TAKE A CAT BY THE TAIL

STOCK OF THE WEEK: ARTIC CAT
Arctic Cat, based in Thief River Falls, Minnesota, designs, engineers, manufactures and markets snowmobiles and ATVs along with related parts and accessories.

The Company sells its products through a group of independent dealers located throughout the US and Canada, and through distributors in Alaska, Europe, the Middle East, Asia and other international markets.

The Arctic Cat, brand has been around for more than 30 years and is among the most widely recognized and respected names in the snowmobile industry. The Company trades on the NASDAQ Stock Market under the symbol (ACAT).

It closed on January 6th at $22.62 up $4.69 from its 52 week low on 10/12/05 of $17.93. Their 52 week high came on 3/2/05 @ $29.20

First-Quarter Highlights:
Across the board Sales rose 5%
Earnings per diluted share of $0.02
Sales increase across all product lines

They reported net sales of $107.9 million for the fiscal 2006 first quarter ending June 30, 2005, up 5% versus $102.6 million in the same period last year.

Net earnings for the quarter rose to $448,000, or $0.02 per diluted share, compared to net earnings of $124,000, or $0.01 per diluted share, in the prior-year period.

Christopher A. Tworney, Chairman and CEO said "We are pleased to report another record first quarter. Sales increased across all product lines and exceeded our expectations, due to slightly higher than anticipated sales to dealers."

ATV sales increased 6 percent to $41.4 million in the first quarter of last year. Dealers responded positively to their 2006 model ATVs unveiled at their dealer show in June. They showed further progress on their ATV growth strategy to extend their products into every market segment and to offer best-in-class ATVs at competitive prices.

Among the new 2006 ATVs recently introduced was Arctic Cat's first entry into the true utility category with the Prowler. The Prowler's special features include side-by-side bucket seats with seat belts, and a rear-cargo box designed for hauling and dumping.

Sales of snowmobiles rose 3% to $520 million. Parts and accessory sales increased 14% to $14.5 million fueled by sales across all product lines.

The outlook for Arctic Catcontinues to out smart the analysts. Over the last few quarters, they have missed judged the stock. The company is predicting for fiscal 2006 they will have net sales growth of 5% to $723 million. However, the company is anticipating lower margins due to increased raw material costs.

During the 2006 first quarter, Arctic Catrepurchased approximately 185,000 shares of its common stock and during its fiscal 2006 second quarter, they repurchased 401,500 shares of its common stock as part of its $20 million share repurchase program.

To improve upon lower margins in the future, aggressive plans have been announced to reduce costs and enhance the company's operational efficiency by next fiscal year. A new state-of-the-art facility is being built in St. Cloud. This plant should enhance competitiveness by increasing manufacturing efficiency and reducing ATV engine costs. It will also provide greater flexibility and control over the ATVs they produce to better meet changing customer needs.

Arctic Catcontinues to deliver good news to its shareholders. Take the cat by the tail and hold on for the ride?

TAKE A CAT BY THE TAIL

STOCK OF THE WEEK: ARTIC CAT
Arctic Cat, based in Thief River Falls, Minnesota, designs, engineers, manufactures and markets snowmobiles and ATVs along with related parts and accessories.

The Company sells its products through a group of independent dealers located throughout the US and Canada, and through distributors in Alaska, Europe, the Middle East, Asia and other international markets.

The Arctic Cat, brand has been around for more than 30 years and is among the most widely recognized and respected names in the snowmobile industry. The Company trades on the NASDAQ Stock Market under the symbol (ACAT).

It closed on January 6th at $22.62 up $4.69 from its 52 week low on 10/12/05 of $17.93. Their 52 week high came on 3/2/05 @ $29.20

First-Quarter Highlights:
Across the board Sales rose 5%
Earnings per diluted share of $0.02
Sales increase across all product lines

They reported net sales of $107.9 million for the fiscal 2006 first quarter ending June 30, 2005, up 5% versus $102.6 million in the same period last year.

Net earnings for the quarter rose to $448,000, or $0.02 per diluted share, compared to net earnings of $124,000, or $0.01 per diluted share, in the prior-year period.

Christopher A. Tworney, Chairman and CEO said "We are pleased to report another record first quarter. Sales increased across all product lines and exceeded our expectations, due to slightly higher than anticipated sales to dealers."

ATV sales increased 6 percent to $41.4 million in the first quarter of last year. Dealers responded positively to their 2006 model ATVs unveiled at their dealer show in June. They showed further progress on their ATV growth strategy to extend their products into every market segment and to offer best-in-class ATVs at competitive prices.

Among the new 2006 ATVs recently introduced was Arctic Cat's first entry into the true utility category with the Prowler. The Prowler's special features include side-by-side bucket seats with seat belts, and a rear-cargo box designed for hauling and dumping.

Sales of snowmobiles rose 3% to $520 million. Parts and accessory sales increased 14% to $14.5 million fueled by sales across all product lines.

The outlook for Arctic Catcontinues to out smart the analysts. Over the last few quarters, they have missed judged the stock. The company is predicting for fiscal 2006 they will have net sales growth of 5% to $723 million. However, the company is anticipating lower margins due to increased raw material costs.

During the 2006 first quarter, Arctic Catrepurchased approximately 185,000 shares of its common stock and during its fiscal 2006 second quarter, they repurchased 401,500 shares of its common stock as part of its $20 million share repurchase program.

To improve upon lower margins in the future, aggressive plans have been announced to reduce costs and enhance the company's operational efficiency by next fiscal year. A new state-of-the-art facility is being built in St. Cloud. This plant should enhance competitiveness by increasing manufacturing efficiency and reducing ATV engine costs. It will also provide greater flexibility and control over the ATVs they produce to better meet changing customer needs.

Arctic Catcontinues to deliver good news to its shareholders. Take the cat by the tail and hold on for the ride?

#