MBN: The Monte Bubbles Network

April 22

 BONHOMME TRIUMPHS IN FRONT OF A MILLION CHEERING SPECTATORS IN RIO

Red Bull Air Race becomes the biggest sport event in Brazilian history

British pilot Paul Bonhomme (01:32.45 minutes) won a decisive victory
against Spaniard Alejandro Maclean (01:36.53) in the the second leg of
the
Red Bull Air Race World Series, held Saturday over Botafogo Bay in Rio
de
Janeiro.

"Awsome and unforgettable," said a beaming Bonhomme. "That was by far
the
best racing event of my career. From training and qualifying to the
elimination and in the end the finale. I dominated in Rio."

The biggest surprise of the competition was the strong performance by
Austrian rookie Hannes Arch, who came in a respectable fourth behind
2005
World Series champion Mike Mangold (USA).  Peter Besenyei (HUN), who
won the
first race of the season, was disqualified, while current world
champion
Kirby Chambliss (USA) disappointed after he struck a gate and was
knocked
out of the quarter final as a result. "It's a dream come true for me,"
said
Arch about his strong performance. "It's a Brazilian fairytale. I just
barely missed the final."

The Red Bull Air Race in Rio de Janeiro's Botafogo Bay marked a new
dimension in spectator attractions for Brazil. One million people
turned out
for the race, crowding the coastline and transforming it into the
biggest
sport event in Brazilian history.

Sergey Rakhmanin (RUS), Frank Versteegh (NED), Nicolas Ivanoff (FRA)
und
Klaus Schrodt (GER) were the four slowest pilots in the elimination,
failing
to make it through to the quarter finals. "When you're flying to the
limit,
mistakes happen. The strong competition forced me to go all out," said
Versteegh explaining why he was knocked out of the race early.

Bonhomme also scored the fastest round of the day after finishing the
elimination session in just 01:30.98 minutes.

April 19

Santa Fe Rocket Racing Team of Albuquerque, New Mexico, announces the addition of two new team members. Dave Morss of Redwood City, Calif. has signed on as the team's Chief Pilot, and Paul Novacek of Albuquerque, N.M. has signed on as Vice-President and Crew Chief.

Dave Morss is well known in the aviation industry for his accomplishments as a race and experimental Test Pilot. He has competed in more races (170) than anyone in the history of Reno Air Racing. He has set course records in Reno and been awarded two Pulitzer Aviation Trophies from the National Aeronautics Association. In total, Dave broke thirteen world speed records, eight of which still stand. Dave also conducts flight testing on aircraft of all types, piloting the first flights on 35 different prototype aircraft.

Dave will be responsible for the testing and racing of the Mark-I racer expected to be delivered soon to the Santa Fe racing team. Dave commented, "I'm always looking to be on the cutting edge of aviation technology, and I see the Rocket Racing League and Team Santa Fe as the next step in the evolution of air racing."

Paul Novacek has signed on as team Vice-President and Crew Chief. Paul holds a B.S. in Avionics and M.S. in Aviation Human Factors from Embry-Riddle Aeronautical University in addition to holding multiple Flight Instructor ratings. He is an active maintenance and avionics technician with over 25 years experience in corporate aircraft and air racing. Paul's extensive aviation career includes Principle Investigator positions at NASA and as a Human Factors Engineer with Raytheon

As Crew Chief, Paul will manage the maintenance, operations and pit crew of the Mark-I and future Mark-II Rocket Racers. Paul commented, "I foresee Rocket Racing and Team Santa Fe as the bleeding edge of technology and one of the most exciting spectator sports to arrive on the scene in quite a long time."

Team owner, Marc R. Cumbow states, "Dave's extensive flying background and his unmatched experience as an air racing pilot are going prove to be one of our team's greatest assets ... The other teams will now have a run for their money! This, together with Paul's engineering background and management experience has put Santa Fe Rocket Racing on track to be a leading force in the Rocket Racing League."

About the Rocket Racing League

The Rocket Racing League (RRL) is an aerospace entertainment organization, which combines the competition of racing with the excitement of rocketry. RRL is dedicated to providing safe and thrilling experiences for families through live events, television broadcasts and interactive technologies. The league's mission is to serve as a technology accelerator in the areas of airframe, propulsion and spacecraft design, and reach for the future to inspire the next generation of spaceflight enthusiasts. (www.RocketRacingLeague.com.)

Web site: http://www.rocketracingleague.com/

-- When the Miami HEAT begin the 2007 NBA Playoffs on April 21, Dwyane Wade will reveal the limited edition black/yellow version of the Converse WADE 2.0. The last time Wade revealed a special Playoff edition of his WADE signature shoe, he began one of the most memorable Playoff performances in NBA history and led the Miami HEAT to its first NBA title.

