Press Release

Source: Cycle Country Accessories Corp.

Cycle Country Accessories Corp. Announces Q 3 Loss of 6 Cents per
Share, Reduces Yearly Guidance to 10-14 Cents from 15-20 Cents

Thursday August 14, 7:00 am ET

MILFORD, Iowa--(BUSINESS WIRE)--Cycle Country (AMEX:ATC - News),
a leading supplier of ATV accessories, Golf Accessories, Oil
Filters and Contract Manufacturing services announces
disappointing earnings for the third reporting quarter and a
downward revision to its annual guidance.

Based both on significant increases in raw material costs and an
increase in selling, general and administrative costs in the
third quarter that wiped out the significant increase in revenues
from quarter three of last year to the current third quarter, the
company finished the quarter posting a net loss of approximately
$370,000 on revenues of approximately $3,469,000, or an earnings
per share (EPS) loss of -$0.06 for the quarter. Also contributing
to the loss for the quarter was continued weakness in both the
Weekend Warrior and Plastic Wheel Covers divisions.  The third
quarter of last year, fiscal 2007, posted an EPS loss of -$0.05
for the quarter on revenues of approximately $2,541,000.  The
year to date EPS is at $0.10 with this latest quarter's results,
while the year to date EPS for last year through the same period
was -$.02. The company had previously provided guidance for the
year at $0.15 - $0.20. With the third quarter results and
management's projections of high material costs continuing to
impact the company profits in the fourth quarter, the company
acknowledges that this previous guidance is no longer achievable.
The company now provides guidance for the full year to be $0.10-
$0.14, which is a return to the original guidance that the
company put forth for this fiscal year.  Management, under the
direction of the new President, is renewing its pursuit for cost
savings and efficiencies and, at the same time, reevaluating and
refocusing its efforts to bring sustainable growth opportunities
to all of its business segments.

Pre-season snow blade orders are currently above normal levels,
as management worked with its distributors to create incentives
in the face of continuing raw material increases during the
latter part of our third quarter (as reported in the press
release dated June 24, 2008).  The company also credits the pre-
season sells to the general depletion of inventory in the
distribution and dealer supply chain.

The company will hold an Investor Conference call on Thursday
(today) August 14, 2008 at 11:00 AM (Eastern)/10:00 AM (Central).
To participate, call: TOLL-FREE 1-800-762-8908;
TOLL/INTERNATIONAL 1-480-629-9039 and use Pin Number: 3911715. To
access the conference by the Internet go to this web address:
http://viavid.net/dce.aspx?sid=00005500.

About Cycle Country Accessories Corporation

Cycle Country has been an industry leader in the marketing,
sales, design and manufacturing of custom fitting accessories for
utility all-terrain vehicles (ATV's) for over 31 years. Products
include snowplows, mowers, 3-point hitches and implements,
storage, bed lifts, brush guards and more. Cycle Country also
produces a line of wheel covers for golf carts, lawn and garden
equipment and motor sports vehicles.  Perf-Form, a wholly owned
subsidiary, makes high performance oil filters for motorcycles,
ATV's and watercraft. In April of 2005, Cycle Country acquired
Simonsen Iron Works, now operating as Cycle Country-Spencer,
providing metal fabrication and contract manufacturing services
to clients in the mid-west.

www.cyclecountry.com

www.weekend-warrior.com

www.perf-form.com

This press release does not constitute an offer to sell or the
solicitation of any offer to buy any securities of Cycle Country
Accessories Corporation, nor shall there be any sale of any such
security in any state in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification
under the securities laws of any such state. Forward looking
statements: This press release and other statements by Cycle
Country may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act with respect to
the outlook for earnings and revenues, other future financial or
business performance, strategies and expectations. Forward-
looking statements are typically identified by words or phrases
such as "believe," "expect," "estimate," "potential," or
future/conditional verbs such as "will," "should," and "could."

Contact:
Magellan FIN
Mark Gilbert, 317-867-2839
Principal
mgilbert@magellanfin.com

Source: Cycle Country Accessories Corporation