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Arctic Cat Reduces Workforce

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  Published in House and Home on Friday, January 23rd 2009 at 13:07 GMT, Last Modified on 2009-01-23 13:08:00 by Market Wire

MINNEAPOLIS--([ BUSINESS WIRE ])--Arctic Cat Inc. (NASDAQ: ACAT) today announced a workforce reduction in order to align the company's cost structure with current industrywide market conditions.

"Aligning the size of our workforce with sales volumes is a difficult step that we must take during this economic downturn," said Christopher A. Twomey, chairman and chief executive officer. "We are rescaling the business to lower production capacity and operating costs, bringing them in line with reduced consumer demand. We regret having to take this action and want to thank affected employees for their dedicated efforts."

Approximately 100 positions are being eliminated, effective immediately, primarily in Thief River Falls, Minn. This represents 7 percent of Arctic Cat's 1,400 employees. Eligible employees will be offered severance packages. The company does not expect any material financial impact related to this announcement.

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat® brand name, as well as related parts, garments and accessories. Its common stock is traded on the NASDAQ Global Select Market under the ticker symbol "ACAT." More information about Arctic Cat and its products is available at [ www.arcticcat.com ].