Arctic Cat Introduces Innovative New ATV Rack System, Announces Development of a Two-Passenger All-Terrain Vehicle.

Business Editors

THIEF RIVER FALLS, Minn.--(BUSINESS WIRE)--Aug. 26, 2002

Arctic Cat Inc. (Nasdaq:ACAT) today introduced its MultiRack Platform (MRP), a revolutionary new rack system for the company's 2003 line of all-terrain vehicles (ATVs). Arctic Cat ATV models equipped with the MultiRack Platform can secure more than 20 different specialized accessory attachments on the vehicle's front and rear racks.

"The MultiRack Platform allows consumers to adapt their ATVs to a diverse array of applications, from construction work to camping excursions," said Chris Twomey, president and chief executive officer, Arctic Cat. "We believe the MRP system has the potential to change the way consumers use their ATVs. It appeals to a wide range of potential buyers and solidifies Arctic Cat's position as a proven leader in the utility ATV market."

The MRP system features customized accessory racks and specialty items suited for a number of different pursuits, including construction work, outdoor recreation, and farming and ranching. Outdoors enthusiasts, for example, can use MRP attachments to stow their camping and fishing gear in specialized carrying cases and secured baskets. Similarly, construction workers can use the MRP system to attach items such as a vise table or tool rack.

Furthering its innovative development strategy, Arctic Cat recently announced it has created a concept two-rider ATV, which allows a passenger to sit behind the driver. The concept ATV has a long wheelbase for added stability and a number of additional safeguards for passenger confidence and comfort.

"Our two-rider concept ATV is just another example of how Arctic Cat is taking solid steps to be a leader in the ATV market," Twomey said. "We believe the introduction of a two-rider ATV will open up untapped markets and solidify our position in the industry."

Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq National Market under the ticker symbol "ACAT." More information about Arctic Cat and its products is available on the Internet at www.arcticcat.com.

Forward-Looking Statements

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