From a press release issued by MotoEvents:

The Racing Continues

MotoEvents has renewed their commitment to quality road racing in British Columbia with the WMRC (Westwood Motorcycle Racing Club) for the 2003 British Columbia Road Race Series. Although it has taken some time, we are happy to announce the ’03 race and practice schedule. This year has a few additions to the program to add more excitement and race time for all involved.

We are able to expand our race series to 4 events at Mission Raceway. On 3 select Monday Test & Tune practice days there is the addition of a 2-hour Mini-Endurance series.

Visit www.wmrc.ca or www.motoevents.ca for more information and current releases.

2003 Schedule
T&T = Test & Tune Practice days. Admission free to spectators
Race Events = $10 admission
TBC = To Be Confirmed

April 22 – T&T / New Rider School – TBC
May 26 – T&T / Endurance Race
June 30 – WMRC Race R.1 – TBC
July 7 – T&T / Endurance Race
July 26-27 – WMRC Race R.2
Sept. 8 – T&T / Endurance Race
October 3-5 – WMRC Double HeaderRace Weekend R. 3-4

From a press release issued by Pramac Honda Press Information:

Sepang – (Malaysia) – 20/21/22 January 2003

Private tests

Tuesday 21 January

Second day of tests at Sepang. Bridgestone development work progressing, Tamada and Itoh improve their performance.

Assisted by perfect weather – clear skies and searing heat – the Pramac Honda team completed another substantial part of their work programme scheduled for these three days of test sessions. Makoto Tamada got a much better feeling for the Sepang circuit, which he went out on yesterday for the first time ever. The good weather also let the Bridgestone technicians get some excellent work done in their test programme.

Tamada tried out a number of different settings to find the best configuration that would enable him to get to grips with the track, while Itoh tried out a number of different types of front tyre. The two riders constantly exchange opinions and today they also swapped bikes in order to compare some different technical options. This is the true debut for the two riders on their Bridgestone-shod RC 211Vs and these three days are the first step in preparation for the forthcoming tests to be held here in Sepang next month.

Makoto Tamada: 61 laps – 2:07.1 – “Very hot, and a huge amount of work. As the weather was good, we went round almost non-stop all day. After a bit, you get to feel the fatigue, but this initial stage of work is very important, and I haven’t yet found the perfect settings to build up a really fast speed. Itoh and I exchange data and information, and this helps us make progress.”

Shinichi Itoh: 76 laps – 2:05.6 – “I tried out many different tyre solutions, because what we want to do is to come back here in Sepang for another session of tests in mid-February. The work we’re doing now will help us make an initial selection and make even finer choices the next time we take to the track. The solutions we tried today led to better lap times, so I very pleased with the way things are going. It’s a painstaking job but it’ll soon bear fruit.”

Maximum ground temperature: 49° C

Last day of tests tomorrow at Sepang

From a press release issued by Honda Racing:

HRC Winter Test Sepang, January 21, 2003.
Day 2 of 3 day test.

Lap Times Tumble on Second Day of HRC Sepang Test

Day two of the HRC winter test at the Sepang circuit, in Malaysia, saw all Honda RC211V riders lower their lap times from yesterday’s opening session. Reigning MotoGP World Champion Valentino Rossi set a scorching pace on his Repsol Honda while testing tyres for team supplier Michelin. In the searing temperatures and high humidity of Sepang Rossi set a lap time 1.6 seconds faster than his best lap time during the grand prix held at Sepang October of last year.

Valentino Rossi: “Basically very happy with the results of today. The bike now seems stable and we have no chatter. It is now possible to go very fast and to keep regular fast laps. The engine feels strong and I have good traction without having to slow to stop spinning. We will keep all the settings the same for tomorrow. We have worked hard on the front today with nine different compound Michelins. Tomorrow we will work more on the rear.”

Rossi’s Repsol Honda teammate, American Superbike Champion Nicky Hayden, was feeling more at home on day two of the test. The American put in an amazing 84 laps of the circuit, lowering his lap time by over a second from yesterday as he familiarised himself with both the changes to he RCV and the Sepang circuit.

Nicky Hayden: “I’m feeling a lot more comfortable on the bike which is good but the track has taken me a lot longer to learn than I’m used to; certainly longer than the other GP tracks I’ve ridden on. It’s such a long lap time and so much wider. Although we got a faster lap time it’s been a little frustrating today and at times we seem to be going round in circles – I guess hardly surprising – it’s still early days. Tomorrow we’ll do more work with suspension setting and with tyres. Step by step!”


