Rexhall Industries Announces a Two for One Stock Split

    LANCASTER, Calif.--June 17, 2002--Rexhall Industries, Inc. announced today that its Board of Directors had approved a 2 for 1 common stock split. Shareholders of record at the close of business on July 1, 2002 will receive an additional share of common stock for each share they own. The new shares will be issued on July 19, 2002. When completed Rexhall will have approximately 6.1 million common shares outstanding.
    William J. Rex, President, Chairman and CEO stated, "The recent sharp increase in our stock price could be attributed to many factors. We believe the investment community has noted that some of our competitors were trading at 3 to 4 times book value, while our stock had been trading at less than 25% over book value. Investors may have recognized the opportunity for growth in our stock."
    Mr. Rex continued, "With our strong fundamentals and the structure of our new management team, we believe we're poised for growth; both with our existing product lines and new products developed for the 2003 market and beyond. With six of our publicly traded competitors having from 9 million to over 40 million shares outstanding, we believe this stock split will give more opportunities to our existing and new shareholders."
    Executive Vice President and Chief Operating Officer, Michael Bourne added, "Though I have my work cut out for me, I am excited about the opportunity to expand and grow our existing product lines, which are well positioned as value-leaders in their price segments. With the new management team I have brought in, we have set a target of $100 million in sales in 2003 and $150 million two or three years later with the caveat of no significant downturn in the economy, etc. Our employees believe in our products, and with their continued dedication and enthusiasm we should achieve our goals."
    Mr. Rex concluded, "This is an exciting time for me at Rexhall. With Mike and his team taking over our existing product lines, it gives me the freedom to continue with the development of our own diesel chassis, and to begin the process of constructing our new plant that should bring our new products to the market place in 2003."

    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 about 100 dealer locations across the U.S., Canada and Europe, include RoseAir, RexAir, Aerbus, Vision and American Clipper.

    FORWARD-LOOKING STATEMENTS: Our statements of our intentions or expectations, trends, and references to backlogs are "forward-looking statements" based on assumptions and on facts known to us today. Those assumptions will become less valid over time, but we do not intend to update this report. Rexhall's business is both seasonal and cyclical. Most of Rexhall's competitors are substantially larger, and many of its suppliers and dealers also have greater economic power, so that the volume and prices of both supplies and sales may be adversely affected by competitive pressures. The economy today appears to be recovering, but the recovery continues to be fragile and may not continue. Management intends to remain aware of these factors and react to them, but cannot predict their timing or significance.

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