Arctic Cat Announces $20 Million Share Repurchase Program

    THIEF RIVER FALLS, Minn.--Aug. 9, 2002--Arctic Cat Inc. announced today that its Board of Directors has authorized the company to repurchase up to $20 million in additional shares of its common stock from time to time in open market transactions. This repurchase authorization represents approximately 1.3 million shares, or about 5.7 percent of the company's current common shares outstanding, and follows the completion of three previously authorized share repurchase programs and a fourth, which is currently in progress and has approximately $4.7 million, or about 300,000 shares, remaining on the authorization. In total, the company has repurchased and cancelled over 7 million common shares to date.
    Commenting on the new repurchase authorization, Chris Twomey, Arctic Cat president and CEO stated, "This share repurchase program is another way we can build shareholder value for investors. It reflects the success we are having creating leading snowmobile and ATV products in the leisure recreation industry along with related apparel and accessories. It also reflects our optimism about the near-term growth prospects for both Arctic Cat and the industry. With these factors in mind, we continue to think that our shares are undervalued and our Board of Directors believes that the repurchase of our shares is an excellent use of our cash."
    Arctic Cat currently has approximately 23 million common and Class B common shares outstanding. Approximately 33 percent of all shares are Class B common shares and are held by Suzuki Motor Corporation, a supplier of engines to the Company. No Class B common stock will be repurchased.
    Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq National Market under the ticker symbol "ACAT." More information about Arctic Cat and its products is available on the Internet at www.arcticcat.com.

    Forward-Looking Statements

    The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The company's Annual Report, as well as the Report on Form 10-K and future filings with the Securities and Exchange Commission, the company's press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the company's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words "aim," "believe," "expect," "anticipate," "intend," "estimate" and other expressions that indicate future events and trends identify forward-looking statements. Actual results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales and pricing; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines from Suzuki; warranty expenses; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of insured amounts; environmental and product safety regulatory activity; effects of the weather; overall economic conditions; and consumer demand and confidence.