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Monaco Coach Corporation Enters Low to Mid $100,000 Retail Price Point With New Diesel Motorhome

15 December 1997

Monaco Coach Corporation Enters Low to Mid $100,000 Retail Price Point With New Diesel Motorhome; Expands Retail Dealer Network

    COBURG, Ore., Dec. 15 -- Monaco Coach Corporation
recently unveiled its newest luxury diesel motor home, the
Monaco Diplomat, targeted at the low to mid $100,000 retail price point.  The
new motor home made its debut at the 35th Annual RV Convention in Louisville,
Kentucky, December 2-4, 1997.  The Company reports writing over 300 wholesale
orders for the new luxury motor home during the event.  Additionally, the
Company has expanded its dealer network by nearly 40 retail dealerships.
    "We are very excited about dealer response to the Diplomat, aggressively
positioned in the low to mid $100,000 retail price range," stated Monaco
Investor Relations Manager Mike Duncan.  Additionally, Duncan stated that mid-
year enhancements across Monaco and Holiday Rambler's product lines also
proved popular with dealers, and contributed to the Company's success at the
convention.
    Duncan continued, "At the convention, we reached agreements for nearly 40
new retail dealerships in key strategic locations many of whom will represent
either the new Diplomat or our new line of McKenzie towable recreational
vehicles.  Most of these retail dealerships have not previously represented
Monaco Coach Corporation products."  With the addition of these new
dealerships, Monaco Coach Corporation now has a total of 198 retail dealers.
    Headquartered in Coburg, Oregon, with additional manufacturing facilities
in Indiana, Monaco Coach Corporation is one of the nations leading
manufacturers of recreational vehicles.  Under the Monaco nameplate, the
Company offers customers six luxury models: the Diplomat(TM), the Windsor(R),
the Dynasty(R), the Executive(R), the Signature Series, Royale Coach by Monaco
and McKenzie Towables by Monaco.  Monaco's Holiday Rambler Division builds
quality travel trailers, fifth wheel towables and motor coaches, including:
Alumascape(TM), Aluma-Lite(R), Vacationer(R), Endeavor(R), Imperial(TM), and
Navigator(R).
    The statements in this report regarding the anticipated effects of new
products, existing product development and new retail dealer representation
are forward-looking statements.  A number of factors could cause actual
results to differ materially from these statements, including, but not limited
to, a general slowdown in the economy, new product introductions by
competitors or the inability of critical suppliers to meet the Company's
supply requirements due to such factors as insufficient capacity or work
stoppages.  Please also refer to the Company's SEC reports, including but not
limited to the report on Form 10-Q for the quarter ended September 29, 1997,
and its 1996 Annual Report to Shareholder's for additional factors.

SOURCE  Monaco Coach Corporation