Rexhall Industries Amends Stock Repurchase Program

    LANCASTER, Calif.--Oct. 10, 2002--Rexhall Industries, Inc. announced today that its Board of Directors has amended its Stock Repurchase Program to adjust for the increase in shares outstanding due to the recent stock split. The Company is now authorized to repurchase up to 500,000 shares of which nearly 160,000 shares have been repurchased to date.
    William J. Rex, President, Chairman and CEO stated, "We repurchased about $150,000 of our stock between the time the 2-for-1 stock split took effect on July 22nd and early August. This additional authorization allows us the flexibility to continue repurchasing stock when market and business conditions make that a prudent investment. Increasing shareholder value is our objective, and we recognize that investing some of our cash in buying back our stock at good prices should help us accomplish this objective."
    The Company also announced that Donald Hannay, Sr., 74, has retired from the Company after more than 15 years of service as Vice President of Sales and Marketing. Michael Bourne, Executive Vice President and Chief Operating Officer, has been elected by the Board of Directors to fill Mr. Hannay's director's seat until next year's elections. Mr. Hannay has been in the RV industry for over 30 years, and was with Ohio Bell for more than 20 years.
    Mr. Rex added, "Don came to me about five months ago indicating his wishes to retire and enjoy more time with his family. The Board and I appreciate all of his contributions to Rexhall over the years."
    Michael Bourne, Executive Vice President, COO and acting CFO, stated, "Our market share west of the Rockies has dropped from 6.2% in 1999 to 4.9% in 2001, which is a reduction of more than 150 motorhomes per year. We have hired two seasoned sales managers to help us recapture and grow our Western market share. Splitting the territory in two will provide us with more frequent coverage and visibility at the dealership level. We have already signed up a new dealer in California, and our recent focus on the eastern side of the Rockies has landed us new dealers in South Carolina, Georgia, Iowa, Oklahoma and Texas."
    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 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 competitive pressures may adversely affect the volume and prices of both supplies and sales. The economy today appears to be recovering, but the recovery continues to be fragile and may not continue. Consumer confidence is low, and that may lead to decreased spending for recreational vehicles. Management intends to remain aware of these factors and react to them, but cannot predict their timing or significance.

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