Monaco Coach Corporation Announces Cash Dividend

COBURG, Ore., Aug. 25, 2006 -- Monaco Coach Corporation announced today that its upcoming quarterly cash dividend of $0.06 per share will be payable on September 15, 2006 to stockholders of record on September 1, 2006, and represents its 11th consecutive quarterly cash dividend since the Company declared its initial cash dividend on February 23, 2004. The Company's Board of Directors declared the dividend on August 24, 2006. Monaco Coach Corporation has approximately 29.7 million shares outstanding.

Dedicated to quality and service, Monaco Coach Corporation is one of the nation's leading manufacturers of motorized and towable recreational vehicles. Headquartered in Coburg, Oregon, with substantial manufacturing facilities in Indiana, Monaco Coach employs approximately 6,000 people. The Company offers entry-level priced towable RVs up to custom made luxury recreational vehicle models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names. Monaco Coach maintains RV service centers in Harrisburg, OR, Elkhart, IN and Wildwood, FL.

Ranked number one in the manufacturing of diesel powered motorhomes, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests. Monaco Coach Corporation trades on the New York Stock Exchange under the symbol "MNC," and the Company is included in the S&P Small-Cap 600 stock index. For additional information about Monaco Coach Corporation, please visit www.monaco-online.com or www.trail-lite.com.