Polaris, Fuji form company to build engines; Hudson facility to supply recreation, industrial...

Under the agreement, Fuji, which is based in Tokyo, Japan, will own 60 percent and Minneapolis-based Polaris will own 40 percent of Robin.

Polaris Chairman and Chief Executive Officer W. Hall Wendel, Jr., said Polaris and Fuji have had strong business ties since the mid-1960s, when Fuji first began building engines for Polaris snowmobiles. Today, all Polaris snowmobiles, all-terrain vehicles and personal watercraft are powered by Fuji-built engines.

"Robin will leverage Fuji's engine building expertise, giving Polaris and other manufacturers a domestic supplier of high-quality, high-performance engines," Wendel said.

Both Fuji and Polaris will realize significant benefits, Wendel added. For Polaris, the plant will eliminate overseas shipping and engine cost increases due to the rising Yen, resulting in reduced manufacturing costs. And Fuji, which builds about 800,000 engines annually in Japan, will enjoy a stronger presence in the expanding U.S. market for gas-powered recreation, utility and industrial products.

Robin customers also will benefit from the plant's location, Wendel said. Hudson is on the Wisconsin-Minnesota border, close to major shipping hubs in the Twin Cities and also near key customers including Polaris, which has manufacturing facilities in Roseau, Minn., Spirit Lake, Iowa and Osceola, Wis.

Fuji Heavy is best known as the manufacturer of SUBARU automobiles and is positioned for continuing leadership in the global transportation industry. The Industrial Products division of Fuji provides several models of sophisticated Robin engines to a diversified group of customers. The combination of innovation and technological achievement establishes a strong base for growth into the 21st Century, for both Polaris and Fuji.

Polaris designs, engineers, manufactures and markets snowmobiles, all-terrain vehicles and personal watercraft for recreational and utility use. Polaris is the world's largest snowmobile manufacturer, and one of the largest U.S. manufacturers of ATVs and personal watercraft. Polaris trades on the American and Pacific Stock Exchange under the symbol "SNO."

CONTACT: Polaris Industries Inc.

W. Hall Wendel, Jr., or Ken Larson, 612/542-0500

or

Fuji Heavy Industries Ltd.

Isamu Kawai or Yasuhito Yamaki, 81-3-3347-2400 (Japan)

or

Mona Meyer McGrath & Gavin

Dave Mona or John Shaughnessy, 612/832-5000

or

Robin Manufacturing U.S.A. Inc.

Don Haase or Angie Larson, 715/381-5902