<SUBMISSION>
<ACCESSION-NUMBER>0000950137-02-001495
<TYPE>10-K
<PUBLIC-DOCUMENT-COUNT>7
<PERIOD>20011231
<FILING-DATE>20020322
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>POLARIS INDUSTRIES INC/MN
<CIK>0000931015
<ASSIGNED-SIC>3790
<IRS-NUMBER>411790959
<STATE-OF-INCORPORATION>MN
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-K
<ACT>34
<FILE-NUMBER>001-11411
<FILM-NUMBER>02583165
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2100 HIGHWAY 55
<CITY>MEDINA
<STATE>MN
<ZIP>55340
<PHONE>6125420500
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1225 HIGHWAY 169 N
<STREET2>425 LEXINGTON AVE
<CITY>MINNESOTA
<STATE>MN
<ZIP>55441
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>c68167e10-k.htm
<DESCRIPTION>ANNUAL REPORT
<TEXT>
<HTML>
<HEAD>
<TITLE>Annual Report</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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<HR size="1" width="100%" align="left" noshade>
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left" noshade>
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<DIV align="center">
<B><FONT size="4">UNITED STATES</FONT></B>
</DIV>

<DIV align="center">
<B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center">
<B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center">

</DIV>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="center">
<B><FONT size="5">FORM 10-K</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="82%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top">
	<B><FONT size="2">(Mark One)</FONT></B></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<B><FONT size="2"><FONT face="wingdings">&#120;</FONT></FONT></B></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="center" valign="top">
	<B><FONT size="2">ANNUAL REPORT PURSUANT TO SECTION 13 OR 15<BR>
	OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></B></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top">
	<B><FONT size="2">For the fiscal year ended December&nbsp;31,
	2001</FONT></B></TD>
</TR>

<TR>
	<TD colspan="3" align="center" valign="top">
	<B><FONT size="2">Or</FONT></B></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<B><FONT size="2"><FONT face="wingdings">&#111;</FONT></FONT></B></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="center" valign="top">
	<B><FONT size="2">TRANSITION REPORT PURSUANT TO SECTION 13 OR
	15<BR>
	OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></B></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top">
	<B><FONT size="2">Commission File Number 1-11411</FONT></B></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B><FONT size="5">POLARIS INDUSTRIES INC.</FONT></B>

<DIV align="center">
<FONT size="2">(Exact name of registrant as specified in its
charter)
</FONT>
</DIV>

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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="61%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="center" valign="top">
	<B><FONT size="2">Minnesota</FONT></B></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="center" valign="top">
	<B><FONT size="2">41-1790959</FONT></B></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">(State or other jurisdiction<BR>
	of incorporation or organization)
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="center" valign="top">
	<FONT size="2">(IRS employer<BR>
	identification no.)
	</FONT></TD>
</TR>

<TR>
	<TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="center" valign="top">
	<B><FONT size="2">2100 Highway 55, Medina, MN</FONT></B></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="center" valign="top">
	<B><FONT size="2">55340</FONT></B></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">(Address of principal executive offices)
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="center" valign="top">
	<FONT size="2">(Zip Code)
	</FONT></TD>
</TR>

<TR>
	<TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="center" valign="top">
	<B><FONT size="2">(763)&nbsp;542-0500</FONT></B></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">(Registrant&#146;s telephone number,<BR>
	including area code)
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B>Securities registered pursuant to Section&nbsp;12(b) of the
Act:</B>

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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="56%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap><B><FONT size="2">Name of each exchange</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><B><FONT size="2">Title of each class</FONT></B></TD>
	<TD></TD>
	<TD align="center" nowrap><B><FONT size="2">on which registered</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">Common Stock, $.01 par value
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="center" valign="top">
	<FONT size="2">New York Stock Exchange
	</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="center" valign="top">
	<FONT size="2">Pacific Stock Exchange
	</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B>Securities registered pursuant to Section&nbsp;12(g) of the
Act: None</B>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the
registrant (1)&nbsp;has filed all reports required to be filed
by Section&nbsp;13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12&nbsp;months (or for such shorter
period that the registrant was required to file such reports),
and (2)&nbsp;has been subject to such filing requirements for
the past 90&nbsp;days.

<P align="left">
Yes&nbsp;<U>&nbsp;<FONT face="wingdings">&#252;</FONT>&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of
Regulation&nbsp;S-K is not contained herein, and will not be
contained, to the best of registrant&#146;s knowledge, in
definitive proxy or information statements incorporated by
reference in Part III of this Form&nbsp;10-K or any amendment to
this Form&nbsp;10-K.&nbsp;<FONT face="wingdings">&#111;
</FONT>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate market value of
Common Stock of the registrant as of March&nbsp;1, 2002 (based
upon the closing reported sale price of the Common Stock at that
date on the New York Stock Exchange) held by non-affiliates
(20,909,020 shares) was approximately $1,163,796,053.

<P align="center">
<B>APPLICABLE ONLY TO CORPORATE REGISTRANTS:</B>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate the number of shares
outstanding of each of the registrant&#146;s classes of common
stock, as of the latest practicable date.

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;1, 2002,
23,031,574 shares of Common Stock of the registrant were
outstanding.

<P align="center">
<B>DOCUMENTS INCORPORATED BY REFERENCE</B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>1.&nbsp;</TD>
	<TD align="left">
	Portions of the Registrant&#146;s Annual Report to Shareholders
	for the year ended December&nbsp;31, 2001 furnished to the
	Securities and Exchange Commission (the &#147;2001 Annual
	Report&#148;) are incorporated by reference into Parts II and
	III of this Form&nbsp;10-K.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>2.&nbsp;</TD>
	<TD align="left">
	Portions of the Proxy Statement for the Annual Meeting of
	Shareholders to be held May&nbsp;2, 2002 filed with the
	Securities and Exchange Commission (the &#147;2002 Proxy
	Statement&#148;) are incorporated by reference into Part III of
	this Form 10-K.</TD>
</TR>

</TABLE>

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</DIV>

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<HR size="1" width="100%" align="left" noshade>
</DIV>
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<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PART I</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;1. Description of Business</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Item&nbsp;2.&nbsp;Properties</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">Item&nbsp;3. Legal Proceedings</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">Item&nbsp;4. Submission of Matters to a Vote of Security Holders</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">PART II</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">Item 5. Market for Registrant's Common Equity and Related Stockholder Matters</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">Item 6. Selected Financial Data</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">Item&nbsp;7A.&nbsp;Quantitative and Qualitative Disclosure About Market Risk</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">Item&nbsp;8. Financial Statements and Supplementary Data</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">Item&nbsp;9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">PART III</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">Item&nbsp;10. Directors and Executive Officers of the Registrant</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">Item&nbsp;11. Executive Compensation</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">Item&nbsp;12. Security Ownership of Certain Beneficial Owners and Management</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">Item&nbsp;13. Certain Relationships and Related Transactions</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">PART IV</A></TD></TR>
<TR><TD colspan="9"><A HREF="#018">Item&nbsp;14. Exhibits, Financial Statement Schedules, and Reports on Form&nbsp;8-K</A></TD></TR>
<TR><TD colspan="9"><A HREF="#019">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#020">REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ON FINANCIAL STATEMENT SCHEDULE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#021">POLARIS INDUSTRIES INC. SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#022">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="c68167ex10-t.txt">Revolving Program Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="c68167ex13.txt">Portions of the Annual Report to Security Holders</A></TD></TR>
<TR><TD colspan="9"><A HREF="c68167ex21.txt">Subsidiaries</A></TD></TR>
<TR><TD colspan="9"><A HREF="c68167ex23.txt">Consent of Arthur Andersen LLP</A></TD></TR>
<TR><TD colspan="9"><A HREF="c68167ex24.txt">Power of Attorney</A></TD></TR>
<TR><TD colspan="9"><A HREF="c68167ex99.txt">Letter to SEC Representations of Arthur Andersen</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">


<!-- link1 "PART I" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center">
<B>PART I</B>
</DIV>


<!-- link1 "Item&nbsp;1. Description of Business" -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="left">
<B>Item&nbsp;1. Description of Business</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris Industries Inc. (the &#147;Company&#148;), a Minnesota
corporation, was formed in 1994 for the purpose of merging (the
&#147;Merger&#148;) a subsidiary of the Company into Polaris
Industries Partners L.P., a Delaware limited partnership (the
&#147;Partnership&#148;) and merging Polaris Industries L.P., a
Delaware limited partnership, into the Partnership. The Merger
took place on December&nbsp;22, 1994. Upon consummation of the
Merger, each unit of Beneficial Assignment of Class&nbsp;A
Limited Partnership Interests of the Partnership was exchanged
for one share of common stock, $.01 par value of the Company. On
December&nbsp;31, 1996, the Partnership was merged with and into
Polaris Industries Inc., a Delaware corporation (the
&#147;Operating Subsidiary&#148;). The Company owns 100% of the
Operating Subsidiary. The term &#147;Polaris&#148; as used
herein refers to the business and operations of the Operating
Subsidiary and its predecessors, Polaris Industries Partners
L.P. and Polaris Industries L.P.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris designs, engineers and manufactures all terrain vehicles
(&#147;ATVs&#148;), snowmobiles, motorcycles and personal
watercraft (&#147;PWC&#148;) and markets them, together with
related replacement parts, garments and accessories
(&#147;PG&#38;A&#148;) through dealers and distributors
principally located in the United States, Canada and Europe.
Sales of ATVs, snowmobiles, motorcycles, PWC and PG&#38;A
accounted for the following approximate percentages of
Polaris&#146; sales for the periods indicated.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
        <TD width="51%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD align="center" nowrap><B><FONT size="2">Year Ended December 31</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">ATVs</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Snowmobiles</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Motorcycles</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">PWC</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">PG&#38;A</FONT></B></TD>
</TR>

<TR>
        <TD align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">2001
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">56%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">25%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">1%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">4%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">14%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">2000
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">59%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">22%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">1%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">5%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">13%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">1999.
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">57%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">24%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">3%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">4%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">12%</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B>Industry Background</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>All Terrain Vehicles. </I>ATVs are four-wheel vehicles with
balloon style tires designed for off road use and traversing
rough terrain, swamps and marshland. ATVs are used for
recreation, in such sports as fishing and hunting, as well as
for utility purposes on farms, ranches and construction sites.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ATVs were introduced to the North American market in 1971 by
Honda. Other Japanese motorcycle manufacturers, Yamaha, Kawasaki
and Suzuki entered the North American market in the late 1970s
and early 1980s. Polaris entered the ATV market in 1985, Arctic
Cat entered in 1995 and Bombardier entered in 1998. In 1985, the
number of three- and four-wheel ATVs sold in North America
peaked at approximately 650,000 units per year, then dropped
dramatically to a low of 148,000 in 1989. Since that time, the
industry has grown consistently. Polaris estimates that the
industry grew 11% with approximately 860,000 ATVs sold worldwide
during the calendar year 2001.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Snowmobiles. </I>In the early 1950s, a predecessor to Polaris
produced a &#147;gas powered sled&#148; which became the
forerunner of the Polaris snowmobile. Snowmobiles have been
manufactured under the Polaris name since 1954.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Originally conceived as a utility vehicle for northern, rural
environments, the snowmobile gained popularity as a recreational
vehicle. From the mid-1950s through the late 1960s, over 100
producers entered the snowmobile market and snowmobile sales
reached a peak of approximately 495,000 units in 1971. The
Polaris product survived an industry decline in which snowmobile
sales fell to a low of approximately 87,000 units in 1983 and
the number of snowmobile manufacturers serving the North
American market declined to four: Yamaha, Bombardier, Arctic Cat
and Polaris. Polaris estimates industry sales of snowmobiles on
a worldwide basis were approximately 209,000 units for the
season ended March&nbsp;31, 2001.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Motorcycles. </I>Heavyweight motorcycles are over the road
vehicles utilized as a mode of transportation as well as for
recreational purposes. There are four motorcycle market
segments: cruisers, touring, sport bikes, and standards.

<P align="center">
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris entered the worldwide motorcycle market in 1998 with an
initial entry product in the cruiser segment. U.S. retail
cruiser sales more than doubled from 1993 to 2000. Polaris
estimates the cruiser market grew 19% in 2001 with approximately
260,000 cruiser motorcycles sold in the U.S. market. Other major
cruiser motorcycle manufacturers include Harley Davidson, Honda,
Yamaha, Kawasaki and Suzuki.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Personal Watercraft. </I>PWC are sit-down versions of water
scooter vehicles, and designed for use on lakes, rivers, oceans
and bays. PWC are used primarily for recreational purposes and
are designed for one, two, three or four passengers. Polaris
entered the PWC market in 1992. After many years of rapid
growth, the number of PWC sold peaked at approximately 225,000
units in 1996. Polaris estimates worldwide industry retail sales
for PWC were approximately 117,000 units for the season ended
September&nbsp;30, 2001. Other major PWC manufacturers are
Bombardier, Yamaha, and Kawasaki.

<P align="left">
<B>Products</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>All Terrain Vehicles. </I>Polaris entered the ATV market in
the spring of 1985. Polaris currently produces four-wheel ATVs,
which provide more stability for the rider than earlier
three-wheel versions. Polaris&#146; line of ATVs, consisting of
eighteen models, includes general purpose, sport and four-wheel
drive utility models, with 2002 model year suggested United
States retail prices ranging from approximately $1,900 to
$7,600. In 2000, Polaris introduced its first youth ATV models.
In addition, Polaris has a six-wheel off-road utility vehicle
and the Polaris <I>RANGER, </I>an off-road side by side utility
and recreational vehicle. In 2001, Polaris expanded its utility
line called the Polaris Professional Series with an outsourced
all surface loader product as well as a utility task vehicle
(UTV)&nbsp;and a 4X4 and 6X6 ATV (ATV Pro), each of which are
modifications of existing products but are of a different line
make.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Most of Polaris&#146; ATVs feature the totally automatic Polaris
variable transmission, which requires no manual shifting, and a
MacPherson strut front suspension, which enhances control and
stability. Polaris&#146; ATVs include two cycle and four cycle
engines and both shaft and concentric chain drive. In 1999,
Polaris introduced its first manual transmission ATV models.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to 1989, the ATV industry experienced some reduced demand
arising from publicity surrounding safety-related and
environmental concerns. However, management believes this market
has stabilized since 1989 and has sustained consistent growth.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended December&nbsp;31, 2001, sales of ATVs
accounted for approximately 56% of Polaris&#146; sales.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Snowmobiles. </I>Polaris produces a full line of snowmobiles,
consisting of twenty-eight models, ranging from youth to utility
and economy models to performance and competition models. The
2002 model year suggested United States retail prices range from
approximately $1,950 to $9,100. Polaris snowmobiles are sold
principally in the United States, Canada and Europe. Polaris
believes it is the worldwide market share leader.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris believes its snowmobiles have a long-standing reputation
for quality, dependability and performance. Polaris believes
that it and its predecessors were the first to develop several
features for commercial use in snowmobiles, including
independent front suspension, variable transmission, hydraulic
disc brakes, liquid cooled engines and brakes and a three
cylinder engine. In 2001, Polaris introduced a new, more
environmentally-friendly snowmobile featuring a four-stroke
engine designed specifically for snowmobiles.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended December&nbsp;31, 2001, sales of snowmobiles
accounted for approximately 25% of Polaris&#146; sales.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Motorcycles. </I>In 1998, Polaris began manufacturing a
V-twin cruiser motorcycle, the &#147;Victory V92C.&#148; Design
and assembly of the engine is performed in Polaris&#146;
Osceola, Wisconsin facility and final assembly is completed at
Polaris&#146; Spirit Lake, Iowa facility. The two facilities
provide sufficient capacity to handle the production of Victory
motorcycles. In 1999, Polaris introduced its second model, a
sport cruiser, the Victory V92SC and in 2000, introduced its
third model, the Victory Deluxe. In 2001, Polaris introduced an
additional touring cruiser model, the V92TC Deluxe motorcycle.
Suggested United States retail prices for the 2002 model year
Victory motorcycle range from approximately $13,700 to $16,200.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended December&nbsp;31, 2001, sales of Victory
motorcycles accounted for approximately 1% of Polaris&#146;
sales.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Personal Watercraft. </I>Polaris entered the personal
watercraft market in 1992. Polaris&#146; 2002 line of PWC
consists of eight models across the touring, performance and
racing segments. Management believes that its models had the
industry&#146;s first three-cylinder engines developed
specifically for PWC and that its models were the first to
comply with EPA 2006 requirements. The 2002 model year suggested
United States retail prices for Polaris&#146; PWC range from
approximately $6,300 to $9,000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended December&nbsp;31, 2001, sales of PWC
accounted for approximately 4% of Polaris&#146; sales.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Parts, Garments and Accessories (PG&#38;A). </I>Polaris
produces or supplies a variety of replacement parts and
accessories for its snowmobiles, ATVs, motorcycles and PWC. ATV
accessories include products such as winches, mowers, blades,
cargo racks, utility trailers, sprayers, seeders, tires, oils,
and lubricants. Snowmobile accessories include products such as
luggage, covers, tow hitches, hand warmers, specialized
instrumentation, reverse gear, electric start, special traction
products, cargo racks, oils, and lubricants.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris also markets a full line of recreational clothing, which
includes suits, helmets, gloves, boots, hats, sweaters and
jackets for its snowmobile, ATV, motorcycle and PWC lines. The
clothing is designed to Polaris&#146; specifications, purchased
from independent vendors and sold by Polaris through its dealers
and distributors under the Polaris brand name.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended December&nbsp;31, 2001, sales of PG&#38;A
accounted for approximately 14% of Polaris&#146; sales.

<P align="left">
<B>Manufacturing Operations</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris&#146; products are assembled at its original
manufacturing facility in Roseau, Minnesota and at its facility
in Spirit Lake, Iowa. Since snowmobiles, ATVs, motorcycles and
PWC incorporate similar technology, substantially the same
equipment and personnel are employed in their production.
Polaris is vertically integrated in several key components of
its manufacturing process, including machining, stamping,
welding, clutch assembly and balancing, painting, cutting and
sewing, and manufacture of foam seats. Fuel tanks, hulls,
tracks, tires and instruments, and certain other component parts
are purchased from third party vendors. Polaris manufactures a
number of other components for its snowmobiles, ATVs,
motorcycles, and PWC. Raw materials or standard parts are
readily available from multiple sources for the components
manufactured by Polaris. Polaris&#146; work force is familiar
with the use, operation and maintenance of the product, since
many employees own snowmobiles, ATVs, motorcycles and PWC. In
1991, Polaris acquired a manufacturing facility in Osceola,
Wisconsin to manufacture component parts previously produced by
third party suppliers. In 1998, Victory motorcycle production
began at Polaris&#146; Spirit Lake, Iowa facility. The
production includes welding, finish painting, and final
assembly. Certain Victory operations, including engine assembly,
seat manufacturing, and the bending of frame tubes are conducted
at the Osceola, Wisconsin facility. In 2001, all seat
manufacturing was moved to a leased facility in St. Croix Falls,
Wisconsin. In early 2002, Polaris completed the expansion and
renovation of its Roseau manufacturing facility, which is
expected to enhance future growth through increased capacity and
production flexibility.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1998, Polaris completed construction of a plastic injection
molding facility adjacent to the Roseau, Minnesota facility.
This was a vertical integration project for Polaris in the
manufacture of snowmobile hoods and certain large plastic molded
parts on ATVs.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to informal agreements between Polaris and Fuji Heavy
Industries Ltd. (&#147;Fuji&#148;), Fuji, until 1995, had been
the exclusive manufacturer of Polaris&#146; two-cycle snowmobile
engines since 1968. Fuji has manufactured engines for
Polaris&#146; ATV products since their introduction in the
spring of 1985. Fuji develops such engines to the specific
requirements of Polaris. Polaris believes its relationship with
Fuji to be excellent. If, however, Fuji terminated its
relationship, interruption in the supply of engines would
adversely affect Polaris&#146; production pending the continued
development of substitute supply arrangements.

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since 1995, Polaris has been designing and producing its own
engines for selected models of PWC, snowmobiles and all Victory
motorcycles. In 2001, Polaris began producing its own engines
for select ATV models. Polaris purchased a building adjacent to
the Osceola facility to house the manufacturing of these Polaris
designed and built domestic engines.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, in 1995, Polaris entered into an agreement with
Fuji to form Robin Manufacturing, U.S.A. (&#147;Robin&#148;).
Under the agreement, Polaris made an investment for a 40%
ownership position in Robin, which builds engines in the United
States for recreational and industrial products. Potential
advantages to Polaris of these additional sources of engines
include reduced foreign exchange risk, lower shipping costs and
less dependence in the future on a single supplier for engines.
See Note 7 of notes to Consolidated Financial Statements for a
discussion of this agreement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris anticipates no significant difficulties in obtaining
substitute supply arrangements for other raw materials or
components for which it relies upon limited sources of supply.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A contract carrier ships Polaris&#146; products from its
manufacturing facilities.

<P align="left">
<B>Production Scheduling</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris&#146; products are produced and delivered throughout the
year. Orders for ATVs are placed by the dealers often throughout
the year. Delivery of snowmobiles to consumers begins in autumn
and continues during the winter season. Orders for each
year&#146;s production of snowmobiles are placed by the dealers
in the spring. Orders for PWC are placed by the dealers in
autumn after meetings with dealers and distributors. Orders for
Victory motorcycles are placed by the dealers in the summer
after meetings with dealers. Units are built to order each year.
In addition, non-refundable deposits made by consumers to
dealers in the spring for snowmobiles assist in production
planning. The budgeted volume of units to be produced each year
is substantially sold to dealers and distributors prior to
production. Retail sales activity at the dealer level is
monitored by Polaris for each of snowmobiles, ATVs, motorcycles
and PWC and incorporated into production scheduling.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Manufacture of snowmobiles commences in late winter of the
previous season and continues through late autumn or early
winter of the current season. Polaris manufactures PWC during
the fall, winter and spring months. Since 1993, Polaris has had
the ability to manufacture ATVs year round. Victory motorcycle
manufacturing began in 1998 and continues year round.

