ASV Co-Founder Retires, Company Adds to Board of Directors

GRAND RAPIDS, Minn. – ASV today announced that co-founder Edgar Hetteen has retired. Hetteen retired from his position of vice president and secretary after the company's annual meeting held Friday, May 27, 2005. Hetteen also chose not to stand for reelection to ASV's board of directors. Hetteen and ASV Chairman and CEO Gary Lemke founded ASV in 1983 with a goal to develop and manufacture rubber track work vehicles.

ASV has become a leader in rubber track technology, finishing 2004 with net sales of $161 million with 230 employees. Hetteen also founded the companies now operating as Polaris Industries and Arctic Cat.

"Edgar Hetteen has had a tremendous impact on the business landscape and thousands owe him a debt of gratitude for the jobs and wealth he has created,” Lemke said regarding Hetteen’s retirement. “We at ASV are no exception. As we've grown from a very small company to one of the fastest growing in the U.S., Edgar's wisdom, experience and entrepreneurial spirit have been an inspiration. Those who worked closely with him are better for it."

At its annual shareholders' meeting held on May 27 shareholders elected Kenneth Zika, retired Caterpillar corporate controller and treasurer, to its Board of Directors. Zika was nominated as the new Caterpillar designate to the ASV Board. Zika will occupy the position previously held by Edward Rapp, vice president with Caterpillar's building construction products division, who chose not to stand for reelection to ASV's Board. The agreements between ASV and Caterpillar allow Caterpillar to have representation on ASV's Board proportionate to its stock ownership in ASV. Caterpillar currently owns approximately 23 percent of ASV's outstanding common stock, but has chosen to maintain just one Board seat on ASV's current Board of nine members.