Arctic Cat Raises Quarterly Cash Dividend by 17 Percent

THIEF RIVER FALLS, Minn.--Oct. 2, 20033, 2003--Arctic Cat Inc. today announced that its board of directors approved raising the quarterly cash dividend from 6 cents per share to 7 cents per share of common and class B common stock, a 17 percent increase. The dividend is payable on or about December 2, 2003 to shareholders of record on November 11, 2003.

"We are pleased to be able to raise the dividend for our shareholders," said Christopher A. Twomey, chairman and chief executive officer. "This increase reflects the board's confidence in the company's financial strength and long-term prospects."

Arctic Cat has paid a quarterly dividend since 1995.

At the end of the second quarter ended September 30, 2003, the company reported $40.7 million in cash and no long-term debt. For the fiscal year ending March 31, 2004, Arctic Cat anticipates net sales will grow in the range of $595 million to $607 million. Diluted earnings per share are estimated to be in the range of $1.39 to $1.41.

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. For more information, please visit Arctic Cat's Web site at www.arcticcat.com.