11-YEAR SELECTED FINANCIAL DATA 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 and statistical information, including the information referenced under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” located in the Form 10-K included in this report.

For the Years Ended December 31,	2003			2002			2001			2000
Statement of Operations Data
Sales data:
Total sales	$	1,605,869		$	1,521,282		$	1,487,651		$	1,393,039
% change from prior year		6	%		2	%		7	%		7	%
Sales mix by product:
All-terrain vehicles		65	%		62	%		56	%		59	%
Snowmobiles		14	%		19	%		25	%		22	%
Personal watercraft		3	%		4	%		4	%		5	%
Motorcycles		4	%		2	%		1	%		1	%
PG&A		14	%		13	%		14	%		13	%
Gross profit data:
Total gross profit	$	360,017		$	332,280		$	306,997		$	287,746
% of sales		22	%		22	%		21	%		21	%
Operating expense data:
Amortization of intangibles and noncash compensation	$	14,472		$	16,437		$	16,482		$	12,702
Conversion costs		—			—			—			—
Other operating expenses		202,411			177,552			160,697			153,250
% of sales		13	%		12	%		11	%		11	%
Actual and pro forma data:(2)
Net income	$	110,929		$	103,592		$	91,414		$	82,809
Diluted net income per share	$	2.46		$	2.19		$	1.94		$	1.75
Cash Flow Data
Cash flow from operating activities	$	155,765		$	192,771		$	188,581		$	107,666
Purchase of property and equipment		61,436			56,575			53,982			63,056
Repurchase and retirement of common stock		73,125			76,389			49,207			39,622
Cash dividends to shareholders		26,657			25,273			22,846			20,648
Cash dividends per share	$	0.62		$	0.56		$	0.50		$	0.44
Cash distributions declared to partners		—			—			—			—
Cash distributions declared per unit		—			—			—			—
Balance Sheet Data (at end of year)
Cash and cash equivalents	$	82,761		$	81,193		$	40,530		$	2,369
Current assets		387,716			343,659			305,317			240,912
Total assets		671,352			608,646			565,163			490,186
Current liabilities		330,478			313,513			308,337			238,384
Borrowings under credit agreement		18,008			18,027			18,043			47,068
Shareholders’ equity/partners’ capital		319,378			277,106			238,783			204,734

NOTE: Shares and earnings per share data have been adjusted throughout the annual report to give effect to the two-for-one stock split declared on January 22, 2004 and payable on March 8, 2004 to shareholders of record on March 1, 2004.

(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 amounted to $61.4 million, or $0.77 per diluted share in 1998. The settlement had no effect on the future operations of the Company. Excluding this charge, other operating expenses, net income and diluted net income per share for 1998 would have been $102.8 million, $70.6 million and $1.36 per share, respectively.

(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			1998			1997			1996			1995			1994			1993
$	1,296,409		$	1,152,812		$	1,008,538		$	1,156,579		$	1,078,784		$	804,597		$	511,924
	12	%		14	%		(13	)%		7	%		34	%		57	%		38	%
	57	%		56	%		45	%		37	%		33	%		30	%		27	%
	24	%		27	%		35	%		36	%		40	%		43	%		49	%
	4	%		4	%		6	%		15	%		16	%		14	%		9	%
	3	%		1	%		—			—			—			—			—
	12	%		12	%		14	%		12	%		11	%		13	%		15	%
$	254,889		$	211,644		$	188,414		$	193,996		$	185,272		$	157,354		$	114,159
	20	%		18	%		19	%		17	%		17	%		20	%		22	%
$	10,472		$	8,703		$	5,887		$	5,325		$	5,616		$	14,321		$	13,466
	—			—			—			—			—			12,315			—
	130,771			164,244	(1)		89,425			91,254			77,998			55,056			47,466
	10	%		14	%(1)		9	%		8	%		7	%		7	%		9	%
$	76,326		$	31,015	(1)	$	65,383		$	62,293		$	60,776		$	54,703		$	33,027
$	1.53		$	0.60	(1)	$	1.22		$	1.12		$	1.09		$	0.99		$	0.60
$	124,354		$	121,385		$	102,308		$	89,581		$	77,749		$	111,542		$	78,503
	65,063			61,532			36,798			45,336			47,154			32,656			18,946
	52,412			37,728			39,903			13,587			—			—			—
	19,732			18,582			16,958			16,390			116,639			—			—
$	0.40		$	0.36		$	0.32		$	0.30		$	2.13			—			—
	—			—			—			—			—			50,942			47,217
	—			—			—			—			—		$	0.84		$	0.84
$	6,184		$	1,466		$	1,233		$	5,812		$	3,501		$	62,881		$	33,798
	214,714			183,840			217,458			193,405			175,271			206,489			109,748
	442,027			378,697			384,746			351,717			314,436			331,166			180,548
	233,800			204,964			191,111			161,387			155,722			161,457			98,055
	40,000			20,500			24,400			35,000			40,200			—			—
	168,227			153,233			169,235			155,330			118,514			169,709			82,493

