in thousands, except per share and per unit data
		The selected financial data presented below are qualified in their entirety by, and should be read in conjunction with, the Consolidated Financial Statements and Notes thereto and other financial aid statistical information referenced elsewhere herein, including the information referenced under the caption "Management's Discussion and Analysis of Financial Condition and Results of operation."

		1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 Statement of Operations Data Sales data     Total dollars            $ 1,175,520           $ 1,048,296           $ 1,191,901            $ 1,113,852            $ 826,286            $ 528,011            $ 383,818            $ 297,677            $ 296,147            $ 242,618            $ 171,497        % change from prior year 12 % (12 %) 7 % 35 % 56 % 38 % 29 % 1 % 22 % 41 % 24 %     Sales mix by product (%)        Snowmobiles 32 % 42 % 43 % 46 % 52 % 59 % 63 % 69 % 74 % 74 % 77 %        All-terrain vehicles 57 % 45 % 37 % 33 % 30 % 27 % 25 % 25 % 19 % 19 % 17 %        Personal watercraft 4 % 7 % 16 % 16 % 14 % 9 % 7 % -- -- -- --        Motorcycles 1 % -- -- -- -- -- -- -- -- -- --        International 6 % 6 % 4 % 5 % 4 % 5 % 5 % 6 % 7 % 7 % 6 % Gross profit data     Total dollars $ 278,287 $ 262,538 $ 263,816 $ 247,993 $ 196,783 $ 141,387 $ 112,322 $ 94,120 $ 93,845 $ 80,384 $ 54,728        % of sales 24 % 25 % 22 % 22 % 24 % 27 % 29 % 32 % 32 % 33 % 32 % Operating expense data     Amortization of intangibles and noncash compensation $ 8,703 $ 5,887 $ 5,325 $ 5,616 $ 14,321 $ 13,466 $ 11,997 $ 13,108 $ 12,116 $ 15,717 $ 8,645     Conversion costs -- -- -- -- 12,315 -- -- -- -- -- --     Other operating expenses 169,478 163,549 161,074 140,719 94,485 74,694 59,634 49,294 50,917 38,366 27,620        % of sales 14 % 16 % 14 % 13 % 11 % 14 % 16 % 17 % 17 % 16 % 16 % Actual, adjusted(1), and pro forma data(2)     Net income $ 70,624 (1)  $ 65,383 $ 62,293 $ 60,776 $ 54,703 $ 33,027 $ 24,602 $ 20,727 $ 20,465 $ 16,657 $ 11,538     Diluted net income per share $ 2.72 (1)  $ 2.45 $ 2.24 $ 2.19 $ 1.98 $ 1.21 $ 0.91 $ 0.81 $ 0.79 $ 0.65 $ 0.47   Cash Flow Data Cash flow from operating activities $ 121,385 $ 102,308 $ 89,581 $ 77,749 $ 111,542 $ 78,503 $ 55,316 $ 46,642 $ 54,782 $ 44,447 $ 37,542 Purchase of property and equipment 61,532 36,798 45,336 47,154 32,656 18,946 12,295 15,988 7,158 7,065 2,724 Repurchase and retirement of common stock 37,728 39,903 13,587 -- -- -- -- -- -- -- -- Cash dividends to shareholders 18,582 16,958 16,390 116,639 -- -- -- -- -- -- -- Cash dividends per share $ 0.72 $ 0.64 $ 0.60 $ 4.27 -- -- -- -- -- -- -- Cash distributions declared to partners -- -- -- -- 50,942 47,217 44,507 42,581 42,582 32,514 17,722 Cash distributions declared per unit -- -- -- -- $ 1.68 $ 1.67 $ 1.67 $ 1.67 $ 1.67 $ 1.51 $ 0.80   Balance Sheet Data (at end of year) Cash and cash equivalents $ 1,466 $ 1,233 $ 5,812 $ 3,501 $ 62,881 $ 33,798 $ 19,094 $ 20,098 $ 32,025 $ 27,886 $ 15,599 Current assets 183,840 217,458 193,405 175,271 206,489 109,748 74,999 59,200 66,893 60,344 36,377 Total assets 378,697 384,746 351,717 314,436 331,166 180,548 146,681 135,509 138,704 137,628 118,070 Current liabilities 204,964 191,111 161,387 155,722 161,457 98,055 69,054 52,646 46,602 38,875 20,665 Borrowings under credit agreement 20,500 24,400 35,000 40,200 -- -- -- -- -- -- -- Shareholders' equity/Partners' capital 153,233 169,235 155,330 118,514 169,709 82,493 77,627 82,863 92,102 98,753 97,405 (1) In 1998, Polaris entered into a settlement agreement related to a trade secret infringement claim brought by Injection Research Specialists, Inc. The one-time provision for litigation loss of $61.4 million, or $1.53 per diluted share, has been excluded from the 1998 financial data presented. (2) The comparability of the information reflected in the Selected Financial data is materially affected by the conversion from a master limited partnership to a corporation on December 22, 1994, which resulted in the Company recording a net deferred tax asset of $65.0 million, conversion expenses of $12.3 million and a corresponding net increase in 1994 net income. Pro forma data is presented to assist in comparing the continuing results of operations of the Company exclusive of the conversion costs and as if the Company was a taxable corporation for each period presented. © 1999 Polaris Industries Inc.