Cycle Country Announces 3rd Quarter Earnings Results; Conference Call Scheduled for 11:00 a.m. EST, Thursday, August 18

MILFORD, Iowa--Aug. 1, 20055, 2005--Cycle Country Accessories Corporation (AMEX:ATC), the industry leader in the design and manufacturing of custom-fitting accessories for utility all-terrain vehicles, today announced results for third quarter fiscal 2005. The complete filing is available at www.SEC.gov.

Revenues for the three months ended June 30, 2005 decreased 18.5% from $4,067,499 to $3,314,455 as dealers returned to seasonal buying patterns and management increased inventories to meet anticipated demand for the fourth quarter. Cost of goods sold decreased $640,347 to $2,366,152, or a total of 21.3% as a result of the lower revenue and managements continued cost saving initiatives.

Gross profit as a percentage of revenue increased approximately 3% for the third quarter ended June 30, 2005 as compared to third quarter ended June 30, 2004. The integration of Simonsen Iron Works, Inc., Cycle Country's largest supplier, is starting to show increases to gross profit due to more efficiency in the manufacturing process, better scheduling of production, allowing for increased utilization of the trucking fleet and an increase of inventory, just to name a few. Another significant reason for the increase in gross profit percentage was due to management implementing price increases on products that, due to increased raw material or other input costs, had fallen below standard gross profit levels.

Ron Hickman, President and CEO of Cycle Country, said third quarter results of fiscal 2005 did not meet management's baseline growth projections but believes investors can look forward to strong results for the fourth quarter of fiscal 2005. "Everything supports our earlier statements that this fourth quarter will be a very strong quarter for us," said Hickman. "A few of our largest distributors indicate that their July orders for Cycle Country product are up 40-50% over last year. Distributors are indicating low levels of inventory of Cycle Country product at dealer and warehouse locations. Therefore, we are seeing very strong truckload orders from our distributors for August and September deliveries." Hickman concluded that scheduling for Cycle Country product has extended into October. His management team has implemented efficiencies and increased inventory to accommodate the recent influx in sales orders.

Management expects to release interim results for July next week as part of a continuing effort to keep investors informed of Cycle Country's progress.

Conference call:

The company will have a conference call at 11:00 am EST, Thursday, August 18, 2005 to answer investor questions. Conference call information to be addressed in a later release.

About Cycle Country Accessories Corporation

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 the company information, updates, the latest SEC filings or past news releases, go to the company's web site at www.cyclecountry.com and click on the Investor Relations heading. Please direct any financial questions to Theresia Whitfield 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 the 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".