Fleetwood Reports Preliminary Revenues for Second Quarter, First Six Months of Fiscal 2008

RIVERSIDE, Calif., Nov. 1, 2007 -- Fleetwood Enterprises, Inc. announced today preliminary revenues for the second quarter and first six months of fiscal 2008, ended October 28, 2007.

Consolidated revenues for the quarter were approximately $487 million, an 8 percent decrease from $527 million in last year's second quarter. Compared with the prior year, second quarter sales for recreational vehicles declined 9 percent, while manufactured housing revenues increased 1 percent.

Recreational vehicle sales for the second quarter were approximately $331 million versus $365 million a year ago. Motor home sales increased 14 percent to $263 million from $231 million in the same period a year ago, travel trailer sales declined 56 percent to $46 million from $104 million, and folding trailer sales were off 27 percent to $22 million from $30 million. Housing sales rose 1 percent to $149 million, compared to $147 million in the prior year.

"Given the current economic environment, we are encouraged by the growth in motor home and manufactured housing sales," said Elden L. Smith, president and chief executive officer. "In recent months both of these operations have increased their share of industry shipments. In addition, the motor home division has gained retail market share, indicating that the dealers and customers are responding to our customer-focused designs and recognize the value orientation of our products. While we have made a number of organizational and product improvements in our travel trailer division, our sales for the quarter were considerably less than underlying retail sales, resulting in lower dealer inventories. This reflects dealer caution in response to current economic uncertainty as well as the impact of plant closures in specific regions where we no longer provide certain products. We expect that soon, as dealer inventories reach equilibrium, our shipments to dealers will increase to more closely approximate the rate of their retail sales."

For the first six months of fiscal 2008, consolidated revenues were off 6 percent to $997 million from $1.1 billion in the first half of the prior fiscal year. Sales of recreational vehicles were down 6 percent to $690 million from $736 million and manufactured housing sales rose fractionally to $294 million from $293 million, compared with the first six months of fiscal 2007.

"As expected, soft industry conditions in manufactured housing and towables persisted throughout our second quarter," Smith said. "Accordingly, we currently anticipate a small operating loss, due primarily to the impact of impairment charges on idle real estate that is being marketed for sale as well as lower-than-expected travel trailer volumes. However, as a result of restructuring and cost-cutting efforts, our results will show significant improvement over last year's second quarter."

About Fleetwood

Fleetwood Enterprises, Inc., through its subsidiaries, is a leading producer of recreational vehicles and manufactured homes. This Fortune 1000 company, headquartered in Riverside, Calif., is dedicated to providing quality, innovative products that offer exceptional value to its customers. Fleetwood operates facilities strategically located throughout the nation, including recreational vehicle, manufactured housing and supply subsidiary plants. For more information, visit the Company's website at http://www.fleetwood.com/.