York, Pa. (February 22, 2007) - Harley-Davidson Motor Company reported that motorcycle production will resume with the third shift this evening at the Company’s final assembly operations in York, following today’s ratification of a new labor agreement by its unionized employees. The new three-year agreement between the Company and International Association of Machinists and Aerospace Workers (IAM) Local 175 becomes effective today.

Harley-Davidson employees in York had been on strike since Feb. 2, after rejecting an initial proposed labor agreement Jan. 31.

IAM Local 175 represents about 2,800 production employees at Harley-Davidson’s facility in York, which produces the Company’s Touring and Softail motorcycles and is the Company’s largest production operation.

“We are eager to get back to work producing motorcycles again,” said Fred Gates, General Manager of Harley-Davidson’s Operations in York. “Our employees take enormous pride in building the best, highest quality motorcycles in the world and we all look forward to focusing our attention on meeting the needs of our customers.”

“The agreement is an important step in managing costs that could be detrimental to the business over the long term if the Company doesn’t start to control them now,” said Gates. “The agreement helps reduce the escalation in health care and other labor-related costs while continuing to provide an outstanding total compensation and benefits package. We appreciate the support of our union employees for sharing in the solutions to ongoing business challenges,” Gates said.

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