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Featherlite Intends to Buy Vogue Luxury Motorcoach Maker

31 March 1998

Featherlite Signs Letter of Intent to Acquire Manufacturer of Vogue Luxury Motorcoaches

   Planned Acquisition Would Nearly Double Featherlite's Luxury Motorcoach
   Business, Further Expanding Company's Presence in Recreation and Leisure
                                   Markets

    CRESCO, Iowa, March 31 -- Featherlite Mfg., Inc.
, a leading manufacturer and marketer of specialty aluminum
trailers and luxury motorcoaches, announced today that it has signed a letter
of intent to acquire the assets of Mitchell Coach Manufacturing, Inc., and
Mitchell Motorcoach Sales, Inc. (Mitchell Companies), for approximately
$6 million in Featherlite common stock and the assumption of certain
liabilities.  Approximately $1.5 million of the common stock will be
contingent upon achieving defined levels of future earnings by this new
Featherlite division over the next three full years.  Featherlite said that
the transaction is subject to further due diligence and other customary
conditions and is expected to be completed in May.
    The Mitchell Companies, manufacturer and distributor of the Vogue(R) line
of quality luxury motorcoaches and bus conversion vehicles, is a privately
held company based in Pryor, Okla.  Unaudited net sales for the Mitchell
Companies in its most recent fiscal year were approximately $34 million.
    Conrad Clement, chairman and chief executive officer of Featherlite, said,
"This planned acquisition is a perfect strategic fit for Featherlite.  We will
invest several million dollars of additional working capital in the Mitchell
companies and evaluate current pricing and other operating policies, but
expect that this new operation will be accretive to Featherlite's 1998 and
1999 earnings.  The Mitchell Companies are highly complementary to our Vantare
division, which is already one of the leading producers of luxury motorcoaches
in the U.S.  This acquisition will significantly add to Featherlite's presence
in the fast-growing luxury motorcoach and recreational vehicle markets, and
will make Featherlite a dominant manufacturer of high-end luxury motorcoaches
in the U.S.  The acquisition is further concrete evidence of Featherlite's
commitment to growth in the rapidly expanding leisure and recreation markets."
    Harvey Mitchell, chief executive officer of the Mitchell Companies,
established the company in its current form in 1991.  The Mitchell Companies
recently celebrated the 25th anniversary of its Vogue(R) motorcoach brand
which has been in existence since 1973.  Mitchell markets its motorcoach
lines, consisting of both diesel-pusher, high-end class "A" recreational
vehicles and custom-designed conversions of Prevost bus chassis, to affluent
customers who expect high quality and can afford recreational vehicles that
offer excellence in appointments and amenities.
    "A majority of our business is now in the recreation, leisure and
entertainment markets," Clement said.  "With this market positioning and
Featherlite's significant presence in the motorsports industry, we see great
opportunity to further leverage our marketing strengths and brand name
recognition with the Vogue(R) line.   The quality reputation, customer loyalty
and distribution network of the Mitchell Companies will add meaningful
strength and scope to our business.
    "We are pleased that Harvey Mitchell and his senior team plan to remain
with the company after it becomes part of Featherlite."
    Harvey Mitchell said, "This is an exciting strategic combination for our
company.  With the capital resources of Featherlite and the marketing
synergies we expect, we look forward to the continued growth and success of
the Vogue(R) line and continued excellence in serving our customers.  Upon
completion of the transaction, we will be pleased to be part of Featherlite
and to contribute to its expanding market share and future profitable growth."

     About Featherlite
     Featherlite Mfg., Inc., with 1997 net sales of $134.4 million, is an
innovative leader in designing, manufacturing and marketing high quality
aluminum specialty trailers, transporters and luxury motorcoaches.  With
three-quarters of its business in the leisure, recreation and entertainment
categories, Featherlite has highly diversified product lines offering standard
model aluminum specialty trailers and custom-designed trailers, transporters
and motorcoaches.  Featherlite is the "Official Trailer" of NASCAR,
Championship Auto Racing Teams (CART), Indy Race League (IRL), SPORTSCAR,
Automobile Racing Club of America (ARCA), American Speed Association (ASA) and
World of Outlaws (W.O.O.).  Vantare, Featherlite's luxury motorcoach division,
is the "Official Coach" of NASCAR, IRL and SPORTSCAR.  For more information
about the company, please visit Featherlite's website at
http://www.featherlitemfg.com
    Safe Harbor Statement under the Private Securities Litigation Reform Act:
Statements in this release looking forward in time involve risks and
uncertainties discussed here and in the company filings with the Securities
and Exchange Commission, including product acceptance and demand in each
segment of the Company's markets, the price of aluminum, competition, and
facilities utilization.

SOURCE Featherlite Mfg., Inc.