ASV Anticipates Lower Sales and Net Earnings; Announces Stock Buy-Back Program

GRAND RAPIDS, Minn., Sept. 24 ASV, Inc.
announced today it anticipates it will report reduced net sales and net
earnings for its third quarter ending September 30, 2001. Reasons for the
reduction include customer response to the recent acts of terrorism, the
greater than expected decrease in sales of the Company's model 4810 Posi-Track
due to the recent introduction of the Multi-Terrain Loaders (MTL)
jointly-developed with Caterpillar and the continued industry-wide slowdown in
construction equipment spending. The Company has reduced its expectations for
its third quarter net sales to approximately $9-11 million, with net earnings
to be in the range of breakeven to ($.02) loss per diluted share. Because of
the uncertainty existing in the marketplace, the Company is also reducing its
net sales and net earnings estimates for fourth quarter 2001 and fiscal 2002.
The Company expects its net sales for fiscal 2001 to be approximately
$46-50 million, with net earnings for fiscal 2001 expected to be in the range
of $.02 to ($.02) per diluted share. The Company expectsf its common stock on
the open market. The Company intends to fund the repurchases with available
funds. The repurchase program is expected to last not more than twelve months
or until such amount of stock is repurchased.
Commenting on these matters, ASV President Gary Lemke stated, "The events
of September 11th, along with the softness in the US economy, have caused manhave seen reduced volume in the third quarter as a result
of the softening American economy."
Continuing, Lemke said, "The first two MTL models have been eagerly
accepted by Caterpillar dealers and are expected to be our largest source of
revenue f2. We anticipate
our undercarriage sales for the entire MTL product line to more than double in
2002, at margins greater than our historical average."
ASV and Caterpillar Inc. continue to jointly develop a line of Caterpillar
branded rubber track skid steer loaders called Multi-Terrain Loaders (MTL).
The product line, which is expected to include a total of five models,
features Caterpillar's patented skid steer loader technology and ASV's
patent-pending Maximum Traction Support System(TM) rubber track undercarriage.
The first two MTL models were introduced to a limited number of Caterpillar
dealers in the second quarter of 2001, with the remaining three models
targeted for introduction in 2002. All North American Caterpillar dealers are
expected to have access to the MTL product line in 2002.

Conference Call
ASV will conduct a live Webcast at 10 a.m. Central time, Monday,
September 24th to discuss these matters. The call will be broadcast over the
Internet and can be accessed either at http://www.ccbn.com or ASV's web site,
http://www.asvi.com , in the investor relations section under the "About ASV"
tab. To listen to the call, go to either of the two Web sites at least
15 minutes prior to the call to register, download and install any needed
audio software. A replay of this call will be available beginning one hour
after its conclusion both telephonically and over the Internet. The
telephonic replay will be available for a 24-hour period and can be accessed
by dialing 800-428-6051 and entering pass code 211381. The Internet replay
will be available for 30 days and can be accessed at http://www.ccbn.com or
http://www.asvi.com in the same manner as discussed above.

About ASV
ASV designs, manufactures and sells all-season, track-drive vehicles and
related accessories and attachments. With its patent-pending Maximum Traction
and Support System(TM) undercarriage, ASV leads all rubber-tracked,
all-purpose crawlers in technology and innovation. ASV's products traverse
nearly any terrain with minimal damage to the ground, making them effective in
industries such as construction, landscaping and agriculture.
To learn more about ASV Inc. and its unique rubber-tracked products, visit
the Company's web site at http://www.asvi.com

Note: The statements set forth above regarding ASV's future expected sales
and profitability levels and its plans to jointly develop and manufacture
rubber-tracked machines with Caterpillar, including the number of models to be
developed and the timing of their planned introduction are forward-looking
statements based on current expectations and assumptions, and entail various
risks and uncertainties that could cause actual results to differ materially
from those expressed in such forward-looking statements. Certain factors may
affect whether these anticipated events occur including ASV's ability to
successfully manufacture the machines, unanticipated delays, costs or other
difficulties in the manufacture of the machines, market acceptance of the
machines, continued deterioration of the general market and economic
conditions, corporate developments at ASV or Caterpillar and ASV's ability to
realize the anticipated benefits from its relationship with Caterpillar.
Actual results might differ materially from those anticipated in such forward-
looking statements. Any forward-looking statements provided from time-to-time
by the Company represent only management's then-best current estimate of
future results or trends. Additional information regarding these risk factors
and uncertainties is detailed from time to time in the company's SEC filings,
including but not limited to, its report on Form 10-Q for the six months ended
June 30, 2001.

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