KIT Reports First Quarter Fiscal 2001 Results

    LONG BEACH, Calif., March 12 KIT Manufacturing Company
(Amex: KIT) reported a net loss of $866,000, or $0.84 per share, for the
current fiscal quarter in comparison to net income of $177,000, or $0.16 per
share, for the same period in 2000.
    Net sales, company-wide, declined 38 percent from the comparable quarter
in the prior fiscal year.  Manufactured homes sales reflected a 50 percent
decrease, while recreational vehicles posted a 24 percent decrease in sales in
comparison to the first quarter in fiscal 2000.
    According to Dan Pocapalia, KIT's Chairman of the Board and Chief
Executive Officer, "The significant sales slowdown in both manufactured homes
and recreational vehicle divisions is mainly attributable to declining
consumer confidence as a result of the slowdown in the economy, higher
interest rates and fuel costs and tightened credit policies."
    Mr. Pocapalia went on to say, "the manufactured homes division is focusing
on sales of homes utilizing "land package" deals both with its retail sales
centers and the dealer body.  The RV division's marketing efforts are now
aimed at meeting demand in the upper end of the market as well as developing
and introducing new product lines.  Both divisions are currently implementing
short and long-term overhead reduction plans to further reduce and control
costs.  Management believes that the second quarter will see improved results
based on the success of our revised marketing and operational action plans."

    For further information please contact Bruce K. Skinner, Vice President &
Treasurer of KIT Manufacturing Company, 562-595-7451.


     KIT Manufacturing Company
     Condensed Statements of Income
                                               Three Months Ended January 31,
     (Unaudited)                                     2001            2000
     Sales                                        $6,753,000    $10,966,000
     Costs and expenses                            8,207,000     10,693,000
     (Loss) income before income taxes            (1,454,000)       273,000
     (Benefit) provision for income taxes           (588,000)        96,000
     Net (loss) income                             $(866,000)      $177,000
     Net (loss) income per share
      - basic and diluted                             $(0.84)         $0.16
     Shares outstanding-basic and diluted          1,027,334      1,098,124