Rexhall Industries Reports Third Quarter Results

17 November 1998

Rexhall Industries Reports Third Quarter Results

    LANCASTER, Calif.--Nov. 16, 1998--Rexhall Industries Inc. reported $.32 diluted earnings per share on earnings of $965,000 for the third quarter of 1998 compared to $.11 diluted earnings per share on earnings of $329,000 for the third quarter of 1997.
    "Increasing sales in the third quarter by 15% over the preceding third quarter of 1997 was an impressive effort for a Company only nine months after restructuring," said William J. Rex, President and Chief Executive Officer.
    "The third quarter reflected certain benefits of centralization that have been realized," said Anthony J. Partipilo, Chief Financial Officer. "The third quarter was pretty much like the second quarter of this year, in that it reflected the consistency of management's continued efforts in carrying out the restructuring plan."
    Rexhall Industries manufactures six distinctive Class A motorhomes (Aerbus, RexAir, Vision, American Clipper, Anthem and RoseAir). The Company has grown by offering a product line of excellent quality construction and design. Rexhall motorhomes are sold through 100 dealer locations across the country.

                    SUMMARY STATEMENT OF OPERATIONS

Three months ended September 30              1998             1997

Revenue                               $18,470,000       $15,997,000
Net Income                                965,000           329,000
Weighted Average Number of Common
 Shares Outstanding (basic)             2,953,000         2,888,000
Weighted Average Number of Common
 and Equivalent Shares (diluted)        2,980,000         2,898,500
Earnings Per Share basic              $       .33       $       .11/a
Earnings Per Share diluted            $       .32       $       .11/a

Nine months ended September 30               1998              1997

Revenue                               $51,020,000       $49,877,000
Net Income                              2,464,000         1,490,000
Weighted Average Number of Common
 Shares Outstanding (basic)             2,953,000         2,888,000
Weighted Average Number of Common
 and Equivalent Shares (diluted)        2,980,000         2,898,500
Earnings Per Share basic              $       .83       $       .52/a
Earnings Per Share diluted            $       .83       $       .51/a

/a  Earnings per share have been recalculated to reflect earnings
per share in accordance with Statement of Financial Accounting
Standard No. 128, Earnings Per Share. Earnings per share have also
been retroactively adjusted to reflect the 5% stock dividend issued
during 1998.

    CAUTIONARY STATEMENT FOR PURPOSES OF SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITY LITIGATION REFORM ACT OF 1995.

    Actual results may differ materially from those projected or implied in the forward-looking statements. Among the factors that could affect results would be, fuel availability, fluctuations in interest rates and employment levels, all of which are beyond management's ability to predict or control.

    Visit this company's Investor Relations site at http://www.businesswire.com/cnn/rexl.htm