Cycle Country Accessories Corp. Announces Q 1, 09 Earnings of 6 Cents Per Share

MILFORD, Iowa--Cycle Country (AMEX:ATC - News), a leading supplier of ATV accessories, Golf Accessories, Oil Filters and Contract Manufacturing services announces its return to profitability in Q1 09 with a EPS of 6 cents; this compares to 11 cents for the same period a year ago.

The company purchased, at an average price of $0.72, 747,250 shares of its common equity in Q1, and now has in Treasury more than 35% of its outstanding shares. It also continues a pace to pay down its long-term debt, and reiterates that it has never missed a payment. It also continues to have an existing line of credit of 1 million dollars.

Cash and cash equivalents were $206,510 as of December 31, 2008, all from operating income.

Consistent with normal practice, management believes that the Company's operations are not expected to require significant capital expenditures during fiscal year 2009. Management also believes that existing cash balances and cash flow to be generated from operating activities and its available borrowing capacity under its line of credit agreement will be sufficient to fund normal operations and capital expenditure requirements.

The company’s revenue declined from 5,001,559 to 4,333,615, (13.4%), and reports that it had declining revenue in all 4 of its business segments as well as a decline of gross profits of 38.5% The decrease in revenues for Q1 2009 was due in large measure to our ATV accessories business segment which had a decrease in sales of approximately 13% this quarter compared to the same quarter last year. The decrease in gross profit as a percentage of revenue was mainly attributable to an increase in raw material costs.

The company had a reduction in force and thru additional cost cutting and efficiency measures reduced it’s cost of operations in excess of $50,000 per month without effecting capacity.

Cycle Country has been an industry leader in the marketing, sales, design and manufacturing of custom fitting accessories for utility all-terrain vehicles (ATV's) for over 31 years. Products include snowplows, mowers, 3-point hitches and implements, storage, bed lifts, brush guards and more. Cycle Country also produces a line of wheel covers for golf carts, lawn and garden equipment and motor sports vehicles. Perf-Form, a wholly owned subsidiary, makes high performance oil filters for motorcycles, ATV’s and watercraft. In April of 2005, Cycle Country acquired Simonsen Iron Works, now operating as Cycle Country-Spencer, providing metal fabrication and contract manufacturing services to clients in the mid-west.

www.cyclecountry.com

www.weekend-warrior.com

www.perf-form.com

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 other 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."