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Business Description
Harley-Davidson, Inc. is primarily a motorcycle manufacturer and marketer. The Company operates in two principal business segments: Motorcycles and Related Products, which designs, manufactures and sells primarily heavyweight touring, custom and performance motorcycles, as well as a complete line of motorcycle parts, accessories and general merchandise, and Financial Services, which, through the Company's wholly owned subsidiary, Harley-Davidson Financial Services, Inc. (HDFS), is engaged in the business of financing and servicing wholesale inventory receivables and consumer retail installment sales contracts, primarily motorcycles and non-commercial aircraft. The Motorcycles segment includes the group of companies doing business as Harley-Davidson Motor Company, subsidiaries of H-D Michigan, Inc. and Buell Motorcycle Company (BMC). HDFS is an agency for certain unaffiliated insurance carriers providing property/casualty insurance and extended service contracts to motorcycle owners.

Financial Information
HDI designs, manufactures and markets heavyweight motorcycles, parts, accessories, collectibles and riding apparel. HDI, through HDFS, also provides financing services programs to dealers and retail customers. For the six months ended 6/30/02, sales rose 18% to $1.93 billion. Net income rose 27% to $264.3 million. Results reflect increased Harley-Davidson unit shipments, improved gross and operating margins and higher financial services income.