---

Featherlite Lowers Its Q3 Net Income Expectations

9 October 1998

Featherlite Lowers Its Third-Quarter Net Income Expectations

    CRESCO, Iowa, Oct. 8 -- Featherlite, Inc. , a
leading manufacturer and marketer of specialty aluminum trailers and luxury
motorcoaches, said today that net income for its third quarter ended Sept. 30
is expected to be in a range of 5 to 7 cents per diluted share, which is below
the 14 cents per share Featherlite recorded in the third quarter of last year,
and below the company's earlier expectations.  Net sales for the third quarter
are expected to be in a range of $47 to $49 million, compared with net sales
of $32.7 million last year.
    On a year-to-date basis for the nine months ended Sept. 30, Featherlite
expects net income to range from 38 to 40 cents per diluted share, compared to
36 cents in the same period of last year.  Net sales for the nine-month period
are expected to range from $138 million to $140 million, compared to
$99.4 million in 1997.
    Conrad Clement, chairman and chief executive officer, said, "We have seen
a slowdown in demand for our livestock trailers, reflecting the difficult
economic conditions faced by our customers in agribusiness, and a softening in
new orders for certain of our other trailer categories.  We also had a number
of race car transporters which were scheduled for delivery during the quarter
that were not fully completed and which will be delivered in the fourth
quarter.  This has resulted in lower than expected personnel efficiencies and
facilities utilization in our manufacturing plants during the third quarter,
and a reduction in overall gross margin.
    "Despite the disappointing third quarter, I am excited about Featherlite's
prospects as we move forward with our plans.  We continue to be optimistic
about both sales and net income for the fourth quarter and with the outlook
for next year," Clement said.  "Transporter sales are expected to be
particularly strong and at record levels for the fourth quarter and remain
strong into 1999, which should contribute to overcoming the loss of profits
from lower sales in other categories.  Sales of both Vantare by Featherlite(R)
and Featherlite Vogue(R)  motorcoaches are also expected to be strong in the
fourth quarter and in 1999.
    Featherlite expects to report full details of the third quarter on
Oct. 28, 1998.

    About Featherlite
    Featherlite, Inc., is an innovative leader in designing, manufacturing and
marketing high quality aluminum specialty trailers, transporters and luxury
motorcoaches.  With three-quarters of its business in the leisure, recreation
and entertainment categories, Featherlite has highly diversified product lines
offering standard model aluminum specialty trailers and custom-designed
trailers, transporters and motorcoaches.  Featherlite is the "Official
Trailer" of NASCAR, Championship Auto Racing Teams (CART), Indy Race League
(IRL), SPORTSCAR, Automobile Racing Club of America (ARCA), American Speed
Association (ASA) World of Outlaws (W.O.O.) and NHRA.  Through its Vantare by
Featherlite and Featherlite Vogue product lines, Featherlite is the "Official
Luxury Motorcoach" of NASCAR, IRL, SPORTSCAR, CART and NHRA.  For more
information about the company, please visit Featherlite's website at
http://www.featherliteinc.com
    Safe Harbor Statement under the Private Securities Litigation Reform Act:
Statements in this release looking forward in time involve risks and
uncertainties discussed here and in the company filings with the Securities
and Exchange Commission, including product acceptance and demand in each
segment of the Company's markets, the price of aluminum, competition, and
facilities utilization.