October 20 2010.

Polaris Industries Inc. today reported third quarter net income of $47.2 million, or a record $1.37 per diluted share, for the quarter ended September 30, 2010. By comparison, 2009 third quarter net income was $31.2 million, or $0.94 per diluted share. Sales for the third quarter 2010 totaled $580.1 million, an increase of 33 percent when compared to $436.2 million recorded in the year-earlier period.

"We are pleased with the execution of the Polaris team and our Company's performance during the third quarter," commented Scott Wine, Polaris' Chief Executive Officer. "While the economy and overall consumer demand remains weak, our growth continues to be fueled by innovative new products and our strong dealer network. It is rewarding to see our hard work pay off and be able to report 33 percent sales growth and record earnings per share for the quarter. The momentum we experienced during the first half of 2010 accelerated during the third quarter, as we saw continued market share gains, retail sales growth and margin expansion."

Off-Road vehicles sales, which include sales of both ATVs (all-terrain vehicles) and Ranger side-by-side vehicles, increased 49 percent during the third quarter 2010 from the third quarter 2009. This increase reflects significant market share gains for both ATVs and side-by-side vehicles driven by industry leading product offerings and the success of the MVP retail go-to-market process.

Sales of the On-Road division, which primarily consists of Victory motorcycles, increased 116 percent during the third quarter of 2010 when compared to the same period in 2009. The North American heavyweight cruiser and touring motorcycle industry remained weak during the quarter, but Victory continued to benefit from the actions implemented over the past year to accelerate growth. Victory unit retail sales were very strong during the third quarter, increasing more than 50 percent in North America compared to the third quarter of 2009, resulting in market share gains and retail sales growth for the fourth consecutive quarter. Demand increased across the Victory product line-up, particularly the new Cross Country™ and Cross Roads™ touring models. North American dealer inventory of Victory motorcycles declined 32 percent in the 2010 third quarter compared to 2009 third quarter levels. The sale of Victory motorcycles in markets outside of North America also continues to increase, with sales up over 100 percent for the 2010 third quarter compared to the same period last year.