Fausto Gresini’s Telefonica MoviStar Honda team riders, Daijiro Kato and Sete Gibernau, put in 114 laps of the 5.548km circuit. Both men improving on their times of yesterday. Kato continued his work on the RCVs suspension throughout the day, while teammate Gibernau was learning about his new mount and the team of technicians who will work for his this season.


Daijiro Kato: “I am feeling better after being a little ill over the past two days. We worked some more on the suspension today, because while we don’t have a new bike yet, we have some parts, which have been improved, and it is up to me to put them through their paces. At the moment we are focusing on both sets of suspension, and I feel we have certainly made improvements. The weather was very hot today, and this meant that we worked in short sets of laps so we could rest more and not get tired so easily.”


Sete Gibernau: “I am happy with how things are going so far, and I’m certainly happy with my time, it’s the best I have ever done around this circuit. Obviously things are very new for all the team, because this is the first time we are getting together, so we are trying to work towards forming good habits, so that we do the right things week in week out. Once we have a set way of doing things, then we can move on to a better level. The bike is very well balanced, you know what it is going to do, and that means you can concentrate more on what you as a rider are doing, and how your body works and reacts to it.”

Tohru Ukawa, the most experienced RC211V rider of all present at the test, worked hard all day aboard his Honda Pons RCV. Ukawa tested Michelin tyres, and spent time fine tuning the fuel injection system of the five-cylinder four-stroke.

Tohru Ukawa: “Today we did the tyre testing we were unable to work on when the rain came yesterday, and after having worked solidly all day we have made good progress with them. We are also making improvements to the fuel injection, but this is just one of the new areas we are aiming at making even better. I still need to do a lot more laps on the bike because we have been working so much on the suspension before this, and while it may be still too early to say much about the season. I am confident that although there may be even more competition this season, I can still win races.”

Pramac Honda team rider Max Biaggi looked much more comfortable today than in previous outings on the RCV. The Italian has found a base set up to suit his style and he will now begin the serous work in preparation for the season.

Max Biaggi: “Today we took a great step forward. We have found a good machine balance, and the riding position is good. We only have new parts for one machine so we concentrated on that bike but we still managed to get in 47 laps. Finding the base set up and riding position has taken up two days, we didn’t event start with the Michelin test yet. Tomorrow we will see what we can do with the tyres Michelin have ready for us to test. The team are working really well and we are beginning to understand the motorcycle and each other. I have not been looking for a lap time, we have been looking for the set up to suit me and adjust the riding position.”

The Bridgestone tyre-testing programme continues to gather pace and Pramac Honda rider Makoto Tamada and HRC Honda test rider Shinichi Itoh worked hard all day. Tamada was learning the circuit while tyre testing at the same time; he lapped the Sepang circuit 2.1 seconds faster today than on the opening day of the test.

Makoto Tamada: “Very hot, and a huge amount of work. As the weather was good, we went round almost non-stop all day. After a bit, you get to feel the fatigue, but this initial stage of work is very important, and I haven’t yet found the perfect settings to build up a really fast speed. Itoh and I exchange data and information, and this helps us make progress.”

Near veteran Itoh was also faster than yesterday but the multi-talented racer and tester was more concerned about evaluating tyre performance with an eye on the future rather than a fast lap time at Sepang.

Shinichi Itoh: “I tried out many different tyre solutions, because what we want to do is to come back here in Sepang for another session of tests in mid-February. The work we’re doing now will help us make an initial selection and make even finer choices the next time we take to the track. The solutions we tried today led to better lap times, so I very pleased with the way things are going. It’s a painstaking job but it’ll soon bear fruit.”



Testing times Sepang January 21, 2003.

