Rexhall Records Near Record Sales Volume At RVIA Trade Show

    LANCASTER, Calif.--Dec. 12, 2002--Rexhall Industries, Inc. announced today that it received a significant number of new coach orders during the recent RVIA National Trade Show held in Louisville, Kentucky this past week. The show is only open to dealers from across the United States and internationally, and is a good indicator of the current outlook of recreational vehicle dealers.
    "We introduced four all new floor plans, which contributed greatly to our success at the show," stated William J. Rex, President and Chief Executive Officer. "Our entire team is to be commended for insuring that the new products were ready in time to be debuted at the show."
    One of the four new floor plans that was introduced at this national event was an innovative, 35' triple-slide gas model that includes the entry door in one of the living room slides. "This innovation was the talk of the show as dealers and competitive manufacturers spent a considerable amount of time reviewing the product," noted Michael Bourne, Chief Operating Officer and Executive Vice President. "Of course, we concealed the mechanisms to make it difficult to copy, since we are applying for a patent."
    The Company said the next biggest hit is an all-new 40' RoseAir diesel with four slide rooms. This is the largest motorhome the Company has produced to date. With all four hydraulic slides open, the coach has approximately 390 square feet! Also debuting at the show was a 36' triple slide gas model with two slides in the bedroom and a 34' double slide, entry-level diesel model that is being built on the new Spartan NVS chassis.
    "Our dealers had many favorable and positive comments about our new floor plans and product offerings," commented Larry Martin, National Sales Director. "Their enthusiasm was certainly evident in the placement of orders for production that gives us a good running start for 2003."
    "When comparing apples to apples, this year's show was the best overall show ever for Rexhall and by far the second best in terms of orders written. Late 2001 was such an anomaly that it is really difficult to use as a benchmark," stated Mr. Bourne. "Also, this year we have the chassis on hand and the people in place to fill these orders more smoothly and timely than we did last year."
    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 dealers 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 in the past enjoyed favorable recreational vehicle industry sales when we have low interest rates, low unemployment, and ready availability of motor fuel. 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.

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