Rexhall Industries Inc. Posts 1998 Earnings

19 March 1999

Rexhall Industries Inc. Posts Record Year: Earnings Per Share of $1.14 vs. a $0.67 Loss, With Strongest Fourth Quarter to Date

    LANCASTER, Calif.--March 18, 1999--Rexhall Industries Inc. announced record sales and earnings for the year ended Dec. 31, 1998.
    Sales for the full year 1998 were $71,454,000, an increase of 13.4% over 1997 sales of $63,012,000. Net income was $3.39 million as compared with a net loss of $1,835,000 in 1997.
    During 1998 the company hit several production and sales highs. Demand for the company's product line has remained strong. Closing the Indiana facility at the end of 1997 required the California plant to assume all production requirements for its dealership network, which encompasses the United States and Canada. This allowed the company to benefit from lower labor costs, directly affecting the bottom line.
    The company's 1998 fourth-quarter sales increased 55.6% compared with the same period in 1997. "The year 1998 has been our most productive year to date. Management's continued efforts in carrying out the restructuring plan have reflected throughout the year. From the closing of its second plant in Indiana, undertaking all production in California, to setting several record quarters in earnings, production and sales highs. Management and employees at Rexhall Industries reached their objective in 1998," stated William J. Rex, president and chief executive officer.


                       REXHALL INDUSTRIES INC.
                   Summary Statement of Operations
                          
Three months ended Dec. 31                     1998          1997

Revenue                                    $20,434,000   $13,135,000
Net Income(loss)                              $926,000   $(3,325,000)
Weighted Average Number of Common
 and Equivalent Shares Outstanding - Basic   2,967,542     2,740,000
Earnings(loss) Per Share - Basic                  $.31      $(1.21)(a)
Shares Outstanding - Diluted                 2,990,045     2,740,000
Earnings(loss) Per Share - Diluted                $.30      $(1.21)(a)

Year ended Dec. 31                              1998          1997

Revenue                                    $71,454,000   $63,012,000
Net Income(loss)                            $3,390,000   $(1,835,000)
Weighted Average Number of Common
 and Equivalent Shares Outstanding - Basic   2,967,542     2,740,000
Earnings(loss) Per Share - Basic                 $1.14       $(.67)(a)
Shares Outstanding  - Diluted                2,990,045     2,740,000
Earnings(loss) Per Share - Diluted               $1.13       $(.67)(a)

    (a) Includes losses from restructuring operations and settlement of class action lawsuit.

    Visit this company's investor relations site at http://www.businesswire.com/cnn/rexl.htm.

    FORWARD-LOOKING STATEMENTS: Statement about future performance are forward-looking statements, and are based on assumptions and facts. Our report contains forward-looking statements. These are based on assumptions and on facts as known to us today, and we do not intend to update them. Rexhall's business is subject to increases in materials costs, pricing and other pressures from substantially larger competitors, labor disruptions, and adverse weather reducing sales and making deliveries difficult. For some time, favorable recreational vehicle industry sales have been achieved when there are low interest rates, low unemployment, and ready availability of motor fuel. All three of these factors may change rapidly. Consumer confidence levels have been good, but may decline for many reasons, causing postponement of discretionary recreational purchases. Rexhall Industries has competition in ways that would adversely affect Rexhall's results. These factors are not easily predictable, and many are beyond management's control.