Valentino Rossi, ITA Repsol Honda, 2:03.5, 65 laps

Nicky Hayden, USA Repsol Honda, 2:06.6, 84 laps

Daijiro Kato, JPN Telefonica MoviStar Honda 2:04.3 56 laps

Sete Gibernau, SPA Telefonica MoviStar Honda 2:04.9, 58 laps

Tohru Ukawa, JPN Honda Pons, 2:04.9

Max Biaggi, ITA Pramac Honda Team, 2:04.5, 47 laps

Makoto Tamada, JPN Pramac Honda Team, 2:07.1, 61 laps

Shinichi Itoh, JPN HRC Honda, 2:05.6, 76 laps 76 laps

From a press release:

RideSmart riding and racing schools will be kicking off the 2003 season January 27th at MotorSports Ranch in Cresson, Texas. RideSmart features 3 Levels of riding and racing schools at every event. Our Level 1 & Level 2 schools are tailored for the street riders that would like to improve their street skills or begin to ready themselves for road racing. The strength of the Level 1 & Level 2 School is not only the curriculum, but also intensely experienced instructors that have distinguished themselves within the South Central region. Instructors for Level 1 and Level 2 Schools include Danny Dominguez, Greg Fowler, Jim Bishop, Ty Stranger-Thorsen, Phillip Fisher and many other current and past regional champions that can bring the successful experience of road racing to the entry level and experienced track day student.

Our Level 3 (Advanced Racing School) is designed for the racer that wants sharpen up fundamental on and off-track skills. The Advanced Racing School provides top-level technicians for the student at every event. Jim Cambora (Raceworx) and Pete Martins (South Central Axxion Center) are providing mechanical and suspension assistance to all Level 3 students. Jim Cambora is well known for his contribution to Ty Howard’s success, while Pete Martins is a regional distributor for Traxxion Dynamics products and services. Our instructors are all current and past champions within the south central region and include Shane Stoyko, Eric Kancir, Darnell Dorsey, and Marcus McBain. Collectively, these racers possess over 30 years of road racing experience as well successful racing experience ranging from 125cc GP to 1000cc four stroke racing machinery. Highlighting the strength of the Advanced Racing School is the 50-page course guide. This provides an excellent reference for Advanced Racing School students that will cover on-track and off-track skills.

Raceworx, South Central Axxion Center, and www.racersupply.com will be sponsor the Advanced Racing School. Recognizing the significance of this racing school, these sponsors have stepped up with products, services, and general assistance for 2003. Racers attending the January 27th Advanced Racing School will be eligible to earn “www.racersupply.com bucks” provided to students who score 100% on there classroom exams.

RideSmart Advanced Racing School will additionally sponsor several riders in the 2003 season. Mark Delano, John Orchard, Scott Beckley, and Ben Thomas will attend the Advanced Racing School at no charge this season and receive access to suspension and mechanical assistance available on school days. The RideSmart Advanced Racing School will additionally assist in organizing sponsorship for these riders. Sponsored riders are required to be in good standing in the racing community as part of their eligibility for this program. We congratulate Scott Beckley who has been an Advanced Racing School student this past year on his first career road racing win at the Church of Speed event held January 12th.

RideSmart will release its 2003 schedule January 21, 2003. With two racing organizations (CMRA and WERA) and multiple track day organizations operating in this region, RideSmart is tailoring its schedule to not “step on” other events. 2003 marks the third year of RideSmart track day schools. For general information go www.ridesmart.info about RideSmart events. For more information on Level 1/Level 2 schools, contact Dave Wonders at 512-689-9875 or email – [email protected]. For more information on the Level 3/Advanced Racing School, contact Marcus McBain at 281 225 2474 or email – [email protected]

Copyright 2003, Roadracing World Publishing, Inc.

Compiled from press releases:

1. Valentino Rossi, Honda, 2:03.5
2. Daijiro Kato, Honda, 2:04.3
3. Loris Capirossi, Ducati, 2:04.4
4. Max Biaggi, Honda, 2:04.5
5. Sete Gibernau, Honda, 2:04.9
6. Tohru Ukawa, Honda, 2:04.9
7. Shinichi Itoh, Honda, 2:05.6
8. Troy Bayliss, Ducati, 2:06.1
9. Nicky Hayden, Honda, 2:06.6
10. Makoto Tamada, Honda, 2:07.1

From a press release issued by Kawasaki:

CRASH FOR MCCOY ­ PROGRESS FOR PITT

Phillip Island/AUS ­ Tuesday, January 21st, 2003: Kawasaki Racing Team star Garry McCoy had completed two hours and 21 laps on the first of three days of testing in Australia, when he suffered a heavy crash in the notorious Siberia corner of the Phillip Island race track. Dazed and heavily shaken, the “King of Slide” was taken to the hospital in Cowes for a medical check, but was later released without any injuries apart from bruises and mild concussion. Team-mate Andrew Pitt and test riders Akira Yanagawa and Alex Hofmann rode on despite strong and gusty winds, to work on a suitable set-up for the fast and sweeping circuit, on refinements of the Fuchs Kawasaki Ninja ZX-RR’s fuel injection system, and on tests of the latest generation Dunlop tyres.

