New Products Poise Polaris for Increased Growth; New All-Terrain Vehicles (ATVs), RANGER Utility Vehicles, Victory Motorcycles Give Expanded Breadth, Opportunity

MINNEAPOLIS--July 25, 2005--Innovative new products drive the powersports industry, and at last week's national sales meeting in Nashville, Tenn., Polaris continued its tradition of introducing new products in every Division.

The company unveiled more than a dozen new products in its ATV, RANGER utility vehicle and Victory Motorcycle product lines, the largest offering of new vehicles in the company's history.

"This is an exciting time for Polaris and its dealers. Earlier last week, we announced our strategic partnership with KTM and now we are introducing the largest fleet of new products in our history," said Bennett Morgan, president and chief operating officer, Polaris. "We have incredible momentum and traction to continue improving our overall business, make it stronger and gain market share in all categories. That's good news for Polaris, our dealers and our customers."

All-Terrain Vehicles

Polaris' ATV division is the lifeblood of the company. Representing nearly two-thirds of its overall sales, the division is introducing six new product offerings that address the trail, mid-size, entry and "heart of the market" segments, which will continue to position Polaris as a dominant powerhouse in the industry.

-- Sportsman 500 EFI - Polaris has added electronic fuel injection (EFI) technology to the Sportsman 500, the world's best-selling 4x4. Polaris now has the largest EFI offering of any ATV manufacturer - a total of four. The Sportsman 500 EFI benefits customers by providing easier starting in extreme weather conditions; it automatically adjusts to altitude and temperature changes with no re-jetting; delivers smooth power at any speed and better fuel economy. The quad also features industry leading independent rear suspension (IRS), Exclusive Lock-and-Ride(TM) accessories and all the classic Sportsman features that make it the world's best-selling 4x4.

-- Sportsman 450 - "Heart of the market" 4x4s account for the bulk of sales nationwide, and the new Sportsman 450 gives Polaris a strong best in class new entry in the category. With IRS, the Lock-and-Ride accessory system, more horsepower and faster acceleration, the Sportsman 450 will be a strong force in the 400 segment.

-- Sportsman X2 - Two-up ATVs have become the fastest-growing segment in the ATV industry, and the Sportsman X2 "the most versatile ATV ever" gives Polaris firm footing in the two-rider market. The vehicle transforms from a one- to two-up machine in only 10 seconds, giving riders an option in how they want to ride. The X2 also offers EFI technology, a 400-pound-capacity dump box, Lock-and-Ride accessories, VersaTrac for sensitive as well as rough terrain, and industry-leading independent rear suspension (IRS).

-- Outlaw - The Outlaw represents Polaris' trail tough, track ready, new high-performance sport quad. Outlaw features the industry's first and only sport quad with independent rear suspension (PRO IRS) in an all-new chassis, which gives riders more speed on the trails and more control on rough terrain.

-- Sawtooth - The Sawtooth, an entry level value machine, places a 200cc, four-stroke engine in a lightweight chassis. Perfectly sized for young adults over 16-years and women, the fully automatic Sawtooth features shaft drive, full floorboards and steel front and rear racks.

-- Hawkeye - Two new models for the 300cc segment, the 2X4 and 4X4 Hawkeye is the no compromise, mid-sized ATV. Hawkeye offers riders features previously only available in Big Bore machines like independent rear suspension, Lock-and-Ride accessories, eight- inches of ground clearance and digital instrumentation.

"With the introduction of our 2006 line, we've changed the game with six tough new vehicles that will fill market segments that have been underserved," said Mike Dougherty, general manager, Polaris ATVs. "Polaris has a dominant stable of ATVs, and we expect our new products will help drive increased market share in the coming year."

RANGER Utility Vehicles

The utility vehicle market is growing at a rapid pace. The $1.5 billion industry is growing at a rate of 30 percent annually, and sales are increasing in every region of the country. The Polaris RANGER, the hardest working, smoothest riding utility vehicle on the market, is ideally suited to farmers, hunters and multi-acre homeowners. RANGER is one of Polaris' fastest-growing product lines and 2006 brings exciting new models.

-- 700 EFI RANGER XP - The RANGER XP boasts a 700 engine with electronic fuel injection, a top speed of 44 mph, and 29 percent faster acceleration. The standard XP will be available in Delta Green. A limited edition version will feature a Midnight Red finish, and for hunting enthusiasts, Polaris is offering the 700 EFI RANGER XP in a Mossy Oak camouflage pattern.

-- RANGER 6x6 700 EFI - With a 700 engine and EFI technology the new RANGER 6x6 has the best traction and payload in the industry. The 2006 model features 47 percent more torque and 33 percent more horsepower than previous models, with a top speed of 44 mph.

