portman and his
 colleagues, Ambassador Schwab, Ambassador Bhatia and Assistant USTR Dorothy
 Dwoskin on this achievement," Hoelter said.
     In 2005, sales of Harley-Davidson motorcycles grew 15 percent
 internationally over the prior year. International markets account for
 about 20 percent of the Company's annual motorcycle unit sales.
     Harley-Davidson, Inc. is the parent company for 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 and sport-touring motorcycles. Harley-
 Davidson Financial Services, Inc. provides wholesale and retail financing,
 insurance and credit card programs to Harley-Davidson dealers and

SOURCE Harley-Davidson