<P align="left">
<B>Sales and Marketing</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris products are sold through a network of nearly 2,000
dealers in North America and 55 distributors in 121 countries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris sells its snowmobiles directly to dealers in the
snowbelt regions of the United States and Canada. With the
exception of France, Australia and New Zealand, snowmobile sales
in Europe and other offshore markets are handled through
independent distributors. See Note 1 of Notes to Consolidated
Financial Statements for a discussion of international
operations.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Many dealers and distributors of Polaris snowmobiles also
distribute Polaris&#146; ATVs and PWC. At the end of 2001,
approximately 900 dealerships were located in areas of the
United States where snowmobiles are not regularly sold. Unlike
its primary competitors, which market their ATV products
principally through their affiliated motorcycle dealers, Polaris
also sells its ATVs and PWC through lawn and garden, boat and
marine, and farm implement dealers.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1999, Polaris acquired its distributors in Australia and New
Zealand and now distributes its products in those countries
through these wholly owned subsidiaries. During 2000, Polaris
acquired its distributor in France and now distributes its
products in France through this wholly owned subsidiary.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Victory motorcycles are distributed directly through authorized
Victory dealers. Polaris has a high quality dealer network in
North America for its other product lines from which most of the
current 340 Victory

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<DIV align="left">
dealers were selected. Polaris expects to develop a Victory
dealer network of approximately 500 to 600 dealers over the next
three to four years.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dealers and distributors sell Polaris&#146; products under
contractual arrangements pursuant to which the dealer or
distributor is authorized to market specified products, required
to carry certain replacement parts and perform certain warranty
and other services. Changes in dealers and distributors take
place from time to time. Polaris believes a sufficient number of
qualified dealers and distributors exist in all areas to permit
orderly transition whenever necessary.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1996, a wholly owned subsidiary of Polaris entered into a
partnership agreement with a subsidiary of Transamerica
Distribution Finance (&#147;TDF&#148;) to form Polaris
Acceptance. Polaris Acceptance provides floor plan financing to
Polaris&#146; dealers in the United States. From 1999 to
October&nbsp;2001, Polaris Acceptance was a party to an income
sharing agreement with Transamerica Retail Financial Services
(TRFS), a subsidiary of TDF. TRFS provided other financial
services to retail customers through Polaris dealers in the
United States such as retail financing and extended service
contracts. Under the partnership agreement, Polaris has a 50%
equity interest in Polaris Acceptance. Polaris has not
guaranteed the outstanding indebtedness of Polaris Acceptance.
See Notes 2 and 6 of Notes to Consolidated Financial Statements
for a discussion of this financial services arrangement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris has arrangements with Polaris Acceptance (United
States), TDF (Canada and France) and GE Commercial Corporation
(Australia and New Zealand), to provide floor plan financing for
its dealers. Substantially all of Polaris&#146; North American
sales of snowmobiles, ATVs, PWC, motorcycles and related
PG&#38;A are financed under arrangements in which Polaris is
paid within a few days of shipment of its product. Polaris
participates in the cost of dealer financing and has agreed to
repurchase products from the finance companies under certain
circumstances and subject to certain limitations. Polaris has
not historically recorded any significant sales return
allowances because it has not been required to repurchase a
significant number of units. However, there can be no assurance
that this will continue to be the case. If necessary, Polaris
will record a sales return allowance at the time of sale should
management anticipate material repurchases of units financed
through the finance companies. See Notes 2 and 6 of Notes to
Consolidated Financial Statements for a discussion of this
financial services arrangement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris has historically not directly financed the purchase of
its products by consumers. However, in 1999, Polaris made
consumer financing available through its Polaris Acceptance
joint venture. In October&nbsp;2001, TDF sold the retail credit
portfolio to Household Bank N.A. (&#147;Household&#148;) and
Polaris entered into an agreement with Household to provide
retail financing for its consumers. In 2001 approximately
12&nbsp;percent of the products sold to consumers were financed
under these arrangements. The agreement with Household provides
that all income and losses of the retail credit portfolio are
shared equally between Polaris and Household. Either party has
the right to terminate the agreement if profitability of the
portfolio falls below certain minimum levels. Polaris&#146;
financial exposure under this agreement is limited to its
investment ($11.1 million at December&nbsp;31, 2001) and an
aggregate amount of not more than $15.0 million. See Note 6 of
Notes to Consolidated Financial Statements for a discussion of
this financial services arrangement.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris desires to create awareness of the Polaris brand among
the non-riding public and provide a wide range of products for
enthusiasts by licensing the name Polaris. The Company currently
licenses the production and sale of a range of items, including
die cast toys, video games, and numerous other products. The
Company&#146;s licensing activity provides it with a valuable
source of advertising.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 2000, a wholly owned subsidiary of Polaris established an
e-commerce site, www.purepolaris.com, to sell clothing and
accessories over the internet directly to consumers. The site
has been developed with a unique revenue sharing arrangement
with the dealers.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris&#146; marketing activities are designed primarily to
promote and communicate directly with consumers and secondarily
to assist the selling and marketing efforts of its dealers and
distributors. From time to time, Polaris makes available
discount or rebate programs or other incentives to its dealers
and distributors in order to remain price competitive and
accelerate reduction of dealer inventories. Polaris advertises
its products directly using print advertising in the industry
press and in user group publications, on billboards, and, less

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<DIV align="left">
extensively, on television and radio. Polaris also provides
media advertising and partially underwrites dealer and
distributor media advertising to a degree and on terms, which
vary by product and from year to year. Each season, Polaris
produces a promotional film for each of its products, which is
available to dealers for use in the showroom or at special
promotions. Polaris also provides product brochures, leaflets,
posters, dealer signs, and miscellaneous other promotional items
for use by dealers.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris expended for sales and marketing approximately
$119.9&nbsp;million in 2001, $122.0&nbsp;million in 2000 and
$112.1&nbsp;million in 1999. These amounts were included as a
component of operating expenses in the period incurred.

<P align="left">
<B>Engineering, Research and Development, and New Product
Introduction</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris employs approximately 350 persons who are engaged in the
development and testing of existing products and research and
development of new products and improved production techniques.
Management believes Polaris and its predecessors were the first
to develop, for commercial use, independent front suspension for
snowmobiles, long travel rear suspension for snowmobiles, direct
drive of the snowmobile track, the use of liquid cooling in
snowmobile engines and brakes, the use of hydraulic brakes in
snowmobiles, the three cylinder engine in snowmobiles and PWC,
the adaptation of the MacPherson strut front suspension,
&#147;on demand&#148; four-wheel drive systems and the
Concentric Drive System for use in ATVs, the application of a
forced air cooled variable power transmission system to ATVs,
and the diesel fuel powered ATV.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris utilizes internal combustion engine testing facilities
to design and optimize engine configurations for its products.
Polaris utilizes specialized facilities for matching engine,
exhaust system and clutch performance parameters in its products
to achieve desired fuel consumption, power output, noise level
and other objectives. Polaris&#146; engineering department is
equipped to make small quantities of new product prototypes for
testing by Polaris&#146; testing teams and for the planning of
manufacturing procedures. In addition, Polaris maintains
numerous test facilities where each of the products is
extensively tested under actual use conditions.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris expended for research and development approximately
$35.7&nbsp;million in 2001, $32.4&nbsp;million in 2000 and
$31.3&nbsp;million in 1999. These amounts were included as a
component of operating expenses in the period incurred.

<P align="left">
<B>Competition</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The snowmobile, ATV, motorcycle, PWC and professional utility
vehicle markets in the United States and Canada are highly
competitive. Competition in such markets is based upon a number
of factors, including price, quality, reliability, styling,
product features and warranties. At the dealer level,
competition is based on a number of factors including sales and
marketing support programs (such as financing and cooperative
advertising). Certain of Polaris&#146; competitors are more
diversified and have financial and marketing resources, which
are substantially greater than those of Polaris.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris products are competitively priced and management
believes Polaris&#146; sales and marketing support programs for
dealers are comparable to those provided by its competitors.
Polaris&#146; products compete with many other recreational
products for the discretionary spending of consumers, and, to a
lesser extent, with other vehicles designed for utility
applications.

<P align="left">
<B>Product Safety and Regulation</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Snowmobiles, ATVs, motorcycles and PWC are motorized machines,
which may be operated at high speeds and in a careless or
reckless manner. Accidents involving property damage, personal
injuries and deaths occur in the use of these products.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Laws and regulations have been promulgated or are under
consideration in a number of states relating to the use or
manner of use of products such as those manufactured by Polaris.
State approved trails and recreational areas for snowmobile and
ATV use have been developed in response to environmental and
safety concerns. Some states may pass legislation and local
ordinances or regulations have been and may from time

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<DIV align="left">
to time be considered which restrict the use of PWC to specified
hours and locations. Polaris is unable to predict the outcome of
such actions or the possible effect on its PWC business. Polaris
has supported laws and regulations pertaining to safety and
noise abatement. Polaris believes that its products would be no
more adversely affected than those of its competitors by the
adoption of any pending laws or regulations. Polaris continues
to monitor these activities in conjunction with industry
associations and supports balanced and appropriate programs that
educate the product user on safe use of the product and how to
protect the environment.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September&nbsp;1986, the Consumer Product Safety Commission
(&#147;CPSC&#148;) ATV Task Force issued a report on regulatory
options for ATVs with recommendations for ATV marketing
activities and warning labels. In February&nbsp;1987, the CPSC
formally requested that the Justice Department initiate an
enforcement action against the ATV industry seeking a voluntary
recall of all three-wheel ATVs and four-wheel ATVs sold with the
intention that they be used by children under 16, as well as a
requirement that ATV purchasers receive &#147;hands-on&#148;
training.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except for 1,700 three-wheel models initially produced, Polaris
manufactures only four-wheel ATVs and six-wheel off-road vehicle
products. Polaris has always placed warning labels on its ATVs
stating that they are designed for use only by persons of a
specified minimum age, operators should always wear approved
safety helmets and riders should complete proper training prior
to operating an ATV.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On December&nbsp;30, 1987, Polaris reached an agreement with the
CPSC regarding ATV safety, which was confirmed in a ten-year
Consent Decree in April&nbsp;1988. In April&nbsp;1998, the
Consent Decree with the CPSC expired. Polaris has filed with the
CPSC a Voluntary Action Plan under which Polaris undertook to
continue various activities including age recommendations,
warning labels, point of purchase materials, hands on training
and an information education effort. Polaris also agreed to
continue dealer monitoring for ascertaining dealer compliance
with safety obligations including age recommendations and
training requirements. Polaris conditions its ATV warranties
described below under &#147;Product Warranties&#148; on
completion of the mandatory &#147;hands on&#148; consumer
training program. In December&nbsp;1998, the CPSC issued a
resolution commending Polaris and certain other industry members
for their ATV Action Plans.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company does not believe the Polaris Voluntary Action Plan
will have a material adverse effect on Polaris. Nevertheless,
there can be no assurance that future recommendations or
regulatory actions by the CPSC, the Justice Department or
individual states would not have an adverse effect on the
Company. Polaris will continue to attempt to assure that its
dealers are in compliance with their safety obligations. Polaris
has notified its dealers that it will terminate or not renew any
dealer it determines has violated such safety obligations. To
date, it has terminated or not renewed at least eight dealers
for such reasons.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In May&nbsp;1998, the National Transportation Safety Board
(&#147;NTSB&#148;) issued a report regarding PWC safety and made
various recommendations. Prior to May 1998, Polaris was working
with and continues to work with the Coast Guard to develop
standards and to evaluate PWC safety matters, including the NTSB
recommendations. Polaris PWC have always complied with industry
standards relevant to PWCs.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
California has adopted regulations setting maximum emission
standards for ATVs and the federal Environmental Protection
Agency (&#147;EPA&#148;) has indicated its intent to establish
emission standards for non-road engines, including ATVs and
snowmobiles. The EPA already has required PWC manufacturers to
gradually reduce their emission by 75% between 1999 and 2006.
For the State of California, the California Air Resources Board
(CARB)&nbsp;has accelerated this scheduled emission reduction by
requiring that manufacturers meet the EPA 2006 level in 2001 and
that manufacturers meet further emission reductions by 2004 and
2008. Conventional two-stroke cycle engines cannot meet these
more restrictive emission requirements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1997, Polaris signed an agreement with Outboard Marine
Corporation (&#147;OMC&#148;) licensing the Ficht fuel injection
technology. During 1998, Polaris began production of a new
Genesis PWC model utilizing the Ficht technology, which complies
with the EPA 2006 emission requirements. During 2000, OMC filed
for bankruptcy and in early 2001, Bombardier Inc. acquired the
Ficht technology. For model year 2002, 3 out of 8 PWC models
employ this direct injection technology. Polaris has entered
into a license agreement with Bombardier for the Ficht fuel
injection technology. This technology may be used in other
Polaris vehicles to

<P align="center">7

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
meet emission standards in the future, particularly in Polaris
vehicles with two-cycle engines. Polaris is unable to predict
the ultimate impact of the adopted or proposed regulations on
Polaris and its operations.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Victory motorcycles are subject to federal and state emissions,
vehicle safety and other standards. Polaris believes that its
motorcycles comply fully with all such applicable standards and
related regulations.

<P align="left">
<B>Product Liability</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris&#146; product liability insurance limits and
coverage&#146;s were adversely affected by the general decline
in the availability of liability insurance starting in 1985. As
a result of the high cost of premiums, and in view of the
historically small amount of claims paid by Polaris, Polaris was
self-insured from June&nbsp;1985 to June&nbsp;1996. In
June&nbsp;1996, Polaris purchased excess insurance coverage for
catastrophic product liability claims for incidents occurring
subsequent to the policy date that exceeds its self-insured
retention levels.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Product liability claims are made against Polaris from time to
time. Since its inception in 1981 through December&nbsp;31,
2001, Polaris has paid an aggregate of approximately
$8.0&nbsp;million in product liability claims and has accrued
$5.9 million at December&nbsp;31, 2001 for the defense and
possible payment of pending claims. Polaris believes such
accruals are adequate. Polaris does not believe the outcome of
any pending product liability litigation will have a material
adverse effect on the operations of Polaris. However, no
assurance can be given that its historical claims record, which
did not include ATVs prior to 1985, PWC prior to 1992, or
motorcycles prior to 1998, will not change or that material
product liability claims against Polaris will not be made in the
future. Adverse determination of material product liability
claims made against Polaris would have a material adverse effect
on Polaris&#146; financial condition. See Note 8 of Notes to
Consolidated Financial Statements.

<P align="left">
<B>Product Warranties</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris provides a limited warranty for ATVs for a period of six
months and for a period of one year for its snowmobiles,
motorcycles and PWC products. Although Polaris employs quality
control procedures, a product is sometimes distributed which
needs repair or replacement. Polaris&#146; standard warranties
require the Company or its dealers to repair or replace
defective products during such warranty period at no cost to the
consumer. Historically, product recalls have been administered
through Polaris&#146; dealers and distributors and have not had
a material effect on Polaris&#146; business. See Note 1 of Notes
to Consolidated Financial Statements.

<P align="left">
<B>Effects of Weather</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lack of snowfall in any year in any particular region of the
United States or Canada may adversely affect snowmobile retail
sales in that region. Polaris seeks to minimize this potential
effect by stressing pre-season sales (see &#147;Production
Scheduling&#148;) and shifting dealer inventories from one
location to another. However, there is no assurance that weather
conditions would not have a material effect on Polaris&#146;
sales of snowmobiles, ATVs, motorcycles, PWC or PG&#38;A.

<P align="left">
<B>Employment</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to the seasonality of the Polaris business and certain
changes in production cycles, total employment levels vary
throughout the year. Despite such variations in employment
levels, employee turnover has not been high. During 2001,
Polaris employed an average of approximately 3,550 persons.
Approximately 1,250 of its employees are salaried. Polaris
considers its relations with its personnel to be excellent.
Polaris&#146; employees have not been represented by a union
since July&nbsp;1982.

<P align="center">8

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "Item&nbsp;2.&nbsp;Properties" -->
<DIV align="left"><A NAME="002"></A></DIV>
<P align="left">
<B>Item&nbsp;2.&nbsp;Properties</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following sets forth the Company&#146;s material facilities
as of December 31, 2001.

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
        <TD width="42%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Owned or</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Square</FONT></B></TD>
</TR>

<TR>
        <TD align="center" nowrap><B><FONT size="2">Location</FONT></B></TD>
        <TD></TD>
        <TD align="center" nowrap><B><FONT size="2">Facility Type/Use</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Leased</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Footage</FONT></B></TD>
</TR>

<TR>
        <TD align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Roseau, Minnesota
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Whole Goods Manufacturing
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Owned</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">579,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Osceola, Wisconsin
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Component Parts Manufacturing
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Owned</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">190,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Spirit Lake, Iowa
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Whole Goods Manufacturing
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Owned</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">223,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Osceola, Wisconsin
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Engine Manufacturing
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Owned</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">90,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Roseau, Minnesota
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Injection Molding
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Owned</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">58,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Vermillion, South Dakota
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Distribution Center
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Owned</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">250,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Medina, Minnesota
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Headquarters
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Owned</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">130,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Winnipeg, Manitoba
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Office and Warehouse
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Leased</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">42,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Spirit Lake, Iowa
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Warehouse
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Leased</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">11,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Ballarat, Victoria, Australia
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Office and Warehouse
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Leased</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">12,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Passy, France
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Office and Warehouse
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Leased</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">3,500</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">St. Croix Falls, Wisconsin
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Component Parts Manufacturing
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Leased</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">60,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Mount Gambier, Australia
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Warehouse
        </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">Leased</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="bottom" nowrap><FONT size="2">4,500</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris owns all tooling and machinery (including heavy presses,
conventional and computer-controlled welding facilities for
steel and aluminum, assembly lines, paint lines, and sewing
lines) used in the manufacture of its products. Polaris makes
ongoing capital investments in its facilities. These investments
have increased production capacity for snowmobiles, ATVs,
motorcycles and PWC. The Company believes its manufacturing
facilities are adequate in size and suitability for its present
manufacturing needs.

<!-- link1 "Item&nbsp;3. Legal Proceedings" -->
<DIV align="left"><A NAME="003"></A></DIV>
<P align="left">
<B>Item&nbsp;3. Legal Proceedings</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Polaris is involved in a number of legal proceedings, none of
which is expected to have a material effect on the financial
condition or the business of Polaris.

<!-- link1 "Item&nbsp;4. Submission of Matters to a Vote of Security Holders" -->
<DIV align="left"><A NAME="004"></A></DIV>
<P align="left">
<B>Item&nbsp;4. Submission of Matters to a Vote of Security
Holders</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No matter was submitted to a vote of security holders during the
fourth quarter of the fiscal year covered by this report.

<P align="left">
<B>Executive Officers of the Registrant</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth below are the names of the executive officers of the
Company as of March&nbsp;8, 2002, their ages, titles, the year
first appointed as an executive officer of the Company and
employment for the past five years:

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
        <TD width="49%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD align="center" nowrap><B><FONT size="2">Name</FONT></B></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Age</FONT></B></TD>
        <TD></TD>
        <TD align="center" nowrap><B><FONT size="2">Title</FONT></B></TD>
</TR>

<TR>
        <TD align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">W. Hall Wendel, Jr.
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">59</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Chairman of the Board
        </FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Thomas C. Tiller
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">40</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Chief Executive Officer and President
        </FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Jeffrey A. Bjorkman
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">42</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Vice President &#151; Operations
        </FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">John B. Corness
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">47</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Vice President&nbsp;&#151; Human Resources
        </FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Michael W. Malone
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">43</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Vice President&nbsp;&#151; Finance, Chief
        Financial Officer and Secretary
        </FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Richard R. Pollick
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">62</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Vice President&nbsp;&#151; International
        </FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Thomas H. Ruschhaupt
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">52</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Vice President&nbsp;&#151; Sales and Service
        </FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
        <TD align="left" valign="top">
        <DIV style="margin-left:10px; text-indent:-10px">
        <FONT size="2">Kenneth J. Sobaski
        </FONT></DIV>
        </TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">46</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom">
        <FONT size="2">Vice President&nbsp;&#151; Marketing and Business
        Development
        </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Executive officers of the Company are elected at the discretion
of the Board of Directors with no fixed term. There are no
family relationships between or among any of the executive
officers or directors of the Company.

<P align="center">9
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Wendel has served as Chairman of the Board since the
Company&#146;s formation in 1994 and was Chief Executive Officer
of the Company until May 1999. Mr.&nbsp;Wendel was the Chief
Executive Officer of Polaris Industries Capital Corporation
(&#147;PICC&#148;), which was the managing general partner of
Polaris Industries Associates L.P., which was the operating
general partner of Polaris Industries L.P. from 1987 to
December&nbsp;1994. From 1981 to 1987, Mr.&nbsp;Wendel was Chief
Executive Officer of a predecessor of Polaris, which was formed
to purchase the snowmobile assets of the Polaris E-Z-GO Division
of Textron Inc. Before that time, Mr.&nbsp;Wendel was President
of the Polaris E-Z-GO Division for two years and prior thereto,
held marketing positions as Vice President of Sales and
Marketing and National Sales Manager since 1974.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Tiller was named President and Chief Operating Officer
of the Company in July&nbsp;1998. In 1999, Mr.&nbsp;Tiller was
promoted to his present position of Chief Executive Officer of
the Company. Prior to joining Polaris, Mr.&nbsp;Tiller was
employed by General Electric Company in various management
positions for fifteen years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Bjorkman has been Vice President &#150; Operations of
the Company since July&nbsp;2000. Mr.&nbsp;Bjorkman had been
Vice President &#150; Manufacturing since January 1995, and
prior thereto held positions of Plant Manager and Manufacturing
Engineering Manager since July&nbsp;1990. Prior to joining
Polaris, Mr.&nbsp;Bjorkman was employed by General Motors
Corporation in various management positions for nine years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Corness has been Vice President&nbsp;&#151; Human
Resources of the Company since January&nbsp;1999. Prior to
joining Polaris, Mr.&nbsp;Corness was employed by General
Electric Company in various human resource positions for nine
years. Before that time, Mr.&nbsp;Corness held various human
resource positions with Maple Leaf Foods and Transalta Utilities.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Malone has been Vice President&nbsp;&#151; Finance,
Chief Financial Officer and Secretary of the Company since
January&nbsp;1997. Mr.&nbsp;Malone was Vice President and
Treasurer of the Company from December&nbsp;1994 to
January&nbsp;1997 and was Chief Financial Officer and Treasurer
of PICC from January&nbsp;1993 to December&nbsp;1994. Prior
thereto and since 1986, he was Assistant Treasurer of PICC or
its predecessor. Mr.&nbsp;Malone joined Polaris in 1984 after
four years with Arthur Andersen LLP.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Pollick has been Vice President &#150; International of
the Company since September&nbsp;1999. Prior to joining Polaris,
Mr.&nbsp;Pollick was employed by The Toro Company in various
management positions for nineteen years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Ruschhaupt has been Vice President&nbsp;&#151; Sales
and Service of the Company since March&nbsp;1998. Prior to
joining Polaris, Mr.&nbsp;Ruschhaupt was employed by Goodyear
Tire and Rubber Corporation in various management positions for
twenty years.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Sobaski has been Vice President&nbsp;&#151; Marketing
and Business Development of the Company since
September&nbsp;2001. Prior to joining Polaris, Mr.&nbsp;Sobaski
was employed by ConAgra Foods, Inc. as President of ConAgra
Grocery Brands from 1999 to October&nbsp;2001 and held various
senior sales and marketing management positions at The Pillsbury
Company from 1992 to 1998. Before that time, Mr. Sobaski held
various management positions at The Drackett Company, a division
of Bristol-Meyers Squibb, Kraft Foods and General Mills spanning
a thirteen-year period.

<P align="left">


<!-- link1 "PART II" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="center">
<B>PART II</B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="6%"></TD>
        <TD width="94%"></TD>
</TR>
<!-- link1 "Item 5. Market for Registrant's Common Equity and Related Stockholder Matters" -->
<DIV align="left"><A NAME="006"></A></DIV>
<TR valign="top">
        <TD><B>Item&nbsp;5.&nbsp;</B></TD>
        <TD>
        <B>Market for Registrant&#146;s Common Equity and Related
        Stockholder Matters</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information under the caption &#147;Investor
Information&#148; included in the Company&#146;s 2001 Annual
Report is incorporated herein by reference.

