Polaris Enters New Recreational Vehicle Category With Sport Boat Launch; Polaris Continues Product Diversification with Strategic Alliance with Baja and Mercury Marine

    MINNEAPOLIS--Jan. 23, 2003--Polaris Industries today announced its entry into the sport boat market with the Polaris EX2100 Sport Boat line, the result of a strategic alliance with Baja Marine and Mercury Marine, division of Brunswick Corporation . As a result of the alliance, the Polaris-designed Sport Boat line is powered by the industry-leading Mercury Marine Jet Drive technology and is manufactured for Polaris at the Baja Marine factory, one of the world's premiere high-performance boat manufacturers. The line will be marketed exclusively by Polaris through a new channel of select Polaris Sport Boat dealers.
    "Aligning with the leading brands in the marine business - Mercury Marine and Baja Marine - demonstrates our commitment to offer Polaris customers the best jet-powered sport boat technology on the market," says Ron Bills, general manager for Polaris Watercraft. "The entry into the sport boat market presents a significant opportunity for Polaris to cater to an entirely new consumer delivering the best in style, technology, performance and value."
    The new 2004 Polaris EX2100 will begin delivery in the spring of 2003 and will be available only through select Polaris Sport Boat dealers.
    "Our entry into the Sport Boat market with the Polaris EX2100 is a diversification strategy by Polaris to grow the brand in the very healthy mainstream marine industry," says Tom Tiller, CEO of Polaris Industries. "Our reputation for solid performance, innovation and environmental advances in personal watercraft translates well into this new arena and that, combined with key alliances with Baja and Mercury Marine, allows us to deliver a superior-quality product to a new base of marine consumers."
    The Polaris EX2100 Sport Boat is a progressively styled bow rider equipped with premium components and a choice of Mercury Jet Drive engine packages - 240HP EFI or a 250HP OptiMax. With a top speed of 50+ mph, the Polaris EX2100 Sport Boat delivers rapid acceleration, superior overall handling, a solid, stable feel and excellent rough-water capability.
    The futuristic new look of the EX2100 stands out with a progressive design that further reinforces the "New Polaris Watercraft" image - unparalleled styling, a premium fit and finish, and a futuristic appearance inspired by the automotive industry and the Detroit auto show concept vehicles. The "New Polaris Watercraft" image was first introduced with the launch of the 2003 Polaris MSX line of personal watercraft (PWC), which was named a winner of the world's premier design competition, "Good Design," and continues to gain the attention and praise of PWC enthusiasts.
    The EX2100 Sport Boat is also equipped with many of the ecologically friendly features for which Polaris Watercraft is already renowned. The clean, fuel-efficient Mercury Jet Drive engine packages and the 50-gallon fuel capacity deliver superior range and the innovative noise reduction technology delivers the quietest ride in its class. 2004 models are available with a Mercury EFI or OptiMax Jet Drive engine package. The competitively priced MSRP will be released in February and the boats will be available in early spring of 2003.
    The Sport Boat launch is Polaris' most recent move to strategically diversify its offerings. Last year, Polaris entered the commercial construction market with the introduction of the Polaris Professional Series, a line of heavy-duty light construction vehicles. And last summer, Polaris extended its reach in the all-terrain vehicle (ATV) market by entering the rapidly growing sport/performance ATV segment, which caters to Gen X and Gen Y riders.

    About Polaris Industries:

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