Cycle Country Reports Superior 2nd Quarter Results:

2nd Quarter Net Income of $ 0.11/Share vs. $ 0.00/Share Last Year


MILFORD, Iowa, May 11, 2004 (PRIMEZONE) -- Cycle Country Accessories Corp. (AMEX:ATC), the recognized leader in developing and manufacturing a variety of products for all-terrain vehicles (ATVs), garden tractors, and golf carts, reported record results for the second quarter of fiscal 2004.

Revenues rose 97% to $5.38 million when compared to last year's second quarter due to strong domestic and international demand. While capturing $3 million in snowplow blade sales during its peak season, Cycle Country's efforts to reduce seasonality delivered expansion in OEM product lines, which increased to represent 20% of consolidated revenues. Reduced operating costs resulting from management's cost control initiatives and improved worker productivity achieved an increase in gross margin to 27.3% while reducing Selling, General and Administrative Expenses to 13.8% of sales.

Combining the increase in revenues with improving margins, Cycle Country was able to deliver Net Income of $465,013 or $0.11/share compared to an EPS of $0.00 in the same period last year.

$1,602,988 of Cash Flows from Operations during the Six Months Ended March 31, 2004 contributed to strengthening the balance sheet with net bank borrowings decreasing by $662,407 and an increase of $867,260 in cash.

By continually addressing the seasonality of Cycle Country's signature snowplow blades with new products, entry into new geographic territories, and marketing efforts with existing distributors, the Company remains well positioned to achieve its sales and profitability goals. Cycle Country's third quarter is already showing strong sales results from its mowers, sprayers, spreaders and other spring / summer products.

"While pleased with surpassing prior expectations for the most recent quarter, feedback from our OEM customers and indications from distributors cause us to be optimistic for the third quarter and the remainder of Fiscal 2004," said Mr. Ron Hickman, CEO and President of Cycle Country Accessories.

About Cycle Country Accessories Corp.

Cycle Country, with over 50% of the worldwide market in several product categories, is the industry leader in the design and manufacturing of custom-fitting accessories for virtually every brand of utility all-terrain vehicles (ATVs). Since 1981, Cycle Country has developed an extensive line of branded recreational accessories and utility equipment including snowplows, lawnmowers, spreaders, sprayers, and hitches found at essentially all North American ATV and motorcycle dealers under the brand names: Cycle Country, Perf-form and Weekend Warrior. The Company's products are sold through 17 domestic and 19 international distributors in 37 countries throughout North America, Asia, Europe, Central and South America.

For the latest SEC filings or past news releases, go to the company's website at http://www.cyclecountry.com and click on the Investor Relations heading. Please direct any financial questions to Todd Doom at Magellan Financial Media Group, LLC. (317) 867-2839.

Cycle Country Accessories Corp: 2188 Hwy. 86, Milford, Iowa 51351, (800) 841-2222.



            

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