Garry McCoy (21 laps ­ best time in 1:34.90):
“Normally, you just hold second gear from the exit of Honda corner to the braking point for Siberia, but I must have hit a bump, because I accidentally clicked into third with the throttle still wide open. Obviously, I got into that corner way too hot. I tried to brake and slow down as much as I could before letting the bike go, but there is not a lot of run-off there, so I hit the ground quite hard. Luckily, I didn’t break anything, but I was dizzy and bruised enough to get some rest and stay in the hotel for the remainder of the day!”

Andrew Pitt (61 laps ­ best time in 1:34.14):
“The day started with strong winds, and it was getting worse and worse and worse. But I’m still quite happy, because we made a good step forward, and I started to go quicker and quicker. Right at the end of the day, we got the bike in the best position it has been in. It doesn’t feel good when the front wheel comes up under acceleration and then the wind hits you with full force, so we are trying to keep the front wheel down with putting as much weight on it as possible without upsetting the rear too much. Right at the end, we got a pretty good compromise as far as the balance goes. We also went a bit softer with the suspension because of the bumps and the wind. It will be interesting to see how we can go with this setting without any wind!”

Alex Hofmann (49 laps ­ best time in 1:36.46):
“We just tested tyres again, in order to double-check with our data from Malaysia last week, because different conditions sometimes lead to different results. That was my main job today, and not to go for laps times at all, because this is not the best track for my older, carburetted version of the bike anyway. Whereas my bike starts to move and shake early on, quite like a Superbike, the new motorcycle offers superior stability, grip and a feeling of safety in fast sections, which is exactly what you need on Phillip Island!”

Akira Yanagawa (75 laps ­ best time in 1:34.48):
“It was sunny, but very windy, too. I haven’t been riding here for almost two years, but my lap time is not so bad, and therefore I’m happy. I now got the same chassis that Andrew and Garry are using, which is much stronger and makes me feel more comfortable. My riding style is very aggressive, so this stronger chassis suits me just fine!”

Harald Eckl (team manager):
“Garry arrived at his home circuit highly motivated, so it was especially unlucky for him to crash when the test had hardly started. Our computer data confirms a very unusual shift from second to third gear right at the braking point for the Siberia left-hand corner.

“Fortunately, Garry didn’t suffer any serious injuries, and we hope that he will be fit to ride tomorrow. Andrew, Alex and Akira rode on all day without any further incidents, but they struggled with strong winds and couldn’t accomplish as much as we hoped. Apart from that, we are still waiting for two of our new chassis – they got stuck in quarantine at Melbourne airport, and we hope they can be delivered before this three-day-session ends!”

Copyright 2003, Roadracing World Publishing, Inc.

By David Swarts with files from Bob Dragich

Ducati Austin Racing’s Anthony Gobert was the fastest rider Tuesday during AMA team testing at Laguna Seca Raceway in Monterey, California with a best time of 1:26.595 on his Dunlop-sponsored Ducati 998RS Superbike, while Yamaha’s Jamie Hacking led all Supersport times with a 1:29.793 on his factory YZF-R6.

Anthony Gobert; Kawasaki Road Racing Team’s Eric Bostrom, Tommy Hayden and Tony Meiring; American Honda’s Ben Bostrom and Miguel Duhamel; Parts Unlimited PJ1 Erion Honda’s Kurtis Roberts, Jake Zemke, Roger Lee Hayden and Alex Gobert; Yamaha’s Hacking, Damon Buckmaster, Aaron Gobert and Jason DiSalvo and Dream Team Ducati’s Larry Pegram arrived at Laguna Seca Tuesday morning to find the track damp from recent rains. After waiting for the track to dry, the first riders went out on track at approximately 10:30 a.m. and ran until 5:00 p.m. local time. Temperatures were in the mid-60s Fahrenheit.

Pegram’s team arrived in the HMC Ducati race transporter, which it will use all season, and Pegram rode 2003-model Ducati 998RS “customer” Superbikes (the same as those ridden by Anthony Gobert) on Michelin slicks.