To commemorate Wade's comeback to the team and Playoff run, Converse will re-launch its "ALL IN" ad campaign that celebrates the passion of playing basketball and being "all in" for your team. Converse's "ALL IN" TV, print and online ad campaign originally launched on March 3, 2007 as the WADE 2.0 signature shoe first hit stores.

"I'm excited to be returning to the team in time for our Playoff run. Like the Converse ad says, I'm 'all in' as we begin to defend our title," said Wade. "I had great success wearing the first Playoff version of my signature shoe, so I'm hoping that run continues with the WADE 2.0."

The WADE 2.0 signature shoe reflects the duality of Wade's game with a "Rose and Thorn" design inspiration -- his fierceness on the court meets the beauty of his game. Design elements relating to Wade include a perforated pattern on the medial side of the shoe that has an embossed "Z" for his son, Zaire. The upper and outsole both have a repeating "W" pattern inspired by Wade and the Thorn. Finally, there is a leather patch behind the tongue featuring Dwyane Wade's signature.

Two colorways of the Converse WADE 2.0 are already available for MSRP $100 at Footlocker, Finish Line, Footaction, Champs, select independent retailers and online at http://www.converse.com/ . The special playoff edition will hit stores on April 25.

Established in 1908, the Converse brand has built a reputation as "America's Original Sports Company"(TM) and has been associated with a rich heritage of legendary shoes such as the Chuck Taylor(R) All Star(R) shoe, the Jack Purcell(R) shoe and the One Star(R) shoe. Converse was the first basketball shoe to ever make contact with the court in 1917. Soon after, Converse gained iconic status with the creation of the Chuck Taylor All Star shoe, which went unmatched through five decades of professional basketball. For more information, visit us on the web at http://www.converse.com/ .

Source: Converse

Web site: http://www.converse.com/

-- Twenty lucky readers of Hispanic News Press' El Planeta newspaper will get a chance to check out David "El Papi" Ortiz, Dice-K, at the first Red Sox vs Yankees game on April 20th. KeySpan, the largest distributor of natural gas in the Northeast, is providing Hispanic News Press with 20 tickets to the game as part of a partnership with the media group.

KeySpan's mission is to help the Hispanic community conserve energy and learn more about the many advantages of upgrading to clean, efficient natural gas. Working together, HNP and KeySpan have created a comprehensive way to get readers to participate.

"We are delighted to partner with Hispanic News Press to understand how we can better serve the Hispanic community," said Nick Stavropoulos, President, KeySpan Energy Delivery. "Natural gas is reliable and the most environmentally friendly fossil fuel. "

El Planeta Newspaper, created surveys where respondents answer an array of questions regarding their current use of energy and have them enter to win Red Sox tickets. HNP is also employing its radio show to promote this contest.

"We have received an overwhelming response to this great promotion", stated Lisette Garcia, Events Director at HNP.

"KeySpan is always present in many aspects of our life. This way of interacting with the community makes companies like KeySpan be well recognized," said Javier Marin, CEO of Hispanic News Press.

Hispanic News Press publishes the newspaper El Planeta, the magazines Sus Deportes, EntreAmigos and also has a daily radio program, an online presence through elplaneta.com and elplanetastore.com as well as promoter of special events. Hispanic News Press is the largest media group in New England assisting the Spanish speaking community.

Source: Hispanic News Press

http://www.elplaneta.com/
http://www.elplanetastore.com/

Note: Today, Lagardere issued the following press release (see below) in Paris announcing that Hachette Filipacchi Media U.S (www.hfmus.com), a Lagardere subsidiary and owners of the Car and Driver, Road & Track and Cycle World brands, reached an agreement to acquire Jumpstart Automotive Media (www.JumpstartAutomotiveMedia.com), the San Francisco-based vertical advertising network focused exclusively on the automotive industry. Jumpstart will operate as a wholly-owned subsidiary of Hachette retaining the Jumpstart brand and all of its employees.

Jumpstart will immediately assume responsibility for the online advertising sales of CarandDriver.com, RoadandTrack.com and CycleWorld.com, significantly expanding its advertising inventory. These sites will be aggregated with Jumpstart's network to bring the total number of unique visitors to 5 million per month (Source: ComScore March 2007), making Hachette and Jumpstart among the leading players in the online automotive industry.