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="6%"></TD>
        <TD width="94%"></TD>
</TR>
<!-- link1 "Item 6. Selected Financial Data" -->
<DIV align="left"><A NAME="007"></A></DIV>
<TR valign="top">
        <TD><B>Item&nbsp;6.&nbsp;</B></TD>
        <TD>
        <B>Selected Financial Data</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information under the caption &#147;11-Year Selected
Financial Data&#148; included in the Company&#146;s 2001 Annual
Report is incorporated herein by reference.

<P align="center">10

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations" -->
<DIV align="left"><A NAME="008"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="6%"></TD>
        <TD width="94%"></TD>
</TR>

<TR valign="top">
        <TD><B>Item&nbsp;7.&nbsp;</B></TD>
        <TD>
        <B>Management&#146;s Discussion and Analysis of Financial
        Condition and Results of Operations</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Management&#146;s Discussion and Analysis&#148; included
in the Company&#146;s 2001 Annual Report is incorporated herein
by reference.

<!-- link1 "Item&nbsp;7A.&nbsp;Quantitative and Qualitative Disclosure About Market Risk" -->
<DIV align="left"><A NAME="009"></A></DIV>

<P align="left">
<B>Item&nbsp;7A.&nbsp;Quantitative and Qualitative Disclosure
About Market Risk</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information under the caption &#147;Management&#146;s
Discussion and Analysis &#150; Inflation and Exchange
Rates&#148; and Note 1 to the financial statements of the
Registrant, included in the Company&#146;s 2001 Annual Report,
are incorporated herein by reference.

<!-- link1 "Item&nbsp;8. Financial Statements and Supplementary Data" -->
<DIV align="left"><A NAME="010"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="6%"></TD>
        <TD width="94%"></TD>
</TR>

<TR valign="top">
        <TD><B>Item&nbsp;8.&nbsp;</B></TD>
        <TD>
        <B>Financial Statements and Supplementary Data</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following financial statements of the Registrant, included
in the Company&#146;s 2001 Annual Report, are incorporated
herein by reference:

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Consolidated Balance Sheets as at December&nbsp;31, 2001 and
2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Consolidated Statements of Operations for the Years Ended
December&nbsp;31, 2001, 2000, and 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Consolidated Statements of Shareholders&#146; Equity and
Comprehensive Income for the Years

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ended December&nbsp;31, 2001, 2000, and 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Consolidated Statements of Cash Flows for the Years Ended
December&nbsp;31, 2001, 2000, and 1999.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notes to Consolidated Financial Statements.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Report of Independent Public Accountants.

<!-- link1 "Item&nbsp;9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure" -->
<DIV align="left"><A NAME="011"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="6%"></TD>
        <TD width="94%"></TD>
</TR>

<TR valign="top">
        <TD><B>Item&nbsp;9.&nbsp;</B></TD>
        <TD>
        <B>Changes in and Disagreements with Accountants on Accounting
        and Financial Disclosure</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The disclosure required by Item&nbsp;304(a) of Regulation S-K
has been previously reported on the Company&#146;s Current
Report on Form&nbsp;8-K filed with the Securities and Exchange
Commission on March&nbsp;15, 2002. There are no disclosures
required by the Company under Item&nbsp;304(b) of Regulation S-K.

<P align="left">


<!-- link1 "PART III" -->
<DIV align="left"><A NAME="012"></A></DIV>

<!-- link1 "Item&nbsp;10. Directors and Executive Officers of the Registrant" -->
<DIV align="left"><A NAME="013"></A></DIV>

<DIV align="center">
<B>PART III</B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="7%"></TD>
        <TD width="93%"></TD>
</TR>

<TR valign="top">
        <TD><B>Item&nbsp;10.&nbsp;</B></TD>
        <TD>
        <B>Directors and Executive Officers of the Registrant</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;Directors of the Registrant

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information under the caption &#147;Election of
Directors&nbsp;&#151; Information Concerning Nominees and
Directors&#148; in the Company&#146;s 2002 Proxy Statement is
incorporated herein by reference.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;Executive Officers of the Registrant

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information concerning Executive Officers of the Company is
included in this Report after Item&nbsp;4, under &#147;Executive
Officers of the Registrant.&#148;

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;Compliance with Section&nbsp;16(a) of the Exchange Act

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information under the caption &#147;Corporate
Governance&nbsp;&#151; Section&nbsp;16 Beneficial Ownership
Reporting Compliance&#148; in the Company&#146;s 2002 Proxy
Statement is incorporated herein by reference.

<!-- link1 "Item&nbsp;11. Executive Compensation" -->
<DIV align="left"><A NAME="014"></A></DIV>
<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="7%"></TD>
        <TD width="93%"></TD>
</TR>

<TR valign="top">
        <TD><B>Item&nbsp;11.&nbsp;</B></TD>
        <TD>
        <B>Executive Compensation</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information under the caption &#147;Executive Compensation
and Stock Option Information&#148; and &#147;Corporate
Governance&nbsp;&#151; Director Compensation&#148; in the
Company&#146;s 2002 Proxy Statement is incorporated herein by
reference.

<P align="center">11
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link1 "Item&nbsp;12. Security Ownership of Certain Beneficial Owners and Management" -->
<DIV align="left"><A NAME="015"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="7%"></TD>
        <TD width="93%"></TD>
</TR>

<TR valign="top">
        <TD><B>Item&nbsp;12.&nbsp;</B></TD>
        <TD>
        <B>Security Ownership of Certain Beneficial Owners and
        Management</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information under the caption &#147;Security Ownership of
Certain Beneficial Owners and Management&#148; in the
Company&#146;s 2002 Proxy Statement is incorporated herein by
reference.
<!-- link1 "Item&nbsp;13. Certain Relationships and Related Transactions" -->
<DIV align="left"><A NAME="016"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="7%"></TD>
        <TD width="93%"></TD>
</TR>

<TR valign="top">
        <TD><B>Item&nbsp;13.&nbsp;</B></TD>
        <TD>
        <B>Certain Relationships and Related Transactions</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The information under the caption &#147;Corporate
Governance&nbsp;&#151; Certain Relationships and Related
Transactions&#148; in the Company&#146;s 2002 Proxy Statement is
incorporated herein by reference.

<P align="left">


<!-- link1 "PART IV" -->
<DIV align="left"><A NAME="017"></A></DIV>

<!-- link1 "Item&nbsp;14. Exhibits, Financial Statement Schedules, and Reports on Form&nbsp;8-K" -->
<DIV align="left"><A NAME="018"></A></DIV>

<DIV align="center">
<B>PART IV</B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="7%"></TD>
        <TD width="93%"></TD>
</TR>

<TR valign="top">
        <TD><B>Item&nbsp;14.&nbsp;</B></TD>
        <TD>
        <B>Exhibits, Financial Statement Schedules, and Reports on
        Form&nbsp;8-K</B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;The following documents are filed as part of this
Report:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (1)&nbsp;Consolidated Financial Statements</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="10%"></TD>
        <TD width="90%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">
        Information concerning financial statements of Polaris
        Industries Inc. included in the Company&#146;s 2001 Annual
        Report are incorporated by reference to this Report under
        Item&nbsp;8 &#147;Financial Statements and Supplementary
        Data&#148;.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (2)&nbsp;Financial Statement Schedules</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="10%"></TD>
        <TD width="90%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">
        Schedule&nbsp;II &#150; Valuation and Qualifying Accounts &#150;
        Years ended December&nbsp;31, 2001, 2000 and 1999. (see page 14
        of this report)</TD>
</TR>

<TR>
        <TD>&nbsp;</TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">
        All other supplemental financial statement schedules have been
        omitted because they are not applicable or are not required or
        the information required to be set forth therein is included in
        the Consolidated Financial Statements or notes thereto.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (3)&nbsp;Exhibits</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="10%"></TD>
        <TD width="90%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">
        The Exhibits to this Report are listed in the Exhibit&nbsp;Index
        on page E-1.</TD>
</TR>

<TR>
        <TD>&nbsp;</TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">
        A copy of any of these Exhibits will be furnished at a
        reasonable cost to any person who was a shareholder of the
        Company as of March&nbsp;12, 2002, upon receipt from any such
        person of a written request for any such exhibit. Such request
        should be sent to Polaris Industries Inc., 2100 Highway 55,
        Medina, Minnesota 55340, Attention: Investor Relations.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;Reports on Form&nbsp;8-K
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        During the quarter ended December&nbsp;31, 2001, the Company
        filed one Current Report on Form&nbsp;8-K on November&nbsp;28,
        2001, to furnish certain presentation materials information
        pursuant to Regulation&nbsp;FD. Subsequent to the quarter ended
        December&nbsp;31, 2001, the Company filed a Current Report on
        Form&nbsp;8-K on February&nbsp;8, 2002, to furnish certain
        presentation materials under Regulation&nbsp;FD that replaced
        and superseded all such materials included in any exhibit to a
        Form&nbsp;8-K previously filed with the Commission. Also, on
        March&nbsp;15, 2002, the Company filed a Current Report on
        Form&nbsp;8-K to announce the appointment of Ernst &#38; Young
        LLP as its independent auditors for the year ending
        December&nbsp;31, 2002.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;Exhibits
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>

<TR valign="top">
        <TD>&nbsp;</TD>
        <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Included in Item&nbsp;14(a)(3) above.</TD>
</TR>

</TABLE>

<P align="center">12
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">


<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="019"></A></DIV>

<DIV align="center">
<B>SIGNATURES</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of Section&nbsp;13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned;
thereunto duly authorized, in the City of Minneapolis, State of
Minnesota on March&nbsp;22, 2002.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	POLARIS INDUSTRIES INC.</TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="2%"></TD>
	<TD width="60%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD>By:&nbsp;</TD>
	<TD align="left">
	/s/ THOMAS C. TILLER </TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	<HR size="1" align="left" noshade></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="center">
	Thomas C. Tiller</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="center">
	Chief Executive Officer</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of the registrant in the capacities and on the dates
indicated.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><B><FONT size="2">Signature</FONT></B></TD>
	<TD></TD>
	<TD align="center" nowrap><B><FONT size="2">Title</FONT></B></TD>
	<TD></TD>
	<TD align="center" nowrap><B><FONT size="2">Date</FONT></B></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>W. Hall Wendel, Jr.
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Chairman and Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">/s/ THOMAS C. TILLER<BR>
	<HR size="1" noshade>Thomas C. Tiller.
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Chief Executive Officer and Director (Principal
	Executive Officer)
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">/s/ MICHAEL W. MALONE<BR>
	<HR size="1" noshade>Michael W. Malone
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Vice President Finance, Chief Financial Officer
	and Secretary (Principal Financial and Accounting Officer)
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>Andris A. Baltins
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>William E. Fruhan, Jr.
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>John R. Menard, Jr.
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>Robert S. Moe
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>Gregory R. Palen
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>R. M. Schreck
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>J. Richard Stonesifer
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*<BR>
	<HR size="1" noshade>Richard A. Zona
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">Director
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2002
	</FONT></TD>
</TR>

<TR>
	<TD align="center" valign="top">
	<FONT size="2">*By:&nbsp;/s/ THOMAS C. TILLER<BR>
	<HR size="1" noshade>(Thomas C. Tiller<BR>
	Attorney-in-Fact)
	</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	<FONT size="2">March&nbsp;22, 2001
	</FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="1%"></TD>
	<TD width="99%"></TD>
</TR>

<TR valign="top">
	<TD>&#149;&nbsp;</TD>
	<TD align="left">
	Thomas C. Tiller, pursuant to Powers of Attorney executed by
	each of the officers and directors listed above whose name is
	marked by an &#147;*&#148; and filed as an exhibit hereto, by
	signing his name hereto does hereby sign and execute this Report
	of Polaris Industries Inc. on behalf of each of such officers
	and directors in the capacities in which the names of each
	appear above.</TD>
</TR>

</TABLE>

<P align="center">13
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">


<!-- link1 "REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ON FINANCIAL STATEMENT SCHEDULE" -->
<DIV align="left"><A NAME="020"></A></DIV>

<DIV align="center">
<B>REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS</B>
</DIV>

<DIV align="center">
<B>ON FINANCIAL STATEMENT SCHEDULE</B>
</DIV>

<P align="left">
Report of independent public accountants:

<P align="left">
To Polaris Industries Inc.:

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have audited in accordance with auditing standards generally
accepted in the United States, the consolidated financial
statements of Polaris Industries Inc. and Subsidiaries included
in this Form&nbsp;10-K and have issued our report thereon dated
January&nbsp;23, 2002. Our audit was made for the purpose of
forming an opinion on the basic consolidated financial
statements taken as a whole. The schedule appearing elsewhere in
this Form 10-K is the responsibility of the company&#146;s
management and is presented for purposes of complying with the
Securities and Exchange Commission&#146;s rules and is not part
of the basic consolidated financial statements. This schedule
has been subjected to the auditing procedures applied in the
audit of the basic consolidated financial statements and, in our
opinion, fairly states in all material respects the financial
data required to be set forth therein in relation to the basic
consolidated financial statements taken as a whole.

<P align="left">
/s/ Arthur Andersen LLP

<P align="left">
Minneapolis, Minnesota

<DIV align="left">
January 23, 2002
</DIV>

<P align="center">14
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">


<!-- link1 "POLARIS INDUSTRIES INC. SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS" -->
<DIV align="left"><A NAME="021"></A></DIV>

<DIV align="center">
<B>POLARIS INDUSTRIES INC.</B>
</DIV>

<DIV align="center">
<B>SCHEDULE II&nbsp;&#151; VALUATION AND QUALIFYING ACCOUNTS</B>
</DIV>

<DIV align="center">
<B>(in thousands)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Additions</FONT></B></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Balance at</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Charged to</FONT></B></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Beginning of</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Costs and</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Other Changes</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Balance at</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Period</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Expenses</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Add (Deduct)(1)</FONT></B></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">End of Period</FONT></B></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">1999: Deducted from asset accounts -<BR>
	Allowance for doubtful accounts receivable
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,566</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,421</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(602</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,385</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">2000: Deducted from asset accounts -<BR>
	Allowance for doubtful accounts receivable
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,385</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,519</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(2,359</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,545</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px">
	<FONT size="2">2001: Deducted from asset accounts -<BR>
	Allowance for doubtful accounts receivable
	</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,545</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,858</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(797</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,606</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left"><HR size="4" noshade></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="31%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Uncollectible accounts receivable written off, net of recoveries.</TD>
</TR>

</TABLE>

<P align="center">15
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">


<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="022"></A></DIV>

<DIV align="center">
<B>POLARIS INDUSTRIES INC.</B>
</DIV>

<P align="center">
<B>EXHIBIT INDEX TO ANNUAL REPORT ON</B>

<DIV align="center">
<B>FORM 10-K</B>
</DIV>

<DIV align="center">
<B>For Fiscal Year Ended December&nbsp;31, 2001</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
        <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Exhibit</FONT></B></TD>
        <TD></TD>
        <TD></TD>
</TR>

<TR>
        <TD colspan="3" align="center" nowrap><B><FONT size="2">Number</FONT></B></TD>
        <TD></TD>
        <TD align="center" nowrap><B><FONT size="2">Description</FONT></B></TD>
</TR>

<TR>
        <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
        <TD></TD>
        <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">3.(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">a)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Articles of Incorporation of Polaris Industries
        Inc. (&#145;the Company&#145;), as amended, incorporated by
        reference to Exhibit 3(a) to the Company&#146;s Registration
        Statement on Form S-4 (No. 33-55769) (the &#145;Form S-4&#145;).
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">b)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Bylaws of the Company, incorporated by reference
        to Exhibit 3(b) to the Form S-4.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">4.(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">a)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Specimen Stock Certificate of the Company,
        incorporated by reference to Exhibit 4 to the Form S-4.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">b)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Rights Agreement, dated as of May 18, 2000
        between the Company and Norwest Bank Minnesota, N.A. (now Wells
        Fargo Bank Minnesota, N.A.), as Rights Agent, incorporated by
        reference to Exhibit 4.1 to the Company&#146;s Registration
        Statement on Form 8-A, filed on May 25, 2000.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">10.(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">a)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Agreement for Deferred Compensation and
        Disability Income and Amendment No. 1 thereto with W. Hall
        Wendel, Jr. incorporated by reference to Exhibit 10 to the
        Company&#146;s Annual Report on Form 10-K for the year ended
        December 31, 1994.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">b)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Polaris 401(K) Retirement Savings Plan,
        incorporated by reference to the Company&#146;s Registration
        Statement on Form S-8 filed with the Securities and Exchange
        Commission on January 11, 2000 (No. 333-94451)
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">c)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Polaris Industries Inc. Employee Stock Ownership
        Plan effective January 1, 1997 incorporated by reference to
        Exhibit 10(a) to the Company&#146;s Annual Report on Form 10-K
        for the year ended December 31, 1997.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">d)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Polaris Industries Inc. 1999 Broad Based Stock
        Option Plan incorporated by reference to the Company&#146;s
        Registration Statement on Form S-8 filed with the Securities and
        Exchange Commission on May 5, 1999 (No. 333-77765)
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">e)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Management Bonus Plan, incorporated by reference
        to Exhibit 10(j) to the Form S-1.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">f)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Polaris Industries Inc. 1995 Stock Option Plan,
        incorporated by reference to the Company&#146;s Registration
        Statement on Form S-8 filed with the Securities and Exchange
        Commission on March 18, 2002 (No. 333-84478).
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">g)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Polaris Industries Inc. Deferred Compensation
        Plan for Directors incorporated by reference to Exhibit 10(h) to
        the Company&#146;s Annual Report on Form 10-K for the year ended
        December 31, 1995.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">h)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Joint Venture Agreement between the Company and
        Transamerica Commercial Finance Corporation, now known as
        Transamerica Distribution Finance (&#145;TDF&#145;) dated
        February 7, 1996 incorporated by reference to Exhibit 10(i) to
        the Company&#146;s Annual Report on Form 10-K for the year ended
        December 31, 1995.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">i)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Manufacturer&#146;s Repurchase Agreement between
        the Company and Polaris Acceptance dated February 7, 1996
        incorporated by reference to Exhibit 10(j) to the Company&#146;s
        Annual Report on Form 10-K for the year ended December 31, 1995.
        </FONT></TD>
</TR>

<TR>
        <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top" nowrap><FONT size="2">(</FONT></TD>
        <TD align="left" valign="top" nowrap><FONT size="2">j)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top">
        <FONT size="2">Multi-Year Revolving Credit Agreement dated June
        14, 2001, among the Company, certain subsidiaries of the
        Company, the lenders identified therein, Bank of America N.A.,
        as administrative agent and U.S. Bank N.A., as syndication agent
        and issuing lender, incorporated by reference to Exhibit 10(s)
        to the Company&#146;s Quarterly Report on Form 10-Q for the
        period ended June 30, 2001.
        </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">16
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="80%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Exhibit</FONT></B></TD>
	<TD></TD>
	<TD></TD>
</TR>

<TR>
	<TD colspan="3" align="center" nowrap><B><FONT size="2">Number</FONT></B></TD>
	<TD></TD>
	<TD align="center" nowrap><B><FONT size="2">Description</FONT></B></TD>
</TR>

<TR>
	<TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>k)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	364 Day Revolving Credit Agreement dated June 14, 2001, among
	the Company, certain subsidiaries of the Company, the lenders
	identified therein, Bank of America N.A., as administrative
	agent and U.S. Bank N.A., as syndication agent, incorporated by
	reference to Exhibit 10(s) to the Company&#146;s Quarterly
	Report on Form 10-Q for the period ended June 30, 2001.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>l)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Shareholder Agreement with Fuji Heavy Industries Ltd.,
	incorporated by reference to Exhibit 10(m) to the Company&#146;s
	Annual Report on Form 10-K for the year ended December 31, 1994.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>m)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Registration Rights Agreement between and among the Company,
	Victor K. Atkins, EIP I Inc., EIP Holdings Inc. and LB I Group
	Inc., incorporated by reference to Exhibit 10(1) to the
	Company&#146;s Annual Report on Form 10-K for the year ended
	December 31, 1994.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>n)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Amended and Restated Polaris Industries Inc. 1996 Restricted
	Stock Plan, incorporated by reference to the Company&#146;s
	Registration Statement on Form S-8 filed with the Securities and
	Exchange Commission on March 18, 2002 (No. 333-84478).</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>o)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Polaris Industries Inc. Employee Stock Purchase Plan,
	incorporated by reference to the Company&#146;s Registration
	Statement on Form S-8 filed with the Securities and Exchange
	Commission on February 3, 1997 (No. 333-21007).</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>p)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Form of Change of Control Agreement entered into with executive
	officers of Company incorporated by reference to Exhibit 10(q)
	to the Company&#146;s Annual Report on Form 10-K for the year
	ended December 31, 1996.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>q)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Employment Agreement between the Company and Thomas C. Tiller
	dated July 11, 2001. Incorporated by reference to Exhibit 10(s)
	to the Company&#146;s Quarterly Report on Form 10-Q for the
	period ended June 30, 2001.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>r)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	First Amendment to Joint Venture Agreement between the Company
	and TDF dated June 30, 1999, incorporated by reference to
	Exhibit 10(x) to the Company&#146;s Annual Report on Form 10-K
	for the year ended December 31, 1999.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>s)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Second Amendment to Joint Venture Agreement between the Company
	and TDF dated February 24, 2000, incorporated by reference to
	Exhibit 10(y) to the Company&#146;s Annual Report on Form 10-K
	for the year ended December 31, 1999.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>(</TD>
	<TD align="left" valign="top" nowrap>t)</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Revolving Program Agreement between Polaris Sales Inc. and
	Household Bank (SB), N.A. dated October 15, 2001.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>13.</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Portions of the Annual Report to Security Holders for the Year
	Ended December 31, 2001 included pursuant to Note 2 to General
	Instruction G.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>21.</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Subsidiaries of Registrant.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>23.</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Consent of Arthur Andersen LLP.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>24.</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Power of Attorney.</TD>
</TR>

<TR>
	<TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap>99.</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top">
	Company letter to SEC regarding representations of Arthur
	Andersen LLP.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center">17
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.(T)
<SEQUENCE>3
<FILENAME>c68167ex10-t.txt
<DESCRIPTION>REVOLVING PROGRAM AGREEMENT
<TEXT>
<PAGE>


                                                                   EXHIBIT 10(t)

                           REVOLVING PROGRAM AGREEMENT

This Revolving Program Agreement ("Agreement") is entered into as of October 15,
2001 ("Effective Date") by and between Household Bank (SB), N.A., a national
banking association, ("Household Bank"), with its principal offices located at
1111 Town Center Drive, Las Vegas, NV 89144 and Polaris Sales Inc., a Minnesota
corporation ("Polaris"), with its principal offices at 2100 Highway 55, Medina,
MN 55340.