-- Limited Edition RANGER 4x4 EFI - The best selling RANGER in the line now has EFI. This 30-horsepower, 500cc engine, with electronic fuel injection; provides easy starting in extreme weather conditions; it automatically adjusts to altitude and temperature changes with no re-jetting; and delivers smooth power at any speed.

"Polaris has built its reputation on industry-leading innovation, and that innovation is demonstrated in each new RANGER model," said Tim DeJong, general manager, Polaris RANGER division. "Integrating electronic fuel injection technology with the best independent rear suspension, the industry's top payload capacity and a high top-end speed makes RANGER the brand to beat among utility vehicles."

Victory Motorcycles

The Victory Motorcycle division is clearly becoming a growth engine for Polaris. Last year, sales were up approximately 30 percent -- driven by the success of the Victory Vegas and Kingpin models. This year, Victory is the fastest growing brand in the industry, and the Hammer and Vegas 8-Ball have been major sales successes. Retail unit sales are up nearly 50 percent over 2004 and by 2010, the company expects Victory to be a $300 million business unit.

For 2006, Victory is moving toward that goal by delivering new products and innovations that position the brand for continued strong growth.

-- Vegas Jackpot - A rapidly emerging motorcycle segment in recent years is what Victory calls "Extreme Customs" and the all-new Vegas Jackpot fills that niche to a tee. With such extreme styling cues as radical paint schemes, a color-matched frame, extensive chrome detailing, a lowered rear end riding on a muscular 250mm rear tire - combined with a classic 21-inch wheel up front, a reshaped headlight and more, the Vegas Jackpot provides an adrenaline rush before you even thumb the starter. Powered by a 100-cubic-inch Freedom engine and six-speed overdrive transmission, the bonus is this extreme extension of the award-winning Vegas line gives the styling and performance riders of Extreme Customs expect, while providing the reliability, support and all-day comfort current offerings in this segment don't all provide. Best of all, riders will be delighted to know a true factory Extreme Custom can end up in their garage for substantially less money ($10,000 - $15,000 less) than most of the alternatives.

-- Ness Signature Series bikes - Arlen and Cory Ness, two of the country's most respected custom motorcycle builders, have again helped to set the Victory brand apart with two new breathtaking Ness Series Vegas Jackpot models. Each has a custom paint scheme, custom seating, drag bars, billet wheels and an extensive list of other Ness-designed details.

-- New engine & transmission - Victory is upping the ante on its Vegas and Kingpin models by integrating the 100-cubic-inch Freedom engine and six-speed overdrive transmission from the massively popular Victory Hammer bringing new levels of performance to these core Victory models.

"With the strong sales of our current offerings, combined with the excitement surrounding our new bikes, all of us on the Victory team are pleased with the momentum and popularity the bikes and the Victory brand continue to enjoy," said Mark Blackwell, General Manager, Victory Motorcycles. "Delivering quality motorcycles and listening to what our customers tell us is helping to give Victory a growing presence on the roads. It's our goal to continue to surprise and delight riders with the New American Motorcycle. One ride is usually all it takes."

In Other News...

Polaris Industries has marked the first half of 2005 with major business announcements. In June, the company opened its new state-of-the-art product development center in Wyoming, Minn. And last week, on the heals of an announcement that it would purchase a 24-percent stake in Austrian off-road motorcycle manufacturer KTM, Polaris also launched two new programs to help drive volume and make the selling process easier and more profitable for dealers.

The company reintroduced its highly successful Factory Authorized Clearance event, which in 2004 resulted in a successful model year inventory transition for its dealers and generated 48-percent sales increases across all product lines. ATVs led the way with 60-percent growth.

Polaris also announced it will join the Specialty Vehicle Institute of America (SVIA), which will take the responsibility of customer training away from dealers, allowing them more opportunity to sell products. The SVIA has trained thousands of ATV enthusiasts to ride safely and responsibly for many years, and Polaris' move to join the organization gives customers a single, simple outlet to learn to properly operate ATVs. In addition to training, Polaris, together with the SVIA, will put additional focus on land access and preserving the Right to Ride.

"Rider safety remains our top priority," said Bennett Morgan, President and COO, Polaris. "We look forward to working more closely with other industry partners to continue stressing the importance of safety training and responsible riding."

About Polaris and Victory Motorcycles

Information about the complete line of Polaris products apparel and vehicle accessories is available from authorized Polaris dealers or from the Polaris homepage at www.polarisindustries.com.

With annual 2004 sales of $1.8 billion, Polaris designs, engineers, manufactures and markets snowmobiles, all-terrain vehicles (ATVs), Victory motorcycles and the Polaris RANGER for recreational and utility use.

Polaris is the recognized leader in the snowmobile industry; and one of the largest manufacturers of ATVs in the world. Victory motorcycles, established in 1998 and representing the first all-new American-made motorcycle from a major company in nearly 60 years, are rapidly making impressive in-roads into the motorcycle cruiser marketplace. Polaris also enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

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.