Statement from Jack Kliger, President and CEO, Hachette Filipacchi Media U.S.:

"The acquisition of Jumpstart gives us scale and expertise in the online automotive marketplace, the largest and most important ad category on the Web. By combining the strong digital platform of Jumpstart with our well-established brands Car and Driver, Road & Track and Cycle World, Jumpstart and Hachette will be well-positioned to capitalize on future growth opportunities in the automotive category and to create more powerful offerings for our advertising partners in the future.

"Mitch Lowe and his team of over 75 experienced online automotive experts have been smart and built a business that has carved out a unique position in online sales. We are delighted that Mitch and his group will continue to operate this business. We plan to contribute assets and investments to support Jumpstart's continued growth. Jumpstart is highly respected in the automotive industry and has an innovative and successful business model. Jumpstart already represents a group of premier in-market automotive brands, and we think that our brands will complement this list and will strengthen the network for advertisers. We look forward to working with Jumpstart's network of publishers to develop synergies.

"With the acquisition of Jumpstart, Hachette can now serve the full purchase cycle for the consumer. In my opinion, the key to future success in the automotive marketplace is to be able to effectively serve the consumer's buying process from the beginning to the end. The prospective buyer usually takes twelve weeks to make a decision, and Car and Driver and Road & Track have been important resources to a consumer who is researching which make and model to buy. The Web increasingly plays an important role in the final stages of purchasing, and Jumpstart's strength is its connection to the in-market buyer."

Statement from Mitch Lowe, Founder and CEO, Jumpstart Automotive Media:

"Since 2000, Jumpstart has been dedicated to delivering exceptional results online for advertisers and publishers in the U.S. automotive market, and this market is the biggest in the world and the largest media category in this country. One out of eight media dollars comes from automotive advertisers which represents $34.5 billion. With digital advertising, there is a growing demand for inventory. We believe that the recognized brands, strong editorial content, and deep advertising relationships of Hachette will enhance our selling capabilities and open exciting new business opportunities as we embark on the next stage of our development."

LAGARDERE SCA PRESS RELEASE

Lagardere subsidiary enters into definitive agreement to acquire Jumpstart Automotive Media

Lagardere SCA has announced today, April 19, 2007, that its subsidiary, Hachette Filipacchi Media U.S., Inc. (HFMUS), a member of LAGARDERE ACTIVE, will acquire 100% of Jumpstart Automotive Media ("Jumpstart").

Jumpstart is a leading online advertising network serving the US automotive sector and providing a full line of advertising products and services to auto makers and dealers. Jumpstart's main activities are:

-- Selling advertising space on five of the top automotive sites in

the USA (NADAguides.com, Vehix, JD Power & Associates Autos, How

Stuff Works/Consumer Guide Autos, Shopping.com Auto, an eBay

company);

-- Generating some of its revenues from behavioral targeting, which

serves ads based on internet user behaviors;

-- Offering consultancy services aimed at optimizing the efficiency of

search engine marketing;

-- Offering lead generation services, selling lists of potential

customers obtained from partner sites to auto wholesalers and

dealerships.

Jumpstart's advertiser client base includes all auto manufacturers and over one thousand auto dealerships and dealer groups.

Jumpstart reported 2006 revenues(1) of $17.1 million (95.5% higher than in 2005). Earnings before interest and taxes (EBIT) reached breakeven in 2006. The company was cash-positive at end 2006.

In 2007, Jumpstart is expected to see strong growth in both revenues and EBIT.

An initial cash payment of $84 million is payable under the terms of the agreement. Additional consideration of up to a maximum amount of $26 million will be paid in 2008 and 2010 contingent on the attainment of certain specified earnings targets.

The transaction is expected to give HFMUS and LAGARDERE ACTIVE globally, the opportunity to develop the following synergies:

-- Combining the three HFMUS web sites with the Jumpstart portfolio

will raise total unique visitors represented to 5 million

(ComScore figure), and adding HFMUS's three popular high-end

brands (CarandDriver.com, RoadandTrack.com and Cycleworld.com)

will enhance the attractiveness of the product offering to

advertisers.

-- Jumpstart's expertise in search and display advertising for

dealerships and dealer groups (a total category estimated at $16

billion) will boost the HFMUS sites.

-- The experience of Jumpstart's specialist digital teams (over 75

professionals) will help HFMUS accelerate the transition to

digital in the automotive sector in the United States, as well as

LAGARDERE ACTIVE in Europe and Asia.

-- The deal significantly reinforces HFMUS's cross-media strategy of

combining print media and digital.

-- The expertise built by HFMUS in automotive content (including

video) can be rolled out across Jumpstart's partner sites, and

offered to Jumpstart's dealership client base.

Closing of the transaction is expected to occur prior to the end of May 2007 and is subject to customary closing conditions, including anti- trust approval.

