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ASV Announces Licensing Agreement with Polaris; Polaris to Brand and Sell ASV-Built, All-Surface Utility Loader

4 January 2001

ASV Announces Licensing Agreement with Polaris; Polaris to Brand and Sell ASV-Built, All-Surface Utility Loader

    GRAND RAPIDS, Minn., Jan. 4 ASV, Inc. today announced the signing of a licensing
agreement that allows Polaris Industries, Inc., the world's second
largest all-terrain vehicle manufacturer, to sell an ASV-built, rubber track,
all-surface utility loader similar to ASV's new RC-30(TM).
    The agreement gives Polaris the right to market and sell the utility
loader under its own nameplate through its worldwide dealer network.  Polaris
will purchase the machines, as well as parts and attachments, directly from
ASV.  The agreement also provides the option at some future point for Polaris
to manufacture the machines under a royalty arrangement if volume exceeds
ASV's competitive capabilities.
    ASV will continue to market and sell its RC-30 under the ASV brand name
through its own dealer network.
    "The RC-30 has been enthusiastically greeted by landscapers, who can now
perform heavy, difficult work while also being gentle to terrain such as turf
and sensitive foundations," said ASV President Gary Lemke.  "We know the
landscape market is large, and our RC-30 dealers are aggressively targeting
that market.  However, with Polaris dealers selling a similar machine, we'll
reach customers we might not otherwise reach, such as those within the large
hobby market."
    Lemke added that it was critical that the ASV technology be available both
through its growing RC-30 dealer network, as well as through an existing,
nationwide dealer network, such as Polaris.
    "The all-surface utility loader is a unique machine we believe will help
us reach our growth goals," said Tom Tiller, Polaris president and chief
executive officer. "It is the next logical step for Polaris following our
successful ATV line-up of products, which are primarily used for utility
applications, and our RANGER commercial vehicle. Polaris is pleased to be
working with an innovative company like ASV. We believe the partnership will
be a winning combination."
    The agreement calls for ASV to begin building the Polaris machines
immediately, with the expectation that machines will reach Polaris dealers in
the first quarter of 2001.
    The agreement with Polaris comes just two months after ASV signed an
alliance agreement with Caterpillar to jointly build new Caterpillar branded
products utilizing ASV's unique rubber-track technology.  The Polaris
agreement is independent of any agreements with Caterpillar, which owns
approximately 15 percent of ASV.
    Continuing, Lemke said, "We believe these new agreements with Caterpillar
and Polaris could account for additional sales for ASV of approximately
$20 million in 2001.  This will help ASV reach its goal of $100 million in
sales in 2002."
    ASV designs, manufactures and sells all-purpose crawlers, all-surface
loaders and related accessories and attachments.  For more information, visit
ASV's Web site at http://www.asvi.com .  Information on Polaris Industries can
be found at http://www.polarisindustries.com
    Note:  The statements contained in this release regarding ASV's plans to
manufacture and sell machines to Polaris Industries, Inc., including the
timing of their planned introduction, the anticipated revenues from the sale
of machines to Polaris and Caterpillar and ASV's overall revenue goals 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 effect whether these machines are ultimately produced
including ASV's ability to successfully manufacture the machines,
unanticipated delays, costs or other difficulties in the manufacture of the
machines, market acceptance of the machines, general market conditions,
corporate developments at ASV, Polaris or Caterpillar and ASV's ability to
realize the anticipated benefits from its relationship with Polaris and
Caterpillar.  Actual results might differ materially from those anticipated in
such forward-looking statements.  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 report on Form 10-Q for the nine
months ended September 30, 2000.