Polaris Announces Largest New Product Launch in Company History.

Business Editors

ORLANDO, Fla.--(BUSINESS WIRE)--Aug. 1, 2002

Less than 75 miles from Kennedy Space Center, Polaris Industries' (NYSE:PII) biggest launch mission ever lifted off today when the recreational and utility vehicle manufacturer unveiled a plethora of all new products -- each unprecedented in the powersports industry.

The historic new product introductions highlighted Polaris' weeklong international sales meeting with dealers and industry analysts.

A new sport/performance all-terrain vehicle (ATV) line built specifically for racing and high-performance riding, a revolutionary new line of environmentally friendly watercraft, a stunning new custom cruiser Victory Motorcycle and a new Professional Series utility vehicle head the list of Polaris innovations.

"Someday history will show what a monumental day this was for not only Polaris, but the entire powersports industry," said Tom Tiller, president and CEO of Polaris. "We just introduced a tidal wave of new products and industry-changing technology and design advances that will have impact for years to come. Thanks in large part to the dedication and teamwork that went into building these incredible new machines, I've never felt more positive about the future growth of Polaris."

A Victory to Bet On

Polaris made history on the Fourth of July, 1998, when it launched Victory Motorcycles to become the first major American company to enter the motorcycle market in 60 years. Victory, the new American Motorcycle, makes history again today. The new Victory Vegas is the company's dramatic entry into the custom cruiser segment of the motorcycle market. The Vegas is a completely new motorcycle built on a new chassis that is lower and longer than any previous Victory, loaded with cutting-edge technology and ground-shaking power of the 92-cubic inch (1507 cc) Freedom(TM) V-twin engine.

Victory's Industrial Design Group developed the bike with consultation from Arlen and Cory Ness, legendary master builders of some of the world's most striking customs.

"The Vegas is the bike that will give Victory the brand awareness, breakthrough design and engineering credibility we need to gain significant traction in the cruiser motorcycle market," said Mark Blackwell, general manager of Victory Motorcycles.

Another major announcement, the Victory Custom Order Program, enables motorcyclists to have a 2003 Victory custom-built at the factory, choosing from more than 500 configurations. Available to buyers who order a 2003 Classic Cruiser (V92C) or a 2003 Touring Cruiser (TC) by Sept. 27, 2002, the program represents potential customer savings of more than $3,000 per bike.

"This is a revolutionary program that will change the way people think about how to buy a motorcycle," said Blackwell.

ATV Power Play

Already the world's largest manufacturer of automatic transmission ATVs, Polaris took a big step forward in the industry today with the debut of the Predator line of sport and performance ATVs.

"This is a growing segment that caters to Gen X and older Gen Y riders who prefer lightening fast ATV race tracks and sand dunes over traditional trail riding," said Bennett Morgan, general manager of Polaris ATVs. "The Predator is the perfect machine for this group."

The brand new Predator platform is built to deliver the ultimate combination of power, handling and suspension. The Predator 500 features a powerful new liquid-cooled, high-performance engine and a new proprietary Polaris Rider Optimized (PRO) steering system, which gives riders easier steering effort, outstanding control and a tight turning radius. Radical silver bodywork gives the Predator 500 a futuristic, high-tech look appealing to sport quad riders.

Continuing its practice of introducing riders to Polaris at a young age, the company also unveiled a Predator 500 look-alike -- the new Predator 90 Youth ATV, designed for riders 12 years and older. The Predator 90 joins the Scrambler 50 and the Sportsman 90 in the best-selling branded line of Youth ATVs. The design and features of all three Youth models reflect Polaris' emphasis on safety for young riders who are in the early years of what might very well become a rewarding, lifelong Polaris riding experience.

While the Predator 500 draws a line in the sand of the sport ATV segment, today's introduction of the Polaris Sportsman 600 Twin marks another milestone for the Sportsman line, the world's most popular line of recreation/utility ATVs.

The new Sportsman 600 Twin is a powerful, smooth-riding four-wheel drive ATV with premium independent rear suspension and impressive muscle to tackle tough jobs. Its performance and power make it an ideal ATV for outdoor enthusiasts, farmers, ranchers and contractors.

New Watercraft Line Makes Big Splash

As the watercraft market begins to stabilize, Polaris is poised to aggressively grow its business following today's introduction of a revolutionary new watercraft line. The MSX is Polaris' calculated and bold entry into the four-stroke segment, featuring two models with turbo-charged four-stroke engines that offer superior horsepower-to-weight ratio, while producing far lower emissions than conventional watercraft. The third model comes with a direct injection two-stroke engine, one of the cleanest and most technologically advanced engines available.

"The new MSX platform is a completely new futuristic design, with a proprietary new hull that offers aggressive turning ability, exceptionally smooth, dry and stable cruising for up to three passengers and superior handling in all water conditions," said Ron Bills, general manager of Polaris watercraft.

First-class luxury features provide smoother operation and a more ergonomic and comfortable ride. In addition to low emissions, the Polaris MSX offers industry-leading extremely quiet performance and high fuel economy.

A New Workhorse

Polaris Professional Series, the company's new line of heavy-duty light construction vehicles and equipment, also made news in Orlando. The company debuted its newest Utility Task Vehicle (UTV), the UTV 1500, which features lowered industry-leading suspension, with easy bed access. Its V-twin overhead air-cooled engine delivers the most power and the largest towing and hauling capacity in its class. All Polaris UTVs come standard with backup alarms, roll over protection system (ROPS) certification and speed controls.

"The commercial market is growing at about 15 percent a year, it has a great future and it's a business where we belong," said Bills, who does double duty as general manager of the Polaris Professional Series. "The UTV 1500 gives contractors another big reason to rely on Polaris for their light construction vehicle needs.

About Polaris

Information about the complete line of Polaris products is available from authorized Polaris dealers or from the Polaris homepage at www.polarisindustries.com.

Polaris designs, engineers, manufactures and markets snowmobiles, all-terrain vehicles, personal watercraft, Victory motorcycles and the Polaris RANGER for recreational and utility use. The Polaris Professional Series, a line of heavy duty Workmobiles(TM) targeted at lawn and landscape companies, equipment rental companies and construction operations, marks Polaris' expansion into the commercial equipment marketplace.

With annual 2001 sales of $1.5 billion, Polaris is the largest snowmobile manufacturer in the world and one of the largest U.S. manufacturers of ATVs and personal watercraft, while Victory motorcycles represent the first all-new American-made motorcycle in nearly 60 years. Polaris also enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships. Consumers can also purchase apparel and vehicle accessories anytime at polarisindustries.com.

Polaris Industries Inc. trades on the New York Stock Exchange and Pacific Stock Exchange under the symbol "PII," and the company is included in the S&P Small-Cap 600 stock price index.