Polaris Industries Announces a Fifty Percent Expansion of Its Vermillion, South Dakota Distribution Center

MEDINA, Minn.--Polaris Industries Inc. today announced it will add 128,000 square feet to its Vermillion parts, garments and accessories distribution center effective spring 2008. Investment in the centralized Vermillion facility, which will add fifty percent capacity to the already existing 256,000 square foot facility, reflects Polaris’ ongoing commitment to the thriving Parts, Garments and Accessories (PG&A) business and the company’s results-driven approach to operational excellence. The new expanded Vermillion facility will absorb the support role currently carried out by its Winnipeg, Manitoba PG&A distribution facility. Polaris plans to make this transition complete and permanently close the Winnipeg PG&A distribution warehouse in summer 2008.

“The expansion of our Vermillion facility puts us in a solid position to improve our overall business results and continue the solid growth we’re achieving in the PG&A division,” said Tom Tiller, CEO of Polaris Industries. “Our intent is to build an efficient organization that can execute for our dealers and our customers.”

The Vermillion PG&A distribution center was built in 1997 and the growing Parts, Garments and Accessories business has more than doubled in sales since that time. Polaris chose Vermillion as a warehouse location due to its available labor force and central location to the company's customer base.

The Winnipeg PG&A distribution center closure affects less than 20 full-time positions out of Polaris’ total workforce of approximately 3,500 employees. Sales/Marketing, Technical Service, Dealer Support and certain administrative functions for the Canadian market will remain in Winnipeg.

About Polaris

With annual 2006 sales of $1.7 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 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.