Eric Bostrom’s Kawasaki Superbike was equipped with a new 770cc engine, but the team had to work to stop the bike from “cutting out” on the bottom and top of the rev range. The new bike’s problem seemed to be fixed by the end of the day, and Eric Bostrom set his fastest time with the 770cc engine.

Tommy Hayden was the only rider to crash at Laguna Seca Tuesday. At approximately 3:30 p.m., the eldest Hayden brother highsided his Kawasaki ZX-6RR in turn three, directly in front of teammate Meiring and Anthony Gobert. Hayden told Roadracingworld.com’s Dragich that he didn’t know what happened before sitting out the rest of the afternoon with a bump on his head.

The Yamaha factory Supersport team was not accompanied by the Graves Motorsports Yamaha Formula Xtreme team, which is aiming to make its first testing appearance of 2003 at California Speedway in early February, according to a source within the team.

Jake Zemke split his track time between his CBR600RR Supersport and his CBR954RR Formula Xtreme bikes. Zemke’s teammate Roger Lee Hayden concentrated on his Supersport machine Tuesday.

Kurtis Roberts arrived at Laguna Seca black and blue from a recent motocross crash at his father’s ranch. Roberts did only a handful of slow laps before leaving the track before the end of the day. Roberts team members did not know if Roberts would return to ride for the final two days of the test.



Fastest Lap Times From AMA Pro Racing Timing & Scoring:

1. Anthony Gobert, Ducati 998RS, 1:26.595
2. Eric Bostrom, Kawasaki ZX-7RR (770cc), 1:26.680
3. Larry Pegram, Ducati 998RS, 1:27.868
4. Ben Bostrom, Honda RC51, 1:28.194
5. Jamie Hacking, Yamaha YZF-R6, 1:29.793
6. Miguel Duhamel, Honda CBR600RR, 1:29.990
7. Aaron Gobert, Yamaha YZF-R6, 1:30.407
8. Damon Buckmaster, Yamaha YZF-R6, 1:30.494
9. Jake Zemke, Honda CBR600RR, 1:30.564
10. Tommy Hayden, Kawasaki ZX-6RR, 1:30.927
11. Jake Zemke, Honda CBR954RR, 1:30.949
12. Alex Gobert, Honda CBR600RR, 1:31.291
13. Jason DiSalvo, Yamaha YZF-R6, 1:31.612
14. Tony Meiring, Kawasaki ZX-6RR, 1:31.882
15. Roger Lee Hayden, Honda CBR600RR, 1:32.374

Copyright 2003, Roadracing World Publishing, Inc.

By Michael Hannas

AMA Pro Racing is now offering free guest passes to riders who only pre-enter selected events, instead of requiring riders to pre-enter the entire season to get the pass, which was the case in the past.

An AMA Pro Racing memo addressed to “License Applicants” dated October 15, 2002 but postmarked January 3, 2003, states “Riders who pre-enter selected events will be eligible to receive a free guest pass to those events that he/she is pre-entered for. To obtain the pass, the rider must accompany his/her guest to registration to have the pass issued.”

A call to AMA Pro Racing offices to find out what type of passes would be issued to the guest was made, with the answer being that the passes would probably be equivalent to spectator passes with paddock access, but no hot pit access. No one at the office was able to confirm this, so we called AMA Road Race Manager Ron Barrick to find out the scoop.

According to Barrick, the guest passes issued to riders who pre-enter selected-events-only will not grant the guest hot pit access. They will indeed be like spectator passes, meaning that a rider will still have to buy a $55 mechanic pass for the weekend (which requires an AMA membership as well, another $39) if he wants his significant other to be able to bring him his helmet on hot pit or hold his umbrella on the grid.

Barrick also noted that while the hard-card guest credential for riders who pre-enter the entire season was available in the past but the policy wasn’t made public, the guest pass for selected events is an entirely new procedure. Barrick said this type of guest pass may possibly have been available for riders many years ago, but not since he has been working for AMA Pro Racing.

While a free guest pass should be generally accepted as a good thing by the riders, it remains unclear if this option was secretly available to a select few in the past as well. One rider who wishes to remain nameless told roadracingworld.com he has been asked if he needed any free guest passes for the weekend by an AMA Pro Racing official upon arriving at the track in the recent past, even though he was post-entering for the race.

