Coachmen Industries, Inc. Expects to Remain Profitable in 2001

    ELKHART, Ind., Sept. 11 Coachmen Industries, Inc.
reaffirms its previous guidance that it will be profitable for the
year ending December 31, 2001, though below levels it had earlier anticipated.

    "Our earlier projections assumed that the general economic conditions
would recover during the second half of the year, which clearly has not
occurred," said Claire C. Skinner, Coachmen's Chairman, CEO and President. The
economy in general, and consumer confidence in particular, has continued to
repress demand in the recreational vehicle industry, which is currently
running 18.4 percent below last year in wholesale shipments.  Accordingly, the
Company now estimates that its annual revenue will be in the $600 million to
$630 million range and that annual earnings will be in the range of $.00 to
$.05 per share, based on projected profitability during both the third and
fourth quarters of the year.

    "Despite the slower-than-anticipated economic recovery, we are quite
pleased to be able to maintain profitability in the near term, and are
optimistic about the future," Skinner added. "Attitudes among our dealers
remain positive, and production rates are currently being increased due to the
strong response to the Company's new 2002 product offerings."

    Coachmen is beginning to realize the financial benefits and returns from
the strategic actions taken in 2000.  "The execution of our strategic plan to
bring a better balance between our RV and Modular Housing and Building
segments is already demonstrating its value to our shareholders," said Joseph
P. Tomczak, Executive Vice President and Chief Financial Officer. The Modular
segment now represents 37 percent of Company revenues, up from 18.4 percent in
1999 and 24.2 percent at the end of 2000. Tomczak continued, "Our newly
acquired modular companies are being assimilated nicely, are accretive to
earnings, and should continue to perform well."

    "The fundamentals of our business remain positive and our balance sheet is
very strong," Ms. Skinner adds.  "The lowered projections reflect a timing
issue related to economic recovery.  Moving forward, we expect that our
strategic plan, firm cost controls and aggressive new product development will
result in continually improved performance."