Rexhall Industries, Inc. Announces T-Rex Doublewide

    LANCASTER, Calif.--July 1, 2003--Rexhall Industries, Inc. today announced that it plans to begin production of what it believes are revolutionary new Class A motor homes based on designs on which Rexhall has received patents from the United States Patent and Trademark Office. Rexhall has christened the new motorhomes that will be built from these patented designs the T-Rex Doublewide(TM).
    "We have been working on this design and these patents for years and plan to start full-time production of new motorhomes incorporating the design in the next 30 to 60 days," commented William J. Rex, Rexhall's President and CEO. "We believe that today's buyers want slide room (sometimes called pop outs) for a Class A motorhome. The current market now offers single, double, triple and even quadruple slides, but Rexhall's new motorhome takes this a step further. Without appreciably increasing the size of a standard Class A motorhome while on the road, our new T-Rex Doublewide(TM) allows the recreational vehicle enthusiast, with the mere push of a button, to almost double the size of the coach while parked without compromising safety, structural integrity or value," Mr. Rex said.
    Mr. Rex continued: "We have been very encouraged by the initial reactions to our new motorhome that we have received from a select few dealers that previewed this motor coach. Rexhall will build the new motorhomes based on the patented designs in both gas and diesel models in sizes ranging from 26 feet to up to 40 feet using our current brands RoseAir(TM), RexAir(R), Aerbus(TM), Vision(R) and American Clipper(TM). We will also continue to offer most of our existing coaches."

    About Rexhall

    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 numerous dealers located across the U.S. and Canada, include RoseAir(TM), RexAir(R), Aerbus(TM), Vision(R) and American Clipper(TM).

    Except for the historical information contained herein, matters discussed in this press release are forward-looking statements. For example, our expectations regarding the Class A motorhome market and the introduction and sales of our new T-Rex Doublewide motorhomes that incorporate the design covered by the patents awarded to us are forward-looking statements. There can be no guarantee that a market will exist for these motor homes or that our new coaches will adequately respond to market trends. If a market does not develop for our new motor homes or if we fail to receive sufficient orders for them, our business and operating results could be seriously harmed. Even if the market for these motorhomes does develop, it may not grow at an adequate pace. Moreover, we may not be able to predict precisely the time and expense required to overcome unexpected production problems and to ensure production within the time limits we expect, or the reliability and high quality of the coach at an acceptable cost. Increased costs and other difficulties associated with manufacturing these motorhomes could have a negative impact on our future gross margins. Moreover, our patents on the design of the new motorhomes may not provide us with meaningful protection against duplication. Policing unauthorized use of our designs could result in the expenditure of significant financial and managerial resources and the success of these efforts cannot be predicted with certainty. Litigation may be necessary in the future to enforce our patent and other intellectual property rights. This litigation could be costly and its outcome cannot be predicted with certainty. Our inability to adequately protect against unauthorized use of our patent and other intellectual property rights would significantly impair their value and could adversely damage our competitive position.

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