In consideration of the mutual promises, covenants, and agreements set forth
below and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

Section 1. Definitions. In addition to the words and phrases defined above and
elsewhere in this Agreement, the following words and phrases shall have the
following meanings:

a.       "Active Account" means with respect to any Billing Cycle, any Account,
         which at any time during the Billing Cycle has a credit or debt
         balance.
b.       "Account" means a Private Label Credit Card account established by
         Household Bank for a Cardholder or assigned to Household Bank to be
         used by the Cardholder to finance the purchase of Goods from Dealers
         pursuant to the terms of the Cardholder Agreement. In addition,
         "Account" shall also include those accounts included in the Existing
         Portfolio.
c.       "Affiliate" means any entity that is owned by, owns or is under common
         control with the parties or their ultimate parent.
d.       "Applicable Law" means collectively or individually any applicable law,
         rule, regulation or judicial, governmental or administrative order,
         decree, ruling, opinion or interpretation.
e.       "Average Account Balances" means, for any period, the sum of the daily
         Account net balances for the Accounts in the Revolving Program for such
         period divided by the number of days in such period.
f.       "Billing Cycle" shall mean the period of calendar days between billing
         dates, usually between twenty-eight (28) and thirty-one (31) days.
g.       "Business Day" means any day except Saturday or Sunday or a day on
         which banks are closed in the State of Nevada.
h.       "Card" means the Private Label Credit Card issued by Household Bank for
         the Revolving Program.
i.       "Cardholder" means (i) the person in whose name an Account is opened,
         and (ii) any other authorized users of the Account.
j.       "Cardholder Agreement" means as to any Account, the related application
         and agreement between the Cardholder and Household Bank, governing the
         terms and conditions of such Account, as such agreement may be amended
         from time to time by Household Bank.
k.       "Card Sale" means any sale of Goods that Dealers make to a Cardholder
         pursuant to this Agreement and the Cardholder Agreement that is charged
         to an Account.
l.       "Credit Promotion" means the promotional plans set forth in the
         Cardholder Agreements.
m.       "Credit Promotion Period" means the promotional period for the
         promotional plans set forth in the Cardholder Agreements.


<PAGE>




n.       "Dealer Participation Expense" means the amortization of Dealer
         Participation Fees paid to the Dealers in accordance with the Dealer
         Revolving Agreements for non promotional Card Sales. The Dealer
         Participation Fees are paid at funding and will be amortized in
         accordance with Household Bank's standard accounting policies.
o.       "Dealers" means independent retail dealers authorized by Polaris to
         sell its Goods.
p.       "Discount Income" means the amortization of discounts which have been
         assessed by Household Bank on various promotional credit plans in
         accordance with Schedule A. These discounts are assessed at funding and
         will be amortized in accordance with Household Bank's standard
         accounting policies.
q.       "Excess Loss Provision" means the Monthly charge or credit necessary to
         maintain an appropriate bad debt reserve on outstanding Account
         balances in accordance with Household Bank's standard accounting
         policies.
r.       "Existing Portfolio" means the existing portfolio of Private Label
         Credit Card accounts arising from the program established and
         maintained by Transamerica Bank, N.A. and Transamerica Retail Financial
         Services Corporation (collectively "Transamerica") for Polaris, which
         existing portfolio Household Bank has agreed to purchase pursuant to a
         Purchase and Sale Agreement dated July 24, 2001, by and between
         Household Bank and Transamerica.
s.       "Fee Income" means late fees, NSF fees, net direct check fees, debt
         cancellation program fees, overlimit fees, and any other fees, except
         fees related to credit insurance, Finance Charge Income, and Discount
         Income, assessed and billed to Accounts, net of reversals.
t.       "Finance Charge Income" represents billed finance charges on Account
         balances net of reversals.
u.       "Interest Expense" means an amount equal to the product of:
         (i)      the result of the One Year LIBOR plus 40 basis points divided
                  by twelve, times
         (ii)     85% of the Average Account Balances for such Month less
                  unamortized Discount Income plus unamortized Dealer
                  Participation Expense.
v.       "Marketing Expenses" means and includes, but is not limited to,
         expenses for point of sale materials, direct mail materials, general
         media advertising and any other marketing materials or Revolving
         Program related to promoting and marketing the Revolving Program
         mutually agreed upon by Household Bank and Polaris. Marketing Expenses
         shall not include discounts associated with Credit Promotions or
         Participation Fees.
w.       "Month" means a calendar month unless used in connection with a Credit
         Promotion Period.
x.       "Net Chargeoff" means the sum of the principal, interest, fees and
         other components of an Account balance which is charged off by
         Household Bank in accordance with Household Bank's standard operating
         procedures, net of any recoveries received by Household Bank after the
         charge-off of such Accounts.
y.       "One Year LIBOR" means the Business Daily average, for the applicable
         calendar month, of the one (1) year London Interbank Offered Rate as
         published by Bloomberg Financial Markets.
z.       "Operating Instructions" means the regulatory guidelines and operating
         instructions and/or procedures designated by Household Bank from time
         to time concerning the Revolving Program.


                                      -2-
<PAGE>




aa.      "Private Label Credit Card" means a credit card which may be used to
         purchase the goods and/or services of the entity or an affiliate of the
         entity whose name, tradename, or logo is on such credit card.
bb.      "Revolving Program Assets" means Account balances minus bad debt
         reserve plus unamortized Dealer Participation Expense minus unamortized
         Discount Income for the Revolving Program.
cc.      "Revolving Program Income" means Finance Charge Income, plus Discount
         Income, plus Fee Income, plus any gain on the sale of the Accounts if
         the portfolio is sold, minus Dealer Participation Expense, minus
         Interest Expense, minus Net Chargeoff, plus or minus Excess Loss
         Provision, minus Servicing Expenses, minus Sales Expenses, minus
         Marketing Expenses, minus other Revolving Program write-offs, minus any
         loss on the sale of Accounts if the portfolio is sold, all in
         connection with the Revolving Program.
dd.      "Sales Expense" means the amount of compensation paid by Household Bank
         to the respective sales personnel of the Bank and Polaris in connection
         with the Revolving Program.
ee.      "Sales Slip" means evidence of a Card Sale in paper or electronic form
         for Goods purchased from Dealers.
ff.      "Servicing Expense" represents a Monthly charge for loan origination
         and servicing which includes the following charges:
         Origination - $6.65 per application
         Customer Service - $1.24 per Active Account per Billing Cycle
         Collection - $17.50 per delinquent Account per Billing Cycle (excluding
         charged off Accounts)
         Systems and Other Service Expenses - $3.50 per Active Account per
         Billing Cycle

Section 2. Scope. Polaris is engaged in the sale of snowmobiles, watercraft, all
terrain vehicles, motorcycles, and other related products and services ("Goods")
through a distribution network of Dealers. Household Bank has been asked by
Polaris to provide a Private Label Credit Card program for consumers purchasing
Goods from Dealers (the "Revolving Program") under the terms and conditions of
agreements with Dealers ("Dealer Revolving Agreements") entered into hereafter
between Household Bank and Dealers.

Section 3. Revolving Program Participation Fee. On or before the 10th Business
Day following the end of each Month, Household Bank shall deliver to Polaris a
reasonably detailed operating statement for the Revolving Program and a
calculation of Revolving Program Income, both certified to be correct and
complete by an officer of Household Bank. In any Month in which the Revolving
Program Income is a gain, Household Bank shall make a payment to Polaris of a
monthly fee equal to fifty percent (50%) of the Revolving Program Income
("Polaris Participation Fee") within 10 Business Days after said certificate is
delivered. In any Month in which the Revolving Program Income is a loss, with
respect to all Accounts for such Month, Polaris shall pay Household Bank fifty
percent (50%) of the loss ("Polaris Participation Fee Shortfall") within 10
Business Days after said certificate is delivered. The liability of Polaris to
pay any amounts due for the Polaris Participation Fee Shortfall shall not exceed
fifteen million dollars ($15,000,000) in the aggregate (the "Shortfall
Maximum"), except as provided in Section 5.e; provided, however, that if the
Revolving Program Assets reach four hundred million dollars ($400,000,000),
Household shall have the right to terminate this Agreement upon


                                   -3-
<PAGE>




twenty (20) days prior written notice, unless Polaris shall have agreed to
increase the Shortfall Maximum to an amount agreed upon with Household Bank.

Section 4.  Revolving Program Support by Polaris.


a.       Polaris agrees to review and recommend Dealers that have met Polaris'
         Dealer criteria and are in good standing with Polaris for participation
         in the Revolving Program. Polaris further agrees that it will use
         commercially reasonable efforts to encourage appropriate Dealers to
         participate in the Revolving Program. Polaris shall request each Dealer
         which desires to participate in the Revolving Program to enter into
         Dealer Agreements which, once executed, shall be forwarded to Household
         Bank. Household Bank may, at any time and in its sole discretion for
         any reason, decline to accept a Dealer referred by Polaris by not
         executing a Dealer Agreement presented to Household Bank. If approved
         by Household Bank, Household Bank will send a copy of the fully
         executed Dealer Agreement to the Dealer.

b.       If Polaris desires to terminate a particular Dealer from the Revolving
         Program, Polaris shall notify Household Bank in writing of such desire
         and Household Bank will terminate such Dealer from the Revolving
         Program in accordance with the terms of the Dealer Agreements.

c.       Polaris agrees to actively promote the Revolving Program with both
         Dealers and consumers including, but not limited to, providing such
         Dealer training and consumer marketing regarding the Revolving Program
         mutually agreed to by Polaris and Household Bank.

d.       Polaris shall not issue during the term of this Agreement, arrange to
         have issued during the term of this Agreement, or accept any Private
         Label Credit Card other than the Card issued by Household Bank, except
         with respect to applications declined by Household Bank.

e.       Polaris shall use commercially reasonable efforts to assist Household
         Bank in resolving all disputes involving Goods which go unresolved by
         any Dealer

Section 5.  Equity Reserve for Revolving Program.

a.       Upon the execution of this Agreement, Polaris and Household Bank shall
         establish an equity reserve (the "Equity Reserve") to be held by
         Household Bank in trust for Polaris for the sole benefit of and use by
         Household Bank in accordance with the terms of this Agreement. In order
         to secure the performance of Polaris's obligations hereunder, Polaris
         hereby grants Household Bank a first priority security interest in and
         lien upon the Equity Reserve, and agrees to execute such documents and
         take such other actions as Household Bank reasonably determines are
         necessary in order to perfect such security interest and lien.

b.       The Equity Reserve shall be considered fully funded for each Month in
         which the balance of the Equity Reserve is at least seven and one-half
         percent (7.5%) of

                                      -4-

<PAGE>




         the Revolving Program Assets at the end of such Month (the "Fully
         Funded Amount").

c.       The Equity Reserve shall be funded as follows: (i) Polaris shall,
         within three (3) Business Days of the Effective Date of this Agreement,
         deposit in the Equity Reserve an amount equal to seven and one half
         percent (7.5%) of the Revolving Program Assets; (ii) for any Month in
         which the amount in the Equity Reserve is less than the Fully Funded
         Amount, Polaris shall deposit the amount of the shortfall in the Equity
         Reserve within ten (10) Business Days of the end of such Month; and
         (iii) for any Month in which the amount in the Equity Reserve is more
         than the Fully Funded Amount, Household Bank shall deduct the
         difference from the Equity Reserve and forward that amount to Polaris
         within ten (10) Business Days of the end of such Month.

d.       If Polaris has not paid Household Bank any amounts due to Household
         Bank under Section 3 or 9, Household Bank may deduct such amounts from
         the Equity Reserve. Household Bank may not use the Equity Reserve for
         any other reason.

e.       Any amount remaining in the Equity Reserve upon the termination of this
         Agreement shall be returned to Polaris upon the earlier of the date (i)
         the balances on all the Accounts (excluding charged off Accounts) have
         been reduced to zero, or (ii) the Accounts have been purchased pursuant
         to Section 10.d, less any deductions for any amounts due Household Bank
         under Section 3 or 9 after the termination date and less any amount of
         the Polaris Participation Fee Shortfall in excess of the Shortfall
         Maximum not paid by Polaris pursuant to Section 3 on account of the
         Shortfall Maximum having been reached.

Section 6. Revolving Program Return. Household Bank will manage the Revolving
Program economics in accordance with its ordinary business practices so that the
Revolving Program Income will represent a return on Revolving Program Assets
between 4.8% and 5.75%. The Revolving Program return will be reviewed on a
quarterly basis, and Household Bank may adjust, after discussions with Polaris,
the Revolving Program economics, including but not limited to Cardholder APR and
fees, Discounts, Dealer Participation Fees, and the Revolving Program Income.

Section 7.  Service Level Standards and Reporting for Revolving Program.

a.       Household Bank shall comply with Applicable Law in servicing the
         Accounts.

b.       Household Bank shall maintain the following service level standards
         ("Service Levels") in connection with the Revolving Program:

<TABLE>
        <S>      <C>                                                                  <C>


         (i)      Monthly average speed of answer for Cardholders:                     45 seconds
         (ii)     Monthly average speed of answer for Dealers:                         20 seconds
         (iii)    Monthly average time to decision applications:                        4 minutes
         (iv)     Monthly average percentage of Dealers funded same day
                        for Dealers' whose funding transmissions are timely
                  received by Household Bank:                                          95%
         (v)      Monthly average percentage of payments correctly
</TABLE>

                                      -5-


<PAGE>


<TABLE>
                 <S>                                                                   <C>


                  processed if standard payment envelope and remittance coupon
                  are used, and one check is enclosed:                                 95%

</TABLE>

c.       Upon the conversion of the Existing Portfolio from Transamerica's
         system to Household Bank's system, which will affect Household Bank's
         performance of the Service Levels, Household Bank may reduce the
         Service Levels to levels which are 80% of the Service Levels set forth
         in Section 7.b., which reduced levels shall govern for a temporary
         period of sixty (60) days after the conversion of the Existing
         Portfolio to the Household Bank system, after which time the levels
         shall revert to those Service Levels set forth herein.

d.       Notwithstanding any other provision to the contrary, Household Bank
         shall not be in default under this Agreement or be deemed to have
         failed to meet a Service Level standard due to a system or network
         communication failure. In the event of such an occurrence as set forth
         in this Section, Household Bank shall use its best efforts to meet its
         obligations as set forth in this Agreement.

e.       Notwithstanding any other termination provision in this Agreement to
         the contrary, Polaris may only terminate this Agreement pursuant to
         this Section 7.e., if Household Bank fails to meet any three of the
         Service Levels in three (3) out of any six (6) Months or the same
         Service Level for three (3) consecutive Months. In such a case, (i)
         Polaris shall give notice to Household Bank that it intends to
         terminate this Agreement pursuant to this Section 7.e.; (ii) Household
         Bank shall thereafter have 60 days to cure its failure to meet the
         particular Service Levels; and (iii) if Household Bank has not cured
         its failure in the aforementioned time period, Polaris may terminate
         this Agreement upon written notice, such termination to be effective
         180 days after such notice is provided.

f.       On or before the 10th Business Day of each Month, Household Bank shall
         provide agreed upon sales and marketing reports.

Section 8. Dealer Pricing and Cardholder Account Terms. The pricing terms for
volume generated by the Dealers and the Cardholder Account terms under the
Revolving Program are set forth in Schedule A attached hereto and incorporated
herein.

Section 9. Indemnification.


a.       Indemnification by Polaris. Polaris shall be liable to and shall
         indemnify and hold harmless Household Bank from any losses, damages,
         claims or complaints incurred by Household Bank arising out of: (i)
         Polaris's failure to comply with this Agreement; or (ii) the death or
         injury to any person or the loss, destruction or damage to any property
         arising out of the negligent act or omission of Polaris with respect to
         Goods purchased by customers; or (iii) any claim or complaint of a
         third party made in good faith in connection with advertisements and
         promotions prepared by or at the direction of Polaris; or (iv) any
         illegal conduct of Polaris or its employees or agents in connection
         with the Revolving Program; or (v) any violation of Applicable Law by
         Polaris or its employees or agents in connection with the Revolving
         Program.

                                      -6-

<PAGE>




b.       Indemnification by Household Bank. Household Bank shall be liable to
         and shall indemnify and hold harmless Polaris from any losses, damages,
         claims or complaints incurred by Polaris arising out of (i) Household
         Bank's failure to comply with this Agreement; or (ii) any claim,
         dispute or complaint of any thirty party made in good faith in
         connection with advertisements and promotions prepared by or at the
         direction of Household Bank; or (iii) any illegal conduct of Household
         Bank or its employees or agents in connection with the Revolving
         Program; or (iv) any violation of Applicable Law by Household Bank or
         its employees or agents in connection with the Revolving Program.

c.       Notice of Claim and Survival. In the event that Household Bank or
         Polaris shall receive any claim or demand or be subject to any suit or
         proceeding of which a claim may be made against the other under this
         Section 9, the indemnified party shall give prompt written notice
         thereof to the indemnifying party and the indemnifying party will be
         entitled to participate in the settlement or defense thereof with
         counsel satisfactory to indemnified party at the indemnifying party's
         expense. In any case, the indemnifying party and the indemnified party
         shall cooperate (at no cost to the indemnified party) in the settlement
         or defense of any such claim, demand, suit, or proceeding. The terms of
         this Section 9 shall survive the termination of this Agreement.

Section 10.  Term and Termination.


a.       Term. This Agreement shall be effective as of the Effective Date when
         executed by authorized officers of each of the parties. It shall remain
         in effect for five (5) years ("Initial Term"), and shall thereafter be
         automatically renewed for successive one (1) year terms (the "Renewal
         Term(s)") unless and until terminated as provided herein. The
         termination of this Agreement shall not affect the rights and
         obligations of the parties with respect to transactions and occurrences
         which take place prior to the effective date of termination, except as
         otherwise provided herein.

b.       Termination.  This Agreement may be terminated:

         (i)      effective at the end of the Initial Term or any Renewal Term,
                  by Household Bank or Polaris upon not less than one hundred
                  eighty (180) days prior written notice to the other prior to
                  the end of such term;
         (ii)     by Household Bank upon sixty (60) days prior written notice to
                  Polaris if the aggregate amount of Sales Slips or Card Sales
                  subject to Chargeback to the Dealers pursuant to the Revolving
                  Program exceeds 1.5% of the total number of Card Sales in any
                  calendar quarter;
         (iii)    by Household Bank or Polaris upon written notice to the other
                  party if the return on Revolving Program Assets is less than
                  4.2% for two consecutive calendar quarters;
         (iv)     by Household Bank or Polaris upon written notice to the other
                  party if the Polaris Participation Shortfall paid and unpaid
                  reaches fifteen million dollars ($15,000,000) in the
                  aggregate.
         (v)      by Household Bank or Polaris upon written notice to the other
                  in the event the other party shall elect to wind up or
                  dissolve its operation or is wound up and dissolved; becomes
                  insolvent or repeatedly fails to pay its debts as they become
                  due; makes an assignment for the benefit of creditors; files a

                                      -7-

<PAGE>




                  voluntary petition in bankruptcy, or for reorganization or is
                  adjudicated as bankrupt or insolvent; or has a liquidator or
                  trustee appointed over its affairs; or
                 (v)      upon written notice to the other (a) by either party,
                  if there occurs any material change in ownership of the other
                  party; or (b) by either party, if a material adverse change
                  occurs in the other party's financial condition as reasonably
                  determined by that party in its sole discretion, or if the
                  other party suspends or goes out of business or substantially
                  reduces its business operations or sends a notice of a
                  proposed bulk sale of all or part of its business; or (c) by
                  either party, in the event the other party materially breaches
                  its obligations or any term under this Agreement or in the
                  Operating Instructions; or (d) by either party, if that party
                  has reasonable cause to believe that the other party will not
                  be able to perform its obligations under this Agreement; or
                  (e) by Household Bank, such notice to be provided at least
                  sixty (60) days prior to the effective date of termination, if
                  in the annual dollar volume of Card Sales generated by the
                  Revolving Program is less than $50 million; or (f) by either
                  party, if that party has reasonable cause to believe that the
                  other party, its agents or employees have engaged in any
                  fraudulent activity in connection with any of the transactions
                  contemplated by this Agreement; or (g) by Household Bank, such
                  notice to be provided at least sixty (60) days prior to the
                  effective date of termination, if there is a fifty percent
                  (50%) or more increase in any calendar quarter from the
                  previous calendar quarter of Cardholder inquiries, disputes,
                  or complaints caused by Dealers and Polaris; (h) by Polaris,
                  such notice to be provided at least sixty (60) days prior to
                  the effective date of termination, if there is a fifty percent
                  (50%) or more increase in any calendar quarter form the
                  previous calendar quarter of Cardholder inquires, disputes, or
                  complaints caused by Household Bank; (i) by Polaris upon 180
                  days prior written notice to Household Bank pursuant to
                  Section 7.e. herein, if Household Bank fails to maintain the
                  Service Levels in accordance with Section 7; (j) by Household
                  Bank, if in Household Bank's reasonable judgment, any
                  Applicable Law requires that this Agreement or either party's
                  rights or obligations hereunder be amended, modified, waived
                  or suspended in any material respect, including, without
                  limitation, the amount of finance charges or fees that may be
                  charged or collected or the consumer rate that may be charged
                  on purchases with the Card and the parties are unable to
                  negotiate any additional amendments or modifications to the
                  Agreement to address such changes in any Applicable Law; or
                  (k) by either party, if the Closed End Program Agreement by
                  and between Polaris Sales Inc. and Household Retail Services,
                  Inc. (the "Closed End Program Agreement) is terminated, with
                  the termination date of this Agreement to be effective on the
                  same date as the termination of the Closed End Program
                  Agreement.

c.       Duties and Rights Upon Termination. Polaris shall de-install from its
         operating system any program files provided by Household Bank to
         Polaris. Upon termination of this Agreement, Household Bank will
         approve no new applications under any Dealer Agreements, will authorize
         no additional purchases, and all Dealer Agreements shall also be
         terminated. Neither party is liable to the other for any direct or
         consequential damages that either party may suffer as a result


                                      -8-

<PAGE>




         of either party's termination of this Agreement. The termination of
         this Agreement shall not affect the rights and obligations of the
         parties with respect to transactions and occurrences which take place
         prior to the effective date of termination, except as otherwise
         provided herein. In the event this Agreement is terminated for any
         reason or notice of termination is given by either party, Household
         Bank may take such other reasonable actions, including, but not limited
         to, establishing and maintaining a reserve (the "Termination Reserve")
         from payments otherwise payable to Polaris to protect Household Bank's
         rights under this Agreement and to cover amounts owing to Household
         Bank. The Termination Reserve shall be in the amount of 100% of the
         prior 12 Months Chargebacks, but in no event shall the Termination
         Reserve exceed two million dollars ($2,000,000). Upon the purchase of
         the Accounts pursuant to Section 10.d below, any unused amount in the
         Termination Reserve shall be paid to Polaris within 30 days of the date
         of sale. If no purchase occurs, the Termination Reserve shall be
         maintained and used by Household Bank for three (3) years from the
         termination date or until exhausted, whichever comes first. Any unused
         amount in the Termination Reserve after said three years shall be paid
         to Polaris within thirty (30) days of the end of such three year
         period.

d.       Purchase Requirements for Revolving Program. Polaris shall have the
         option to purchase, or arrange the purchase by a third party of, the
         Accounts from Household Bank upon termination of this Agreement. Said
         option may be exercised by Polaris by giving written notice to such
         effect to Household Bank within thirty (30) days after the termination
         date. The purchase price shall be negotiated, but it shall not be less
         than one hundred percent (100%) nor more than one hundred five percent
         (105%) of the full amount of all of the outstanding Account balances,
         plus accrued interest and fees from the last Billing Cycle through the
         date of sale, plus unamortized Dealer Participation Expense, minus the
         full amount of the bad debt reserve and minus the full amount of
         unamortized Discount Income. The purchase shall occur not later than 90
         days after the effective date of termination of this Agreement and to
         be under such terms and conditions as are reasonable acceptable to
         Household Bank. Household Bank shall, as a part of the purchase, assign
         to Polaris or the third party purchaser, all charged off Accounts which
         it still owns at the time of such purchase at a price to be determined,
         but in any event, no more than 12% of the charged off Account balances.
         If the purchase of the Accounts is not completed within ninety (90)
         days, and unless Household Bank agrees to extend such time period,
         Polaris shall have no further right to purchase the Accounts.

e.       Only the terms of Sections 3, 5, 9, 10.c, 10.d, and 14 shall survive
         termination of this Agreement; provided, however, that the terms of
         Sections 3 and 5 shall survive until the Accounts are purchased
         pursuant to Section 10.d. or otherwise. If either party owes the other
         party any amounts under Section 3 and/or 5 as of the date the Accounts
         are purchased, that party may pay the other party thereafter in
         accordance with the time periods set forth in those sections.

