Rexhall Industries Announces Record Sales at RVIA Trade Show

    LANCASTER, Calif.--Dec. 5, 2001--Rexhall Industries, Inc. today announced that it had record sales at the RVIA National Trade Show last week in Louisville, KY.
    "We more than tripled our previous best year at the show by taking orders for nearly 150 motorhomes," stated William J. Rex, Chief Executive Officer. "We also signed up several new dealers including some in areas that are strategically important to us, such as Texas, New York and Illinois."
    "We have done such an outstanding job of moving our unsold inventory that 90% of these orders will have to be produced, so we will start 2002 at a higher production level than we had during most of 2001," added Michael Bourne, Chief Operating Officer.
    The Company attributed the record show to several factors including significant product improvements and enhancements, low dealer inventories, and high dealer optimism for 2002 with interest rates being so low and fuel prices dropping. Added Mr. Rex, "Leveraging our relationship with Harley-Davidson didn't hurt either." The Company had a program at Louisville where dealers earned points via orders towards a Harley. Harley-Davidson is using two RoseAir diesel motorhomes for its show and rally teams. These motorhomes have special decal and paint schemes with the H-D bar and shield logo.
    According to data released at Louisville by Statistical Surveys, Inc., Rexhall's growth in the diesel segment has propelled the Company into the top 10 of retail sales for the first nine months of 2001. Out of the top 10, Rexhall has the highest year-over-year increase in retail units sold of 113% and the highest increase in market share of 133%. There are approximately 25 manufacturers of diesel motorhomes.
    Rexhall also announced that the Company is in the process of exiting its retail operations in Arizona by selling its inventory to La Mesa RV, a major dealer in California and Arizona. La Mesa RV will also become a dealer for Rexhall's product lines at most of its locations. "We entered the retail end of the business as a response to the bankruptcy of our largest dealer last year, but it has been a struggle getting the right people in place to execute our strategy. Our goal was never to stay in the retail market. It was only a temporary solution," explained Mr. Rex. "La Mesa RV has the potential to sell over 200 motorhomes a year for us, so this relationship should benefit us in the long-term, too."
    "We have greater opportunities in our core business of designing, manufacturing and marketing motorhomes than we do in pursuing the retail side. We decided to make this move now because we want our focus for 2002 to be on our R&D projects and basic product improvements, which will lead to our growth. Our dealers, customers, and shareholders will benefit from this focus as we will continue our tradition of being the innovators in our industry," added Mr. Bourne.
    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 five lines of Class A motorhomes, sold through approximately 100 dealer locations across the U.S., Canada and Europe, include Aerbus, RexAir, Vision, American Clipper, and RoseAir.

    FORWARD-LOOKING STATEMENTS: RISK FACTORS. Our statements of our intentions or expectations or future results are "forward-looking statements," based on assumptions and on facts known to us today. There are risks that actual developments will not be as favorable as our expectations, both because of risks existing today and because of new factors arising. We do not intend to update this report. Rexhall's business is seasonal. The recreational vehicle industry has in the past enjoyed favorable recreational vehicle industry sales when we have low interest rates, low unemployment, and ready availability of motor fuel. Consumer confidence has reduced sales, and the long-term effect is not known. Many of Rexhall's competitors are substantially larger, and many of its suppliers also have greater economic power, so that the volume and prices of both supplies and sales may be adversely affected. Management intends to remain aware of these factors and react to them, but cannot predict their timing or significance.

    Visit this company's Investor Relations site at http://www.businesswire.com/cnn/rexl.htm.