Polaris Reports Third Quarter 2008 Results, Sales Grew Seven Percent to a Record $580.3 Million;

Earnings from Continuing Operations Increased to a Record $1.13 Per Diluted Share

Third Quarter 2008 Highlights:
-- Results exceeded the Company's expectations driven by strong ATV sales primarily from growth in the RANGER(TM) side by side business, increased PG&A and International sales
-- Sales reached a record of $580.3 million in the third quarter driven by a five percent increase in ATV sales, a 20 percent increase in PG&A sales and a 31 percent increase in International sales
-- Earnings per diluted share from continuing operations increased six percent to $1.13, from $1.07 per diluted share last year
-- During the quarter the Company unveiled significant new model year 2009 product news with the introduction of two all new Sportsman ATVs, an all new design for RANGER(TM) utility side-by-side vehicles and expanded the RZR side-by-side recreational product line with the new RZR S
-- The availability of retail credit financing to Polaris consumers improved during third quarter 2008 as compared to third quarter 2007 levels with 41 percent of Polaris consumers in the United States financing purchases through the Company's retail financing relationships with HSBC and GE and over 50 percent of consumer retail credit loan applications being approved by either HSBC or GE
-- Raising and narrowing full year 2008 earnings from continuing operations guidance to $3.47 to $3.50 per diluted share, a 12 to 13 percent increase over 2007 on expected full year 2008 sales growth of 10 to 11 percent

Polaris Industries Inc. (NYSE: PII) reported third quarter net income from continuing operations of $37.7 million, or $1.13 per diluted share, for the quarter ended September 30, 2008. By comparison, 2007 third quarter net income from continuing operations was $39.1 million, or $1.07 per diluted share. Sales for the third quarter 2008 totaled a record $580.3 million, an increase of seven percent from last year’s third quarter sales of $544.0 million. Reported net income for the 2008 third quarter, including discontinued operations was $37.7 million, or $1.13 per diluted share compared to net income of $38.8 million, or $1.06 per diluted share in the third quarter of 2007.

Scott Wine, Polaris’ new Chief Executive Officer commented, “The strong performance of Polaris in a difficult economic environment is impressive. We have a unique combination of great products, a strong brand and leading edge technology for which I credit our employees and management team. Their passion and commitment to this company is a key reason I was excited to join Polaris, and it is also what gives me confidence in our ability to outperform our peers in various market conditions. Our strong financial performance during the third quarter underscores the validity of the strategy Tom Tiller and Bennett Morgan, and their teams developed and have executed to date. We are appropriately adjusting to the challenging powersports industry, but will continue to drive operational excellence and product innovation to ensure that we maintain industry leading performance.”

2008 Business Outlook

While Polaris is not immune from the deteriorating macroeconomic environment and is continuously monitoring consumer spending and industry trends to detect any significant changes, the Company has confidence in its ability to continue to deliver solid operating results in the 2008 fourth quarter. Based on the orders received from dealers for model year 2009 products and the continued strength in several markets including the side-by-side market segment, along with ongoing productivity and efficiency improvement efforts through operational excellence, the Company is narrowing and raising guidance for full year 2008 earnings. The Company now expects sales growth in the range of ten to eleven percent for the full year 2008 with earnings from continuing operations to be in the range of $3.47 to $3.50 per diluted share, compared to earnings from continuing operations of $3.10 per diluted share for the full year 2007. As a result, the Company expects fourth quarter 2008 sales growth to be in the range of flat to up two percent over the fourth quarter of 2007, with earnings from continuing operations in the range of $1.07 to $1.10 per diluted share for the fourth quarter of 2008 compared to earnings of $1.07 per diluted share in the fourth quarter 2007.

Share Buyback Activity

During the third quarter 2008, the Company repurchased and retired 0.4 million shares of its common stock bringing the total shares repurchased to 2.4 million shares for the nine months ended September 30, 2008 at a total cost of $102.9 million. Since inception of the share repurchase program in 1996, 33.5 million shares have been repurchased at an average price of $32.68 per share. As of September 30, 2008, the Company has authorization from its Board of Directors to repurchase up to an additional 4.0 million shares of Polaris stock. Polaris may repurchase the balance of the share authorization from time to time in open market or privately negotiated transactions in accordance with applicable federal securities laws.

About Polaris

With annual 2007 sales of $1.8 billion, Polaris designs, engineers, manufactures and markets all-terrain vehicles, including the Polaris RANGER™ side-by-side vehicles (ATVs), snowmobiles and Victory motorcycles for recreational and utility use.

Polaris is a recognized leader in the snowmobile industry, one of the largest manufacturers of all-terrain recreational, utility and side-by-side vehicles in the world, and rapidly making impressive in-roads into the motorcycle cruiser and touring marketplace under the Victory® brand. The Victory motorcycle division was established in 1998 representing the first all-new American-made motorcycle from a major company in nearly 60 years. 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 are available from authorized Polaris dealers or anytime from the Polaris homepage at www.polarisindustries.com.