Section 11. Audit Rights. Polaris and its designated representatives shall have
the right, at Polaris' expense, to audit the Revolving Program no more
frequently than once a year, during reasonable business hours and upon
reasonable notice to Household Bank.

                                      -9-


<PAGE>




Household Bank will reasonably cooperate by making its personnel and pertinent
records available, including, but not limited to such records showing the
following:

         (a)      Computation of Revolving Program Income
         (b)      Service Level performance
         (c)      Computation of Servicing Expenses

Section 12. Privacy and Internet Applications. Except as permitted in Section
15, neither Polaris nor Household Bank shall make any unauthorized disclosure of
or use any personal information of individual consumers which it receives from
the other party or on the other party's behalf other than to carry out the
purposes for which such information is received, and Polaris and Household Bank
shall comply, to the extent applicable, with the requirements of the
implementing regulations of Title V of the Gramm-Leach Bliley Act of 1999,
specifically, 16 Code of Federal Regulations, Chapter I, Subchapter C, Part
313.11.

Polaris and Household Bank shall adopt and maintain a comprehensive privacy
policy with respect to their handling of the personal information of individual
consumers submitted by such consumers to Polaris or Household Bank via the
Internet. Polaris and Household Bank's privacy policy shall be available on
their Internet websites. Polaris and Household Bank shall comply in all respects
with the provisions of their respective privacy policies.

With respect to Internet applications, Polaris shall include a link on its
website to the Household Bank website, and include language notifying visitors
that they may complete an application for a Card via the Internet by clicking on
such link. Household Bank shall provide a link back to the Polaris website for
such visitors.

Section 13. Termination of Dealer Agreement. Household Bank upon notice to
Polaris may elect to terminate its relationship with a particular Dealer if such
Dealer is associated with excessive chargebacks, high fraudulent activity or
other course of business conduct that is injurious to the business relationship
between Household Bank and Polaris or for any breach of the Dealer Agreement.

Section 14. Additional Products and Services. During and after the term of this
Agreement, Household Bank and/or its Affiliates shall have the non-exclusive
right to solicit Cardholders for the products set forth in Schedule B, attached
hereto. Household Bank may add additional products to Schedule B after the
Effective Date of this Agreement, but any additions to the products set forth in
Schedule B shall receive Polaris' prior review. Such solicitations shall comply
with Applicable Law, including privacy laws.

Section 15. Representations/Binding Effect. Household Bank and Polaris represent
and warrant that each has full power, capacity, and authority to enter into this
Agreement; that all action required to make this Agreement binding and valid
upon each party according to its terms has been taken; and that this Agreement
is and will be binding, valid and enforceable upon each party and its respective
successors and assigns according to its terms, and the benefits of this
Agreement shall extend to each party and its successors and assigns.

Section 16. Assignments and Modifications. Neither party may assign this
Agreement or any of its obligations under this Agreement to any third party
without the other party's


                                      -10-
<PAGE>




written consent, provided, however, that either party may, upon prior written
notice to the other, assign this Agreement and any of the rights hereunder to
any Affiliate of the party, or any purchaser of substantially all of the assets
of the party, capable of fulfilling the obligations (including all financial
obligations) of the assigning party under this Agreement. In the event of such
assignment, the assignee shall have the same rights, remedies, obligations and
liabilities as Household Bank or Polaris under this Agreement. Any merger or
consolidation by either party with another entity, other than with an Affiliate,
shall be deemed to be an assignment expressly prohibited without the prior
written consent of the other party, which consent shall not be unreasonably
withheld. This Agreement may not be changed, amended or modified orally, and no
obligation of either party can be released or waived by either party, except by
a writing signed by a duly authorized officer or representative of each party.

Section 17. Applicable Law/Severability. This Agreement shall be governed by and
construed in accordance with the laws of the State of Illinois. If any provision
of this Agreement is contrary to applicable law, such provision shall be deemed
ineffective without invalidating the remaining provisions hereof.

Section 18. Notices. All notices required or permitted by this Agreement shall
be in writing and shall be sent to the respective parties as follows: if to
Household Bank and or HRSI, to the Attention of President, (with a copy to the
Attention of General Counsel, Retail Services Law Department, 2700 Sanders Road,
Prospect Heights, Illinois 60070); if to Polaris to the Attention of CFO at
their respective addresses set forth on page one of this Agreement or such other
addresses as each party may designate to the other by notice hereunder. Said
notices shall be deemed to be received when sent to the above addresses (i) upon
three (3) business days after deposit in the U.S. first class regular mail with
postage prepaid or by registered or certified mail, return receipt requested,
with postage prepaid, (ii) upon personal delivery, or (iii) upon receipt by
telex, facsimile, or overnight/express courier service or mail.

Section 19. Information. Polaris shall make available public financial
information to Household Bank. If Household Bank requires further financial
information, Polaris will make available financial officers of the company to
explain or clarify Polaris's financial condition to Household Bank including the
review of financial documents by Household Bank at Polaris's corporate office;
provided that Household Bank signs a standard non-disclosure agreement. Polaris
understands that Household Bank may seek credit and other information concerning
Polaris from others and may provide financial and other information regarding
the portfolio to its affiliates or others for purposes of its asset
securitizations and sales, but in no event shall any non-public information be
made public by Household Bank without Polaris' prior written consent.

Section 20. Limited License. Polaris hereby authorizes Household Bank solely for
purposes of this Agreement to use Polaris's name, logo, registered trademarks
and servicemarks (if any) and any other proprietary designations ("Proprietary
Materials") on the credit cards, applications, periodic statements, billing
statements, collection letters, documents, promotional or advertising materials
and otherwise in connection with the Revolving Program, subject to Polaris's
periodic reasonable review of such use and to such reasonable specifications of
Polaris. Polaris represents and warrants that it has appropriate trademark
rights in the Proprietary Materials. Polaris shall indemnify, defend and hold
Household Bank harmless from any loss, damage, expense or liability arising


                                      -11-
<PAGE>




from any claims of alleged infringement of the Proprietary Materials (including
reasonable attorneys' fees and costs); provided that Household Bank has only
used the Proprietary Materials in compliance with this Section 20. Polaris may
not use any name or service mark of Household Bank or any of its Affiliates in
any manner without the prior written consent of Household Bank.

Section 21. Agreements between Polaris and Dealers. Except as specifically
provided in this Agreement or in the Dealer Agreements, (i) Household Bank shall
not be a party to any agreement between Polaris and individual Dealers, (ii)
Household Bank shall not be responsible for the obligations of Polaris and any
Dealers one to the other, including without limitation, the payment of any fees
agreed to between Polaris and Dealers, and (iii) Household Bank shall not in any
way be responsible for the acts, omissions or breaches of any arrangements or
contracts between Polaris and Dealer(s).

Section 22. Agreements between Household Bank and Dealers. Except as
specifically provided in this Agreement, (i) Polaris shall not be a party to any
agreement between Household Bank and individual Dealers, (ii) Polaris shall not
be responsible for the obligations of Household Bank and any Dealer one to the
other, including without limitation, the payment of any amounts owed by one to
the other, and (iii) Polaris shall not in any way be responsible for the acts,
omissions or breaches of any arrangements or contract between Household Bank and
Dealers or for any other obligations of Household Bank or any Dealer.

                                      -12-
<PAGE>





SECTION 23. JURISDICTION. ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT MUST BE BROUGHT SOLELY IN THE COURTS OF THE STATE OF
ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
ILLINOIS; POLARIS AND HOUSEHOLD BANK HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE
JURISDICTION OF SUCH COURTS AND ANY APPELLATE COURTS THEREOF FOR THE PURPOSE OF
ANY SUCH SUIT, ACTION, PROCEEDING OR JUDGMENT (IT BEING UNDERSTOOD THAT SUCH
CONSENT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS WAIVES ANY RIGHT TO SUBMIT
ANY DISPUTES HEREUNDER TO ANY COURTS OTHER THAN THOSE ABOVE).

SECTION 24. WAIVER OF JURY TRIAL. HOUSEHOLD BANK AND POLARIS HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY SUIT,
ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS AGREEMENT,
ANY RELATED DOCUMENT OR UNDER ANY OTHER DOCUMENT OR AGREEMENT DELIVERED OR WHICH
MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH, OR ARISING
FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREE THAT
ANY SUCH SUIT, ACTION, PROCEEDING OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT
AND NOT BEFORE A JURY; THIS PROVISION IS A MATERIAL INDUCEMENT FOR HOUSEHOLD
BANK AND POLARIS ENTERING INTO THIS AGREEMENT.

IN WITNESS HEREOF, Household Bank and Polaris have caused their duly authorized
representatives to execute this Agreement as of the date set forth above.

HOUSEHOLD BANK (SB), N.A.                 POLARIS SALES INC.


By:      /s/Richard Klesse                By:     /s/Michael W. Malone
   ---------------------------------         -----------------------------------

Print Name:       Richard Klesse          Print Name:  Michael W. Malone
           -------------------------                 ---------------------------

Title:   Vice President                   Title:   Vice President--Finance, CFO
      ------------------------------            --------------------------------


                                      -13-

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13
<SEQUENCE>4
<FILENAME>c68167ex13.txt
<DESCRIPTION>PORTIONS OF THE ANNUAL REPORT TO SECURITY HOLDERS
<TEXT>
<PAGE>
                                                                      EXHIBIT 13


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 referenced
elsewhere in this report, including the information referenced under the caption
"Management's Discussion and Analysis of Financial Condition and Results of
Operations."

<TABLE>
<CAPTION>
For the Years Ended December 31,                                    2001            2000            1999               1998
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>             <C>             <C>             <C>
STATEMENT OF OPERATIONS DATA
Sales data:
  Total sales                                                    $1,512,042      $1,425,678      $1,328,620      $1,180,648
------------------------------------------------------------------------------------------------------------------------------------
    % change from prior year                                              6%              7%             13%             14%
------------------------------------------------------------------------------------------------------------------------------------
  Sales mix by product:
------------------------------------------------------------------------------------------------------------------------------------
    All-terrain vehicles                                                 56%             59%             57%             56%
------------------------------------------------------------------------------------------------------------------------------------
    Snowmobiles                                                          25%             22%             24%             27%
------------------------------------------------------------------------------------------------------------------------------------
    Personal watercraft                                                   4%              5%              4%              4%
------------------------------------------------------------------------------------------------------------------------------------
    Motorcycles                                                           1%              1%              3%              1%
------------------------------------------------------------------------------------------------------------------------------------
    PG&A                                                                 14%             13%             12%             12%
------------------------------------------------------------------------------------------------------------------------------------
Gross profit data:
  Total gross profit                                             $  344,374      $  328,104      $  298,050      $  252,344
------------------------------------------------------------------------------------------------------------------------------------
    % of sales                                                           23%             23%             22%             21%
------------------------------------------------------------------------------------------------------------------------------------
Operating expense data:
  Amortization of intangibles and noncash compensation           $   16,482      $   12,701      $   10,472      $    8,703
------------------------------------------------------------------------------------------------------------------------------------
  Conversion costs                                                       --              --              --              --
------------------------------------------------------------------------------------------------------------------------------------
  Other operating expenses                                          198,074         193,609         173,932         204,944(1)
------------------------------------------------------------------------------------------------------------------------------------
    % of sales                                                           13%             14%             13%             17%(1)
------------------------------------------------------------------------------------------------------------------------------------
Actual and pro forma data:(2)
  Net income                                                     $   91,414      $   82,809      $   76,326      $   31,015(1)
------------------------------------------------------------------------------------------------------------------------------------
  Diluted net income per share                                   $     3.88      $     3.50      $     3.07      $     1.19(1)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOW DATA

Cash flow from operating activities                              $  188,581      $  107,666      $  124,354      $  121,385
------------------------------------------------------------------------------------------------------------------------------------
Purchase of property and equipment                                   53,982          63,056          65,063          61,532
------------------------------------------------------------------------------------------------------------------------------------
Repurchase and retirement of common stock                            49,207          39,622          52,412          37,728
------------------------------------------------------------------------------------------------------------------------------------
Cash dividends to shareholders                                       22,846          20,648          19,732          18,582
------------------------------------------------------------------------------------------------------------------------------------
Cash dividends per share                                         $     1.00      $     0.88      $     0.80      $     0.72
------------------------------------------------------------------------------------------------------------------------------------
Cash distributions declared to partners                                  --              --              --              --
------------------------------------------------------------------------------------------------------------------------------------
Cash distributions declared per unit                                     --              --              --              --
------------------------------------------------------------------------------------------------------------------------------------

BALANCE SHEET DATA
(at end of year)

Cash and cash equivalents                                        $   40,530      $    2,369      $    6,184      $    1,466
------------------------------------------------------------------------------------------------------------------------------------
Current assets                                                      305,317         240,912         214,714         183,840
------------------------------------------------------------------------------------------------------------------------------------
Total assets                                                        565,163         490,186         442,027         378,697
------------------------------------------------------------------------------------------------------------------------------------
Current liabilities                                                 308,337         238,384         233,800         204,964
------------------------------------------------------------------------------------------------------------------------------------
Borrowings under credit agreement                                    18,043          47,068          40,000          20,500
------------------------------------------------------------------------------------------------------------------------------------
Shareholders' equity/partners' capital                              238,783         204,734         168,227         153,233
====================================================================================================================================
</TABLE>

(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
     $1.53 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
     $143.5 million, $70.6 million and $2.72 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.



12

<PAGE>

<TABLE>
<CAPTION>
       1997               1996              1995              1994              1993              1992              1991
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>               <C>               <C>               <C>               <C>               <C>
$ 1,031,470        $ 1,184,368       $ 1,104,060       $   816,713       $   520,197       $   376,903       $   291,563
------------------------------------------------------------------------------------------------------------------------------------
        (13%)                7%               35%               57%               38%               29%                1%
------------------------------------------------------------------------------------------------------------------------------------

         45%                37%               33%               30%               27%               25%               25%
-----------------------------------------------------------------------------------------------------------------------------------
         35%                36%               40%               43%               49%               54%               59%
------------------------------------------------------------------------------------------------------------------------------------
          6%                15%               16%               14%                9%                7%               --
------------------------------------------------------------------------------------------------------------------------------------
         --                 --                --                --                --                --                --
------------------------------------------------------------------------------------------------------------------------------------
         14%                12%               11%               13%               15%               14%               16%
------------------------------------------------------------------------------------------------------------------------------------

$   222,608        $   231,020       $   219,663       $   175,211       $   127,045       $   101,328       $    85,330
------------------------------------------------------------------------------------------------------------------------------------
         22%                20%               20%               21%               24%               27%               29%
------------------------------------------------------------------------------------------------------------------------------------
$     5,887        $     5,325       $     5,616       $    14,321       $    13,466       $    11,997       $    13,108
------------------------------------------------------------------------------------------------------------------------------------
         --                 --                --            12,315                --                --                --
------------------------------------------------------------------------------------------------------------------------------------
    123,619            128,278           112,389            72,913            60,352            48,640            40,504
------------------------------------------------------------------------------------------------------------------------------------

         12%                11%               10%                9%               12%               13%               14%
------------------------------------------------------------------------------------------------------------------------------------

$    65,383        $    62,293       $    60,776       $    54,703       $    33,027       $    24,602       $    20,727
------------------------------------------------------------------------------------------------------------------------------------
$      2.45        $      2.24       $      2.19       $      1.98       $      1.21       $      0.91       $      0.81
------------------------------------------------------------------------------------------------------------------------------------

$   102,308        $    89,581       $    77,749       $   111,542       $    78,503       $    55,316       $    46,642
------------------------------------------------------------------------------------------------------------------------------------
     36,798             45,336            47,154            32,656            18,946            12,295            15,988
------------------------------------------------------------------------------------------------------------------------------------
     39,903             13,587                --                --                --                --                --
------------------------------------------------------------------------------------------------------------------------------------
     16,958             16,390           116,639                --                --                --                --
------------------------------------------------------------------------------------------------------------------------------------
$      0.64        $      0.60       $      4.27                --                --                --                --
------------------------------------------------------------------------------------------------------------------------------------
         --                 --                --            50,942            47,217            44,507            42,581
------------------------------------------------------------------------------------------------------------------------------------
         --                 --                --       $      1.68       $      1.67       $      1.67       $      1.67
------------------------------------------------------------------------------------------------------------------------------------

$     1,233        $     5,812       $     3,501       $    62,881       $    33,798       $    19,094       $    20,098
------------------------------------------------------------------------------------------------------------------------------------
    217,458            193,405           175,271           206,489           109,748            74,999            59,200
------------------------------------------------------------------------------------------------------------------------------------
    384,746            351,717           314,436           331,166           180,548           146,681           135,509
------------------------------------------------------------------------------------------------------------------------------------
    191,111            161,387           155,722           161,457            98,055            69,054            52,646
------------------------------------------------------------------------------------------------------------------------------------
     24,400             35,000            40,200                --                --                --                --
------------------------------------------------------------------------------------------------------------------------------------
    169,235            155,330           118,514           169,709            82,493            77,627            82,863
====================================================================================================================================
</TABLE>

                                   POLARIS INDUSTRIES INC. 2001 ANNUAL REPORT 13

<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS of financial condition and results of
operations

The following discussion pertains to the results of operations and
financial position of the Company for each of the three years in the period
ended December 31, 2001, and should be read in conjunction with the Consolidated
Financial Statements and the Notes thereto included elsewhere in this report.


RESULTS OF OPERATIONS

2001 VS. 2000

Sales increased to $1.512 billion in 2001, representing a six percent increase
from $1.426 billion in 2000. The increase in sales was primarily due to higher
snowmobile sales, resulting from the success of our new Snow Check Select(TM)
program and our product line of high quality snowmobiles, as well as higher
parts, garments and accessories (PG&A) sales in 2001.

     Sales of ATVs of $839.7 million in 2001 were approximately flat compared to
$843.5 million in 2000. The flat sales growth was primarily the result of higher
than usual dealer and consumer promotional and advertising activity of several
of our competitors, which adversely impacted Polaris' sales volume during 2001.
The average per unit sales price increased two percent for the year due to a
change in the mix of products sold following our successful introduction of the
new Sportsman 700 and two new models of RANGERs, each of which commands a higher
selling price. Sales of ATVs comprised 56 percent of total company sales in 2001
compared to 59 percent in 2000.

     Sales of snowmobiles of $379.8 million in 2001 were 22 percent higher than
$311.3 million in 2000. The increase can be attributed to more normal snowfall
in the 2000-2001 season, the success of the new custom order program, Snow Check
Select, and the introduction of several new models. The average per unit sales
price increased six percent in 2001 from the prior year due to higher priced
features being requested on custom-ordered snowmobiles. Sales of snowmobiles
comprised 25 percent of total company sales in 2001 compared to 22 percent in
2000.

     Sales of personal watercraft (PWC) of $61.9 million in 2001 were nine
percent lower than $68.3 million in 2000. The decrease was primarily due to the
slowing economy and a decline in the overall industry retail sales in 2001. The
average per unit sales price for PWC decreased two percent as more sales
promotions were implemented during the 2001 period. Sales of PWC comprised four
percent of total company sales in 2001 compared to five percent in 2000.

     Sales of Victory motorcycles of $19.3 million in 2001 changed little from
sales of $19.4 million in 2000. Although unit shipments increased during 2001,
the flat sales can be attributed to higher promotional costs in 2001 versus 2000
to assist dealers in selling their inventory of motorcycles in a very
competitive industry environment. The average per unit sales price for
motorcycles declined 11 percent due to higher promotional activity in the 2001
period. Sales of Victory motorcycles comprised one percent of total company
sales for both years 2001 and 2000.

     Sales of PG&A of $211.3 million in 2001 were 15 percent higher than $183.2
million in 2000. The increase in PG&A sales was due primarily to increases in
clothing, accessories and parts for both snowmobiles and ATVs. The company views
the PG&A business as a continued opportunity for future growth. PG&A sales
comprised 14 percent of total company sales in 2001, compared to 13 percent in
2000.

     Gross profit increased to $344.4 million in 2001, representing a five
percent increase over $328.1 million gross profit in 2000. This increase in
gross profit dollars was a result of higher sales volume. Gross profit, as a
percentage of sales, decreased slightly to 22.8 percent in 2001 from 23.0
percent in 2000. The decrease was due to increased promotional costs related to
the ATV business and a stronger U.S. dollar in relation to the Canadian dollar
versus the prior year, partially offset by higher margins in the ATV and
snowmobile product lines.

     Operating expenses in 2001 increased four percent to $214.6 million from
$206.3 million in 2000. This increase in operating expenses was a result of
higher sales volume, higher research and development costs, and the impact of a
rising stock price on stock-based compensation plans during 2001 compared to the
prior year. Expressed as a percentage of sales, operating expenses decreased to
14.2 percent in 2001 from 14.5 percent in 2000. The reduction in operating
expenses, as a percent of sales, is a direct result of efforts by the company to
reduce indirect expenses as the economy softened in 2001.

     Polaris has continued to invest in new product development, innovation, and
product diversification. Research and development expenses were $35.7 million
(2.4 percent of sales) in 2001 and $32.4 million (2.3 percent of sales) in 2000.
In 2001, more than 66 percent of sales came from products introduced in the past
three years.

     Interest expense declined six percent as a result of lower average interest
rates on borrowings under the credit agreements in 2001 compared to 2000.

     Nonoperating other income increased from 2000 due to the favorable effects
of foreign currency hedging transactions related to the Canadian dollar exposure
in 2001.

