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Thor Incurs Charges for Improper Entries

5 May 1998

Thor Incurs Charges for Improper Entries; Reports Record Sales, Backlog

    JACKSON CENTER, Ohio, May 5 -- Thor Industries, Inc.
announced today that it would incur charges from the write down of
assets at its General Coach, America subsidiary, (builder of ELF buses) Brown
City, Michigan resulting in reductions to net income in its fiscal year ended
July 31, 1996 of approximately $1.2 million or $.10 per share; in fiscal 1997
of approximately $1.4 million or $.11 per share; and in the 6 months ended
January 31, 1998 of approximately $820,000 or $.06 per share.  Per share
amounts are after the company's 3 for 2 Stock split of 4/6/98.  The charges
are the result of recently discovered improper entries apparently made by the
subsidiary's former general manager over the past approximately 3 years.
    "We have asked our outside counsel, Akin, Gump, Strauss, Hauer & Feld, LLP
to conduct an investigation and to retain the forensic auditing group of
Deloitte & Touche LLP to assist in the investigation of this loss and any
possible recovery.  While we believe that our risk management and internal
control systems are adequate we have asked Deloitte & Touche LLP to advise us
on any improvements needed," said Wade F.B. Thompson, Thor Chairman.
    "Preliminary sales in the quarter ended April 30, 1998 were a record
$206.5 million, up 22% from $169.3 million last year.  Sales for the 9 months
were a record $506.5 million, up 14% from $443.3 million last year.  RV sales
in the quarter were up 20% to $163.3 million from $136.1 million last year and
for the 9 months were up 14% to $391.2 million from $342.4 million last year.
Bus sales in the quarter were up 30% to $43.2 million from $33.2 million last
year and for the 9 months were up 14% to $115.2 million from $100.9 million
last year.  Operations continue to be strong and profitable and our financial
condition is very solid.  Backlog of about $165 million is up 27% from last
year.  We are on target for a record quarter and year for sales and net income
even taking into account the charge for fiscal 1998.  RV industry shipments
are up 12% through March to 72,000 units, the best start for the industry in
about 20 years," Mr. Thompson added.
    This release includes "forward-looking statements" that involve
uncertainties and risks.  There can be no assurance that actual results will
not differ from the Company's expectations.  Factors which could cause
materially different results include, among others, the success of new product
introductions, the pace of acquisitions and cost structure improvements,
competitive and general economic conditions, and the other risks set forth in
the Company's filings with the Securities and Exchange Commission.

SOURCE  Thor Industries, Inc.