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Buell Motorcycle Company Announces Voluntary Recalls

4 May 1999

Buell Motorcycle Company Announces Voluntary Recalls

    MILWAUKEE, May 4 -- Buell Motorcycle Company, a producer of
sport and sport-touring motorcycles and a subsidiary of Harley-Davidson, Inc.
, announced today that it voluntarily recalled Buell motorcycles
produced from 1994 to 1999 to correct several components. The voluntary
recalls affect no more than 18,637 Buell motorcycles, of which approximately
12,400 were sold in North America. The following Buell motorcycle components
and models are affected:

    -- Front Motor Mount System in all 1997 - 1998 models;
    -- Negative Battery Cable in 1996 - 1998 S1 Lightning and 1998 S1 White
       Lightning models;
    -- Rear Brake Line in 1999 Lightning Xl models;
    -- Side Stand Switch in all 1996 - 1999 models, except S2 and S2T
       Thunderbolt models;
    -- Fuel Tank Retention System in all 1995 - 1999 models, except Lighting
       X1 models;
    -- Fuel Tank Vent in all 1995 - 1999 models;
    -- Swing Arm in all 1995 - 1998 models;
    -- Shock Eye in all 1995 - 1998 models.

    "The safety of Buell riders is of utmost importance to all of us at
Buell," said Jerry G. Wilke, president and chief operating officer of Buell
Motorcycle Company. "These recalls were declared voluntarily pursuant to the
National Highway Traffic Safety Administration regulations. Erik Buell, our
chairman and chief technical officer, and I will be working closely with our
employees and dealers to update these motorcycles quickly so our riders can
continue to enjoy their motorcycles and the riding season."
    Buell Motorcycle Company will establish a pretax reserve of $5.0 million,
which it will charge to second quarter operations, to cover the estimated
repair costs of these voluntary recalls. At this time, the Buell Motorcycle
Company is not adjusting its production target of 8,000 motorcycles for 1999.