Fleetwood Enterprises, Inc. to Pursue Legal Action Against The Coleman Company And Coachmen Industries

Judge Lifted Prior Restraining Order Against Parent Company, Allowing Fleetwood to Pursue Monetary Damages Against Coleman; Will File Separate Suit Against Coachmen Industries

RIVERSIDE, Calif., Feb. 9 -- Fleetwood Enterprises, Inc. , the nation's leader in recreational vehicle sales and a leading producer and retailer of manufactured housing, announced today that the judge in its legal dispute with The Coleman Company, Inc. made several favorable rulings last Friday, eliminating an existing temporary restraining order.

An earlier judge had placed a temporary restraining order both on Fleetwood Enterprises and its subsidiary, Fleetwood Folding Trailers. The current judge ruled that the two Fleetwood companies are separate and distinct legal entities, and lifted the restraining order completely as it applied to Fleetwood Enterprises. The judge also agreed to consider moderating some of the restrictions contained in the portions of the order that still affect Fleetwood Folding Trailers. Nonetheless, Fleetwood Folding Trailers understands that it will still be restricted from using the "Coleman" trademark and logos on its products.

As a result of the ruling, Fleetwood Enterprises will pursue its legal action against Coleman, and also expects to file a lawsuit by the end of this week against Coachmen Industries, Inc., a smaller competitor of Fleetwood in the recreational vehicle industry. All litigation is in connection with a dispute over the use of the "Coleman" brand name. Coachmen announced at the end of January that it had signed a long-term exclusive licensing agreement with Coleman to produce a new line of recreational vehicles. Fleetwood's 1989 purchase agreement with Coleman includes an agreement by Coleman to refrain from any use of the "Coleman" trademark in connection with recreational vehicles.

"We are pleased that the judge has made rulings on all of the motions that had been pending before the court, and that we can now proceed in our claims against Coleman," said Chris Braun, senior vice president of Fleetwood's RV Group. "Meanwhile, our Fleetwood Folding Trailer division is continuing to manufacture and sell the highest quality folding trailers. Many of the people operating that business were there in 1989 when Fleetwood purchased the company, and they are the ones who have continued to strengthen our market position. In fact, as of the most recent Statistical Survey information, more than 40 percent of all folding trailers sold during the year were manufactured by Fleetwood Folding Trailers."