Featherlite Announces Renewed Long Term Financing With Existing Lenders U.S. Bank and Deutsche Financial

    CRESCO, Iowa--Aug. 1, 2002--Featherlite, Inc. , a leading manufacturer and marketer of specialty aluminum trailers and luxury motorcoaches, today announced that long-term financing has been renewed with its existing lenders, which includes a three-year agreement with U.S. Bank National Association (U.S. Bank), formerly Firstar, and a two-year agreement with Deutsche Financial Services Corporation (Deutsche).
    Featherlite signed an Amended and Restated Loan Agreement in the aggregate amount of $23.2 million with U.S. Bank including $14 million as an asset based revolving credit commitment, $7.2 million as a term loan for existing real estate and equipment and the remaining $2 million as a term loan for new equipment purchases.
    The Deutsche agreement is a $25 million floor plan line for new and preowned motorcoaches.
    The agreements are subject to new financial covenants. The Company is in compliance with all covenants of these new agreements. These covenants are based substantially on Featherlite's financial projections for 2002 which the Company believes are attainable.
    Conrad Clement, Featherlite president and CEO said, "Obviously, working through the financing process has been complex given the challenges the Company experienced during the recession, coupled with the costs we incurred by closing the Vogue plant. But going forward we are pleased with the confidence U.S. Bank, formerly Firstar, and Deutsche Financial have shown in the integrity of Featherlite and its business plan. It is with great pleasure that we are able to make this long-awaited announcement, which will provide Featherlite with the financing necessary to continue its long-term business objectives."
    The Company also announced a sale and leaseback agreement involving its sales and service center in Sanford, Fla. In this transaction, Featherlite sold this property for $5 million and will lease it back on a seven-year lease agreement. The proceeds from this sale were used to retire debt, including the $3.8 million mortgage note and related interest rate swap held by First Union Bank. Featherlite has a repurchase option, which it plans to exercise in 2005.

    About Featherlite

    Featherlite, Inc., is an innovative leader in designing, manufacturing and marketing high quality aluminum specialty trailers, transporters and luxury motorcoaches. With more that 75 percent of its business in the leisure, recreation and entertainment categories, Featherlite has highly diversified product lines offering hundreds of standard model and custom-designed aluminum specialty trailers, specialized transporters, mobile marketing trailers and luxury motorcoaches.
    Featherlite is the "Official Trailer" of NASCAR, Championship Auto Racing Teams (CART), Indy Race League (IRL), SPORTSCAR, Automobile Racing Club of America (ARCA), World of Outlaws (W.O.O.) and the National Hot Rod Association (NHRA). Featherlite also is sponsor of many equine and livestock events and its products are displayed in over 1,000 fairs, trade shows, races and other events throughout North America each year.
    Through its Featherlite Vantare' product line, Featherlite is the "Official Luxury Motorcoach" of NASCAR, IRL, SPORTSCAR and NHRA. For more information about the Company, please visit Featherlite's website at www.fthr.com.