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ASV Reports Q1 1998 Earnings

21 April 1998

ASV's Earnings Increase 151% For 1st Quarter 1998

               Board of Directors Declares 3-For-2 Stock Split

    GRAND RAPIDS, Minn., April 21 -- ASV, Inc.
today announced record sales levels for its first quarter 1998 with earnings
increasing 151% over first quarter 1997.  Net sales for the three months ended
March 11, 1998 totaled $9,028,838, a 94% increase over the three months ended
March 31, 1997.  Net income for first quarter 1998 rose 151% to $791,838
compared with $315,542 for first quarter 1997.  Earnings per share more than
doubled to $.14 for first quarter 1998 compared with $.06 for 1997.  The 1998
figures represent ASV's thirteenth consecutive quarter of record sales.
    ASV President Gary Lemke attributes the improved results to the strong
demand for ASV's newest model Posi-Track(TM), the HD 4500 series.  Lemke
states, "Posi-Track related sales more than doubled in first quarter 1998 with
the majority of sales coming from the HD 4500 series Posi-Track.  Customers
are buying the HD model for its maintenance-free undercarriage and greater
power.  ASV plans to utilize this same maintenance-free undercarriage under
our original model Posi-Track, the MD-70, in second quarter 1998 with the
introduction of the model MD 2800.  This model will provide those customers
who like the lighter weight of the MD-70 with the increased benefits of the
maintenance-free undercarriage.  Our increased sales are also due, in part, to
our growing network of Posi-Track dealers.  In the first quarter of 1998,
shipments were made to new dealers in California, Alaska, Iowa, Washington,
Kansas and New Zealand."
    ASV also announced today that its Board of Directors has declared a
3-for-2 stock split in the form of a stock dividend.  The stock split will be
issued May 14, 1998 to shareholders of record as of May 4, 1998 and will
increase the number of shares outstanding to approximately 7.5 million.  All
share and per share data are presented prior to this split.
    Commenting on the stock split, Lemke said, "This split, our second in 16
months, comes as ASV is experiencing record sales levels and increased
earnings.  We hope the split will enhance the marketability of ASV stock as
well as make our stock more available to a wider range of investors.  Our
expanded manufacturing facility is working out very well with production
levels increasing each month.  Our dealer network continues to expand with
dealer inquiries continuing at strong levels.  We believe ASV is positioned
well for future growth."
    ASV designs, manufactures and sells track-driven all-season vehicles and
related accessories and attachments.  The Company's Posi-Track product line
uses a rubber track suspension system that takes advantage of the benefits of
both traditional rubber wheels and steel tracks.  This rubber track suspension
system provides extremely low ground pressure offering greater productivity
with less damage to the surfaces upon which the machines are operated.


    A.S.V., INC.
    CONDENSED, CONSOLIDATED STATEMENTS OF EARNINGS
    Three months ended March 31, 1998 and 1997
                                  1998                     1997
    Net sales                  $9,028,838               $4,651,185
    Cost of goods sold          6,770,995                3,582,043
      Gross Profit              2,257,843                1,069,142
    Operating expenses:
      Selling, general and
       administrative             808,195                  488,057
      Research and development     98,449                   44,938
                                  906,644                  532,995
        Operating income        1,351,199                  536,147
    Other income (expense)
      Interest expense           (128,946)                 (92,952)
      Other, net                   34,585                   65,347
        Income before income
         taxes                  1,256,838                  508,542
    Provision for income taxes    465,000                  193,000
        NET INCOME               $791,838                 $315,542
    Net income per common share
     - Diluted **                    $.14                     $.06
    Diluted weighted average
     shares                     5,945,788                5,866,200

    ** Includes add back of after-tax effect of interest expense for
       convertible debentures.


    A.S.V., INC.
    CONDENSED, CONSOLIDATED BALANCE SHEETS
    March 31, 1998 and 1997

         ASSETS
                                   1998                    1997
    CURRENT ASSETS
      Cash & short-term
       investments             $1,928,188              $5,531,300
      Accounts receivable, net  2,685,560               1,177,649
      Inventories              12,658,598               6,171,165
      Prepaid expenses and
       other                      355,058                 259,526
        Total current assets   17,627,404              13,139,640
    PROPERTY AND EQUIPMENT,
     net                        4,374,498               1,765,130

        Total assets          $22,O01,902             $14,904,770

        LIABILITIES & SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES
      Current portion of long-
       term liabilities          $217,515                   $  --
      Accounts payable          2,334,734               1,928,557
      Accrued expenses            644,901                 374,743
      Income taxes payable        447,924                  87,954
        Total current
         liabilities            3,645,074               2,391,254
    LONG-TERM LIABILITIES,
     less current portion       7,452,926               5,708,582
    SHAREHOLDERS' EQUITY       10,903,902               6,804,934

        Total liabilities &
         shareholders' equity $22,001,902              $14,904,770

SOURCE  ASV, Inc.