OTHER INVESTOR INFORMATION

STOCK EXCHANGES

Shares of common stock of Polaris Industries Inc. trade on the New York Stock Exchange and on the Pacific Stock Exchange under the symbol PII.

INDEPENDENT AUDITORS

Ernst & Young LLP
Minneapolis, MN

TRANSFER AGENT AND REGISTRAR

Communications concerning transfer requirements, address changes, dividends and lost certificates, as well as requests for Dividend Reinvestment Plan enrollment information, should be addressed to:

Wells Fargo Bank Minnesota, N.A.
Shareowner Services
161 North Concord Exchange
South St. Paul, MN 55075-1139
1-800-468-9716
www.wellsfargo.com/com/shareowner_services

ANNUAL SHAREHOLDERS’ MEETING

The meeting will be held at 9 a.m., Thursday, April 22, 2004, at the Polaris Industries Inc. corporate headquarters, 2100 Highway 55, Medina, Minnesota. A proxy statement will be mailed on or about March 11, 2004, to each shareholder of record on March 1, 2004.

SUMMARY OF TRADING

	For the Years Ended December 31,
	2003				2002
Quarter	High		Low		High		Low
First	$	30.05	$	22.11	$	33.13	$	26.03
Second		33.03		24.38		38.38		30.70
Third		40.71		29.93		38.50		29.00
Fourth		46.15		37.00		33.78		28.00

CASH DIVIDENDS DECLARED

Cash dividends are declared quarterly and have been paid since 1995. As of January 22, 2004, the quarterly dividend was increased to $0.23 per share.

Quarter	2003		2002
First	$	.155	$	0.14
Second		.155		0.14
Third		.155		0.14
Fourth		.155		0.14
Total	$	0.62	$	0.56

SHAREHOLDERS OF RECORD

Shareholders of record of the Company’s common stock on February 24, 2004 were 2,712.

DIVIDEND REINVESTMENT PLAN

Shareholders may automatically reinvest their dividends in additional Polaris common stock through the Dividend Reinvestment Plan, which also provides for purchase of common stock by voluntary cash contributions. For additional information, please write, phone or visit the Wells Fargo Bank shareowner services Web site.

PRODUCT BROCHURES

For product brochures and dealer locations, write or call:

Polaris Industries Inc.
2100 Highway 55
Medina, MN 55340
1-800-Polaris (1-800-765-2747)

INTERNET ACCESS

To view the Company’s annual report and financial information, products and specifications, press releases, and dealer locations, access Polaris on the Internet at:

www.polarisindustries.com
www.victory-usa.com

INVESTOR RELATIONS

Security analysts and investment professionals should direct their business-related inquiries to:

Richard Edwards
Director Investor Relations
Polaris Industries Inc.
2100 Highway 55
Medina, MN 55340
763-513-3477
richard.edwards@polarisind.com

STOCK-SPLIT HISTORY

August 1993      2 for 1
October 1995     3 for 2
March 2004        2 for 1