Fleetwood Reports Preliminary Revenues for First Quarter of Fiscal 2005

RIVERSIDE, Calif., July 29 -- Fleetwood Enterprises, Inc. , one of the nation's leading manufacturers of recreational vehicles and a leading producer and retailer of manufactured housing, announced today its preliminary sales for the first quarter of fiscal 2005, which ended on July 25, 2004.

Company revenues improved 12 percent in the first quarter to approximately $725 million compared with $646 million last year. Quarterly sales increased in both the Housing Group and the RV Group, with motor home sales showing the greatest year-over-year improvement.

Recreational vehicle sales for the first quarter rose 10 percent to $481 million compared with $437 million a year ago. Sales in the motor home division reached $313 million, a 22 percent increase over the prior year's first quarter. Travel trailer sales declined 6 percent to $147 million, and folding trailer revenues were down 5 percent to $21 million.

"We continue to provide the market with high-value, innovative and attractive motor homes," Fleetwood's President and CEO Edward B. Caudill said. "This significant increase over last year's first quarter, which at the time was the best quarter we had experienced since calendar year 2000, is very satisfying. We are continuing our focus on our travel trailer division, and we will be introducing exciting new products over the next three months. The folding trailer segment within the RV industry remains sluggish."

Manufactured housing sales in the first quarter increased 14 percent to approximately $228 million compared with $200 million a year ago. Housing revenues included $195 million of wholesale factory sales and $67 million of retail sales, before elimination of intercompany sales of $34 million. This compares with $170 million and $57 million, respectively, last year, before intercompany sales of $27 million.

"Our third straight quarter of improvements in Housing Group sales is worthy of note," Caudill said. "Last week's flash report of HUD-code shipments from the Manufactured Housing Institute projected June to be up 2 percent over last year. That projected monthly increase would be just the second in 2004, indicating that it is likely that Fleetwood again gained market share during this quarterly period."

The Company confirmed its intent to continue to defer distributions on its 6% preferred securities, which would otherwise be due in mid-August.

About Fleetwood

Fleetwood Enterprises, Inc., 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. This Fortune 1000 company, headquartered in Riverside, Calif., is dedicated to providing quality, innovative products that offer exceptional value to its 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.