POLARIS UNVEILS EXPANDED LINE OF ALL-TERRAIN VEHICLES; Company Adds Models, Shows "Concept" Vehicles.

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 17, 1996--Polaris Industries Inc. (NYSE/PSE: PII) unveiled two new models in its growing line of all-terrain vehicles (ATVs) and previewed a concept side- by-side off-road vehicle at events held recently in Scottsdale, Arizona for its North American dealers and international distributors from 50 countries.

With the addition of the two new ATV models, the Xplorer 500 and the Scrambler 500, Polaris now offers 16 models in its ATV line. The Xplorer 500 builds on the design of the popular Sportsman 500, a shaft-drive model that has been the company's leading seller in 1996 and its most successful first-year product ever. The Xplorer 500 is designed for trail riding and farm and ranch use. It features fully independent rear suspension and is powered by the popular 498cc, liquid-cooled, four-valve, four-stroke engine Polaris introduced with the Sportsman 500 last year.

The Scrambler 500 is an addition to Polaris' line of four-wheel-drive ATVs for recreational use, a market segment Polaris pioneered with the introduction of the Scrambler 400 4x4 in 1995. The Scrambler 500 offers recreational ATV users a new four-wheel-drive recreation product incorporating a 32-horsepower 498cc, liquid-cooled, four stroke engine.

"During September we set an all-time company record for one-month retail ATV sales and we are on track for our best year ever in the ATV business," said Hall Wendel, Jr., Polaris chairman and CEO. "Sales have been strong and all signs indicate we have increased our share of the market," said Wendel.

ATVs accounted for a third of Polaris' $1.1 billion in 1995 sales. Wendel said the strong 1996 ATV sales have propelled Polaris to number two in U.S. ATV market share, close to Honda.

At the dealer and distributor events in Scottsdale, Polaris also unveiled two new concept vehicles. These included a vehicle offering side-by-side seating, the first of a new product line for Polaris, and a diesel powered ATV.

The side-by-side is a six-wheel-drive, fully suspended off-road utility and recreation vehicle with a wide range of potential uses, including farming, construction, hunting and other recreational applications.

This new concept vehicle is Polaris' first entry into a market currently dominated by the Kawasaki Mule and the John Deere Gator. Annual industry sales for these off-road vehicles is approximately 50,000 units. Polaris' goal is to achieve market share in this product category commensurate with the market positions it holds in its other product lines. The first side-by-side model is expected to retail for approximately $9,000 and carry margins comparable to the Polaris ATV product line.

Polaris' new diesel-powered ATV would extend the company's reach into markets where diesel power is preferred or required, including the worldwide mining and petroleum industries, where there are substantial opportunities for new sales. The diesel-powered ATV was of particular interest to international distributors because of the prevalence of diesel engines in the markets they serve. Testing continues on both the side-by-side and the diesel ATV and no availability dates have been announced.

"The new Xplorer 500, the Scrambler 500 and the concept products unveiled this month represent our commitment to aggressive and innovative product development," said Wendel. "The key to Polaris' growth is creative product development that brings new customers into the market and encourages repeat and trade-up business from existing customers. Polaris' history of developing superior recreational and utility products has enabled us to establish the strong positions we enjoy in all our market segments," said Wendel.

Polaris Industries Inc. designs, engineers, manufactures and markets snowmobiles, all-terrain vehicles and personal watercraft for recreational and utility use. Polaris is the world's largest snowmobile manufacturer, and one of the largest U.S. manufacturers of ATVs and personal watercraft. Polaris Industries Inc. trades on the New York Stock Exchange and the Pacific Stock Exchange under symbol "PII."

Note: Photographs of the new Xplorer 500 and Scrambler 500 models and the side-by-side concept ATM are available at the Polaris site on the World Wide Web (http://www.dirtfun.com or htpp://www.polarisindustries.com)

CONTACT: Hall Wendel, Jr. or Jack Grunewald

Polaris Industries Inc.

612-542-0500

or

Chris Malecek or Joe Deckenbach

Shandwick USA

612/832-5000