The contract will cover three years and has a potential total value of more than $16 million; deliveries under the contract will commence prior to December 31, 2007.

"Polaris is very proud to continue its role in providing the U.S. Army with world-class machines that can be relied on to perform under the toughest conditions," said Tom Tiller, Polaris CEO. "The awarding of this TACOM contract and the continued relationship with the U.S. Army represents a major step for our overall business as we drive to achieve growth in adjacent market segments."

In the early part of 2007, Polaris outlined a set of objectives intended to achieve its sales and earning goals through 2009. One of the main focuses in the new strategy was to generate incremental sales from several growth businesses, including the exploration of opportunities in new adjacent market segments. The new TACOM contract and the Company's continued relationship with the U.S. Military validates this growth business directive and demonstrates its ability to expand into adjacent market segments outside of its typical consumer base.

The long-standing relationship between Polaris and the U.S. Military began in earnest in 2002 and, with increased opportunities over the past years, has become a great focus for new business for the Company. Already with thousands of machines in the field, this new contract continues Polaris support of U.S. Army Forces and its Allies with innovative, high performance and high quality products that are designed for a wide variety of military applications. 

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 cruiser and touring motorcycle 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.