---

Fleetwood Reports Record Third Quarter and Nine-Month Sales

27 January 1999

Fleetwood Reports Record Third Quarter and Nine-Month Sales

    RIVERSIDE, Calif., Jan. 27 -- Fleetwood Enterprises, Inc.
, a leading producer of manufactured housing and recreational
vehicles, today announced preliminary sales for the third quarter and nine
months ended January 24, 1999.
    The Company reported record sales of approximately $804 million for the
third quarter, 13 percent ahead of the similar period last year.  Nine-month
sales reached $2.54 billion, also an all-time high for the Company, and
15 percent ahead of the prior year period.
    Manufactured housing revenues in the third quarter increased 20 percent to
approximately $426 million compared to $354.9 million a year ago.  Fiscal 1999
revenues include net sales of $310 million from manufacturing operations and
$116 million from the Company's newly-formed retail business, which was not in
operation a year ago.  Gross manufacturing revenues, including intercompany
sales of $62 million to Company-owned retail centers, totaled $372 million in
the third quarter, five percent ahead of comparable revenues last year.
    For the nine-month period, manufactured housing revenues rose 15 percent
to $1.28 billion compared to $1.11 billion in the previous year.  Fiscal 1999
revenues include net sales of $1.08 billion from manufacturing operations and
$204 million from the Company's retail sales centers.  Gross manufacturing
revenues, including intercompany sales of $106 million to Company-owned retail
stores, rose six percent to $1.18 billion for the nine months.
    Fleetwood President Nelson W. Potter said, "The manufactured housing
market continues to experience healthy demand, which led to solid sales growth
for both our manufacturing operations and the newly-formed retail business.
The third quarter was the first quarter in which we had a full three months of
retail operations since we acquired HomeUSA in August 1998.  Our expansion
efforts in retail continue at a healthy pace, and we are on course to meet our
growth objectives.  We have become the fourth largest retailer in the
manufactured housing business since starting up the operation late in the
fourth quarter last year.  As of December 31, 1998, we had 148 retail sales
centers in operation with an annualized sales volume totaling more than $500
million," Potter concluded.
    Recreational vehicle sales rose six percent to a third quarter record
$368 million.  Motor home sales reached a new third quarter high of nearly
$226 million, seven percent ahead of the comparable quarter last year, on
improved sales of the Company's popular Class A products.  Travel trailer
sales continued at a healthy pace, rising nine percent to $117 million, also a
record for the third quarter.  Folding trailer sales of almost $25 million
were off four percent from the record $25.8 million recorded a year ago.
   RV sales for the nine-month period reached a record high of $1.23 billion,
with all product segments experiencing excellent growth.  Motor home sales
rose 18 percent to a record $751 million on the strength of healthy demand for
larger Class A models.  Travel trailer sales also reached a new nine-month
high, rising 12 percent to $392 million.  The Company's folding trailer
division posted record sales of $86 million for the nine-month period, an
increase of ten percent over the similar period last year.
    Potter commented that, "Calendar 1998 RV industry shipments exceeded our
expectations and represented the best year for the industry since 1978.  This
obviously reflects healthy economic conditions, but we also believe that
favorable demographic changes have had a favorable impact as well."
    Fleetwood's supply operations contributed revenues of $10 million and
$32 million, respectively, for the third quarter and nine-month period.
    Final sales and earnings for the third quarter and first nine months will
be reported by the Company in about four weeks.