Realignment expected to improve long-term competitive positioning resulting from logistical and production cost savings while expediting delivery times

In an effort to improve its long-term competitive positioning, increase operational efficiencies and position the company for future growth, Polaris Industries Inc. (NYSE: PII) today announced plans to realign its operations and refocus on its core strategic manufacturing processes.

The Company will create manufacturing centers of excellence for Polaris Products by enhancing the existing Roseau, Minn. and Spirit Lake, Iowa, production facilities and establishing a new facility in Mexico.

The Company is currently evaluating several possible locations in the Monterrey/Saltillo area of Mexico for the new facility. The realignment will lead to the eventual sale or closure of Polaris’ Osceola, Wisconsin manufacturing operations over time.

The realignment allows the Company to dedicate capital for strategic investments in painting, welding and assembly operations by outsourcing certain non-strategic component manufacturing processes. The Mexico facility is expected to maintain Polaris’ industry leading quality while improving the Company’s on-time delivery to customers and provide significant savings in logistical and production costs.

The realignment of Polaris’ manufacturing footprint will strengthen the Company’s position in the powersports industry, as it will enable Polaris to have production facilities closer to customers in the southern United States and global markets the Company currently serves or expects to serve in the future.

When the manufacturing realignment is completed the Company will have capabilities to manufacture ORVs (both ATVs and side-by-side vehicles), which represents more than two-thirds of the Company’s sales, in multiple locations depending on customer demand.

Snowmobile assembly will remain in the Roseau facility and Victory motorcycle assembly will remain in the Company’s Spirit Lake facility. As part of the manufacturing realignment, certain Osceola manufacturing processes will be moved into the Roseau, Spirit Lake and Mexico facilities to more effectively utilize Company resources.

In addition, certain manufacturing processes and equipment are intended to be sold to suppliers whom will continue to supply components to Polaris. Other non-strategic component manufacturing operations currently performed in the Osceola facility will be outsourced. The realignment will begin immediately and is scheduled to be complete in 2012. The Company will look to have the new production facility in Mexico operational beginning in the first half of 2011.

Polaris is currently in negotiations with several suppliers to sell certain non-strategic component manufacturing processes and equipment in the Osceola facility. If successful, Polaris’ intent is that the suppliers will continue to manufacture these components in the current Osceola location.

Polaris will operate the Osceola manufacturing facilities during the transition period. Upon completion of the transition, Polaris will provide the affected employees severance benefits and work closely with the Wisconsin Department of Labor and other state and local agencies to offer employment assistance and other services.

The Company expects to record pretax transition charges to its income statement in the range of $20 million to $25 million and incur capital expenditures up to $35 million over the next few years related to the implementation of the manufacturing realignment.

The Company expects the Osceola facility exit costs, comprising largely of one-time employee termination benefits, to amount to approximately a third of the total transition charges, while the start-up costs related to the new Mexico facility and other centers of excellence will comprise the balance. Transition charges to be incurred in calendar year 2010 are expected to be in the range of $8 to $10 million. The Company’s current earnings guidance of earnings per share of $3.48 to $3.60 for the full year 2010 will not change as a result of this announcement.

The realignment is expected to generate pre-tax costs and expense savings in excess of $30 million on an annual basis when the transition has been completed. The Company expects to begin realizing some of the cost savings as early as 2011.

Dustin Wimmer leads the AMA ATV MX Championship in points aboard his Rockstar Makita Suzuki QuadRacer R450. Josh Creamer is in second place overall in the series and in his first year on the team. Wimmer finished second overall, and Creamer finished third at Sunset Ridge.

The Rockstar Makita Suzuki ATV motocross team scored another double podium over the weekend at the Sunset Ridge Motocross Park in Walnut, Illinois.

The team finished 2-3 overall, with defending back-to-back champion Dustin Wimmer taking second, and Josh Creamer taking third. This is the fourth time in as many rounds that the team has put both Suzuki QuadRacer R450s on the podium.

Dustin Wimmer took third in the first moto, and the win in the second moto. His performance earned him enough points to regain his status as the point leader for the AMA ATV MX series, just ahead of teammate and former point-leader Josh Creamer. Only five points separate the two teammates, and their Suzuki R450s have been tough to beat all year.

