Fleetwood Reports Preliminary First Quarter Sales

    RIVERSIDE, Calif., Aug. 3 Fleetwood Enterprises, Inc.
, the nation's largest manufacturer of recreational vehicles and a
leading producer and retailer of manufactured housing, today announced
preliminary sales for the quarter ended July 29, 2001, of approximately
$562 million, 22 percent below the $720 million reached in last year's first
quarter.  Continued weak industry conditions contributed to sales declines in
both manufactured housing and recreational vehicles.

    As it previously indicated, the Company expects to post a loss for the
first fiscal quarter.  However, due to cost-cutting efforts in the prior
fiscal year, it anticipates improved operating results compared with the same
quarter in the prior year and the most recent quarters.

    "While both of our industries continue to operate in difficult
environments, we are pleased with the progress we've made and optimistic that
we are positioned well for any upturn in either business," said President and
CEO Nelson W. Potter.  "Despite an ongoing slump in sales, our rightsizing
efforts in our manufactured housing plants have resulted in sequential
improvement in profitability in that group over each of the past four
quarters.  Similar rightsizing efforts are being vigorously applied in our
retail housing division.  In addition, we have recently given many of our
dealers a preview of our 2002 recreational vehicle line -- most of which have
gone into production within the last several weeks -- and their enthusiasm has
increased our confidence that we will receive a significant return on our
investment in new product development."

    Recreational vehicle revenues fell 17 percent in the quarter to
approximately $265 million, largely as a result of towable sales.  Motor home
revenues slipped to $133 million, compared with $147 million a year ago.
Class A sales showed a slight improvement, but Class C sales were
significantly impacted by the recent relocation of production to a facility in
Riverside, which is just now reaching production efficiency.  Towable sales
for the current quarter were $105 million, compared with $142 million last
year.  Folding trailer sales slipped from $28 million to $26 million.

    Total manufactured housing revenues of $288 million were off 27 percent
from last year's $394 million.  Despite industry actions which have
significantly reduced excess capacity and retail inventories, restrictive
retail financing conditions continue to negatively impact sales.  First
quarter housing revenues included wholesale factory sales of $180 million to
independent retailers and retail sales of $108 million generated through
Company-owned sales centers.  This compares with $237 million and
$158 million, respectively, last year.  Gross manufacturing revenues were off
32 percent from $317 million last year to $215 million, which included
$35 million of intercompany sales to Company-owned stores.

    All sales figures have been adjusted to incorporate recent pronouncements
from the Emerging Issues Task Force of FASB, which affect the classification
of delivery revenues, shipping and handling costs and sales incentives, and do
not affect the Company's net income or loss.  The net effect has been an
overall increase in reported sales figures for both years of about 1 percent.

    The Company will report final results of its operations for the first
quarter in approximately four weeks.