Paris, April 19, 2007

(1) 2006 revenues are unaudited and proforma as restated for IFRS as applied by the group Lagardere

The Lagardere Group is a market leader in the media sector (books, distribution of cultural products, press, audiovisual, and sports content). The Group also has interests in the high technology sector via a 14.98% stake in EADS.

Lagardere shares are listed in Paris on Eurolist by Euronext - Compartment A

About Jumpstart Automotive Media

Jumpstart Automotive Media (www.JumpstartAutomotiveMedia.com) partners with leading web publishers to create the Internet's largest and highest quality community of car shoppers. Jumpstart's targeted reach and innovative marketing programs help automotive manufacturers and dealers improve their advertising results and help web publishers achieve a maximum return on their audience. Jumpstart counts every automotive manufacturer and more than one thousand automotive dealers as customers. Key Jumpstart Network partners include NADAguides, Vehix, Consumer Guide Automotive, JD Power Autos and Shopping.com. Jumpstart has partnered with leading web sites and ad networks for a Behavioral Auto Channel which uses behavioral targeting to track and serve ads to in-market car buyers across one of the web's largest aggregated distribution bases.

Jumpstart has aggregated the largest in-market audience online through four core products:

Contextual Display Network

-- 5 million unique car shoppers/month - the Jumpstart Auto Channel

Behavioral Targeting Display Network

-- 6 million unique car shoppers/month - auto buying intent behavior

-- 140 million unique internet users - aggregated distribution

network

New Car Leads

-- 75,000+ qualified consumer leads delivered to U.S. auto dealers

per month

Traffic Builder Search Marketing

-- Product portfolio spans all stages of consumer car research

-- Customer base spans all facets of automotive marketing

Including OEMs, regional dealer associations, local auto dealers,

allied industries

Ever since its launch in 2000, Jumpstart has been profitable and expects to double its revenue basis in 2007. The company is privately held and is headquartered in San Francisco, CA with additional offices in Los Angeles and Detroit.

About Hachette Filipacchi Media U.S.

Hachette Filipacchi Media U.S. (www.hfmus.com) enthusiast brands reach over 50 million consumers through magazines and millions more through online and mobile content. The company's prestigious brands include American Photo, Boating, Car and Driver, Cycle World, ELLE, ELLE Decor, ELLEgirl, Flying, Home, Metropolitan Home, Popular Photography & Imaging, Premiere, Road & Track, Shock, Sound & Vision, Woman's Day and Woman's Day Special Interest Publications. The company plans to launch is first digital brand PointClickHome in second quarter 2007. Each brand has a web site; and a growing number of Hachette brands, including Car and Driver, ELLE, ELLEgirl, and Woman's Day, have brand extensions in television, radio, mobile services and consumer branded events. Hachette Filipacchi Media U.S., Inc. also includes book and custom publishing, integrated marketing, database and market research, as well as licensing, and is part of the Lagardere Active division of Lagardere SCA (www.lagardere.com) which is headquartered in France.

Car and Driver (www.CarandDriver.com) With a circulation of 1,300,000 in the U.S., Car and Driver is the world's largest, most comprehensive automotive enthusiast publication with six international editions which combine unsurpassed editorial and technical expertise with the ability to place readers in a virtual driver's seat. Car and Driver is a vibrant brand which currently offers interaction with its audience through a website, radio, mobile, podcasting and events. Over 10.5 million people read the magazine each month and more than 1 million go online for CD content. CarandDriver.com has experienced 133% growth over the past year. Car and Driver is available on Sirius and XM satellite radio and on Podcastgo.

Road & Track (www.RoadandTrack.com) Road & Track is America's original car enthusiast publication, with a 60-year track record of providing its audience with the finest road tests of new cars, comparisons for car shopping, over-the-horizon looks at future cars and trends, in-depth technical updates on everything from future fuels to tire technology, and racing features that transport the reader into the pits and paddocks of racing teams around the world. Road & Track's reputation for integrity and excellence extends from the magazine and into a robust website with interactive features, as well as a live radio program, events and licensed products. RoadandTrack.com has seen 93% growth over the past year.

Cycle World (www.CycleWorld.com) With its premiere issue in 1962, Cycle World marked the beginning of modern motor-journalism. Enthusiasts finally had a publication written to serve their interests, rather than those of motorcycle retailers. Forty years later the result is obvious: Cycle World is the leading motorcycle magazine in the world. The publication is respected by enthusiasts for insightful and honest reporting on all aspects of motorcycling.