Creamer placed second in the first moto and felt strong going into the second moto. With a strong start, things looked promising until Creamer accidentally pulled his engine’s kill switch during the race, dropping him to finish fifth. Despite the incident, Creamer managed to put his QuadRacerR450 on the podium and earned valuable points toward the championship. “We ran into some bad luck halfway through the race,” said Creamer, “but I put my head down and still got into a podium position!”

Thanks to the efforts of these two talented racers, the Suzuki QuadRacer R450 has never been off the podium in the 2010 ATV MX season, and has been on the top step at three of the four rounds so far this year.

With racers like Dustin and Josh at the helm, the Rockstar Makita Suzuki team is well on its way to another phenomenal season.

The next round of the 2010 ATV Motocross Championship series takes place at the Steel City Raceway in Delmont, PA, on May 29-30.

University of Florida Chapter Receives Second Award; Texas Tech University and Oklahoma State University Students Earn Individual Scholarships

Yamaha Motor Corp., U.S.A., has named the recipients of its second annual Yamaha-ACT Scholarship Program.

The University of Florida Chapter of the National Agricultural Communicators of Tomorrow (ACT) has received its second straight chapter award, while Kelsey Fletcher of Texas Tech University and Hailey Harroun of Oklahoma State University both earned individual scholarships.

As recipients of the individual scholarships, both Fletcher and Harroun will also have the opportunity to serve as interns for Yamaha during the 2010 Ag Media Summit.

Yamaha’s scholarship program was launched in 2009 to provide financial assistance to members of the ACT, a national college student association with 354 registered members located on 17 college and university campuses across the country. ACT’s mission of fostering professional development is at the core of the new Yamaha-ACT Scholarship Program.

The Yamaha-ACT Scholarship Program is broken out into two individual student scholarships and one chapter scholarship. All three awards are aimed at helping students attend the annual Agricultural Media Summit (AMS).

As the largest gathering of crop and livestock media professionals in the country hosted by the Agricultural Editors’ Association (AAEA) and the Livestock Publications Council (LPC), the AMS is the ACT’s primary career development networking opportunity for these students each year.

As part of the application process, students were asked to incorporate important ATV and Side-by-Side (SxS) vehicle safety messages within an appropriate real life farming/agricultural scenario into practical communications pieces such as a feature story, brochure or press release.

This part of the application was meant to demonstrate the students’ quality of work, and also to seed safety messages that they can carry throughout their careers as professional communicators.

“Yamaha congratulates each of the recipients of our Second Annual Yamaha-ACT Scholarship program, and we are proud to assist them in their pursuit of a career in agricultural communications,” said Steve Nessl, Yamaha’s ATV and SxS group marketing manager. “We hope our application process allowed these ACT students to educate themselves on safe, responsible off-road vehicle use and how they can continue to communicate these messages in their future professions.”

“Yamaha’s scholarship program provides funding for agricultural communications student members of ACT, enabling the students to experience professional career development opportunities that may have previously been out of reach financially,” said Jeff Miller, professor of agricultural communications at the University of Arkansas and national adviser of ACT. “The program also offers a unique way for students to exercise and display their skills and for Yamaha to communicate its key messages related to safety to the next generation of agricultural journalists and communicators.”

Applicants were judged based on merit, need and quality of submission materials by a review committee consisting of Yamaha employees; AAEA President and Director of Communications at Iowa Soybean Association, Karen Simon; Livestock Publications Council President and Senior Director at The American Quarter Horse Journal, Jim Bret Campbell; and Christy Couch Lee, owner of Cee Lee Communications.

About Yamaha Motor Corp., U.S.A. – Yamaha Motor Corporation, U.S.A., (YMUS), a leader in the motorsports market, makes the toughest, most capable and versatile ATV and Side-by-Side vehicles. The company’s ever-expanding product offerings also include motorcycles, outboard motors, personal watercraft, snowmobiles, boats, outdoor power equipment, race kart engines, accessories, apparel and much more. YMUS products are sold through a nationwide network of dealers in the United States. Headquartered in Cypress, Calif., since its incorporation in 1976, Yamaha also has facilities in Wisconsin and Georgia, as well as factory operations in Tennessee and Georgia. For more information on Yamaha, visit www.yamaha-motor.com.