From a press release issued by Harley-Davidson:

HARLEY-DAVIDSON REPORTS RECORD FOURTH QUARTER AND 17th CONSECUTIVE RECORD YEAR

Net Income of $580 million on Revenue of $4.1 billion

Milwaukee, Wis., January 21, 2003 — Harley-Davidson, Inc. (NYSE: HDI) today announced record revenue and earnings for its fourth quarter and year ended December 31, 2002. Revenue for the quarter was $1.03 billion compared with $905.9 million in the year-ago quarter, a 13.3 percent increase. Net income for the quarter was $150.9 million, an increase of 27.5 percent over the year ago quarter. Fourth quarter diluted earnings per share (EPS) were 49 cents, a 25.6 percent increase compared with last year’s 39 cents. Revenue for the full year was $4.1 billion, compared with $3.4 billion in 2001, a 20.1 percent increase. Net income for the year was $580.2 million, a 32.5 percent increase versus last year’s $437.7 million, while diluted EPS for the full year were $1.90, a 32.9 percent increase compared with $1.43 in 2001.

“The year 2002 was our 17th consecutive year of record revenue and net income,” said Jeffrey L. Bleustein, chairman and chief executive officer of Harley-Davidson, Inc. “Worldwide retail sales of Harley-Davidson® motorcycles were strong in 2002 with 15.9 percent unit growth over the prior year. Strong demand for our products gives us confidence in maintaining our production goal of 289,000 Harley-Davidson motorcycles for 2003.

“We believe that the excitement surrounding our 100th Anniversary celebration combined with the strength of the underlying fundamentals of our motorcycle business are helping us continue to grow – even in the face of a weak global economy. We are fulfilling the dreams of many new customers as we welcome them into the Harley-Davidson family,” said Bleustein.

Motorcycles and Related Products Segment – Fourth Quarter Results

Revenue from Harley-Davidson motorcycles was $820.3 million, an increase of $86.1 million or 11.7 percent over the same period last year. Fourth quarter shipments of Harley-Davidson motorcycles totaled 65,970 units. The Company had four fewer workdays in the fourth quarter of 2002 compared with 2001, yet shipped 2,435 more units, or 3.8 percent more than the same period last year.

Revenue from Parts and Accessories (P&A), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $129.9 million, an increase of $18.5 million, or 16.6 percent over the year-ago quarter. Revenue from General Merchandise, which consists of MotorClothesä apparel and collectibles, totaled $54.8 million, an increase of $7.3 million or 15.4 percent. Revenue from 100th Anniversary P&A products was $12.7 million and revenue from General Merchandise associated with the 100th Anniversary was $12.5 million. “We are very pleased with sales of our 100th Anniversary products, but we realize that not all of these were incremental because some substitution from standard offerings to commemorative anniversary products did occur,” said Bleustein.

Fourth quarter gross margin was 36.1 percent of revenue, up from 34.5 percent last year. Gross margin improved primarily due to wholesale motorcycle price increases, favorable product mix and foreign exchange effects.

Fourth quarter operating margin for the Motorcycles and Related Products Segment was 20.7 percent of revenue, which was better than last year’s fourth quarter operating margin of 18.6 percent. The increase in operating margin was driven primarily by the increase in gross margin.

Retail Sales Data

Harley-Davidson retail motorcycle sales for the year grew in the U.S. (18.3 percent), Europe (7.6 percent) and Japan (5.9 percent) compared to the same period last year.


Financial Services Segment – Fourth Quarter Results

Harley-Davidson Financial Services, Inc. (HDFS), a subsidiary of Harley-Davidson, Inc., reported fourth quarter operating income of $25.4 million, up $8.4 million or 49 percent compared to the year-ago quarter.

“Harley-Davidson Financial Services had a fantastic quarter and year, both in financial performance and in helping to make the dream of owning a Harley-Davidson motorcycle a reality,” said Bleustein. The subsidiary benefited from the increase in Harley-Davidson’s U.S. motorcycle sales, growing acceptance of its consumer financing program and decreased cost of funds due to lower market interest rates.

Pension Plan Activities

During the quarter, the Company contributed $100 million to its various pension plans, which brought the total year contribution to $154 million, compared with a contribution of $19 million in 2001. The Company also responded to current market conditions by lowering its pension plan discount rate from 8.0 to 7.25 percent.