(1) 2006 revenues are unaudited and proforma as restated for IFRS as applied by the group Lagardere

Source: Hachette Filipacchi Media

CONTACT: US Media contacts: Hachette Filipacchi Media U.S., Anne
Janas, SVP, Corporate Communications, +1-212-767-5810, ajanas@hfmus.com;
George Simpson of Jumpstart Automotive Media, +1-203-521-0352,
george@georgesimpson.com

Web site: http://www.hfmus.com/
http://www.jumpstartautomotivemedia.com/
http://www.lagardere.com/
http://www.caranddriver.com/
http://www.roadandtrack.com/
http://www.cycleworld.com/

NOTE TO EDITORS: High resolution JPEGS of logos of The Lagardere Group, Hachette Filipacchi Media U.S., Inc. and Jumpstart Automotive Media and photos of Jack Kliger and Mitch Lowe are available on request from US press contacts.

TORRANCE, Calif., April 19 /PRNewswire/ -- Toyota Motor Sales (TMS) USA, Inc. announced top management changes for its Toyota and Lexus divisions.

The following executive assignments are effective immediately:

Bob Carter, group vice president and general manager of the Lexus Division, is appointed group vice president and general manager of the Toyota Division, filling the position held by Jim Lentz before his promotion to executive vice president of TMS in June 2006. Carter will be responsible for all sales, marketing and customer satisfaction activities for the Toyota Division and Scion. He continues to report to Don Esmond, senior vice president, automotive operations.

Since joining TMS in 1981, Carter has held numerous key positions, including general manager of Toyota's Denver region and general manager of Lexus' Eastern area. He also held the position of general manager and part owner of Hyannis Toyota in Hyannis, Mass.

Jim Farley, group vice president, marketing, is appointed group vice president and general manager, Lexus Division, replacing Carter. Farley will assume responsibility for all sales, marketing and customer satisfaction activities for the Lexus Division. Farley, whose replacement will be named in the near future, will also report to Esmond.

Farley joined TMS in 1990 in the strategic-planning department. Since then he has held numerous key management positions within product planning, marketing, and advertising, including an assignment as general manager of product management for Toyota Europe. Farley served as general manager of Lexus' Central area before joining Scion in July 2002.

At Scion, where he was responsible for the brand's launch, Farley served as corporate manager before being promoted to vice president. Prior to his promotion to group vice president of marketing for the Toyota Division, Farley was vice president of marketing for the Toyota Division.

Toyota Motor Sales (TMS), USA, Inc. is the marketing, sales, distribution and customer service arm of Toyota, Lexus and Scion vehicle brands in the United States, celebrating its 50th anniversary in America this year. Established in 1957, TMS markets products and services through a network of 1,445 Toyota, Lexus and Scion dealers. Toyota directly employs over 33,000 people in the U.S. and sold more than 2.5 million vehicles in 2006. For more information about our company, please visit http://www.toyota.com/, http://www.lexus.com/ and http://www.scion.com/.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030501/TOYLOGO)

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030501/TOYLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

Source: Toyota Motor Sales (TMS) USA, Inc.

CONTACT: Xavier Dominicis, +1-310-468-5084, Xavier_Dominicis@toyota.com,
or Mike Michels, +1-310-468-7730, Mike_Michels@toyota.com, both of Toyota
Motor Sales (TMS) USA, Inc.

Web site: http://www.toyota.com/
http://www.lexus.com/
http://www.scion.com/

NOTE TO EDITORS: Additional corporate information and executive biographies for members of the news media are available at http://pressroom.toyota.com.

PARSIPPANY, N.J., April 19 /PRNewswire-FirstCall/ -- Avis Budget Group, Inc. today announced the launch of a new private-label car rental booking engine tailored for Groople, the leading online group travel booking resource. This booking engine, the first of its kind developed, hosted and maintained by a car rental company for a group travel agency, provides a side-by-side comparison of Avis and Budget car rental offerings to customers traveling in groups. Through a collaborative effort with Groople, Avis Budget Group provides the perfect travel tool for groups such as families and friends attending a wedding, reunion or other getaway, students traveling on school trips, sports teams traveling to games or competitions and business travelers attending meetings and conferences.

Groople customers can now complement their group air and hotel reservations on http://www.groople.com/ with customized car rentals from Avis, a leading premium brand that provides the finest in service and amenities, and Budget, a brand that delivers great service at low prices for cost-conscious travelers.

Serving groups of five or more, Groople will now offer customers access to great group rates on multiple car rentals and the ease of booking all their travel plans in one simple click. For example, customers can view options specific to their arrival location, time and vehicle preferences and can reserve cars for their special event. Groups can even mix and match vehicle types and brands to meet the individual needs of each renter in the group.

