Polaris Unveils 2007 Models That Build on Current Success; New Products Reflect Recent Innovations and Consumer Demand

ORLANDO, Fla.--Aug. 1, 2006--If the key to business success is giving the customers what they want, then Polaris Industries is in for another successful year. The powersports industry frontrunner today unveiled its product offerings for 2007, delivering a variety of new products including an ATV engineered and designed through the strategic partnership between Polaris and KTM, a new class-leading 50 mph speed for RANGER XP and an exciting new sport-inspired Hammer S Victory Motorcycle.

Polaris shared the new products with their dealers in Orlando, Fla., while also providing a peek at a variety of products currently in development that consumers will be seeing in the future.

"The overwhelming popularity of our latest innovations, limited-edition models and new product features really set the stage for the 2007 model year line-up," said Bennett Morgan, president and chief operating officer, Polaris Industries Inc. "Polaris continues to lead the way with the strongest and most innovative ATV, RANGER and Victory Motorcycle product lines in the industry today."

All-Terrain Vehicles

After introducing six new models in 2006, Polaris will continue to lead the way with new and innovative ATV offerings for 2007. Responding to rider demand, Polaris poured innovation into the two-up and youth segments for 2007, and unveiled the first of many joint projects with Austrian motorcycle manufacturer, KTM Power Sports AG.

-- Sportsman X2 800 - The successor and new titleholder of "The World's Toughest ATVs," the Sportsman X2 800 combines the engineering design of the X2 500 and the muscle of the 800 EFI, making it extremely versatile. It also represents the convergence of two of the fastest growing and most profitable ATV segments - the two-up market and the big-bore market. The Sportsman X2 800 will come in standard and deluxe packages as will the rest of the Sportsman line.

-- Outlaw 525 - As a result of the strategic partnership with KTM, Polaris introduced the Outlaw 525 powered by KTM, which features the KTM 525 engine used in Motocross and Enduro racing, making the Outlaw leaner at 395 lbs. and the fastest accelerating production ATV on the market. With engineering that tears apart the sport quad status quo, the Outlaw 525 includes independent rear suspension (PRO IRS), specifically designed for aggressive trail riding. Coupling Independent Rear Suspension with a lighter, more powerful engine creates the ultimate trail sport quad. Outlaw 525 will be available Spring 2007.

-- New Youth Models -The best-selling line of youth ATVs is even better for 2007 with the addition of 4-stroke engines for a cleaner and quieter ride, and bigger chassis on the 90 cc models for a better rider fit and more comfortable ride. Polaris will offer three, new youth models including the Sportsman 90, Outlaw 90 and Predator 50.

-- Limited Edition Models - For the first time, Polaris is offering a Pink Predator 50, Predator 90 and Phoenix 200 designed to appeal to the female rider. In addition, Polaris will offer a Sportsman 800 in a stealth black finish, a painted sagebrush green Sportsman 500, a red Hawkeye, black and silver Predator, and a Sportsman X2 500 in the extremely popular sunset red paint.

"Polaris continues to lead the way with new and innovative ATV offerings," said Mike Dougherty, general manager for the ATV Division at Polaris. "By constantly re-inventing our product lines, we are able to bring the toughest ATVs to market year after year."

In Other ATV News

In January of 2006, Polaris announced the launch of the 'T.R.A.I.L.S.' grant program for ATV clubs, associations and grassroots groups. The program makes funds available to national, state and local organizations in the United States to ensure the future of ATV riding. The grant program encompasses two main objectives - promoting safe and responsible riding, and preserving access. Funds can be used by organizations for trail development and maintenance projects, safety and education initiatives, lobbying and other projects to increase or maintain land access.

To date, Polaris has awarded $380,000 to 47 organizations in 26 states. Polaris plans to finish out the year by awarding an additional $200,000. The next deadline for applications is October 1, 2006. Applications can be submitted at www.PolarisIndstries.com, click on "Our Company" and "News."

"Polaris is committed to promoting safe and responsible recreational riding," said Bennett Morgan, president and chief operating officer of Polaris. "We see the issue of trails and land access as the lifeblood of our ATV business and the 'T.R.A.I.L.S.' grant program is one way we can help ensure people always have a place to ride."

RANGER

In just six years, the Polaris RANGER division has grown at a compound annual rate of 40 percent. For 2007, Polaris simplified the RANGER line-up and focused on specific consumer needs. The line-up consists of four models, RANGER 2x4, RANGER 4x4 EFI, RANGER XP EFI and RANGER 6x6 EFI with exciting features customers have been asking for such as a new top speed of 50 mph on RANGER XP EFI, dash board instrumentation on the RANGER XP EFI and RANGER 6x6 EFI, and new color options on the RANGER 4x4 EFI.

-- RANGER 4x4 EFI - Polaris' hardest working, smoothest riding utility vehicle is back for 2007 with the features that made it one of the best-selling utility vehicles; a strong 1,000 lb. cargo capacity, class-leading 1,500 lb. payload and towing, 41 mph top speed, electronic fuel injection and exclusive, on-demand, true 4-wheel drive. New for 2007, along with the standard green color, RANGER 4x4 EFI also will be available in red and blue.

