WE SEE NEW OPPORTUNITY IN OUR LOYAL CUSTOMERS. Nearly 30 percent of customers own multiple Polaris vehicles. Roughly 40 percent of our snowmobile owners trade in every two years. And the average Polaris owner spends an additional $450 a year on parts, garments and accessories (PG&A). We have more than 500,000 members in our Preferred Registered Owners (PRO) club who already believe in the brand and demonstrate that devotion with their wallets. We know where they live and what they like. By continuing to meet their needs we’ll gain a greater share of their wallets and make Polaris the dominant brand in recreational and utility vehicles. REVVING UP THE PG&A PROFIT MACHINE Our vehicles tend to get the glory, but our brand-boosting PG&A are the most profitable products we sell. And they’ll contribute even more in the future: We plan to double PG&A sales in the next three years. We can do it with minimal investment because we already have an infrastructure and cost-effective distribution system in place, thanks to an innovative worldwide distribution center we opened in 1997. We’re also adding PG&A-dedicated sales and development experts to focus on market trends, expand the merchandise lines and develop new partnerships. Plus, for the first time in our history, we’ll invest in PG&A-specific advertising and promotion beginning in 1999. TAPPING NEW CONSUMBER SEGMENTS In 1998 we entered into several successful co-marketing agreements that are giving us access to new consumer groups. Our sponsorship of NASCAR racing, the country’s fastest growing spectator sport, is a good example. Since NASCAR demographics are such a close match for potential Polaris customers it’s been an effective way to increase sales, especially in the southeastern U.S. So much so, that Polaris is increasing the level of sponsorship in the Remington™/Polaris race team and continuing with cross-marketing opportunities. MAKING IT EASIER TO PURCHASE... AGAIN AND AGAIN AND AGAIN We’re borrowing a successful tool from the automotive industry to build loyalty and make Polaris vehicles attractive to a broader customer base. In 1999 we’re introducing consumer leasing, which accounts for 30 percent of all automotive sales. Studies show that leasing customers tend to be extremely loyal — relying on their dealers for everything from parts and service to their next vehicle. Another improved financial tool, our
		© 1999 Polaris Industries Inc.