Arctic Cat Declares Quarterly Cash Dividend

THIEF RIVER FALLS, Minn.--Jan. 2, 20064, 2006--Arctic Cat Inc. today announced that its board of directors has declared a regular quarterly cash dividend of 7 cents per share of common and class B common stock. The dividend is payable on or about March 1, 2006, to shareholders of record as of the close of business on February 14, 2006.

Arctic Cat currently has approximately 19.4 million shares outstanding. The company has paid a quarterly dividend since 1995.

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles 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.