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MINNEAPOLIS, MN – June 15, 2007 — Polaris Industries Inc. (NYSE:
PII) announced that its Austrian subsidiary has completed the second and
final closing of its sale of shares of KTM Power Sports AG (“KTM”) to a
subsidiary of KTM’s largest shareholder, Cross Industries AG (“Cross”),
under the terms of a previously announced agreement dated December 22,
2006, as supplemented on February 20, 2007. Approximately 0.27 million
shares were delivered at a purchase price of approximately 11.5 million
Euros. Polaris intends to utilize the proceeds generated from the second
closing completed today to reduce the outstanding balance of the
Company’s revolving credit facility. Polaris now holds approximately
0.34 million KTM shares, representing slightly less than 5 percent of
KTM’s current outstanding shares.
As a result
of the second closing completed today, Polaris expects to record in the
second quarter 2007 a gain on the sale of the KTM investment of
approximately $1.3 million pre-tax or approximately $0.02 per diluted
share, as previously announced. The gain is due to the recognition of
previously unrealized translation gains recorded in accumulated other
comprehensive income, a component of shareholders’ equity and was
contemplated in Polaris’ previously issued earnings from continuing
operations guidance range of $0.57 to $0.60 per diluted share for the
second quarter of 2007.
Polaris
will release its financial results for the second quarter 2007 on the
morning of Tuesday, July 17, 2007.
About
Polaris
Information about the complete line of Polaris products is available
from authorized Polaris dealers or from the Polaris homepage at
www.polarisindustries.com.
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. Consumers can
also purchase apparel and vehicle accessories anytime at
www.polarisindustries.com.
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.
Except
for historical information contained herein, the matters set forth in
this news release, including management’s expectations regarding 2007
sales, shipments, net income and cash flow, are forward-looking
statements that involve certain risks and uncertainties that could cause
actual results to differ materially from those forward-looking
statements. Potential risks and uncertainties include such factors as
product offerings, promotional activities and pricing strategies by
competitors; warranty expenses; foreign currency exchange rate
fluctuations; effects of the KTM relationship; environmental and product
safety regulatory activity; effects of weather; commodity costs;
uninsured product liability claims; and overall economic conditions,
including inflation and consumer confidence and spending. Investors are
also directed to consider other risks and uncertainties discussed in
documents filed by the Company with the Securities and Exchange
Commission.
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