Fleetwood Reports Stock Option Grant

RIVERSIDE, Calif., March 14 -- Fleetwood Enterprises, Inc. announced today, in accordance with the rules of the New York Stock Exchange, that it granted inducement stock options in connection with the commencement of employment of Elden L. Smith as the Company's President and Chief Executive Officer. These options were granted without stockholder approval pursuant to NYSE Rule 303A(8). Smith was awarded an initial grant of 79,000 non-qualified stock options at an exercise price of $8.91, which is equal to the market price on the date of grant. The options vest ratably over three years and expire in ten years.

About Fleetwood

Fleetwood Enterprises, Inc., is one of the nation's largest producers of recreational vehicles, from motor homes to travel and folding trailers, and is a leader in the building, retailing and financing of manufactured homes. 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.

Kathy Munson, Director-Investor Relations (951) 351-3650