POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)

December 31,					2002			2001
					(unaudited)
Assets
			Current Assets
			Cash and cash equivalents		$	81,193		$	40,530
			Trade receivables, net of allowance for doubtful accounts of $4,435 and $3,606			51,001			56,119
			Inventories			155,858			152,717
			Prepaid expenses and other			10,136			10,203
			Deferred tax assets			45,471			45,748
				Total current assets		343,659			305,317
Property and Equipment
			Land, buildings and improvements			62,089			54,350
			Equipment and tooling			325,042			305,647
						387,131			359,997
			Less accumulated depreciation			(217,535	)		(189,674	)
				Net property and equipment		169,596			170,323
Investments in Finance Affiliate and Retail Credit Deposit						65,185			52,963
Deferred Tax Assets						2,427			9,361
Goodwill, Net						24,267			23,541
Intangible and Other Assets, net						3,512			3,658
Total Assets					$	608,646		$	565,163
Liabilities and Shareholders’ Equity
Current Liabilities:
	Accounts payable				$	88,462		$	101,554
	Accrued expenses:
			Compensation			35,572			34,615
			Warranties			30,936			33,301
			Sales promotions and incentives			39,460			25,284
			Dealer holdback			73,651			69,996
			Other			25,005			27,715
	Income taxes payable					20,427			15,872
		Total current liabilities				313,513			308,337
Borrowings Under Credit Agreements						18,027			18,043
		Total Liabilities			$	331,540		$	326,380
Shareholders’ Equity:
	Preferred stock $0.01 par value, 20,000 shares authorized, no shares issued and outstanding				$	0		$	0
	Common stock $0.01 par value, 80,000 shares authorized, 22,300 and 22,927 shares issued and outstanding					223			229
	Additional paid-in capital					0			0
	Deferred compensation					(12,106	)		(4,888	)
	Retained earnings					289,656			248,634
	Accumulated other comprehensive income (loss)					(667	)		(5,192	)
		Total shareholders’ equity				277,106			238,783
			Total Liabilities and Shareholders’ Equity		$	608,646		$	565,163

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in Thousands)

					For the Year Ended December 31,
					2002			2001
					(unaudited)
Cash Flows From Operating Activities:
	Net income				$	103,592		$	91,414
	Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation and amortization			57,527			52,550
			Noncash compensation			16,212			15,455
			Non-cash income from financial services			(9,196	)		(12,463	)
			Deferred income taxes			7,211			(9,725	)
			Changes in current operating items -
				Trade receivables		5,118			11
				Inventories		(3,141	)		(9,226	)
				Accounts payable		(13,092	)		12,056
				Accrued expenses		13,713			57,922
				Income taxes payable		9,203			(25	)
				Others, net		5,624			(9,388	)
				Net cash provided by operating activities		192,771			188,581
Cash Flows From Investing Activities:
		Purchase of property and equipment				(56,575	)		(53,982	)
		Investments in finance affiliate and retail credit deposit				(28,301	)		(31,479	)
		Distributions from finance affiliate and retail credit deposit				25,275			36,448
		Other				(726	)		(3,753	)
				Net cash used for investing activities		(60,327	)		(52,766	)
Cash Flows From Financing Activities:
		Borrowings under credit agreement				347,000			717,596
		Repayments under credit agreement				(347,016	)		(746,621	)
		Repurchase and retirement of common shares				(75,956	)		(49,207	)
		Cash dividends to shareholders				(25,273	)		(22,846	)
		Proceeds from exercise of stock options				9,464			3,424
				Net cash used by financing activities		(91,781	)		(97,654	)
			Increase in cash and cash equivalents			40,663			38,161
Cash and Cash Equivalents
		Beginning				40,530			2,369
		Ending			$	81,193		$	40,530

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except for Per Share Data)

					For Three Months Ended						For the Year Ended
					December 31,						December 31,
					2002			2001			2002			2001
Sales					$	431,519		$	419,781		$	1,521,282		$	1,487,651
	Cost of Sales					333,858			326,286			1,189,002			1,180,654
			Gross profit			97,661			93,495			332,280			306,997
	Operating Expenses Selling & marketing					21,175			23,006			86,719			82,528
			Research & development			13,491			10,661			45,550			35,708
			General and administrative			16,968			16,497			61,720			58,943
				Total operating expenses		51,634			50,164			193,989			177,179
Income from financial services						4,531			4,165			14,643			14,355
Operating Income						50,558			47,496			152,934			144,173
	Non-operating Expense (Income) Interest expense					380			875			2,397			7,251
			Other expense (income), net			(1,740	)		(1,787	)		(3,634	)		(2,641	)
			Income before income taxes			51,918			48,408			154,171			139,563
Provision for Income Taxes						16,873			16,701			50,579			48,149
			Net income		$	35,045		$	31,707		$	103,592		$	91,414
Basic EPS					$	1.59		$	1.41		$	4.64		$	4.00
Diluted EPS					$	1.51		$	1.35		$	4.39		$	3.88
Weighted average number of common and common equivalent shares outstanding:
		Basic				22,012			22,490			22,312			22,864
		Diluted				23,223			23,484			23,616			23,567

Selected Balance Sheet Data	For the Year Ended December 31,
(in thousands)		2002		2001
Cash and cash equivalents		$	81,193	$	40,530
Trade receivables (net)			51,001		56,119
Inventories (net)			155,858		152,717
Total assets			608,646		565,163
Accounts payable			88,462		101,554
Borrowings under credit agreement			18,027		18,043
Shareholders’ equity			277,106		238,783

		For Three Months Ended							For the Year Ended
		December 31,							December 31,
Product Line Information
(in thousands)		2002		2001		Incr %			2002		2001		Incr %
Snowmobiles		$	81,759	$	96,877		(16	)%	$	293,361	$	373,041		(21	)%
All-terrain Vehicles			269,558		241,013		12	%		937,941		826,983		13	%
Personal Watercraft			15,730		23,405		(33	)%		53,112		60,251		(12	)%
Victory Motorcycles			9,587		3,089		210	%		33,812		18,693		81	%
Parts, Garments & Accessories			54,885		55,397		(1	)%		203,056		208,683		(3	)%
	Total Sales	$	431,519	$	419,781		3	%	$	1,521,282	$	1,487,651		2	%

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