A.S.V., Inc. (ASV), incorporated in July 1983, designs, manufactures and sells track-driven all-season vehicles. The Company has three product lines, the Posi-Track product line, the undercarriage product line and the Loegering product line. The Posi-Track and undercarriage product lines use a rubber track suspension system that takes advantage of the benefits of both traditional rubber wheels and steel tracks. Posi-Track products are machines used in the construction, agricultural, landscaping, rental, military, and other markets. Undercarriages are sold to Caterpillar Inc. (Caterpillar) as a primary component on its Multi-Terrain Loader (MTL) product line. Loegering is a manufacturer of traction products for wheeled skid-steers and also provides attachments for the skid-steer market. ASV's subsidiaries include A.S.V. Distribution, Inc. and Loegering Mfg. Inc. (Loegering). In January 2005, the Company introduced a model in Posi-Track product line, which is built on RC-85/100 platform and features a vertical lift loader and higher lift heights. It introduced SR-70 and SR-80 in the same product line in January 2006. Posi-Track Products The Posi-Track product line utilizes a rubber track suspension system that is made of molded rubber reinforced with layers of nylon and polyester cord. Posi-Track products feature a maintenance-free suspension with no grease fittings and utilize diesel engines manufactured by Perkins Engines Company Ltd. All of its Posi-Track products are ride-on machines and are equipped with pilot-operated hydraulic controls. Safety features include full ROPS/FOPS canopy (roll over protection structure, falling object protection structure), lap bar, seat belt and parking brake. The models include RC-30, RC-50, RC-60, SR-70, SR-80, RC-85, RC-100 and RCV. Posi-Track products utilize quick-attach mechanism, which enables them to operate the attachments used by skid-steers. Track products are also designed for use with a dozer attachment. ASV also sells other attachments for special purposes. These products can be equipped with options, such as cab enclosure, heater, air conditioner, horn and back-up alarm. Undercarriages ASV manufactures rubber track undercarriages for use by Caterpillar on their MTLs. The Company manufactures undercarriages for all the five models of Caterpillar. MTLs feature the ASV's Maximum Traction Support System rubber track undercarriage. ASV also manufactures rubber track undercarriages for use by Vermeer on the Vermeer Machines. Loegering Loegering products consist primarily of the Versatile Track System (VTS) product, a bolt on bolt off track system that will convert most skid-steers from wheels to rubber tracks, over-the-tire steel tracks used on skid-steers and various attachments for use by the skid-steer market. Loegering products are sold through the Loegering dealer network. During the year ended December 31, 2005, Loegering introduced an additional model in the VTS product line. This additional model was for smaller skid-steers than the original VTS model. Other ASV also produces MD-70, the 2800 series, the HD 4500 series and the 4810 under the Posi-Track model name. In 2005, the sales of MD-70 accounted for less than 1% of the net sales. ASV competes with Ingersoll Rand.