"Our dual-brand approach provides the best of both worlds in car rental to Groople customers," said Becky Alseth, senior vice president of marketing for Avis Budget Group. "Between the technology innovations and 'We Try Harder' service Avis is famous for, and the great value of Budget, the complex needs of group travelers can now be met with ease and convenience."

Breaking new ground, this service allows customers to book group rates online for the first time. Groups are able to move through their bookings quickly and easily, allowing customers to book more than one car per reservation. When customers book five cars or more their group rate is automatically uploaded and the savings are built in. Best of all, each individual driver can select the car and payment option online.

"Groople and Avis Budget Group continue to lead innovation in the industry with the launch of our group rental car product. The rapid growth in booking travel online and the size of the group travel segment is driving demand for group based travel tools," said Mike Stacy, chief executive officer of Groople. "We have demonstrated our leadership in group hotels, and we are proud to offer our customers another ground-breaking tool for cars, which will make their travel planning and booking much easier."

About Groople

Groople is the leader in online group travel, offering one-stop group booking on hotel, cruise, air, bus, and rail, and is backed by partnerships with the largest travel suppliers worldwide. Groople is group travel made easy, with more than 60,000 hotel choices worldwide and six top cruise lines brought together in an online group booking website. Groople offers discounted rates, individual payment options and creates a single point of contact for the group travel consumer. Groople's customer sales center provides personal attention and offers group travel experts to advise leisure group travelers on weddings, family reunions, religious groups, sports teams, and more. Created by 20 travel industry veterans, Groople pioneered the online group travel space and continues to lead the group travel industry in technology, inventory and convenience.

About Avis Budget Group, Inc.

Avis Budget Group (NYSE:CAR) is a leading provider of vehicle rental services, with operations in more than 70 countries. Through its Avis and Budget brands, the Company is the largest general-use vehicle rental operator in each of North America, Australia, New Zealand and certain other regions. Avis Budget Group is headquartered in Parsippany, N.J. and has more than 30,000 employees. For more information on Avis Budget Group, visit http://www.avisbudgetgroup.com/.

Source: Avis Budget Group, Inc.

CONTACT: Alice Pereira of Avis Budget Group, Inc., +1-973-496-6113,
alice.pereira@avisbudget.com; or Andrea Collins for Avis Budget Group, Inc.,
+1-212-715-2222, andrea@vollmerpr.com

Web site: http://www.avisbudgetgroup.com/
http://www.groople.com/

MILWAUKEE, April 19 /PRNewswire-FirstCall/ -- Harley-Davidson, Inc. (NYSE:HOG) today announced its results for the first quarter ended April 1, 2007. During the quarter, a 3-week strike occurred at the Company's York, Pennsylvania manufacturing plant. The impact of the strike is included in the following results.

Revenue for the quarter was $1.18 billion compared to $1.29 billion in the year-ago quarter, an 8.3 percent decrease. Net income for the quarter was $192.3 million compared to $234.6 million, a decrease of 18.0 percent compared to the first quarter of 2006. First quarter diluted earnings per share (EPS) were $0.74, a 14.0 percent decrease compared to last year's $0.86.

"We anticipated that first quarter results would be lower than last year due to the strike," said Jim Ziemer, Chief Executive Officer of Harley- Davidson, Inc. "Nobody wants a strike and no one wins in a strike. Not our employees, dealers, customers, suppliers, or our shareholders. Now that the strike is behind us, our employees are focused on moving ahead, and with the new contract, we are better positioned for the future," he said.

"In 2007 Harley-Davidson expects EPS growth in the range of 4 - 6 percent compared to 2006 based on moderate revenue growth, lower operating margin, and the benefits of our strong free cash flow. Looking ahead to 2008 and 2009, we expect solid revenue growth, operating margin improvement and the continued benefits of our strong free cash flow to drive EPS growth in the range of 11 - 17 percent," said Ziemer.

The Company expects to ship between 94,000 and 97,000 Harley-Davidson(R) motorcycles in the second quarter of 2007.

Motorcycles and Related Products Segment - First Quarter Results

Revenue from Harley-Davidson motorcycles was $891.5 million, a decrease of $117.0 million or 11.6 percent versus the same period last year. Shipments of Harley-Davidson motorcycles totaled 67,761 units, a decrease of 11,745 units or 14.8 percent compared to last year's first quarter.

Revenue from Parts and Accessories (P&A), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $188.2 million, an increase of $5.3 million or 2.9 percent over the year-ago quarter. Revenue from General Merchandise, which consists of MotorClothes(R) apparel and collectibles, totaled $76.1 million, an increase of $7.6 million or 11.0 percent over the year-ago quarter.