-- RANGER XP EFI - The RANGER XP EFI is dominating the big-bore utility market and for 2007 Polaris is offering a speed capability of 50 mph and multi-functional instrumentation that includes a speedometer, digital fuel gauge, odometer, EFI diagnostic codes, clock and indicators for gear selection and all-wheel drive. The 2007 RANGER XP EFI will be offered in Delta Green and also in various limited-edition models including the popular midnight red, new turbo silver and black flame with 14 inch rims and Bounty Hunter tires. For the hunting enthusiast, two limited edition RANGER XP EFI models are available; the RANGER XP Mossy Oak(TM) edition and the highly sought-after Browning(R) Edition with the new Mossy Oak(TM) Break-Up pattern, winch, gun scabbard and Browning(R) "Buckmark" logos.

"We're extremely pleased as the RANGER line of products continues to outpace the fast-paced utility vehicle category," said Matt Homan, general manager of the RANGER division at Polaris. "Our simplified product line offers leadership in each segment while providing options that cater to the wide range of utility buyer's needs."

Victory Motorcycles

Victory Motorcycles continues to be the fastest growing brand in the industry due to fresh, forward-thinking styling, sophisticated engine technology and reliability that has earned the brand near perfect marks for customer satisfaction. Retail unit sales are up more than 25 percent over 2005 and by 2010, the company expects to be a $300 million business unit.

For 2007, Victory has melded style, design and performance to create the brand's most powerful offering to date. The 2007 line-up has a model for virtually every type of cruiser rider, including the following exciting new offerings:

-- Hammer S - Based on the success of the award-winning Victory Hammer, introduced in the 2005 line-up, the new for 2007 limited-edition Hammer S, exudes sporty, muscle car styling. Its unique combination of a sunset red paint scheme and blacked-out components are complemented by custom wheels from one of the leaders in custom motorcycle components, Performance Machine(R). The Hammer S is long and low with an aggressive riding position and is powered by Victory's own 100-cubic-inch Freedom(TM) V-Twin engine with a true 6-speed overdrive transmission, which offers clean styling and modern technology for consistently efficient and outstanding performance. The bike features a distinctive, super-fat 250mm rear tire, a custom-inspired headlight and a flat black, lightweight belt guard, exclusive to the Hammer S.

-- Kingpin Tour - This bike takes Victory's current best-selling model (The Kingpin) and equips it for the long, long haul. The mile muncher boasts a host of integrated touring amenities like a windscreen with lower wind deflectors, a touring-oriented rider and passenger seat, and a new rear trunk with integrated passenger backrest that can hold 20 lbs. of gear. Combine all of that with Victory's own Freedom(TM) 100 cubic-inch engine mated to a true 6-speed overdrive transmission and riders will have one of the most refined light-based cruiser touring offerings of 2007.

-- Ness Signature Series - Following the success of the 2006 Ness Signature Series models, legendary custom bike builders and Victory styling partners Arlen and Cory Ness have again applied their creative mastery to offer a pair of limited-edition signature series bikes, based on the Vegas Jackpot model, available only for model year 2007. With all new, limited-edition paint and graphics designed by the Nesses - black with bold, custom green flames on the Arlen Ness bike and silver with custom blue-based graphics on the Cory Ness bike - the 2007 Signature Series bikes also have diamond-cut cylinder heads, a feature commonly found on extremely exotic and hand-built custom bikes. Using a patented process licensed by Victory, the diamond-cut styling not only takes the engine's appearance to an entirely new level, it can enhance cooling by as much as 10 percent. The extreme Vegas Jackpot style of each Ness masterpiece is accented with custom one-piece seats featuring sun-repelling leather along with custom billet wheels - "Evil 7" wheels on the Arlen Ness model and "Jagged" style wheels on the Cory Ness model. Other features include custom inspired headlights, two-inch pull-back Ness handlebars, Ness teardrop mirrors, custom billet grips, footpegs and a host of eye-popping chrome details from the tip to the tail of each bike.

-- New Accessories - Pure Victory introduced 73 new accessories for 2007, which supplement the hundreds of items already offered by the brand. The following are just some of the hot new items that Victory riders have been asking for:

-- Hammer Bandit Seat - This stylish, comfortable seat features flame stitching and integrates rider and passenger pads into a single saddle. Solar reflective leather minimizes heat on the seat when bike is parked in the sun.

-- Black Bullet Style Headlight - This custom inspired headlight with its blacked out finish transforms the look of a Victory, giving it a much more sinister, longer and lower overall look.

-- Vegas Two-Up Luggage Rack - Developed in response to requests from Vegas riders, this rack provides extra cargo capacity whether riding solo or two-up.

-- Kingpin Passenger Handholds and Trunk - Chrome handholds mount in the fender strut area and provide the passenger with added security and comfort. The Kingpin trunk can hold 20 lbs. of gear, plus it provides the passenger with an integrated, soft and perfectly-placed backrest. This highly anticipated trunk mounts on a new rear rack - sold separately.

"We're proud of the fact that Victory is growing significantly faster than other brands in the industry, with sales 2005 growth of more than 43 percent over 2004," said Allan Hurd, general manager of Victory Motorcycles. "This kind of growth doesn't just happen - it results from our relentless focus on the voice of the customer, combined with the commitment and passion of our growing dealer network. For 2007, Victory continues to set itself apart as The New American Motorcycle with an upgraded and refined model line-up that offers a cruiser motorcycle for virtually every type of rider."

About Polaris and Victory Motorcycles

With annual 2005 sales of $1.9 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 a 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.

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