     The provision for income taxes decreased from a rate of 35.5 percent of
pre-tax income in 2000 to 34.5 percent of pre-tax income in 2001 as a result of
the impact of tax planning.

     Net income in 2001 was $91.4 million, an increase of 10 percent from $82.8
million in 2000. Net income as a percent of sales was 6.0 percent in 2001, an
increase from 5.8 percent in 2000. Net income per diluted share increased 11
percent to $3.88 in 2001 from $3.50 in 2000.


14

<PAGE>



2000 VS. 1999

Sales increased to $1.426 billion in 2000, representing a seven percent increase
from $1.329 billion in 1999. The increase in sales was primarily due to higher
ATV sales, resulting from the eleventh consecutive year of increased ATV retail
sales, and higher PG&A sales.

     Sales of ATVs of $843.5 million in 2000 were 12 percent higher than $753.2
million in 1999. The increased sales reflect the continued double-digit growth
of both Polaris and the industry as consumers find new and expanded uses for the
product as well as the introduction of our youth ATVs. The increased sales were
partially offset by a product mix driven average per unit sales price decrease.
Sales of ATVs comprised 59 percent of total company sales in 2000 compared to 57
percent in 1999.

     Sales of snowmobiles of $311.3 million in 2000 were three percent lower
than $322.4 million in 1999. The decrease was due to lower unit shipments to
dealers after three consecutive winters of poor snow conditions. This decrease
in sales was partially offset by a product mix driven increase in the average
per unit sales price. Sales of snowmobiles comprised 22 percent of total company
sales in 2000 compared to 24 percent in 1999.

     Sales of PWC of $68.3 million in 2000 were 27 percent higher than $53.7
million in 1999. The increase was primarily due to shipment timing as we shipped
our 2001 models to our dealers earlier than in prior years. The average per unit
sales price for PWC remained flat. Sales of PWC comprised five percent of total
company sales in 2000 compared to four percent in 1999.

     Sales of Victory motorcycles of $19.4 million in 2000 were 53 percent lower
than $41.2 million in 1999. The decrease relates to a reduction in Victory
shipments to dealers in 2000 in response to lower than expected retail sales.
The average per unit sales price for motorcycles remained flat. Sales of Victory
motorcycles comprised one percent of total company sales in 2000 compared to
three percent in 1999.

     Sales of PG&A of $183.2 million in 2000 were 16 percent higher than $158.1
million in 1999. The increase in PG&A sales was due primarily to increases in
clothing and ATV parts shipments. PG&A sales comprised 13 percent of total
Company sales in 2000, compared to 12 percent in 1999.

     Gross profit increased to $328.1 million in 2000, representing a 10 percent
increase over $298.1 million gross profit in 1999. This increase in gross profit
dollars was a result of higher sales volume and an increase in gross profit
margin percentage to 23.0 percent in 2000 from 22.4 percent in 1999. The
increase in gross profit margin percentage was primarily a result of increased
margins in the ATV, snowmobile and Victory product lines due to cost reductions
and lower snowmobile promotional expenses. These positive factors have been
somewhat offset by the negative impact of Japanese yen exchange rates and
increased amortization of tooling costs.

     Operating expenses in 2000 increased 12 percent to $206.3 million from
$184.4 million in 1999. Expressed as a percentage of sales, operating expenses
increased to 14.5 percent in 2000 from 13.9 percent in 1999. These increases are
primarily related to a planned increase in expenses to support the Company's
growth and brand recognition initiatives in areas such as information systems,
PG&A sales and marketing and international sales.

     Polaris has continued to invest in new product development, innovation, and
product diversification. Research and development expenses were $32.4 million
(2.3 percent of sales) in 2000 and $31.3 million (2.4 percent of sales) in 1999.
In 2000, more than 79 percent of sales came from products introduced in the past
three years.

     Nonoperating expense (income) increased in 2000 from 1999 due to the
positive financial impact of the Company's equity in the income of Polaris
Acceptance, which is the primary reason that the income from financial services
increased by $4.6 million. This increase was partially offset by higher interest
expense of $3.4 million.

     Net income in 2000 was $82.8 million, an increase of eight percent from
$76.3 million in 1999. Net income as a percent of sales was 5.8 percent in 2000,
an increase from 5.7 percent in 1999. Net income per diluted share increased 14
percent to $3.50 in 2000 from $3.07 in 1999.


CRITICAL ACCOUNTING POLICIES

The significant accounting policies which we believe are the most critical to
aid in fully understanding and evaluation of the Company's reported financial
results include the following: revenue recognition, sales promotions and
incentives, product warranties and product liability.

     REVENUE RECOGNITION: Revenues are recognized at the time of shipment to the
dealer or distributor. Historically, product returns, whether in the normal
course of business or resulting from repurchases made under the customer
financing program have not been material. However, Polaris has agreed to
repurchase products repossessed by the finance companies up to certain limits.
Polaris' financial exposure is limited to the difference between the amount paid
to the finance companies and the amount received on the resale of the
repossessed product. No material losses have been incurred under these
agreements. Polaris has not historically recorded any significant sales return
allowances because it has not been required to repurchase a significant number
of units. However, an adverse change in retail sales could cause this situation
to change.



                                   POLARIS INDUSTRIES INC. 2001 ANNUAL REPORT 15
<PAGE>

SALES PROMOTIONS AND INCENTIVES: Polaris generally provides for estimated sales
promotion and incentive expenses, which are recognized as a sales reduction, at
the time of sale to the dealer or distributor. Examples of sales promotion and
incentive programs include dealer and consumer rebates, volume discounts,
financing programs and sales associate incentives. Sales promotion and incentive
expenses are estimated based on current programs and historical rates for each
product line. Actual results may differ from these estimates if market
conditions dictate the need to enhance or reduce sales promotion and incentive
programs or if the customer usage rate varies from historical trends.
Historically, sales promotion and incentive expenses have been within the
Company's expectations and differences have not been material.

PRODUCT WARRANTIES: Polaris provides a limited warranty for ATVs for a period of
six months and for a period of one year for its snowmobiles, motorcycles and PWC
products. Polaris' standard warranties require the Company or its dealers to
repair or replace defective product during such warranty period at no cost to
the consumer. The warranty reserve is established at the time of sale to the
dealer or distributor based on management's best estimate using historical rates
and trends. Adjustments to the warranty reserve are made from time to time as
actual claims become known in order to properly estimate the amounts necessary
to settle future and existing claims on products sold as of the balance sheet
date. While management believes that the warranty reserve is adequate and that
the judgment applied is appropriate, such amounts estimated to be due and
payable could differ materially from what will actually transpire in the future.

PRODUCT LIABILITY: Polaris is subject to product liability claims in the normal
course of business. Polaris carries excess product liability insurance coverage
for catastrophic product liability claims for incidents that exceed its
self-insured retention level. The estimated costs resulting from any losses are
charged to operating expenses when it is probable a loss has been incurred and
the amount of the loss is reasonably determinable. The Company utilizes
historical trends and actuarial analysis tools to assist in determining the
appropriate loss reserve levels. At December 31, 2001 the Company has accrued
$5.9 million for the defense and possible payment of pending claims, which
reserve is included as a component of the other accrued expenses in the
accompanying consolidated balance sheets. Historically, losses for product
liability claims have been equal to or lower than estimates of possible claims.
While management believes the product liability reserve is adequate, adverse
determination of material product liability claims made against the Company
would have a material adverse effect on Polaris' financial condition.


LIQUIDITY AND CAPITAL RESOURCES

Polaris' primary sources of funds have been cash provided by operating
activities, a bank line of credit arrangement that was increased from $150.0
million to $250.0 million during 2001 and a dealer floor plan financing program.
Polaris' primary uses of funds have been for cash dividends to shareholders,
repurchase and retirement of common stock, capital investments and new product
development.

     During 2001, Polaris generated net cash from operating activities of $188.6
million, which was utilized to fund capital expenditures of $54.0 million, cash
dividends of $22.8 million and the repurchase of common stock of $49.2 million.
Net cash generated from operating activities increased 75 percent from 2000 to
2001 due largely to timing of payments to dealers for incentive programs. During
2000, Polaris generated net cash from operating activities of $107.7 million,
which was utilized to fund capital expenditures of $63.1 million, cash dividends
of $20.6 million, and the repurchase of common stock of $39.6 million. During
1999, Polaris generated net cash from operating activities of $124.4 million,
which was utilized to fund capital expenditures of $65.1 million, cash dividends
of $19.7 million and the repurchase of common stock of $52.4 million.

     The seasonality of production and shipments causes working capital
requirements to fluctuate during the year. Polaris has an unsecured bank line of
credit arrangement with maximum available borrowings of $150.0 million expiring
on June 14, 2004. In addition, Polaris has a 364-day unsecured bank line of
credit arrangement expiring on June 13, 2002 of $100.0 million, which management
plans to extend beyond 2002. These arrangements provide borrowing for working
capital needs and the repurchase and retirement of common stock. Borrowings
under the lines of credit bear interest based on LIBOR or "prime" rates. At
December 31, 2001, Polaris had total borrowings under the lines of credit of
$18.0 million compared to $47.1 million at December 31, 2000. Polaris has
entered into an interest rate swap agreement to manage exposures to fluctuations
in interest rates. At December 31, 2001, the effect of this agreement is to fix
the interest rate at 7.21 percent for $18.0 million of borrowings under the
credit line until July 2007. In addition, at December 31, 2001, Polaris had
letters of credit outstanding of $5.1 million related to purchase obligations
for raw materials.

     The Polaris Board of Directors has authorized the cumulative repurchase of
up to 9.5 million shares of the company's common stock. During 2001, Polaris
paid $49.2 million to repurchase and retire 1.1 million shares. Polaris had 2.6
million shares available to repurchase under the Board of Directors
authorization as of December 31, 2001.

     A wholly owned subsidiary of Polaris is a partner with a wholly owned
subsidary of Transamerica Distribution Finance in Polaris Acceptance which
provides floor plan financing to Polaris' dealers and, until October 2001,
provided retail credit services to retail customers of Polaris' dealers. Polaris
has a 50 percent equity interest in Polaris Acceptance and was responsible for
50 percent of the outstanding indebtedness of Polaris Acceptance. In February
2000, the term of the partnership agreement was extended; in consideration
thereof, Polaris is no longer required to guarantee the outstanding indebtedness
of Polaris Acceptance.

     Polaris has arrangements with certain finance companies, including Polaris
Acceptance, to provide floor plan financing for its dealers. These arrangements
provide liquidity by financing dealer purchases of Polaris products without the
use of Polaris' working capital. Substantially all of the North American sales
of snowmobiles, ATVs, motorcycles and PWC and related PG&A are financed under
these arrangements whereby Polaris receives




16
<PAGE>

payment within a few days of shipment of the product. The amount financed by
dealers under these arrangements at December 31, 2001 and 2000, was
approximately $620.0 million and $549.0 million, respectively. Polaris
participates in the cost of dealer financing up to certain limits. Polaris has
agreed to repurchase products repossessed by the finance companies to an annual
maximum of 15 percent of the average amount outstanding during the prior
calendar year. Polaris' financial exposure under these agreements is limited to
the difference between the amount paid to the finance companies and the amount
received on the resale of the repossessed product. No material losses have been
incurred under these agreements. However, an adverse change in retail sales
could cause this situation to change and thereby require Polaris to repurchase
repossessed units.

     In October 2001, Polaris entered into an agreement with Household Bank
N.A., to provide retail financing for its consumers. This arrangement provides
that all income and losses of the retail credit portfolio are shared 50 percent
to Polaris and 50 percent to Household. The amount financed by consumers under
this arrangement at December 31, 2001 was approximately $160.0 million. Either
party has the right to terminate the agreement if profitability of the portfolio
falls below certain minimum levels. Polaris' financial exposure under this
agreement is limited to its deposit ($11.1 million at December 31, 2001) plus an
aggregate amount of not more than $15.0 million.

     Polaris has made significant capital investments to increase production
capacity, quality, and efficiency, and for new product development and
diversification. Improvements in manufacturing and distribution capacity
include: (a) expenditures for the redesign of our Roseau manufacturing facility
of $10.1 million during 2001 which replaced three assembly lines, (b) tooling
expenditures for new product development across all product lines of $19.5
million during 2001, and (c) continued investments in returnable crates, which
not only reduce costs but also are environmentally friendly. Polaris anticipates
that capital expenditures, including tooling, for 2002 will range from $65.0
million to $75.0 million.

     Management believes that existing cash balances, cash flows to be generated
from operating activities and available borrowing capacity under the line of
credit arrangements will be sufficient to fund operations, regular dividends,
share repurchases, and capital expenditure requirements for 2002. At this time,
management is not aware of any factors that would have a material adverse impact
on cash flow beyond 2002.

INFLATION AND EXCHANGE RATES

Polaris does not believe that inflation has had a material impact on the results
of its operations. However, the changing relationships of the U.S. dollar to the
Canadian dollar and Japanese yen have had a material impact from time-to-time.

     During 2001, purchases totaling 12 percent of Polaris cost of sales were
from Japanese yen denominated suppliers. The strengthening of the U.S. dollar in
relation to the Japanese yen since late 2000 has resulted in lower raw material
purchase prices. Polaris' cost of sales in 2001 was positively impacted by the
Japanese yen exchange rate fluctuation when compared to the prior year. In view
of the foreign exchange hedging contracts currently in place, Polaris
anticipates that the yen-dollar exchange rate will again have a positive impact
on cost of sales during 2002 when compared to 2001.

     Polaris operates in Canada through a wholly owned subsidiary. Sales of the
Canadian subsidiary comprised 12 percent of total Polaris sales in 2001. From
time to time, Polaris utilizes foreign exchange hedging contracts to manage its
exposure to the Canadian dollar. The U.S. dollar strengthened in relation to the
Canadian dollar in 2001 which resulted in a negative financial impact on Polaris
gross margins when compared to the same periods in 2000. In view of the
continuing strengthening of the U.S. dollar in relation to the Canadian dollar,
at this point in time Polaris anticipates a negative impact on net income
during 2002 when compared to 2001.

     In the past, Polaris has been a party to, and in the future may enter into,
foreign exchange hedging contracts for the Japanese yen, Euro, Taiwan dollar and
the Canadian dollar to minimize the impact of exchange rate fluctuations within
each year. At December 31, 2001, Polaris had open Japanese yen foreign exchange
hedging contracts with notional amounts totaling $76.2 million U.S. dollars
which mature throughout 2002.

     Since 1995, Polaris has been manufacturing its own engines for selected
models of PWC, motorcycles, ATVs and snowmobiles at its Osceola, Wisconsin
facility. Also, in 1995, Polaris entered into an agreement with Fuji Heavy
Industries Ltd. to form Robin Manufacturing U.S.A., Inc. ("Robin"). Under the
terms of the agreement, Polaris has a 40 percent ownership interest in Robin,
which builds engines in the United States for recreational and industrial
products. Potential advantages to Polaris of having these additional sources of
engines include reduced foreign exchange risk, lower shipping costs and less
dependence in the future on a single supplier for engines.

FORWARD-LOOKING STATEMENTS

     Certain matters discussed in this report are "forward-looking statements"
intended to qualify for the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These "forward-looking statements" can generally
be identified as such because the context of the statement will include words
such as the Company or management "believes," "anticipates," "expects,"
"estimates" or words of similar import. Similarly, statements that describe the
Company's future plans, objectives or goals are also forward-looking.
Shareholders, potential investors and others are cautioned that all
forward-looking statements involve risks and uncertainty that could cause
results in future periods to differ materially from those anticipated by some of
the statements made in this report. In addition to the factors discussed above,
among the other factors that could cause actual results to differ materially are
the following: product offerings, promotional activities and pricing strategies
by competitors; future conduct of litigation processes; warranty expenses;
foreign currency exchange rate fluctuations; environmental and product safety
regulatory activity; effects of weather; uninsured product liability claims; and
overall economic conditions, including inflation and consumer confidence and
spending.



                                   POLARIS INDUSTRIES INC. 2001 ANNUAL REPORT 17


<PAGE>
CONSOLIDATED BALANCE SHEETS in thousands, except per share data


<TABLE>
<CAPTION>


December 31,                                                                                  2001                 2000
-------------------------------------------------------------------------------------------------------------------------

<S>                                                                                       <C>                <C>
ASSETS

CURRENT ASSETS
  Cash and cash equivalents                                                                $  40,530           $   2,369
  Trade receivables, net of allowance for doubtful accounts of $3,606 and $2,545              56,119              56,130
  Inventories                                                                                152,717             143,491
  Prepaid expenses and other                                                                  10,203               4,922
  Deferred tax assets                                                                         45,748              34,000
------------------------------------------------------------------------------------------------------------------------
     Total current assets                                                                    305,317             240,912
------------------------------------------------------------------------------------------------------------------------


PROPERTY AND EQUIPMENT
  Land, buildings and improvements                                                            54,350              51,135
  Equipment and tooling                                                                      305,647             267,484
------------------------------------------------------------------------------------------------------------------------

                                                                                             359,997             318,619

  Less accumulated depreciation                                                             (189,674)           (150,755)
------------------------------------------------------------------------------------------------------------------------
     Net property and equipment                                                              170,323             167,864
------------------------------------------------------------------------------------------------------------------------


INVESTMENTS IN FINANCE AFFILIATE AND RETAIL CREDIT DEPOSIT                                    52,963              45,468
DEFERRED TAX ASSETS                                                                            9,361              11,384
GOODWILL AND OTHER ASSETS, NET                                                                27,199              24,558
------------------------------------------------------------------------------------------------------------------------

TOTAL ASSETS                                                                               $ 565,163           $ 490,186
========================================================================================================================
</TABLE>

The accompanying notes are an integral part of these consolidated balance sheets


18


<PAGE>


<TABLE>
<CAPTION>


December 31,                                                                                          2001                2000
---------------------------------------------------------------------------------------------------------------------------------

<S>                                                                                               <C>                 <C>
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable                                                                                 $ 101,554           $  89,498
  Accrued expenses:
    Compensation                                                                                      34,615              30,747
    Warranties                                                                                        33,301              34,216
    Sales promotions and incentives                                                                   95,280              41,792
    Other                                                                                             27,715              26,234
  Income taxes payable                                                                                15,872              15,897
--------------------------------------------------------------------------------------------------------------------------------
    Total current liabilities                                                                        308,337             238,384
--------------------------------------------------------------------------------------------------------------------------------

BORROWINGS UNDER CREDIT AGREEMENTS                                                                    18,043              47,068
--------------------------------------------------------------------------------------------------------------------------------
    Total liabilities                                                                                326,380             285,452
--------------------------------------------------------------------------------------------------------------------------------
<CAPTION>



SHAREHOLDERS' EQUITY
<S>                                                                                               <C>                <C>
  Preferred stock $0.01 par value, 20,000 shares authorized, no shares issued and outstanding             --                  --
  Common stock $0.01 par value, 80,000 shares authorized, 22,927 and 23,542 shares
    issued and outstanding                                                                               229                 235
  Additional paid-in capital                                                                              --                  --
  Deferred compensation                                                                               (4,888)             (3,300)
  Retained earnings                                                                                  248,634             207,613
  Accumulated other comprehensive income (loss)                                                       (5,192)                186
--------------------------------------------------------------------------------------------------------------------------------
    Total shareholders' equity                                                                       238,783             204,734
--------------------------------------------------------------------------------------------------------------------------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                         $ 565,163           $ 490,186
================================================================================================================================
</TABLE>


The accompanying notes are an integral part of these consolidated balance
sheets.




                                   POLARIS INDUSTRIES INC. 2001 ANNUAL REPORT 19



<PAGE>


CONSOLIDATED STATEMENTS OF OPERATIONS in thousands, except per share data

<TABLE>
<CAPTION>



For the Years Ended December 31,                             2001                    2000                     1999
----------------------------------------------------------------------------------------------------------------------

<S>                                                    <C>                      <C>                      <C>
Sales                                                   $ 1,512,042              $ 1,425,678              $ 1,328,620
Cost of sales                                             1,167,668                1,097,574                1,030,570
---------------------------------------------------------------------------------------------------------------------
    Gross profit                                            344,374                  328,104                  298,050
---------------------------------------------------------------------------------------------------------------------

Operating expenses:
  Selling and marketing                                     119,905                  122,028                  112,116
  Research and development                                   35,708                   32,360                   31,311
  General and administrative                                 58,943                   51,922                   40,977
---------------------------------------------------------------------------------------------------------------------
    Total operating expenses                                214,556                  206,310                  184,404
---------------------------------------------------------------------------------------------------------------------

    Operating income                                        129,818                  121,794                  113,646
Nonoperating expense (income):
  Interest expense                                            7,251                    7,704                    4,285
  Income from financial services                            (14,355)                 (14,123)                  (9,495)
  Other expense (income), net                                (2,641)                    (173)                     521
---------------------------------------------------------------------------------------------------------------------
    Income before income taxes                              139,563                  128,386                  118,335
Provision for income taxes                                   48,149                   45,577                   42,009
---------------------------------------------------------------------------------------------------------------------
    Net income                                          $    91,414              $    82,809              $    76,326
---------------------------------------------------------------------------------------------------------------------

Basic net income per share                              $      4.00              $      3.52              $      3.09
---------------------------------------------------------------------------------------------------------------------
Diluted net income per share                            $      3.88              $      3.50              $      3.07
---------------------------------------------------------------------------------------------------------------------
Weighted average number of common
  and common equivalent shares outstanding:

  Basic                                                      22,864                   23,501                   24,732
---------------------------------------------------------------------------------------------------------------------
  Diluted                                                    23,567                   23,666                   24,900
---------------------------------------------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of these consolidated statements.


20


<PAGE>


CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
AND COMPREHENSIVE INCOME in thousands

<TABLE>
<CAPTION>
                                                                                                            Accumulated
                                                   Additional                 Compensation                        Other
                                        Common        Paid-in       Deferred    Payable in   Retained     Comprehensive
                                         Stock        Capital   Compensation  Common Stock   Earnings     Income (Loss)    Total
-----------------------------------------------------------------------------------------------------------------------------------

<S>                                   <C>        <C>           <C>            <C>           <C>          <C>           <C>
Balance, December 31, 1998             $  253     $  48,622     $  (6,726)    $   6,844     $ 104,240     $      --     $ 153,233
  First Rights conversion
    to stock                               --           323            --          (286)            7            --            44
  Employee stock compensation               4        12,439        (1,092)         (583)           --            --        10,768
  Cash dividends declared,
    $0.80 per share                        --            --            --            --       (19,732)           --       (19,732)
  Repurchase and retirement
    of common shares                      (15)      (52,397)           --            --            --            --       (52,412)
  Net income                               --            --            --            --        76,326            --        76,326
---------------------------------------------------------------------------------------------------------------------------------

Balance, December 31, 1999                242         8,987        (7,818)        5,975       160,841            --       168,227
  Employee stock compensation               5        15,234         4,518        (5,975)           --            --        13,782
  Cash dividends declared,
    $0.88 per share                        --            --            --            --       (20,648)           --       (20,648)
  Repurchase and retirement
    of common shares                      (12)      (24,221)           --            --       (15,389)           --       (39,622)
Comprehensive income:
  Net income                               --            --            --            --        82,809
  Foreign currency translation
    adjustments                            --            --            --            --            --           186
  Total comprehensive income                                                                                               82,995
---------------------------------------------------------------------------------------------------------------------------------

Balance, December 31, 2000                235            --        (3,300)           --       207,613           186       204,734
  Employee stock compensation               5        21,649        (1,588)           --            --            --        20,066
  Cash dividends declared,
    $1.00 per share                        --            --            --            --       (22,846)           --       (22,846)
  Repurchase and retirement
    of common shares                      (11)      (21,649)           --            --       (27,547)           --       (49,207)
Comprehensive income net of tax:
  Net income                               --            --            --            --        91,414
  Foreign currency
    translation adjustment                 --            --            --            --            --          (160)
  Effect of adoption of
    SFAS No. 133                           --            --            --            --            --        (2,544)
  Unrealized loss on
    derivative instruments                 --            --            --            --            --        (2,674)
   Total comprehensive income                                                                                              86,036
---------------------------------------------------------------------------------------------------------------------------------

Balance, December 31, 2001             $  229     $      --     $  (4,888)    $      --     $ 248,634     $  (5,192)    $ 238,783
=================================================================================================================================
</TABLE>


The accompanying notes are an integral part of these consolidated statements.


