Canadian Group Honors Arctic Cat Cleaner, Quieter Engine Technology.

Business Editors

THIEF RIVER FALLS, Minn.--(BUSINESS WIRE)--July 9, 2001

The Quebec Federation of Snowmobile Clubs (FCMQ) recently presented Arctic Cat Inc. (Nasdaq:ACAT) with its BLIZZ'OR environmental award for development of cleaner, quieter four-stroke engine technology. The FCMQ presents the annual award to a snowmobile manufacturer that undertakes extraordinary environmental activity.

Arctic Cat is the only snowmobile manufacturer that will offer a commercially available four-stroke product for the 2001-2002 season.

"We all saw the prototype a year ago in New Hampshire, and since then Arctic Cat has led the way to meet two of our biggest environmental challenges -- snowmobile emissions and sound levels," said FCMQ executive Yves Watier. "Arctic Cat became the flag bearer for our industry, demonstrating in a very tangible way that snowmobile manufacturers and snowmobilers are committed to protecting our environment."

Used in limited numbers during the past two seasons as rental sleds in West Yellowstone, Montana, and at Arctic Cat events, the C TECH 4 engine has achieved fuel economy in the 20-25 mpg range. The weight of the Arctic Cat four-stroke compares favorably to other snowmobiles in its class, and the new engine has been durable. The West Yellowstone rental fleet has logged 250,000 miles without experiencing a single engine failure.

In response to requests from customers for quieter, cleaner machines, Arctic Cat continues to develop technology that improves the emissions and sound-level performance of traditional two-stroke engine technology.

Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat brand name, as well as related parts, garments and accessories.