Cycle Country Reports 1st Quarter Results; ATC Continues To Shine with Gross Margin Increase of 5% and Net Income Up 32%

MILFORD, Iowa--Feb. 1, 20054, 2005--Cycle Country Accessories Corp. (AMEX:ATC), the outright leader in developing and manufacturing select custom-fitting accessories for the all-terrain vehicle (ATV) and other diversified industry products, announces that net income increased $127,991 (32%) to $532,101 for the three months ended December 31, 2004. Gross margin as a percentage of revenue increased 5% as cost containment initiatives continue to be implemented.

First quarter highlights:

-- Revenues of $5,623,739 were in line with last year's record level.

-- Net income increased 32% to $532,101.

-- Gross profit as a percent of revenue increased approximately 5% to 29.5%.

-- Gross profit in dollars increased 18.4% to $1,657,515.

-- Increase in the company's cash position of $1,157,000 with no bank debt.

-- Net working capital increased $742,350 to $5,569,689 at December 31, 2004 from $4,827,339 at September 30, 2004.

-- International sales increased 38% as compared to the first quarter of last year.

-- The Company's signature product, Snowplow Blades, continued to shine as sales increased 3% over last year's first quarter record results.

-- Margins continue to improve as management continues its initiatives to cut/maintain costs and implement price increases where needed.

-- Continuing to see positive impact from management's quality initiative.

"The company is very pleased with the many positive results for this most recent quarter," said Mr. Ron Hickman, CEO and President of Cycle Country Accessories. "We anticipate that revenues, gross profits and net income for each of the remaining quarters of fiscal 2005 will do better than the results of fiscal 2004. We continue to address seasonality issues, expand into new markets, increase products produced for OEM's and strengthen the market-leading positions of our current products to provide strong, positive financial results."

About Cycle Country Accessories Corp.

Cycle Country, with over 50% of the worldwide market in several product categories, is the industry leader in the design and manufacturing of custom-fitting accessories for virtually every brand of utility all-terrain vehicles (ATV's).

To view company information, updates, the latest SEC filings or past news releases, go to the company's website at http://www.cyclecountry.com and click on the Investor Relations heading. Please direct any financial questions to Todd Doom at Magellan Financial Media Group, LLC. 317-867-2839.

This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of Cycle Country Accessories Corporation, nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Forward-looking statements: This press release and other statements by Cycle Country may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "potential," or future/conditional verbs such as "will," "should" and "could."