Kolorfusion International & Polaris Industries Enter Exclusive License Agreement

Asset Caption: Kolorfusion's patented surface coating technology on Polaris ATVs.

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    DENVER--March 12, 2003--Kolorfusion International, Inc. (OTCBB:KOLR) announced today that its patented decoration technology has been licensed to Polaris Industries, Inc. on an exclusive basis for Polaris's ATVs and other off-road vehicles for up to five years.
    Per the terms of the License Agreement, prior to production Kolorfusion received an exclusivity payment for four years of exclusivity, which can be extended for an additional year.
    "Polaris is one of the world's largest ATV manufacturers and is the leading producer of ATVs using a camouflage decoration. During the past several months we have been in testing with Polaris to utilize our process, which not only can replace their existing method, but can also provide them with greater functionality to decorate other parts of ATVs such as rims, racks, and brush bars," Kolorfusion's President Steve Nagel stated.
    Polaris has implemented the Kolorfusion process in Roseau, Minnesota in conjunction with its subcontractor, QC Technics, Inc.. The license agreement extends for up to 20 years and also includes Polaris's other product categories on a nonexclusive basis.
    Tony Fichter, Purchasing Manager, of Polaris Industries commented, "After completing our tests of the Kolorfusion process, we knew we had a superior method for the decoration of our ATVs, as compared to the industry's current methods. Accordingly, we want to provide this break-through technology on an exclusive basis into our markets and we are planning to expand it well beyond camouflage oriented consumers."
    "Polaris is the type of company we have been seeking that validates our technology to the surface finishing industry. The fact that they are willing to pay for an exclusive speaks very highly to the value they perceive our technology can give them in their market. Polaris will purchase its ongoing print requirements from Kolorfusion and we anticipate starting annual revenues to Kolorfusion in excess of $1 million," added Kevin Geraghty, National Sales Manager of Kolorfusion.
    "This License Agreement is a significant milestone for our growing Company. The addition of Polaris to our other OEM licensees such as Moen, Sunrise Medical, Dee Zee, PSE Archery, along with other customers such as Daisy, Tru-Glo, Garrity Industries, and Gerber, demonstrates that our technology can be applied to almost any surface," concluded Nagel.

    About Polaris

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

    About Kolorfusion

    Kolorfusion is the owner of process patents for three-dimensional product decoration invented in France by Jean-Noel Claveau. The Company's technology is considered a major breakthrough for product finishing, as the process actually transfers any design with any colors into a product's coating or directly into the plastic or aluminum part itself, no matter the shape. The result is a fully decorated product as durable as the coating or part. Kolorfusion's technology is ultraviolet resistant, cost effective, and safe for the environment. Unlike decals, silk screening, or standard painting, Kolorfusion's patented processes offer a full spectrum of colors, shades, and designs. Kolorfusion generates revenues through processing contracts and long-term purchasing and license agreements with product manufacturers.

    This news release contains forward-looking statements related to future growth and earnings opportunities. Such statements are based upon certain assumptions and assessments made by management of the Company in light of current conditions, expected future developments and other factors it believes to be appropriate. Actual results may differ as a result of factors over which the Company has no control.

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