                                   POLARIS INDUSTRIES INC. 2001 ANNUAL REPORT 21



<PAGE>


CONSOLIDATED STATEMENTS OF CASH FLOWS in thousands

<TABLE>
<CAPTION>


For the Years Ended December 31,                                            2001                2000                 1999
-----------------------------------------------------------------------------------------------------------------------------

<S>                                                                     <C>                 <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES

  Net income                                                              $  91,414           $  82,809           $  76,326
  Adjustments to reconcile net income to net cash
    provided by operating activities:
    Depreciation and amortization                                            52,550              46,997              39,281
    Noncash compensation                                                     15,455              11,820               9,586
    Noncash income from financial services                                  (12,463)            (14,123)             (9,495)
    Deferred income taxes                                                    (9,725)              1,616               3,000
    Changes in current operating items:
      Trade receivables                                                          11              (2,837)            (10,258)
      Inventories                                                            (9,226)            (25,429)            (10,626)
      Accounts payable                                                       12,056              (2,307)             14,547
      Accrued expenses                                                       57,922               4,407               7,887
      Income taxes payable                                                      (25)              2,484               6,402
      Others, net                                                            (9,388)              2,229              (2,296)
---------------------------------------------------------------------------------------------------------------------------
        Net cash provided by operating activities                           188,581             107,666             124,354
===========================================================================================================================

CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of property and equipment                                        (53,982)            (63,056)            (65,063)
  Investments in finance affiliate and retail credit deposit                (31,479)             (8,857)            (11,366)
  Distributions from finance affiliate and retail credit deposit             36,448              13,199               9,437
  Other                                                                      (3,753)               (512)                 --
---------------------------------------------------------------------------------------------------------------------------
      Net cash used for investing activities                                (52,766)            (59,226)            (66,992)
===========================================================================================================================

CASH FLOWS FROM FINANCING ACTIVITIES

  Borrowings under credit agreements                                        717,596             502,621             501,275
  Repayments under credit agreements                                       (746,621)           (495,553)           (481,775)
  Repurchase and retirement of common shares                                (49,207)            (39,622)            (52,412)
  Cash dividends to shareholders                                            (22,846)            (20,648)            (19,732)
  Proceeds from the exercise of stock options                                 3,424                 947                  --
---------------------------------------------------------------------------------------------------------------------------
      Net cash used for financing activities                                (97,654)            (52,255)            (52,644)
===========================================================================================================================
      Increase (decrease) in cash and cash equivalents                       38,161              (3,815)              4,718


CASH AND CASH EQUIVALENTS
  Beginning                                                                   2,369               6,184               1,466
---------------------------------------------------------------------------------------------------------------------------
  Ending                                                                  $  40,530           $   2,369           $   6,184
===========================================================================================================================

SUPPLEMENTAL CASH FLOW INFORMATION

  Interest paid during the year                                           $  35,091           $  40,957           $  36,620
---------------------------------------------------------------------------------------------------------------------------
  Income taxes paid during the year                                       $  55,548           $  43,044           $  38,651
===========================================================================================================================
</TABLE>

The accompanying notes are an integral part of these consolidated statements.


22


<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




NOTE 1  ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Polaris Industries Inc. ("Polaris" or the "Company") a Minnesota corporation,
and its subsidiaries, are engaged in a single industry segment consisting of the
design, engineering, manufacturing and marketing of innovative, high-quality,
high-performance motorized products for recreation and utility use, including
all-terrain vehicles, snowmobiles, motorcycles and personal watercraft. Polaris
products, together with related parts, garments and accessories are sold
worldwide through a network of dealers, distributors and its subsidiaries
located in the United States, Canada, France and Australia.

BASIS OF PRESENTATION: The accompanying consolidated financial statements
include the accounts of Polaris and its wholly owned subsidiaries. All
significant intercompany transactions and balances have been eliminated in
consolidation.

USE OF ESTIMATES: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Ultimate results could differ from those
estimates.

CASH EQUIVALENTS: Polaris considers all highly liquid investments purchased with
an original maturity of 90 days or less to be cash equivalents and are stated at
cost, which approximates fair value. Such investments have consisted principally
of commercial paper and money market mutual funds.

FAIR VALUE OF FINANCIAL INSTRUMENTS: Except as noted, the carrying value of all
financial instruments approximates their fair value (Note 2).

INVENTORIES: Inventories are stated at the lower of cost (first-in, first-out
method) or market. The major components of inventories are as follows (in
thousands):

<TABLE>
<CAPTION>

December 31,                                     2001           2000
------------------------------------------------------------------------
<S>                                           <C>            <C>
Raw materials and purchased components         $ 22,107       $ 27,670
Service parts, garments and accessories          53,573         50,407
Finished goods                                   77,037         65,414
------------------------------------------------------------------------
                                               $152,717       $143,491
========================================================================
</TABLE>

PROPERTY AND EQUIPMENT: Property and equipment is stated at cost. Depreciation
is provided using the straight-line method over the estimated useful life of the
respective assets, ranging from 10-40 years for buildings and improvements and
from 1-7 years for equipment and tooling. Fully depreciated tooling is
eliminated from the accounting records annually.

GOODWILL AND OTHER ASSETS: Goodwill and intangible assets are stated net of
accumulated amortization which totaled $14,348,000 at December 31, 2001, and
$13,322,000 at December 31, 2000. Goodwill consists of cost in excess of the net
assets of the business acquired which is amortized on a straight-line basis over
5-40 years. Intangible assets are amortized using the straight-line method over
their estimated useful lives ranging from 5-17 years.

     Polaris periodically assesses the amortization period and recoverability of
the carrying amount of its goodwill and intangible assets to determine potential
impairment based upon expected future cash flows from the related business. To
date, management has determined no such impairment exists.

     In June 2001, the Financial Accounting Standards Board (FASB) issued
Statements of Financial Accounting Standards (SFAS) No. 141, Business
Combinations, and No. 142, Goodwill and Other Intangible Assets, effective
for fiscal years beginning after December 15, 2001. Under the new rules,
goodwill (and intangible assets deemed to have indefinite lives) will no longer
be amortized but will be subject to annual impairment tests in accordance with
SFAS 142. Other intangible assets will continue to be amortized over their
useful lives.

     The Company will apply the new rules on accounting for goodwill and other
intangible assets beginning in the first quarter of 2002. As of December 31,
2001, the Company has unamortized goodwill of $24,434,000 that will be subject
to the transition provisions of SFAS 142. The Company is in the process of
completing an impairment test to determine the impact of adopting SFAS 142 on
its earnings and financial position, and believes that the results of such
analyses will not result in any transitional impairment losses. Application of
the non-amortization provisions of SFAS 142 is expected to result in an increase
in pre-tax income of approximately $800,000 in fiscal 2002.

PRODUCT WARRANTIES: Polaris provides a limited warranty for ATVs for a period of
six months and for a period of one year for its snowmobiles, motorcycles and PWC
products. Polaris' standard warranties require the Company or its dealers to
repair or replace defective product during such warranty period at no cost to
the consumer. The warranty reserve is established at the time of sale to the
dealer or distributor based on management's best estimate using historical rates
and trends. Adjustments to the warranty reserve are made from time to time as
actual claims become known in order to properly estimate the amounts necessary
to settle future and existing claims on products sold as of the balance sheet
date.

SALES PROMOTIONS AND INCENTIVES: Polaris generally provides for estimated sales
promotion and incentive expenses, which are recognized as a sales reduction, at
the time of sale to the dealer or distributor. Examples of sales promotion and
incentive programs include dealer and consumer rebates, volume discounts,
financing programs and sales associate incentives. Sales promotion and incentive
expenses are estimated based on current programs and historical rates for each
product line. In addition, Polaris provides a dealer incentive program whereby
at the time of shipment Polaris withholds an amount until ultimate retail sale
of the product. Polaris records this amount as a liability in the accompanying
consolidated balance sheets as a component of Sales promotions and incentives
accrual of $69,996,000 and $20,676,000 at December 31, 2001 and 2000,
respectively.

FOREIGN CURRENCY TRANSLATION: Polaris' Canadian and Australian subsidiaries use
the U.S. dollar as their functional currencies. Polaris' French subsidiary uses
the Euro as its functional currency. Assets and liabilities for Polaris' French
subsidiary are translated at the foreign exchange rates in effect at the balance
sheet date. Assets and liabilities for the Canadian and Australian subsidiaries
are remeasured in U.S. dollars at their historical rates. Translation gains and
losses from remeasurement of assets and liabilities that are not denominated in
the functional currency are reflected in the results of operations for the
Canadian and Australian subsidiaries. Translation gains and losses are reflected
as a component of Accumulated other comprehensive income in the equity section
of the balance sheet for the French subsidiary.



                                   POLARIS INDUSTRIES INC. 2001 ANNUAL REPORT 23

<PAGE>
REVENUE RECOGNITION: Revenues are recognized at the time of shipment to the
dealer or distributor. Product returns, whether in the normal course of business
or resulting from repossession under its customer financing program (Note 2),
have not been material. Polaris provides for estimated sales promotion expenses
which are recognized as a reduction of sales when products are sold to the
dealer or distributor customer.

MAJOR SUPPLIER: During 2001, 2000, and 1999, purchases of engines and related
components totaling 12, 15 and 15 percent respectively of Polaris' cost of sales
were from a single Japanese supplier. Polaris has agreed with the supplier to
share the impact of fluctuations in the exchange rate between the U.S. dollar
and the Japanese yen.

ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES SFAS No. 133:
Polaris adopted SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities," on January 1, 2001. SFAS No. 133 establishes accounting and
reporting standards requiring that every derivative instrument, including
certain derivative instruments embedded in other contracts, be recorded in the
balance sheet as either an asset or liability measured at its fair value. SFAS
No. 133 requires that changes in the derivative's fair value be recognized
currently in earnings unless specific hedge criteria are met, and requires that
a company must formally document, designate and assess the effectiveness of
transactions that receive hedge accounting. The effect of adopting SFAS 133 was
to establish the fair market value of certain interest rate swap agreements and
foreign exchange contracts. The cumulative effect of adoption was $2,544,000,
net of tax, and is reflected in accumulated other comprehensive income (loss) in
the accompanying consolidated statements of shareholders' equity and
comprehensive income.

Interest rate swap agreement: At January 1, 2001, Polaris had two interest rate
swap agreements on $38,000,000 of long term debt. One swap agreement, related to
$18,000,000 of debt and expiring in 2007, has been designated as and meets the
criteria as a cash flow hedge. Initial adoption of SFAS 133 resulted in the
recording of a liability for the fair value of this swap agreement of
$1,283,000.

         The other swap agreement, relating to $20,000,000 of debt, did not meet
the criteria for hedge accounting. Initial adoption of SFAS 133 resulted in the
recording of a liability of $53,000 with a corresponding charge to operations.
On May 21, 2001 this swap agreement was terminated resulting in a charge to
operations of $378,000.

Foreign exchange contracts: Polaris enters into foreign exchange contracts to
manage currency exposures of certain of its purchase commitments denominated in
foreign currencies and transfers of funds from its Canadian subsidiary. Polaris
does not use any financial contracts for trading purposes. The contracts have
been designated as and meet the criteria for cash flow hedges. At January 1,
2001, Polaris had open Japanese yen foreign exchange contracts with notional
amounts totaling $64,997,000 U.S. dollars. Initial adoption of SFAS 133 resulted
in the recordings of a liability of $2,601,000 for the fair value of the foreign
exchange contracts. At December 31, 2001, Polaris had open Japanese yen
contracts with notional amounts totaling U.S. $76,182,000 and a net liability
fair market value of $5,989,000.

Comprehensive income: Comprehensive income reflects the change in equity of a
business enterprise during a period from transactions and other events and
circumstances from non-owner sources. For the Company, comprehensive income
represents net income adjusted for foreign currency translation adjustments and
the gain/loss on derivative instruments. The Company has chosen to disclose
comprehensive income in the accompanying consolidated statements of shareholders
equity and comprehensive income.

NEW ACCOUNTING PRONOUNCEMENTS: In April 2001, the Emerging Issues Task Force
(EITF) of the FASB issued EITF No. 00-25 "Vendor Income Statement
Characterization of Consideration Paid to a Reseller of the Vendor's Products".
EITF No. 00-25 addresses the timing, recognition, and classification in the
income statement of certain promotional costs paid to a retailer or wholesaler
by a vendor in connection with the sale of the vendor's products or promotion of
sales of the vendor's products by the retailer or wholesaler. This guidance
generally requires these costs to be recognized when incurred and reported as a
reduction of revenue or an increase to cost of sales and requires restatement of
previously reported results to the extent the Company's past accounting practice
has differed from the requirements of EITF No. 00-25. The Company will adopt
EITF No. 00-25 in the first quarter of 2002, which will result in a
reclassification of cooperative advertising expenses resulting in an increase in
previously reported cost of sales and a decrease in previously reported selling
and marketing expenses by $12,986,000 in 2001, $7,720,000 in 2000 and
$10,950,000 in 1999. This will have no impact on previously reported net income.


 NOTE 2 FINANCING

BANK FINANCING: Polaris is a party to two unsecured bank line of credit
arrangements under which it may borrow up to $250,000,000 until maturity.
Interest is charged at rates based on LIBOR or "prime." A $150,000,000 line of
credit expires on June 14, 2004, and a $100,000,000 364-day line of credit
expires on June 13, 2002 at which time the outstanding balances are due. The
arrangements contain various restrictive covenants which limits investments,
acquisitions and indebtedness. The arrangements also require Polaris to maintain
certain financial ratios including a minimum tangible net worth, a minimum
interest coverage and a maximum leverage ratio. Polaris was in compliance with
each of the covenants as of December 31, 2001. The following summarizes activity
under Polaris' credit arrangements (in thousands):

<TABLE>
<CAPTION>
                                       2001         2000        1999
-----------------------------------------------------------------------
<S>                                <C>          <C>         <C>
Total borrowings at December 31       $18,043     $47,068     $40,024
Average outstanding borrowings
  during year                        $127,481    $112,141     $80,359
Maximum outstanding borrowings
  during year                        $199,500    $148,975    $131,500
Interest rate at December 31             2.50%       7.30%       6.16%
=======================================================================
</TABLE>

     Polaris has entered into an interest rate swap agreement to manage
exposures to fluctuations in interest rates. The effect of this agreement is to
fix the interest rate at 7.21 percent for $18,000,000 of borrowings under the
credit line until July 2007. The fair value of the interest rate swap was a
liability of $1,977,000 as of December 31, 2001.

LETTERS OF CREDIT: At December 31, 2001, Polaris had open letters of credit
totaling approximately $5,100,000. The amounts outstanding are reduced as
inventory purchases pertaining to the contracts are received.

CUSTOMER FINANCING PROGRAMS: Certain finance companies, including Polaris
Acceptance, an affiliate (Note 6), provide floor plan financing to dealers on
the purchase of Polaris products. The amount financed by North American dealers
under these arrangements at December 31, 2001, was approximately $620,000,000.
Polaris has agreed to repurchase products repossessed by the finance companies
up to an annual maximum of 15 percent of the average month-end balances
outstanding during the prior calendar year. Polaris' financial exposure under
these arrangements is limited to the difference between the


24


<PAGE>

amount paid to the finance companies for repurchases and the amount received on
the resale of the repossessed product. No material losses have been incurred
under these agreements during the periods presented. As a part of its marketing
program, Polaris contributes to the cost of dealer financing up to certain
limits and subject to certain conditions. Such expenditures are included with
selling and marketing expenses in the accompanying statements of operations.


 NOTE 3 INCOME TAX MATTERS

Components of Polaris' provision for income taxes are as follows (in thousands):

<TABLE>
<CAPTION>

For the Years Ended December 31,   2001        2000       1999
----------------------------------------------------------------
<S>                              <C>         <C>        <C>
Current:
  Federal                        $51,766     $41,251    $36,141
  State                            3,701       2,250      1,550
  Foreign                          2,407         460      1,318
Deferred                          (9,725)      1,616      3,000
---------------------------------------------------------------
Total                            $48,149     $45,577    $42,009
===============================================================
</TABLE>

     Reconciliation of the Federal statutory income tax rate to the
effective tax rate is as follows:

<TABLE>
<CAPTION>

For the Years Ended December 31,                  2001        2000      1999
------------------------------------------------------------------------------
<S>                                             <C>          <C>       <C>
Federal statutory rate                           35.0%        35.0%     35.0%
State income taxes, net of federal benefit        1.6          1.3       1.0
Foreign sales corporation                        (1.2)        (1.2)     (1.2)
Other permanent differences                       (.9)          .4        .7
----------------------------------------------------------------------------
   Effective income tax rate                     34.5%        35.5%     35.5%
============================================================================
</TABLE>

     Polaris utilizes the liability method of accounting for income taxes
whereby deferred taxes are determined based on the estimated future tax effects
of differences between the financial statement and tax bases of assets and
liabilities given the provisions of enacted tax laws. The net deferred tax
assets consist of the following (in thousands):

<TABLE>
<CAPTION>

December 31,                            2001         2000        1999
-----------------------------------------------------------------------
<S>                                 <C>          <C>         <C>
Current deferred tax assets:
   Inventories                       $ 4,948      $ 4,857     $ 4,105
   Accrued expenses                   38,052       29,143      26,895
   Derivative instruments              2,748           --          --
---------------------------------------------------------------------
      Total current                   45,748       34,000      31,000
---------------------------------------------------------------------

Noncurrent deferred tax assets:
  Cost in excess of net assets
     of business acquired            19,410       21,083      22,982
  Property and equipment            (14,654)     (13,709)     (8,857)
  Compensation payable
     in common stock                  4,605        4,010       1,875
--------------------------------------------------------------------
     Total noncurrent                 9,361       11,384      16,000
--------------------------------------------------------------------
     Total                          $55,109      $45,384     $47,000
====================================================================
</TABLE>

 NOTE 4 STOCK-BASED COMPENSATION AND SAVINGS PLAN

Polaris sponsors a 401(k) retirement savings plan under which eligible U.S.
employees may choose to contribute up to 15 percent of eligible compensation on
a pre-tax basis, subject to certain IRS limitations. The Company matches 100
percent of employee contributions up to a maximum of five percent of eligible
compensation. Matching contributions were $5,406,000, $5,284,000 and $4,767,000
in 2001, 2000 and 1999, respectively.

     Polaris maintains a stock option plan (Option Plan) under which incentive
and nonqualified stock options for a maximum of 3,100,000 shares of common stock
may be issued to certain employees. Options granted to date generally vest three
years from the award date and expire after ten years.

     Polaris maintains a broad based stock option plan (Broad Based Plan) under
which incentive stock options for a maximum of 350,000 shares of common stock
may be issued to substantially all Polaris employees. Options vest three years
from the award date and expire after ten years. Options were granted under this
plan during 1999 at an exercise price of $31.56.

     Polaris maintains a restricted stock plan (Restricted Plan) under which a
maximum of 1,050,000 shares of common stock may be awarded as an incentive to
certain employees with no cash payments required from the recipient. The
restrictions lapse after a three to four year period for awards issued prior to
2000 if Polaris achieves certain performance measures. Awards issued in 2001 and
2000 did not contain performance measures. Shares of restricted stock granted,
net of converted, lapsed and forfeited shares, totaled 20,648, 116,995, and
133,440 in 2001, 2000 and 1999, respectively.

     Polaris sponsors a qualified non-leveraged Employee Stock Ownership Plan
(ESOP) under which a maximum of 1,250,000 shares of common stock can be awarded.
The shares are allocated to eligible participants accounts based on total cash
compensation earned during the calendar year. Shares vest immediately and
require no cash payments from the recipient. Substantially all employees are
eligible to participate in the ESOP. Total expense related to the ESOP was
$8,043,000, $5,888,000 and $6,199,000 in 2001, 2000 and 1999, respectively. As
of December 31, 2001 there were 798,153 shares vested in the plan.

     The following summarizes share activity in the Option and Broad Based
Plans, and the weighted average exercise price for the Option Plan:

<TABLE>
<CAPTION>
                                                                    Broad
                                               Option Plan        Based Plan
                                         ------------------------------------
                                                       Weighted
                                                       Average
                                                       Exercise
                                             Shares    Price      Shares
-----------------------------------------------------------------------------
<S>                                      <C>          <C>       <C>
Outstanding as of December 31,1998         1,077,725    $36.17         --
   Granted                                   311,970    $32.47    337,900
   Exercised                                 (29,768)   $29.54         --
   Forfeited                                 (19,774)   $31.50    (19,300)
-------------------------------------------------------------------------
Outstanding as of December 31,1999         1,340,153    $35.06    318,600
   Granted                                   410,300    $29.96         --
   Exercised                                 (31,931)   $27.30         --
   Forfeited                                 (52,808)   $31.94    (28,100)
-------------------------------------------------------------------------
Outstanding as of December 31,2000         1,665,714    $34.42    289,500
   Granted                                   835,934    $48.56         --
   Exercised                                (113,080)   $30.84         --
   Forfeited                                 (39,804)   $31.72    (27,450)
-------------------------------------------------------------------------
Outstanding as of December 31,2001         2,348,764    $36.54    262,050
=========================================================================
</TABLE>

     The following table summarizes information about stock options
outstanding at December 31, 2001:

<TABLE>
<CAPTION>
                                        Options Outstanding          Options Exercisable
                            -----------------------------------------------------------------
                                       Weighted        Weighted                   Weighted
Range of                 Number         Average        Average       Number       Average
Exercisable         Outstanding        Remaining       Exercise   Exercisable     Exercise
Options             at 12/31/01    Contractual Life     Price     at 12/31/01      Price
---------------------------------------------------------------------------------------------

<S>                 <C>            <C>                 <C>        <C>             <C>
$25.75 to $ 36.63     1,524,064                6.8      $ 31.82      351,204      $ 30.87
$36.64 to $ 49.44       586,750                9.5      $ 44.26           --           --
$49.45 to $ 58.66       500,000                8.1      $ 54.06      250,000      $ 49.45
=============================================================================================
</TABLE>

     The weighted average exercise price of options exercisable as of December
31, 2001, 2000 and 1999 were $33.23, $29.37 and $30.91 respectively. The
weighted average remaining contractual life of outstanding options was 7.6 years
as of December 31, 2001, 2000 and 1999.