Gross margin for the first quarter of 2007 was 35.9 percent of revenue compared to 38.4 percent for the first quarter last year. First quarter operating margin decreased to 20.0 percent from 24.3 percent in the first quarter of 2006. The changes in both gross margin and operating margin are primarily due to the strike.

Motorcycle Retail Sales Data

During the first quarter, worldwide retail sales of Harley-Davidson motorcycles decreased 1.3 percent compared to the prior year quarter. In the U.S., retail sales of Harley-Davidson motorcycles decreased 5.9 percent for the quarter while the heavyweight motorcycle industry in the U.S. decreased 0.7 percent. "We never like to see a retail sales decline," said Ziemer, "but first quarter sales are not necessarily indicative of sales for the full year. We continue to expect positive worldwide retail sales growth for 2007."

Retail sales of Harley-Davidson motorcycles grew 16.5 percent in international markets during the first quarter of 2007 compared to the first quarter of 2006. First quarter retail sales increased 25.7 percent in Europe; Canada was up 14.0 percent, and Japan was down 7.7 percent. All other international markets combined were up 16.7 percent.

Data is listed in the accompanying tables.

Financial Services Segment

Harley-Davidson Financial Services (HDFS) reported first quarter operating income of $58.9 million, an increase of $7.3 million or 14.2 percent compared to the year-ago quarter. The increase is primarily due to higher wholesale and retail net interest income and higher fee income.

Income Tax Rate

The Company's first quarter effective income tax rate was 35.5 percent compared to 36.0 percent in the same quarter last year. This decrease primarily reflects the reinstatement of the federal research and development tax credit.

Cash Flow

Cash and marketable securities totaled $929 million as of April 1, 2007. Cash flow from operations was $520 million and capital expenditures were $41 million during the first quarter of 2007. For the full year of 2007, capital expenditures are expected to be between $300 million and $325 million.

Stock Repurchase

The Company repurchased 870,000 shares of its common stock at a cost of $61.2 million during the first quarter of 2007. On April 1, 2007, the Company had 257,470,381 shares of common stock outstanding.

As of April 1, 2007, there are 21.9 million shares remaining on two board- approved share repurchase authorizations. An additional board-approved share repurchase authorization is in place to offset option exercises.

Company Background

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. 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 motorcycles. Harley- Davidson Financial Services provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and their retail 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," "plans," or "estimates" or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance 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 disclaims any 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 and manage operating costs including materials, labor and overhead, (ii) manage production capacity and production changes, (iii) manage supply chain issues, (iv) provide products, services and experiences that are successful in the marketplace, (v) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, (vi) sell all of its motorcycles and related products and services to its independent dealers and distributors, (vii) continue to develop the capacity of its distributor and dealer network, (viii) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (ix) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, (x) manage regional and worldwide demographic trends and economic and political conditions, including healthcare inflation, pension reform and tax changes, (xi) manage the credit quality and recovery rates of HDFS's loan portfolio, (xii) retain and attract talented employees and (xiii) detect any defects in our motorcycles to minimize delays in new model launches, recall campaigns, increased warranty costs or litigation. In addition, the Company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission.

The Company's ability to sell all of its motorcycles and related products and services also depends on the ability of the Company's independent dealer network to sell them to retail customers. The Company depends on the capability of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company.

In addition, the Company's independent dealers and distributors may experience difficulties in selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

TABLES FOLLOW

Harley-Davidson, Inc.

Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited) (Unaudited)

Three months ended

April 1, March 26,

2007 2006

Net revenue $1,178,875 $1,285,090

Gross profit 423,046 493,214

Operating expenses 187,632 180,902

Operating income from motorcycles &

related products 235,414 312,312

Financial services income 109,163 95,901

Financial services expense 50,226 44,270

Operating income from financial

services 58,937 51,631

Corporate expenses 4,939 4,757

Total operating income 289,412 359,186

Investment income and other, net 8,744 7,317

Income before provision for income

taxes 298,156 366,503

Provision for income taxes 105,846 131,940

Net income $192,310 $234,563

Earnings per common share:

Basic $0.75 $0.86

Diluted $0.74 $0.86

Weighted-average common shares:

Basic 257,326 272,966

Diluted 258,158 273,623

Cash dividends per common share $0.21 $0.18

Harley-Davidson, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited) (Unaudited)

April 1, December 31, March 26,

2007 2006 2006

ASSETS

Current Assets:

