Georgie Boy Manufacturing Transitions to Upgraded Facilities

- Newer Middlebury, Indiana Plant Will Support Growth

ELKHART, Ind., Sept. 1 -- Coachmen Industries, Inc. today announced that Georgie Boy Manufacturing LLC, a Motorhome Company within their RV Group, will be moving their manufacturing facility to a newer, more sophisticated facility located in Middlebury, Indiana. Georgie Boy has experienced market share growth over the last three years and this transition is being made to support this market share growth. The new Georgie Boy production facility located in Middlebury, Indiana was built in 2003.

The new plant boasts 127,000 square feet of production capacity under one roof on the main floor, with an additional 24,000 square feet of mezzanines for offline manufacturing. This compares to the current Georgie Boy assembly plant of 98,720 square feet, comprised of several buildings in their current manufacturing location, which results in a number of manufacturing inefficiencies and capacity constraints. This move will start immediately and be completed by the end of November. All pending Georgie Boy orders will be completed and shipped to our dealers from the Edwardsburg, Michigan facility. All current eligible Georgie Boy employees will be offered a transfer to this newer and more advanced manufacturing facility.

"This is an exciting move for Georgie Boy, as it provides us a marvelous opportunity to take our products to the next level, as we continue to grow our company," said Pat Terveer, Georgie Boy President. Georgie Boy will continue as a stand alone company within the RV Group of Coachmen, with full ownership of engineering, product development, sales and marketing efforts. "This is simply a facility upgrade for our manufacturing activities," added Terveer.

"There are tremendous benefits and synergies that we will recognize through this strategic move. The leveraging of our assets and resources will have a favorable impact on Georgie Boy and the RV Group as a whole, enabling us to grow our business profitably," stated Michael R. Terlep, President of the Coachmen RV Group. "This move will not displace any of our Middlebury- based hourly employees, as we are simply leveraging our assets, our resources and our capacity utilization."

Coachmen Industries, Inc. is one of America's leading manufacturers of recreational vehicles, systems-built homes and commercial buildings, with prominent subsidiaries in each industry. The Company's well-known RV brand names include COACHMEN(R), GEORGIE BOY(TM), SPORTSCOACH(R) and VIKING(R). Through ALL AMERICAN HOMES(R), Coachmen is one of the nation's largest producers of systems-built homes, and also a major builder of commercial structures with its ALL AMERICAN BUILDING SYSTEMS(TM) and MILLER BUILDING SYSTEMS(TM) products. Prodesign, LLC, produces custom composite and thermoformed plastic parts for numerous industries under the PRODESIGN(R) brand. Coachmen Industries, Inc. is a publicly held company with stock listed on the New York Stock Exchange (NYSE) under the ticker COA.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned not to place undue reliance on forward-looking statements, which are inherently uncertain. Actual results may differ materially from that projected or suggested due to certain risks and uncertainties including, but not limited to, the potential fluctuations in the Company's operating results, the availability for floorplan financing for the Company's recreational vehicle dealers and corresponding availability of cash to the Company, overcapacity and discounting in the recreational vehicle industry, the impact of performance on the valuation of intangible assets, the availability and the price of gasoline, price volatility of raw materials used in production, the Company's dependence on chassis and appliance suppliers, interest rates, the availability and cost of real estate for residential housing, the ability of the Housing and Building segment to perform in new market segments where it has limited experience, adverse weather conditions affecting home deliveries, competition, government regulations, legislation governing the relationships of the Company with its recreational vehicle dealers, consolidation of distribution channels in the recreational vehicle industry, consumer confidence, further developments in the war on terrorism and related international crises, oil supplies, and other risks identified in the Company's SEC filings.