                                   POLARIS INDUSTRIES INC. 2001 ANNUAL REPORT 25

<PAGE>
     Polaris maintains a nonqualified deferred compensation plan (Director Plan)
under which directors who are not Polaris officers or employees can elect to
receive common stock equivalents in lieu of director's fees, which will be
converted into common stock when board service ends. A maximum of 75,000 shares
of common stock has been authorized under this plan of which 23,431 equivalents
have been earned and 17,773 shares have been issued to retired directors as of
December 31, 2001.

     Polaris accounts for all stock based compensation plans under APB Opinion
No. 25,under which compensation costs of $15,455,000, $11,820,000 and
$9,586,000, were recorded in 2001, 2000 and 1999, respectively. Had compensation
costs for these plans been recorded at fair value consistent with the
methodology prescribed by SFAS No. 123 "Accounting for Stock-Based
Compensation," Polaris' net income and net income per share would have been
reduced to the following pro forma amounts:

<TABLE>
<CAPTION>
                                    2001           2000       1999
---------------------------------------------------------------------

<S>                              <C>            <C>        <C>
Net income (in thousands):
  As reported                     $91,414        $82,809    $76,326
  Pro forma                        87,200         79,640     73,500
Net income per share:
  As reported                      $ 3.88         $ 3.50     $ 3.07
  Pro forma                          3.70           3.37       2.95
-------------------------------------------------------------------
</TABLE>

     The fair value of each award under the Option Plan is estimated on the date
of grant using the Black-Scholes option-pricing model. The following assumptions
were used to estimate the fair value of options:

<TABLE>
<CAPTION>
                               2001            2000        1999
-----------------------------------------------------------------
<S>                         <C>              <C>         <C>
Risk free interest rate         5.1%            6.4%        6.6%
Expected life                7 years         7 years     7 years
Expected volatility              17%             18%         23%
Expected dividend yield         1.9%            2.4%        2.2%
---------------------------------------------------------------
</TABLE>

     The weighted average fair values at the grant dates of shares awarded under
the above plans are as follows:

<TABLE>
<CAPTION>

                             2001        2000          1999
---------------------------------------------------------------
<S>                       <C>         <C>           <C>
Option Plan                $  7.30     $  6.73       $   8.99
Restricted Plan            $ 48.56     $ 29.96       $  32.47
ESOP                       $ 46.57     $ 33.04       $  36.25
Broad Based Plan           $    --     $    --       $   8.99
-------------------------------------------------------------
</TABLE>

 NOTE 5 SHAREHOLDERS' EQUITY

STOCK REPURCHASE PROGRAM: The Polaris Board of Directors has authorized the
cumulative repurchase of up to 9,500,000 shares of the Company's common stock.
During 2001, Polaris paid $49,207,000 to repurchase and retire 1,083,000 shares.
Cumulative repurchases through December 31, 2001 were 6,864,000 shares for
$232,459,000.

SHAREHOLDER RIGHTS PLAN: During 2000, the Polaris Board of Directors adopted a
shareholder rights plan. Under the plan, a dividend of preferred stock purchase
rights will become exercisable if a person or group should acquire 15 percent or
more of the Company's stock. The dividend will consist of one purchase right for
each outstanding share of the Company's common stock held by shareholders of
record on June 1, 2000. Each right will entitle its holder to purchase
one-hundredth of a new series of junior participating preferred stock at an
exercise price of $150, subject to adjustment. The rights expire in 2010 and may
be redeemed earlier by the Board of Directors for $0.01 per right.

NET INCOME PER SHARE: Basic earnings per share is computed by dividing net
income available to common shareholders by the weighted average number of common
shares outstanding during each year, including shares earned under the Director
Plan and the ESOP. Diluted earnings per share is computed under the treasury
stock method and is calculated to compute the dilutive effect of outstanding
stock options and certain shares issued under the Restricted Plan. A
reconciliation of these amounts is as follows (in thousands, except per share
data):

<TABLE>
<CAPTION>

                                         2001       2000       1999
----------------------------------------------------------------------
<S>                                   <C>        <C>        <C>
Net income available to common
   shareholders                        $ 91,414   $ 82,809   $ 76,326
=====================================================================
Weighted average number
   of common shares outstanding          22,669     23,304     24,539
Director Plan                                25         27         23
ESOP                                        170        170        170
---------------------------------------------------------------------
Common shares outstanding --basic        22,864     23,501     24,732
---------------------------------------------------------------------
Dilutive effect of                          266         31         --
Restricted Plan
Dilutive effect of Option Plan              437        134        168
---------------------------------------------------------------------
Common and potential common
   shares outstanding--diluted           23,567     23,666     24,900
=====================================================================
Basic earnings per share               $   4.00   $   3.52   $   3.09
=====================================================================
Diluted earnings per share             $   3.88   $   3.50   $   3.07
=====================================================================
</TABLE>

Stock Purchase Plan: Polaris maintains an Employee Stock Purchase Plan (Purchase
Plan). A total of 750,000 shares of common stock are reserved for this plan. The
Purchase Plan permits eligible employees to purchase common stock at 85 percent
of the average market price each month. As of December 31, 2001, approximately
131,000 shares have been purchased under this plan.


 NOTE 6 FINANCIAL SERVICES ARRANGEMENTS

In 1996, a wholly owned subsidiary of Polaris entered into a partnership
agreement with a wholly owned subsidiary of Transamerica Distribution Finance
(TDF) to form Polaris Acceptance. Polaris Acceptance provides floor plan
financing to Polaris' dealers in the United States. Polaris' subsidiary has a 50
percent equity interest in Polaris Acceptance. The receivable portfolio is
recorded on Polaris Acceptance's books, which is consolidated onto TDF's books
and is funded 85 percent with TDF debt and 15 percent by cash investment shared
equally between the two partners. Polaris has not guaranteed the outstanding
indebtedness of Polaris Acceptance. Substantially all of Polaris' U.S. sales are
financed through Polaris Acceptance whereby Polaris receives payment within a
few days of shipment of the product. The amount financed for dealers under this
arrangement at December 31, 2001 was approximately $547,309,000. Polaris' trade
receivables from Polaris Acceptance were $11,891,000 and $19,866,000 at December
31, 2001 and 2000, respectively.

         Beginning in 1999, Polaris Acceptance entered into an income sharing
agreement with Transamerica Retail Financial Services (TRFS), a subsidiary of
TDF. TRFS provides private label retail credit financing to Polaris consumers
through Polaris dealers in the United States. In October 2001, TRFS sold a
significant portion of the retail portfolio to Household Bank, N.A. The
remaining amount financed by consumers through TDF at December 31, 2001 was
approximately $16,000,000.

         Polaris' investment in Polaris Acceptance at December 31, 2001 of
$41,826,000 is accounted for under the equity method, and is recorded as a
component of Investments in Finance Affiliate and Retail Credit Deposit in the
accompanying consolidated balance sheets. The partnership agreement provides
that all income and losses of the floor plan and retail credit portfolio are
shared 50 percent to Polaris' wholly owned subsidiary and 50 percent to TDF's
wholly owned subsidiary. Polaris' allocable share of the income of Polaris
Acceptance has been included as a component of income from financial services in
the





26


<PAGE>


accompanying statements of operations. Summarized financial information for
Polaris Acceptance is presented as follows (in thousands):

<TABLE>
<CAPTION>


December 31,                            2001             2000
--------------------------------------------------------------------
<S>                                    <C>              <C>
Revenues                                 $ 46,233          $ 57,721
Interest and operating expenses            21,307            29,475
-------------------------------------------------------------------
Net income before income taxes           $ 24,926          $ 28,246
-------------------------------------------------------------------
Finance receivables, net                 $547,309          $482,771
Other assets                                2,871             2,233
-------------------------------------------------------------------
                                         $550,180          $485,004
===================================================================

Notes payable                            $461,190          $385,465
Other liabilities                           9,570            11,171
Partners' capital                          79,420            88,368
-------------------------------------------------------------------
                                         $550,180          $485,004
===================================================================
</TABLE>

         In October 2001, a wholly owned subsidiary of Polaris entered into an
agreement with Household Bank, N.A. (Household) to provide private label retail
credit financing to Polaris consumers through Polaris dealers in the United
States. The receivable portfolio is owned and managed by Household and is funded
85 percent with Household debt and 15 percent cash deposit shared equally
between the two parties. The amount financed by consumers under this arrangement
at December 31, 2001 was approximately $160,000,000. Polaris' deposit in the
retail credit portfolio of $11,137,000 at December 31, 2001 was reflected as a
component of Investments in Finance Affiliate and Retail Credit Deposit in the
accompanying consolidated balance sheet. The income sharing agreement with
Household provides that all income and losses of the retail credit portfolio are
shared 50 percent to Polaris and 50 percent to Household. Polaris' allocable
share of the income from the retail credit portfolio has been included as a
component of income from financial services in the accompanying consolidated
statements of operations. Under the terms of the agreement, either party has the
right to terminate the agreement if profitability of the portfolio falls below
certain minimum levels. Polaris' financial exposure under this agreement is
limited to its deposit plus an aggregate amount of not more than $15,000,000.


         Polaris also provides extended service contracts to consumers and
certain insurance contracts to dealers and consumers through various third-party
suppliers. Polaris does not retain any warranty, insurance or financial risk in
any of these arrangements. Polaris' service fee income generated from these
arrangements has been included as a component of income from financial services
in the accompanying consolidated statements of operations.




 NOTE 7 INVESTMENT IN MANUFACTURING AFFILIATE

Polaris is a partner with Fuji Heavy Industries Ltd. in Robin Manufacturing,
U.S.A. (Robin). Polaris has a 40 percent ownership interest in Robin, which
builds engines in the United States for recreational and industrial products.
Polaris' investment at December 31, 2001 of $2,765,000 in Robin is accounted for
under the equity method, and is recorded as a component of Goodwill and other
assets in the accompanying consolidated balance sheets. Polaris' allocable share
of the income of Robin has been included as a component of non-operating other
expense (income) in the accompanying consolidated statements of operations.


 NOTE 8 COMMITMENTS AND CONTINGENCIES

PRODUCT LIABILITY: Polaris is subject to product liability claims in the normal
course of business. Polaris carries excess product liability insurance coverage
for catastrophic product liability claims for incidents that exceed its
self-insured retention level. The estimated costs resulting from any losses are
charged to operating expenses when it is probable a loss has been incurred and
the amount of the loss is reasonably determinable. The Company utilizes
historical trends and actuarial analysis tools to assist in determining the
appropriate loss reserve levels. At December 31, 2001 the Company has accrued
$5,865,000 for the defense and possible payment of pending claims, which reserve
is included as a component of the other accrued expenses in the accompanying
consolidated balance sheets.

LITIGATION: Polaris is a defendant in lawsuits and subject to claims arising in
the normal course of business. In the opinion of management, it is not a
probability that any legal proceedings pending against or involving Polaris will
have a material adverse effect on Polaris' financial position or results of
operations.

LEASES: Polaris leases buildings and equipment under noncancelable operating
leases. Total rent expense under all lease agreements was $2,128,000,
$2,275,000, and $2,295,000, for 2001, 2000 and 1999, respectively. Future
minimum payments, exclusive of other costs, required under noncancelable
operating leases at December 31, 2001, total $3,763,000 cumulatively through
2004.


 NOTE 9 SEGMENT REPORTING

Polaris has reviewed SFAS No. 131, "Disclosures about Segments of an Enterprise
and Related Information" and determined that the Company meets the aggregation
criteria outlined since the Company's segments have similar

(1) economic characteristics, (2) product and services, (3) production
processes, (4) customers, (5) distribution channels, and (6) regulatory
environments.

Therefore, the Company reports as a single business segment.

The following data relates to Polaris' foreign operations (in thousands of U.S.
dollars):

<TABLE>
<CAPTION>


For the Years Ended December 31,           2001        2000        1999
--------------------------------------------------------------------------
<S>                                    <C>         <C>         <C>
Canadian subsidiary:
  Sales                                 $ 181,493   $ 151,906   $ 145,856
  Identifiable assets                      23,906      22,344      23,568
Other foreign countries:
  Sales                                    88,071      83,309      68,315
  Identifiable assets                      17,040       9,212       4,643
-------------------------------------------------------------------------
</TABLE>


NOTE 10 QUARTERLY FINANCIAL DATA

(Unaudited) (In thousands, except per share data)

<TABLE>
<CAPTION>

                                                                                            Diluted
                                                                                                Net
                                                         Gross               Net             Income
                                    Sales               Profit            Income          Per Share
---------------------------------------------------------------------------------------------------
2001
<S>                             <C>                <C>                <C>                <C>
First Quarter                    $  294,021         $   65,836         $   10,423         $   0.44
Second Quarter                      362,499             74,301             17,077             0.72
Third Quarter                       431,133            102,861             32,207             1.38
Fourth Quarter                      424,389            101,376             31,707             1.35
---------------------------------------------------------------------------------
Totals                           $1,512,042         $  344,374         $   91,414         $   3.88
==================================================================================================

2000
First Quarter                    $  279,072         $   61,547         $    9,749         $   0.41
Second Quarter                      344,698             74,866             16,188             0.68
Third Quarter                       401,259             98,886             29,266             1.24
Fourth Quarter                      400,649             92,805             27,606             1.17
---------------------------------------------------------------------------------
Totals                           $1,425,678         $  328,104         $   82,809         $   3.50
==================================================================================================
</TABLE>

                                    POLARIS INDUSTRIES INC. 201 ANNUAL REPORT 27


<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS





TO POLARIS INDUSTRIES INC.:

We have audited the accompanying consolidated balance sheets of Polaris
Industries Inc. (a Minnesota corporation) and Subsidiaries as of December 31,
2001 and 2000, and the related consolidated statements of operations,
shareholders' equity and comprehensive income and cash flows for each of the
three years in the period ended December 31, 2001. These financial statements
are the responsibility of Polaris' management. Our responsibility is to express
an opinion on these financial statements based on our audits.

     We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

     In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Polaris
Industries Inc. and Subsidiaries as of December 31, 2001 and 2000, and the
results of their operations and their cash flows for each of the three years in
the period ended December 31, 2001, in conformity with accounting principles
generally accepted in the United States.

ARTHUR ANDERSEN LLP
Minneapolis, Minnesota
January 23, 2002



<PAGE>
[POLARIS LETTERHEAD]


INVESTOR INFORMATION


[PII SYMBOL]
[NYSE SYMBOL]

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 FOR 2001

Arthur Andersen 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

FORM 10-K

The Form 10-K annual report to the Securities and Exchange Commission is
available without charge to shareholders upon written request to:

   Investor Relations
   Polaris Industries Inc.
   2100 Highway 55
   Medina, MN 55340

ANNUAL SHAREHOLDERS' MEETING

The meeting will be held at 9 a.m., Thursday, May 2, 2002, at the Polaris
Industries Inc. corporate headquarters, 2100 Highway 55, Medina, Minn. A proxy
statement will be mailed on or about March 29, 2002, to each shareholder of
record on March 12, 2002.

SUMMARY OF TRADING

<TABLE>
<CAPTION>
                        For the Years Ended December 31,
                     2001                      2000
--------------------------------------------------------------------------------
Quarter         HIGH            LOW      High             Low
--------------------------------------------------------------------------------
<S>           <C>            <C>       <C>             <C>
First         $51.65         $38.13    $36.25          $25.56
Second         47.00          36.00     32.94           27.63
Third          51.36          35.10     36.25           29.19
Fourth         58.70          37.30     42.06           32.06
================================================================================
</TABLE>
CASH DIVIDENDS DECLARED

Cash dividends are declared quarterly and have been paid since 1995. As of
January 24, 2002, the quarterly dividend was increased to $0.28 per share.

<TABLE>
<CAPTION>
Quarter                         2001                      2000
--------------------------------------------------------------------------------
<S>                           <C>                       <C>
First                         $ 0.25                    $ 0.22
Second                          0.25                      0.22
Third                           0.25                      0.22
Fourth                          0.25                      0.22
--------------------------------------------------------------------------------
Total                         $ 1.00                    $ 0.88
================================================================================
</TABLE>

STOCKHOLDERS OF RECORD

Shareholders of record of the Company's common stock on March 1, 2002 were
2,592.

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

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>5
<FILENAME>c68167ex21.txt
<DESCRIPTION>SUBSIDIARIES
<TEXT>
<PAGE>



                                                                      EXHIBIT 21





                                   REGISTRANT
                             POLARIS INDUSTRIES INC.


<TABLE>
<CAPTION>
                                                                State or Other Jurisdiction
           Name of Subsidiary                                       of Incorporation or
           ------------------                                            Organization
                                                                ---------------------------
<S>                                                             <C>
Polaris Industries Inc.                                                    Delaware

Polaris Real Estate Corporation of Iowa, Inc.                              Delaware

Polaris Real Estate Corporation                                            Delaware

Polaris Industries Export Ltd.                                             Barbados

Polaris Industries Ltd.                                                Manitoba, Canada

Polaris Acceptance Inc.                                                    Minnesota

Polaris Sales Inc.                                                         Minnesota

Polaris Industries Manufacturing LLC                                       Minnesota

Polaris Direct Inc.                                                        Minnesota

Polaris Sales Australia Pty Ltd.                                           Australia

Polaris France                                                              France

Polaris Britain Limited                                                     England
</TABLE>



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>6
<FILENAME>c68167ex23.txt
<DESCRIPTION>CONSENT OF ARTHUR ANDERSEN LLP
<TEXT>
<PAGE>


                                                                      EXHIBIT 23



                         CONSENT OF ARTHUR ANDERSEN LLP





Consent of independent public accountants



As independent public accountants, we hereby consent to the incorporation of our
report incorporated by reference in this Form 10-K, into the Company's
previously filed Registration Statement File Nos. 33-57503, 33-60157, 333-05463,
333-21007, 333-77765, 333-94451 and 333-84478.



Arthur Andersen LLP


Minneapolis, Minnesota
March 18, 2002

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24
<SEQUENCE>7
<FILENAME>c68167ex24.txt
<DESCRIPTION>POWER OF ATTORNEY
<TEXT>
<PAGE>


                                                                      EXHIBIT 24


                                POWER OF ATTORNEY

                                   (FORM 10-K)


         KNOW ALL MEN BY THESE PRESENTS, that POLARIS INDUSTRIES INC., a
Minnesota corporation (the "Company"), and each of the undersigned directors of
the Company, hereby constitutes and appoints Thomas C. Tiller and Michael W.
Malone and each of them (with full power to each of them to act alone) its/his
true and lawful attorney-in-fact and agent, for it/him and on its/his behalf and
in its/his name, place and stead, in any and all capacities to sign, execute,
affix its/his seal thereto and file the Annual Report on Form 10-K for the year
ended December 31, 2001 under the Securities Exchange Act of 1933, as amended,
with any amendment or amendments thereto, with all exhibits and any and all
documents required to be filed with respect thereto with any regulatory
authority.

         There is hereby granted to said attorneys, and each of them, full power
and authority to do and perform each and every act and thing requisite and
necessary to be done in respect of the foregoing as fully as it/he or
itself/himself might or could do if personally present, hereby ratifying and
confirming all that said attorneys-in-fact and agents, or any of them, may
lawfully do or cause to be done by virtue hereof.

         This Power of Attorney may be executed in any number of counterparts,
each of which shall be an original, but all of which taken together shall
constitute one and the same instrument and any of the undersigned directors may
execute this Power of Attorney by signing any such counterpart.

         POLARIS INDUSTRIES INC. has caused this Power of Attorney to be
executed in its name by its Chief Executive Officer on the 24th day of January,
2002.


                                         POLARIS INDUSTRIES INC.



                                         By /s/ Thomas C. Tiller
                                            ------------------------------------
                                                Thomas C. Tiller
                                                Chief Executive Officer



<PAGE>



     The undersigned, directors of POLARIS INDUSTRIES INC., have hereunto set
their hands as of the 24th day of January, 2002.

<TABLE>
<S>                                                  <C>
     /s/ Andris A. Baltins                                 /s/ Thomas C. Tiller
------------------------------------                 -------------------------------------
Andris A. Baltins                                    Thomas C. Tiller


    /s/ J. Richard Stonesifer                              /s/ Robert S. Moe
------------------------------------                 -------------------------------------
J. Richard Stonesifer                                Robert S. Moe


    /s/ William E. Fruhan, Jr.                             /s/ R. M. (Mark) Schreck
------------------------------------                 -------------------------------------
William E. Fruhan, Jr.                               R. M. (Mark) Schreck


    /s/ John R. Menard, Jr.                                /s/ Gregory R. Palen
------------------------------------                 --------------------------------------
John R. Menard, Jr.                                  Gregory R. Palen


    /s/ Richard A. Zona                                    /s/ W. Hall Wendel, Jr.
------------------------------------                  -------------------------------------
Richard A. Zona                                       W. Hall Wendel, Jr.


                                                      D I R E C T O R S

</TABLE>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>8
<FILENAME>c68167ex99.txt
<DESCRIPTION>LETTER TO SEC REPRESENTATIONS OF ARTHUR ANDERSEN
<TEXT>
<PAGE>
                                                                      EXHIBIT 99


                      [POLARIS INDUSTRIES INC. LETTERHEAD]

                                                                  March 22, 2002



United States Securities and Exchange Commission
450 Fifth Street N.W.
Washington, D.C. 20549

Dear Sir or Madam:

This letter is being furnished to you pursuant to Temporary Note 3T to Article 3
of Regulation S-X in connection with the filing of the Form 10-K (the "Form
10-K") of Polaris Industries Inc. (the "Company") for the fiscal year of the
Company ended December 31, 2001.

Item 8 of the Form 10-K incorporates by reference the financial statements
required by such Item and the report of Arthur Andersen LLP ("Andersen"), as the
Company's independent public accountant for the year ended December 31, 2001
with respect to such financial statements, from the Company's Annual Report to
Shareholders for the year ended December 31, 2001.

The Form 10-K also contains a financial statement schedule, Schedule
II-Valuation and Qualifying Accounts for the fiscal years ended December 31,
2001, 2000 and 1999, and the report of Andersen with respect to such schedule.

The Company has received the written representations of Andersen that the audits
that were the subject of the reports referred to above were subject to
Andersen's quality control system for the U.S. accounting and auditing practice
to provide reasonable assurance that the engagement was conducted in compliance
with professional standards, that there was appropriate continuity of Andersen
personnel working on the audits, availability of national office consultation,
and availability of personnel at foreign affiliates of Andersen to conduct the
relevant portions of the audits.

Very truly yours,

Polaris Industries Inc.

By: /s/ Michael W. Malone

Michael W. Malone
Vice President-Finance,
Chief Financial Officer and
Secretary


</TEXT>
</DOCUMENT>
</SUBMISSION>
