Rexhall Industries Inc. Forecasts Third-Quarter Earnings

28 October 1998

Rexhall Industries Inc. Forecasts Third-Quarter Earnings

    LANCASTER, Calif.--Oct. 28, 1998--Rexhall Industries Inc. Wednesday announced that the company's successful restructuring process is continuing.
    "We are pleased with the results of our centralized production strategy," said Anthony Partipilo, chief financial officer. "The company's commitment to a more streamlined and profitable Rexhall for the future has never been stronger."
    "Production efforts for September 1998 reached an all-time production high for the Lancaster, Calif. facility," said William J. Rex, president and chief executive officer. "The energy exhibited by the Rexhall employees during this restructuring process has been literally amazing to witness."
    Rexhall Industries' sales for the third quarter are projected to increase 12 percent over the same period for 1997. Rexhall Industries remains committed to its shareholders and customers. The reported income from continuing operations is expected to be in the range of $0.25 to $0.28 diluted earnings per share for the third quarter ended Sept. 30, 1998.
    Rexhall Industries further announced Wednesday that Judge McDonald of the Orange County Superior Court has approved the class action settlement of Masterjohn vs. Rexhall Industries Inc., et al. The class action settled pursuant to the terms and conditions as previously reported.

    Forward-Looking Statements

    This report contains forward-looking statements. These are based on assumptions and on facts as known to the company today, and Rexhall does not intend to update them. Rexhall's business is subject to increases in materials costs, pricing and other pressures from substantially larger competitors, labor disruptions, and adverse weather reducing sales and making deliveries difficult. For some time, favorable recreational vehicle industry sales have been achieved when there are low interest rates, low unemployment, and ready availability of motor fuel. All three of these factors may change rapidly. Consumer confidence levels have been good, but may decline for many reasons, causing postponement of discretionary recreational purchases. These factors are not easily predictable and many are beyond management's control.
    Visit this company's Investor Relations site at http://www.businesswire.com/cnn/rexl.htm