KTM becomes Polaris’ Distributor in Germany

Minneapolis, March 7, 2006 – Polaris Industries Inc. (NYSE/PSE: PII) today announced that effective March 1, 2006 KTM-Sportmotorcycle AG has become Polaris’ exclusive distributor in Germany for Polaris All Terrain Vehicles, Quadricycles, Snowmobiles and Polaris RANGER™ vehicles.

“KTM has established a dedicated sales force to manage the Polaris brand and product sales. KTM will leverage our back office operations in Germany to increase sales, build the Polaris brand, and increase dealer service and satisfaction while minimizing distribution costs. We are excited to get this project started” said Hubert Trunkenpolz, KTM’s Vice President of Marketing & Sales.

“Polaris is excited to leverage KTM’s strong presence and understanding of the German Powersports market to further develop the Polaris brand and sales in Germany” said Mark Blackwell, Polaris Vice President Victory Motorcycles and International Operations. “Polaris dealers in Germany will sign a separate Polaris dealer contract with KTM and be managed by a separate sales force dedicated to the Polaris product line. While there will be some common KTM and Polaris dealers in Germany going forward, market conditions in specific areas and individual dealer capabilities required for the KTM and Polaris product lines will dictate how many common dealers there will ultimately be.”

In July 2005, Polaris and KTM announced a strategic partnership with the goal of strengthening the competitive position of both companies and providing tangible benefits to customers, dealers, suppliers and shareholders. KTM’s distribution of Polaris products in Germany supports this goal. It is not expected that KTM will become the distributor of Polaris products in any other European market in the near future. According to Mark Blackwell, “We want to focus our joint cooperative distribution effort on this key market to ensure success and demonstrate the compatibility of our product lines, brand positioning and dealer networks.”

About Polaris
With annual 2005 sales of $1.9 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 and Pacific 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.

About KTM
KTM-Sportmotorcycle AG designs, engineers, manufacturers and markets off-road and on-road motorcycles and related parts, garments and accessories with annual sales of 451.2 million Euros in 2005. The product portfolio consists of over 23 different off-road and on-road motorcycles ranging in engine size from 50cc to 990cc.

KTM is best known for it racing heritage. KTM has won 120 World Championship Titles, 14 in 2005 alone. The Company employs approximately 1,600 employees and assembles its engines and motorcycles in Mattighofen, Austria. Additionally, the Company manufactures exhaust systems, frames, shocks and spoke wheels. KTM sells it motorcycles through a network of over 1400 independent dealers and approximately 50 distributors worldwide with Europe being its strongest market. Information about the complete line of KTM products, apparel and vehicle accessories is available from authorized KTM dealers or from the KTM homepage at www.ktm.com.