719866--6/13/2008--ARCTIC_CAT

related topics

{product, liability, claim}

{gas, price, oil}

{cost, regulation, environmental}

{competitive, industry, competition}

{financial, litigation, operation}

{customer, product, revenue}

{condition, economic, financial}

The Company s products are subject to extensive federal and state safety, environmental and other government regulation that may require the Company to incur expenses or modify product offerings in order to maintain compliance with the actions of regulators. A significant adverse determination in any material product liability claim against the Company could adversely affect its operating results or financial condition. Significant repair and/or replacement with respect to product warranty claims or product recalls could have a material adverse impact on the results of operations. Changing weather conditions may reduce demand for certain Arctic Cat products and negatively impact net sales. The Company faces intense competition in all product lines, from competitors that have greater financial and marketing resources. Failure to compete effectively against competitors would negatively impact the Company s business and operating results. Termination or interruption of supply arrangements could have a material adverse effect on the Company s business or results of operations. General Economic Conditions and Certain Other External Factors

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719866--6/13/2008--ARCTIC_CAT_INC