Disclaimer: I created this writing sample for a class. The information is not meant to represent the organization described. It is for academic purposes only.

DEAR FELLOW SHAREHOLDER: With the growing economic troubles in the United States, Harley-Davidson had a challenging year in 2007. The decline in revenue and earnings was in part because of the poor economy, which decreased discretionary purchases such as motorcycles; however, that did not stop us from continuing to be a strong, market-leading company.

Although Harley-Davidson 2007 revenue and earnings declined from 2006, they were the second highest in company history. Our net revenue in 2007 was $5.73 billion, compared to $5.80 billion in 2006 and $5.34 billion in 2005. Our diluted earnings per share were $3.74 billion compared to $3.93 billion in 2006 and $3.41 billion in 2005.

Dealers sold 337,774 new Harley-Davidson motorcycles worldwide in 2007, compared to 343,981 in 2006 and 317,169 in 2005. Our international retail sales in 2007 increased 13.7 percent over 2006. The success of our international sales is in large part due to a strategic decision to grow Harley-Davidson faster in international markets than in the United States.

In 2007 we shipped 330,619 motorcycles, which was a 5.3 percent decrease from 2006. Our decision to ship fewer motorcycles than we sold internationally was a strategic approach. We focused on the relationships between supply and demand to grow our international retail motorcycle sales faster than U.S. sales, and to maintain the strength of the Harley-Davidson brand in the international market.

Harley-Davidson continued to demonstrate that even during hard times, we are an expanding company, dedicated to delivering excellent results to our stakeholders.

Although we expect to see a continued downturn in the economy in 2008, we are focused on weathering that downturn through a focus on marketing, product development, investment in the international market and our people. Harley-Davidson’s success is built on excellent customer relationships, market-defining products and extraordinary customer experiences.

We have a number of milestones coming our way in 2008, including the 105^th anniversary of Harley-Davidson, where we will have the biggest anniversary ride in history and four days of celebration. We will also host the grand opening of the Harley-Davidson museum, which will be an exciting destination for Harley-Davidson fans, and we will have a spectacular showcase event featuring the 2009 Harley-Davidson motorcycle line-up.

Whether you hear that roaring-loud engine from your living room, front yard, or under your own legs, everyone recognizes the sound of a Harley-Davidson motorcycle. You have to admit, a Harley-Davidson motorcycle demands attention from its audience while out on the road. When you see a person riding a Harley-Davidson, you know they’re not joking around.

Just like every year, we will strive to be desirable for every rider’s attitude in 2008. Whether you’re a free-bird rider who takes the long, open country roads for scenic pleasure or you’re an economic rider commuting to work, Harley-Davidson has always been the best choice. We promise in 2008 that we will continue to make choices and take actions that strengthen our brand and grow value for our stakeholders.

Even with difficult times on the horizon, Harley-Davidson is enthusiastic and prepared for the future opportunities that come our way. Harley-Davidson’s universal success has been built on the leadership of our employees, the loyalty of our customers, the service of our dealers, and – our legendary motorcycles.

James Ziemer

President and Chief Executive Officer

Harley-Davidson Inc.