ASV Issues Acceleration Notice to Caterpillar for 1,040,069 Warrant Shares at $21.00 per Share.

Business Editors

GRAND RAPIDS, Minn.--(BUSINESS WIRE)--Oct. 21, 2003

ASV, Inc. (Nasdaq:ASVI) announced today it has issued an Acceleration Notice to Caterpillar Inc. (NYSE:CAT) with respect to 1,040,069 shares of ASV's common stock issuable pursuant to the warrant issued to Caterpillar. As a result of the Acceleration Notice, Caterpillar has 75 days to exercise its rights to purchase 1,040,069 newly issued shares of ASV common stock at $21.00 per share under its warrant with ASV, or lose the ability to acquire those shares under the terms of the warrant.

Commenting on ASV's Acceleration Notice to Caterpillar, ASV President Gary Lemke stated, "The attainment of the first Acceleration Goal in our warrant with Caterpillar is very satisfying. When we began our affiliation with Caterpillar in 1999, we believed this partnership would be beneficial for both companies. We believe we have fostered, with Caterpillar's assistance, strong market acceptance of rubber track machines, acceptance we believe will continue well into the future."

ASV issued a warrant to Caterpillar in October 2000, for the purchase of 9,767,127 shares of ASV's common stock at an exercise price of $21.00 per share, exercisable at any time through January 2009. The warrant contains Acceleration Goals, as defined in the warrant, which gives ASV the right to accelerate the expiration of the warrant with respect to a portion of the shares. Each Acceleration Goal contains minimum levels of ASV's revenues, gross profit percentage and average closing share price.

The Acceleration Notice issued to Caterpillar today only covers 1,040,069 shares of the total 9,767,127 warrant shares held by Caterpillar. Caterpillar's current ownership of ASV's common stock of 1.6 million shares, combined with the total 9,767,127 warrant shares, would provide Caterpillar majority ownership of ASV if the warrant were to be exercised in full. Should Caterpillar choose not to exercise the 1,040,069 shares covered by this Acceleration Notice, Caterpillar would lose their ability to obtain majority ownership through the exercise of the warrant and the number of exercisable warrant shares would be reduced to 8,727,058 shares.

Note: The statements set forth above regarding ASV's expectations of future market acceptance of rubber track machines is a forward-looking statement based on current expectations and assumptions, and entails various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Certain factors may affect whether these anticipated events occur including ASV's ability to successfully manufacture the machines, unanticipated delays, costs or other difficulties in the manufacture of the machines, unanticipated problems or delays experienced by Caterpillar relating to the manufacturing or marketing of the MTL machines, market acceptance of the machines, deterioration of the general market and economic conditions, corporate developments at ASV or Caterpillar and ASV's ability to realize the anticipated benefits from its relationship with Caterpillar. Any forward-looking statements provided from time-to-time by the Company represent only management's then-best current estimate of future results or trends. Additional information regarding these risk factors and uncertainties is detailed from time to time in the Company's SEC filings, including but not limited to, its report on Form 10-Q for the period ended June 30, 2003