Rexhall Industries Announces First Quarter Results

    LANCASTER, Calif.--May 16, 2001--Rexhall Industries, Inc. today announced lower revenues and income for its first quarter ended March 31, 2001 compared to the first quarter of 2000.
    Net revenues for the first quarter ended March 31, 2001 decreased 10.1% to $18,582,000 from $20,664,000 for the same quarter in 2000. Gross profit for the quarter was $2,505,000 versus $3,303,000 last year, which is a 24.2% decrease. Net income for the quarter was $119,000, or $0.04 per diluted share, compared with net income of $964,000 or $0.31 per diluted share last year.
    "Poor economic fundamentals continue to affect our industry. Shipments industry-wide were down 35% when comparing the first quarters of 2001 to 2000, with Rexhall's shipments being down 33%. However, we are encouraged by the recent interest rate decreases and the gains the major stock market indices have made. Hopefully, these will translate into stronger consumer confidence and spending," stated William J. Rex, President and CEO.

                       REXHALL INDUSTRIES, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                                        Three Months Ended
                               March 31, 2001         March 31, 2000

Net Revenues                    $ 18,582,000           $ 20,664,000

Cost of Sales                     16,077,000             17,361,000
                                                                      

Gross Profit                       2,505,000              3,303,000

Selling, General, 
Administrative and Other 
Expenses                           2,304,000              1,648,000
                                                                      

Income Before Income Taxes           201,000              1,655,000

Income Taxes                          82,000                691,000

Net Income                      $    119,000           $    964,000

Basic and Diluted Net Income
Per Common Share                $        .04           $        .31

Weighted Average
Shares Outstanding-Basic and 
Diluted                            3,056,000              3,160,000