Polaris Facility in Roseau, Minn. Resumes Operations After Flood; Company Reaffirms Second Quarter Sales and Earnings Projections

    MINNEAPOLIS--June 18, 2002--Polaris Industries Inc. announced today that its production facility in Roseau, Minn., has resumed operations on two assembly lines and that it expects the facility will be fully operational by the end of this week, just ten days after the plant was temporarily closed due to heavy flooding in the area. The company was able to resume shipments to dealers from its Roseau facility late last week. The company credited employees and volunteers who fought the flood around the clock with saving the plant from any damage.
    "Thanks to the tireless efforts of Polaris employees and volunteers, the plant and inventory are completely dry and intact and we're getting back to business as usual," said Tom Tiller, president and chief executive officer of Polaris. "The entire Polaris team responded quickly and decisively to last week's flood in northwestern Minnesota and as a result, we will be able to meet our shipment objectives for the second quarter despite a temporary interruption in our Roseau production facilities," said Tiller. "We're also pleased that the Federal Emergency Management Agency (FEMA) responded quickly, making Federal disaster aid available to the people of Roseau. We'll continue to do everything we can to assist our employees and friends in the area who have been impacted by the flood."
    Polaris confirmed that it continues to expect its earnings per share for the second quarter ending June 30, 2002 will be in the $0.79 to $0.83 range, up ten percent to fifteen percent from last year's second quarter earnings of $0.72 per share, on second quarter 2002 sales growth of one to four percent. In addition, the company reaffirmed that it continues to expect its earnings per share for the full year 2002 will be in the $4.25 to $4.40 range, up ten to thirteen percent from 2001. This is consistent with the guidance provided by the company on April 16, 2002 when it announced its first quarter 2002 financial results. Polaris expects to release its actual second quarter 2002 financial results on July 16, 2002.

    Certain statements contained in this press release may be considered forward looking for purposes of the Private Securities Reform Act of 1995, and by their nature involve risks that may cause results to differ from those anticipated.
    Polaris designs, engineers, manufactures and markets snowmobiles, all-terrain vehicles, personal watercraft, Victory motorcycles, and the Polaris RANGER for recreational and utility use 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. Polaris enhances the riding experience with a complete line of Pure Polaris(TM) apparel, accessories, and parts available at Polaris dealerships. Consumers can also purchase apparel and accessories around the clock online at www.purepolaris.com. 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.
    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 SmallCap 600 stock price index.