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Winnebago Industries Announces Surge in Operating Income for First Quarter

17 December 1997

Winnebago Industries Announces Surge in Operating Income for First Quarter

    FOREST CITY, Iowa, Dec. 17 -- Revenues of $125.9 million were
reported today by Winnebago Industries, Inc. , for the first
quarter of fiscal 1998 ended November 29, 1997, an increase of 10.5 percent
when compared to revenues of $113.9 million for the first quarter last year.
Income from continuing operations for the first quarter of fiscal 1998 was
$5.3 million, or 21 cents per share, an increase of 97 percent when compared
to $2.7 million, or 11 cents per share, for the first quarter last year.
    The sale of the Company's Cycle-Sat, Inc. subsidiary resulted in a gain of
$16.5 million, or 65 cents per share, in the first quarter of fiscal 1997.
Including this gain, net income was $19.2 million, or 76 cents per share, for
the quarter ended November 30, 1996.
    According to Winnebago Industries Chairman and Chief Executive Officer
Fred G. Dohrmann, "We are extremely pleased with the results of our first
quarter and feel it is testimony to the Company's strategic direction to focus
on the manufacturing of recreation vehicles (RVs).  This has led to the
introduction of a highly successful line of new products for 1998.  Following
the softness of the RV market in fiscal 1997, we have seen replenishment of
dealer inventory in the first quarter.  Dealer inventory rose over 10 percent
in the first quarter versus the fourth quarter of fiscal 1997.  In addition,
we feel the dramatic increase in sales orders provides a vote of confidence
from our dealers in our new 1998 products."
    "A strong positive reaction to our new products was experienced at the
recent industry trade show in Louisville, Kentucky," said Bruce D. Hertzke,
Winnebago Industries President and Chief Operating Officer.  "Orders received
at the show were more than double those received last year.  Combined with
orders already on hand, the Company is experiencing one of the best new
product launches in its history."
    Also at the Louisville Show, the Company announced a new brand licensing
program with Chariot Eagle, Inc. for Winnebago Park Homes.  (Park model homes
are non-motorized vacation homes built on a single chassis and mounted on
wheels.  They are typically set up in destination retirement and vacation
communities.)  The Winnebago park model homes are built and marketed by
Chariot Eagle under a brand licensing agreement with Winnebago Industries.
"This licensing of our well-known Winnebago brand name will provide additional
revenue, allowing us to keep motor home prices as competitive as possible,
while creating added exposure and awareness of the brand name," said Hertzke.
"Chariot Eagle is one of the largest builders in the park model industry.
They are recognized as producing one of the better built park model homes on
the market and were chosen for this venture because their quality is
consistent with Winnebago Industries own emphasis on high quality standards."
    Chariot Eagle operates manufacturing facilities in Phoenix, Ariz., and
Ocala, Fla.  The new Winnebago Park homes will be sold through dealers
throughout the U.S.
    Winnebago Industries, Inc. is a leading manufacturer of motor homes,
self-contained recreation vehicles used primarily in leisure travel and
outdoor recreation activities.  Other products manufactured by the Company
consist principally of a variety of component products for other
manufacturers.  The Company builds quality products with state-of-the-art
computer-aided design and manufacturing systems on automotive-styled assembly
lines.  These products conform to what the Company believes to be the most
rigorous testing in the recreation vehicle industry.  The Company's common
stock is listed on the New York, Chicago and Pacific Stock Exchanges and
traded under the symbol WGO.  Options for the Company's common stock are
traded on the Chicago Board Options Exchange.  Winnebago Industries' press
releases are available through Company News On-Call by fax, 800-758-5804, ext.
105967, or on-line at http://www.prnewswire.com .  Visit Winnebago Industries'
Web site at http://www.winnebagoind.com/

                          Winnebago Industries, Inc.
                     Consolidated Statement of Operations
                     (Thousands except per share amounts)


                                               Thirteen Weeks Ended
                                               11/29/97   11/30/96

    Net revenues                               $125,896   $113,892
    Cost of goods sold                          107,473     98,813
      Gross profit                               18,423     15,079
    Operating expenses:
      Selling and delivery                        5,729      6,338
      General and admin.                          5,266      4,885
        Total operating exp.                     10,995     11,223
    Operating income                              7,428      3,856
    Financial income                                613        369
    Pretax income from
      continuing operations                       8,041      4,225
    Provision for taxes                           2,703      1,519
    Income from continuing operations             5,338      2,706
    Gain from the sale of discontinued
      Cycle-Sat operations (less
      applicable income tax provisions
      of $13,339)                                    --     16,472
    Net income                                   $5,338    $19,178
    Income per common share:
      Continuing operations                        $.21       $.11
      Discontinued operations:
       Gain from the sale of Cycle-Sat               --        .65
          Net income                               $.21       $.76
    Weighted average number of shares
      and equivalents outstanding                25,481     25,379

SOURCE  Winnebago Industries, Inc.