Cash and cash equivalents $310,010 $238,397 $196,464

Marketable securities 618,502 658,133 915,434

Accounts receivable, net 147,732 143,049 148,561

Finance receivables held for sale 297,885 547,106 131,389

Finance receivables held for

investment, net 1,550,001 1,554,260 1,546,417

Inventories 369,418 287,798 256,788

Other current assets 122,627 121,890 103,953

Total current assets 3,416,175 3,550,633 3,299,006

Finance receivables held for

investment, net 767,529 725,957 625,664

Other long-term assets 1,262,794 1,255,560 1,475,177

$5,446,498 $5,532,150 $5,399,847

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable & accrued

liabilities $854,464 $763,186 $841,676

Current portion of finance debt 463,530 832,491 93,610

Total current liabilities 1,317,994 1,595,677 935,286

Finance debt 890,000 870,000 1,000,000

Postretirement healthcare benefits 203,514 201,126 64,573

Other long-term liabilities 199,503 108,610 235,400

Total shareholders' equity 2,835,487 2,756,737 3,164,588

$5,446,498 $5,532,150 $5,399,847

* The Company's adoption of Financial Accounting Standards Board

Interpretation No. 48 (FIN 48) effective 1/1/07 resulted in a

decrease to shareholders' equity of $16.1 million.

Harley-Davidson, Inc.

Condensed Consolidated Statements of

Cash Flows

(In thousands)

(Unaudited) (Unaudited)

Three months ended

April 1, March 26,

2007 2006

Net cash provided by operating

activities $519,624 $365,714

Cash flows from investing activities:

Capital expenditures (40,775) (36,017)

Finance receivables held for

investment, net (12,940) (19,837)

Collection of retained

securitization interests 14,493 6,960

Net change in marketable securities 40,622 (9,626)

Other, net 4,545 4,373

Net cash provided (used) by investing

activities 5,945 (54,147)

Cash flows from financing activities:

Net decrease in finance-credit

facilities and commercial paper (353,540) (105,707)

Dividends (54,103) (48,955)

Purchase of common stock for

treasury (61,251) (107,065)

Excess tax benefits from share-

based payments 1,157 1,098

Issuance of common stock under

employee

stock option plans 12,953 5,064

Net cash used by financing activities (454,784) (255,565)

Effect of exchange rate changes on

cash

and cash equivalents 828 (513)

Net increase in cash and cash

equivalents 71,613 55,489

Cash and cash equivalents:

At beginning of period 238,397 140,975

At end of period $310,010 $196,464

Net Revenue and Motorcycle

Shipment Data

(Unaudited) (Unaudited)

Three months ended

April 1, March 26,

2007 2006

NET REVENUE (in thousands)

Harley-Davidson(R) motorcycles $891,518 $1,008,542

Buell(R) motorcycles 21,655 24,056

Parts & Accessories 188,235 182,949

General Merchandise 76,112 68,551

Other 1,355 992

$1,178,875 $1,285,090

HARLEY-DAVIDSON UNITS

Motorcycle shipments:

United States 48,740 60,270

Export 19,021 19,236

Total 67,761 79,506

Motorcycle product mix:

Touring 21,802 27,537

Custom 30,768 35,794

Sportster(R) 15,191 16,175

Total 67,761 79,506

BUELL UNITS

Motorcycle shipments:

Buell 2,558 3,037

Retail Sales of Harley-Davidson Motorcycles

Year to Date (March 31)

2007 2006

United States 53,426 56,805

Europe* 8,686 6,910

Japan 2,292 2,482

Canada 2,047 1,796

All other markets 4,082 3,497

Total Retail Sales of Harley-Davidson

Motorcycles 70,533 71,490

Data Source (subject to update)

Data source for all 2006 and 2007 retail sales figures shown above is

sales warranty and registration information provided by Harley-

Davidson dealers and compiled by the Company. The Company must rely on

information that its dealers supply concerning retail sales, and this

information is subject to revision.

Only Harley-Davidson(R) motorcycles are included in the Harley-Davidson

Motorcycle Sales data.

*Data for Europe include Austria, Belgium, Denmark, Finland, France,

Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden,

Switzerland, and the United Kingdom

Heavyweight (651+ cc) Market Data

Data Through Month Indicated

2007 2006

United States (March) 108,337 109,141

Europe* (February) 39,785 34,742

Data Source

United States: Motorcycle Industry Council

Europe: Giral S.A.

*Europe data includes Austria, Belgium, Denmark, Finland, France,

Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden,

Switzerland, and the United Kingdom. Industry retail motorcycle

registration data is derived from information provided by Giral S.A., an

independent agency. Data for 2006 has been adjusted to include

competitor motorcycles that had previously not been included by the

Company. The previously reported amount for 2006 was 33,278.

Source: Harley-Davidson, Inc.

Web site: http://www.harley-davidson.com/

April 17