KIT Manufacturing Company Successfully Completes the Sale of Its Recreational Vehicle Division and Initiates a Corporate Restructuring Program

LONG BEACH, Calif., Feb. 28 -- KIT Manufacturing Company (the "Company" or "KIT") announced that on January 30, 2003, it had completed the sale of substantially all of the assets of its Recreational Vehicles Division (the "RV Division") to Extreme RVs LLC, an Idaho limited liability company ("Extreme"). The assets were sold for cash and the assumption of certain liabilities related to the RV Division. The Company also agreed to sell certain real property to Extreme. Pending the sale of the real property to Extreme, the Company has leased the real property to Extreme.

"By selling these assets and reducing non-essential expenses, KIT has significantly strengthened its balance sheet," said KIT Chairman and CEO Dan Pocapalia. "The Company has initiated a comprehensive corporate restructuring program that includes a dramatic reduction in corporate overhead expenses. We believe these initiatives will enable us to profitably operate our manufactured housing division while the Company continues to review a definitive agreement to sell this segment of the business to an unaffiliated third party."

KIT Manufacturing Company is a leading producer of manufactured homes and constructs both single-section and multi-section manufactured homes under brand names that include Cypress, Chateau, Sierra XL, Sunrise and Golden State. KIT sells manufactured homes through a network of approximately 60 dealers in the western United States and Canada and a wholly owned retail facility.

Statements contained in this Press Release, which are not historical facts, may be forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995, as amended. Such forward- looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, those discussed in documents KIT filed from time to time with the Securities and Exchange Commission. KIT cautions readers not to rely on forward-looking statements. KIT does not undertake any obligation to update any forward-looking statements to reflect later events or circumstances.