ASV Announces Distribution Allliance with Gander Mountain

GRAND RAPIDS, Minn.--ASV, Inc. today announced a distribution alliance with Gander Mountain . Under the alliance Gander Mountain will have exclusivity among outdoor sportsman retailers for the distribution of ASV’s SC-50 Scout tracked utility vehicle.

The Scout, ASV’s new heavy duty utility vehicle, features a 50 horsepower diesel engine, cab seating for two and a flatbed rear deck with the capacity to carry two tons of cargo through almost any terrain with minimal damage to the landscape. It also features a 5,000 pound towing capacity, giving it an unmatched capability to deliver its cargo and passengers to remote locations. This rugged design, coupled with ASV’s rubber track undercarriage, gives the Scout extreme traction, a light footprint and a smooth, suspended ride.

“Many applications for the Scout, including the outdoor sportsman, fall outside the markets covered by our traditional distribution network,” commented ASV Chairman and CEO Dick Benson. “To help us tap into these non-traditional segments, we are looking at partners with a strong distribution presence and brand equity in these key markets. With their unparalleled retail footprint, machine service capability and passion for highly differentiated product, we are excited to team up with Gander Mountain, the nation’s largest retail network of stores for the sportsman and outdoor lifestyle enthusiast.”

Gander Mountain’s retail footprint includes 106 stores in 22 states. Over half of its retail stores have ATV and power sports service capabilities. A special edition, co-branded version of the Scout initially will be available in seven Gander Mountain stores across the U.S. Offered with the Scout will be the option of a personnel carrier to be fitted on the bed of the machine. This feature will enable the Scout to carry up to six people and their gear to remote locations, while the low ground pressure and long track base of the Scout will allow it to traverse difficult terrain without disturbing the soil.

Speaking on the new distribution alliance, Frankie Shannon, Gander Mountain's Divisional Vice President of Power Sports said, “The ASV Scout will offer our customers a new opportunity for a great outdoor experience. We're always looking for innovative ways to serve our customers and ASV's new tracked utility machine fills that need very well."

The introduction of the Scout to the Gander Mountain stores will begin during the second quarter of 2007.

About ASV

ASV designs, manufactures and sells rubber track machines and related components, accessories, and attachments. Its purpose-built chassis and patented rubber track undercarriage technology are unique and lead all rubber track loaders in innovation and performance. ASV’s products are able to traverse nearly any terrain with minimal damage to the ground, making them effective in markets such as construction, landscaping, forestry and agriculture. The Company’s rubber track undercarriages are a primary component on Caterpillar© Multi Terrain Loaders and certain models of the Vermeer Manufacturing Company’s trencher and horizontal directional drill products. ASV’s wholly-owned subsidiary Loegering Mfg. Inc. designs, manufactures and sells traction products and attachments for the skid-steer industry. For more information, visit ASV’s website at www.asvi.com or Loegering’s website at www.loegering.com.

About Gander Mountain Company

Gander Mountain Company , headquartered in St. Paul, Minn., is the nation’s largest retail network of stores for hunting, fishing, camping, boating, marine and outdoor lifestyle products and services. Since 1960, the Gander Mountain brand has offered an expanding assortment of competitively priced outdoor equipment, technical apparel and footwear, as well as gunsmith, archery, ATV and marine services. The stores feature national, regional and local brands as well as the company’s owned brands. Focused on a “We Live Outdoors®” culture, Gander Mountain dedicates itself to creating outdoor memories. There are currently 105 Gander Mountain outdoor lifestyle stores in 22 states. For the nearest store location call 800-282-5993 or visit www.gandermountain.com.

Forward Looking Statements

Note: Some of the statements set forth above regarding ASV’s alliance with Gander Mountain, including the anticipated start of the distribution of products, are forward-looking statements based on current expectations and assumptions, and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Certain factors may affect whether these anticipated events occur including ASV’s ability to successfully manufacture the machines, unanticipated delays, costs or other difficulties in the manufacture of the machines, unanticipated problems or delays experienced by Gander Mountain relating to the marketing of the machines, market acceptance of the machines, deterioration of the general market and economic conditions, corporate developments at ASV or Gander Mountain and ASV’s ability to realize the anticipated benefits from its relationships with Gander Mountain. Any forward-looking statements provided from time-to-time by the Company represent only management’s then-best current estimate of future results or trends. Additional information regarding these risk factors and uncertainties is detailed from time to time in the Company’s SEC filings, including but not limited to, its quarterly reports on Form 10-Q and annual reports on Form 10-K.