Cash Flow

Operations generated cash of more than $779 million in 2002, providing the Company the ability to invest $324 million in capital expenditures, repurchase 1.1 million shares of company stock for $57 million, pay $41 million in dividends and contribute $154 million to the Company’s pension plans, even as the Company increased cash and marketable securities by $160 million.

Twelve Month Results

For the fiscal year ended 2002, total Harley-Davidson motorcycle shipments were 263,653 units compared with 234,461 units in 2001, a 12.5 percent increase. Harley-Davidson motorcycle revenue was $3.16 billion, an increase of $489.7 million or 18.3 percent.

P&A revenue totaled $629.2 million, a 23.5 percent increase, while General Merchandise revenue totaled $231.5 million, a 41.2 percent increase compared with 2001.

On a longer-term basis, the Company expects the growth rate for P&A revenues to be slightly higher than the Harley-Davidson motorcycle unit growth rate. The General Merchandise growth rate is expected to be lower than the motorcycle unit growth rate over the long term.

Full year operating income for HDFS was $104.2 million, an increase of $43.0 million or 70.1 percent compared to 2001. The Company expects 2003 HDFS operating income to grow approximately 20 percent over 2002 performance.

Harley-Davidson, Inc. is the parent company for the group of companies doing business as 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 and insurance programs to Harley-Davidson dealers and customers.

Forward-Looking Statements

The Company intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The Company’s ability to meet the targets and expectations noted depends upon, among other factors, the Company’s ability to (i) continue to realize production efficiencies at its production facilities through the implementation of innovative manufacturing techniques and other means, (ii) successfully implement production capacity increases in its facilities, (iii) successfully introduce new products and services, (iv) avoid unexpected P&A /general merchandise supplier backorders, (v) sell all of the motorcycles it has the capacity to produce, (vi) continue to develop the capacity of its distributor and dealer network, (vii) avoid unexpected changes in the regulatory environment for its products, (viii) successfully adjust to foreign currency exchange rate fluctuations, (ix) successfully adjust to interest rate fluctuations, and (x) successfully manage changes in the credit quality of HDFS’s loan portfolio.

In addition, the Company could experience delays in the operation of manufacturing facilities as a result of work stoppages, difficulty with suppliers, natural causes or other factors. Risk factors are also disclosed in documents previously filed by the Company with the Securities and Exchange Commission.

From a press release issued by Michelin North America:

RACING VETERAN JIM RHODES JOINS MICHELIN AS ROAD RACING MANAGER

Jim Rhodes, a veteran race tire technician who’s spent 25-plus years around the paddocks of U.S. and world championship road racing, has joined Michelin North America as its motorcycle road racing manager.

Rhodes, 41, has been actively involved with racing and Michelin since the late 1970s, when he began traveling to races to help mount tires for longtime Michelin trackside distributor Walt Schaefer of Altoona, Alabama. Over the ensuing decades, Rhodes has become a familiar face in paddocks both in the U.S. and overseas, fitting his weekend work at race tracks around his career in engineering in the U.S. Air Force, from which he recently retired after more than 23 years on active duty.

“Jim brings an incredible level of commitment and expertise to our growing road racing program in the U.S.,” said Bernard Jarrousse, product manager for the Two Wheel division of Michelin North America. “He’s worked with Michelin and our race distributors at every level of the sport, from local club races to MotoGP and World Superbike. Now that he’s working full-time for Michelin, he’ll be an even greater asset both to our organization and our teams.”

During his military service, Rhodes worked with some of the world’s most technologically advanced aircraft, such as the B-1 Bomber, B-2 Stealth Bomber, Airborne Laser and “other things I can’t talk about,” he added. So he’s no stranger to the demands of advanced research and development programs. “Racing is the ultimate R&D proving ground, where feedback and results are immediate”, he said.

As road racing manager, Rhodes will oversee domestic testing and development of Michelin Pilot racing tires, as well as supplying tires to Michelin partner teams in AMA Superbike, Supersport, Superstock and Formula Xtreme. Michelin-supported teams for 2003 include Team Valvoline Emgo Suzuki, with riders Steve Rapp and Chris Ulrich; Annandale Honda with Ty Howard and Craig Connell; and No Limits Honda with Doug Chandler and Jason Curtis.

These riders will enjoy the same advantages as the Michelin-equipped teams that have won the past nine World Superbike Championships, the last ten 500cc Grand Prix championships, and the inaugural MotoGP crown in 2002.