Drew Industries Releases Statement of Cash Flow For 2004

WHITE PLAINS, N.Y., Feb. 21, 2005 -- In order to provide the financial community with additional information about its operations, Drew Industries Incorporated today released its statement of cash flows as a supplement to its previously released results for the year-ended December 31, 2004. Future quarterly earnings releases will include cash flow information.

Drew, a supplier of components for recreational vehicles ("RV") and manufactured housing ("MH"), previously reported its third consecutive year of record net sales and net income, posting a 29 percent increase in net income on a 50 percent increase in net sales for 2004.

About Drew

Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes. Drew's products include vinyl and aluminum windows and screens, doors, chassis, chassis parts, RV slide-out mechanisms and power units, bath and shower units, electric stabilizer jacks and trailers for equipment hauling, boats, personal watercrafts and snowmobiles, as well as chassis and windows for modular homes and offices. From 50 factories located throughout the United States and one factory in Canada, Drew serves most major national manufacturers of RVs and manufactured homes in an efficient and cost-effective manner. Additional information about Drew and its products can be found at http://www.drewindustries.com/ .

                       DREW INDUSTRIES INCORPORATED
                                CASH FLOWS
                               (unaudited)

  (In thousands)
                                                 Year Ended December 31,
                                                 2004              2003
  Cash flows from operating activities:
      Net income                               $25,108           $19,423
  Adjustments to reconcile net income to
   cash flows provided by operating
    activities:
          Discontinued operations, net of taxes                      (48)
          Income from continuing operations    $25,108            19,375
          Depreciation and amortization          9,300             7,863
          Deferred taxes                        (1,394)              383
          Loss on disposal of fixed assets         828                92
          Stock based compensation expense       1,113               411
          Changes in assets and liabilities,
           net of business acquisitions:
              Accounts receivable, net          (6,127)           (1,001)
              Inventories                      (28,447)              218
              Prepaid expenses and other assets  2,232             2,524
              Accounts payable, accrued expenses
               and other liabilities             6,267               926
                  Net cash flows provided by
                   continuing operating
                    activities                   8,880            30,791
          Income from discontinued operations                         48
          Changes in discontinued operations                         702
                  Net cash flows provided by
                   operating activities          8,880            31,541
  Cash flows from investing activities:
      Capital expenditures                     (27,058)           (5,073)
      Acquisition of company's business        (21,388)           (7,397)
      Proceeds from sales of fixed assets          369                78
      Other investments                           (343)
                  Net cash flows used for
                   investing activities        (48,420)          (12,392)
  Cash flows from financing activities:
      Proceeds from line of credit and other
       borrowings                              221,846            31,550
      Repayments under line of credit and
       other borrowings                       (190,418)          (45,949)
      Exercise of stock options                  2,111             3,715
      Other                                       (356)
                  Net cash flows provided by
                   (used for)financing
                    activities                  33,183           (10,684)
                  Net (decrease) increase
                   in cash                      (6,357)            8,465
  Cash and cash equivalents at beginning
   of year                                       8,781               316
  Cash and cash equivalents at end of year      $2,424            $8,781

  Supplemental disclosure of cash flows information:
      Cash paid during the year for:
        Interest on debt                        $3,228            $3,071
        Income taxes, net of refunds           $15,053            $9,449