Rexhall Industries Announces Sales and Earnings for Year-End 2000

    LANCASTER, Calif.--March 15, 2001--Rexhall Industries Inc. today announced sales and earnings for the year ended Dec. 31, 2000.
    Net earnings declined 57% to $2.3 million, or $0.73 per diluted share in 2000, compared with net earnings of $5.3 million, or $1.68 per diluted share in 1999. Rexhall had net revenues of $65.2 million in 2000, down 23% compared with 1999 net sales of $84.7 million.
    "The year 2000 was a tough year for the entire RV industry and unfortunately, Rexhall Industries Inc. was not spared. The Class 'A' motorhome market had its first down market in years by dropping 17%. Compounding that challenging situation was the bankruptcy of our largest dealer, who represented 16% of our business in 1999, which resulted in the majority of our decline in revenue. Though we are not proud of our overall results for the year, we are satisfied with the fact that we were able to respond quickly and control our costs, which allowed us to earn $0.73 per share in a time when many companies are reporting losses. With that said, we intend to take the little success we had in the year 2000 and build upon it in the year 2001," stated William J. Rex, president and chief executive officer.

                        Rexhall Industries Inc.
                   Condensed Statements of Earnings
                (In thousands, except per share data)

                                           Twelve Months Ended
                                       Dec. 31, 2000  Dec. 31, 1999

Net Revenues                             $ 65,175       $ 84,739
Cost of Sales                              54,663         69,659

Gross Profit                               10,512         15,080
Total Other Expenses, Net                   6,855          7,398
Legal Settlement                               --           (604)
Gain on Sale of Fixed Assets                   --           (573)

Income Before Taxes                         3,657          8,859
Income Tax Expense                          1,384          3,557

Net Earnings                              $ 2,273        $ 5,302

Basic and Diluted Earnings Per  Share      $ 0.73         $ 1.68

Weighted Average
Shares Outstanding -- Basic and Diluted     3,116          3,161

    Rexhall Industries Inc. (www.rexhall.com) designs, manufactures and sells various models of Class A motorhomes used for leisure travel and outdoor activities. Rexhall's six lines of Class A motorhomes, sold through more than 100 dealer locations across the United States, Canada and Europe, include Aerbus, RexAir, Vision, American Clipper, Anthem and RoseAir.
    Visit this company's Investor Relations site at http://www.businesswire.com/cnn/rexl.htm.

    Forward-looking Statements -- Risk Factors: The company's statements of its intentions or expectations are "forward-looking statements," based on assumptions and on facts known to the company today. There are risks that actual developments will not be as favorable as the company's expectations, both because of risks existing today and because of new factors arising. The company does not intend to update this report. Rexhall's business is seasonal. Recent economic declines have adversely affected sales, and the company does not know when a recovery will come. Recent unprecedented increases in fuel costs have also reduced sales. Many competitors are discounting prices, and the result is lowered profits for everyone. Many of Rexhall's competitors are substantially larger, and many of its suppliers and dealers have greater economic power than Rexhall. Management intends to remain aware of these factors and react to them, but cannot predict their timing or significance.