Fleetwood Completes Its Call for Redemption of 9.5% Convertible Trust II Preferred Securities

RIVERSIDE, Calif., June 8 -- Fleetwood Enterprises, Inc. , the nation's leader in recreational vehicle sales and a leading producer and retailer of manufactured housing, announced today the successful completion of its call for the redemption of $38 million in aggregate liquidation amount of 9.5% Convertible Trust II Preferred Securities.

Of the 1,725,000 shares of Trust II preferred outstanding (liquidation amount $22 per security), 943,935 units were redeemed on June 4 at $22 per unit, plus a redemption premium of 6.333%, plus accrued and unpaid distributions, for a total cash disbursement by the Company of approximately $22 million. The remaining 781,065 units, including a number that were tendered to the Company in privately negotiated transactions, were converted by the holders into an aggregate of approximately 1,368,100 shares of common stock.

"The elimination of the last of our 9.5% convertible trust preferred securities is a landmark event for Fleetwood," said Boyd R. Plowman, executive vice president and chief financial officer. "With this transaction and the previously announced conversion of the Trust III convertible trust preferred securities, we have reduced our annual interest charges by $17.9 million. Although we paid cash for some of the securities in the current transaction, we believe the reduction in our fully diluted share count resulting from the cash redemptions makes this every bit as successful as the Trust III transaction, where virtually all the trust preferred shares were converted into equity. At the end of the day, our cash position and overall liquidity remain strong, our shareholders' equity is improved and the elimination of the interest charges provides a lift to our income statement."

About Fleetwood

Fleetwood Enterprises, Inc., a Fortune 1000 company headquartered in Riverside, Calif., is a leading manufacturer of a full range of recreational vehicles from motor homes to travel and folding trailers, and is a vertically integrated manufacturer, retailer and financier of manufactured housing. The Company is dedicated to providing quality, innovative products that offer high value to our customers. Fleetwood operates facilities strategically located throughout the nation, including recreational vehicle and manufactured housing plants, retail home centers, and supply subsidiary plants. For more information, visit the Company's Website at www.fleetwood.com.

For further information, please contact Lyle Larkin, Vice President, Treasurer, +1-909-351-3535, or Kathy A. Munson, Director-Investor Relations, +1-909-351-3650, both of Fleetwood Enterprises, Inc.