This repurchase authorization represents approximately 3.25 million shares, or about 12 percent of the Company's current common shares outstanding, and follows the completion of two previously authorized share repurchase programs and a third which is currently in progress. In total, the Company has repurchased and cancelled nearly 4 million common shares to date.

Commenting on the additional repurchase authorization, Chris Twomey, Arctic Cat president and CEO stated, "We create leading products in the leisure recreation industry including snowmobiles, ATVs and personal watercraft and have a positive outlook for the near-term growth prospects for Arctic Cat and the industry. We also continue to think that our shares are undervalued and our Board of Directors believes that the repurchase of our shares is an excellent use of our cash."

Arctic Cat currently has about 26 million common and Class B common shares outstanding. Approximately 29 percent of all shares are Class B common shares and are held by Suzuki Motor Corporation, a supplier of engines to the Company. No Class B common stock will be repurchased.

Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat(R) brand name, and personal watercraft under the Tigershark(R) brand name, as well as related parts, garments and accessories. To learn more about Arctic Cat, visit the Company's website at http://www.arctic-cat.com.

     

     CONTACT: Arctic Cat, Thief River Falls
              Tim Delmore                   
              218/681-9868                  
              or                                   
              Brian James                   
              Padilla Speer Beardsley Inc.  
              612/871-8877