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Rexhall Industries Announces 5% Stock Dividend

2 September 1999

Rexhall Industries Announces 5% Stock Dividend

    LANCASTER, Calif., Sept. 2 -- Rexhall Industries, Inc.
today announced its board of directors approved a 5% stock
dividend for shareholders of record as of September 15, 1999.  The dividend
will be payable on October 15, 1999.
    The Lancaster, Calif.-based manufacturer of Class A motorhomes said it
issued its fourth consecutive annual stock dividend to reflect record Company
revenues during the last six months and Rexhall's rapid growth in the RV
industry.
    "We're very pleased with the direction our company is headed," said
William J. Rex, chairman, president and CEO of Rexhall.  "Strong consumer
demand for our Class A motorhomes, combined with our ability to meet the needs
of the thriving RV industry, continue to drive Rexhall's success and our
efforts to enhance shareholder value."
    Rexhall Industries is a leading maker and marketer of motorized RVs or
Class A motorhomes for the booming recreational vehicle industry and is on
pace for record results in 1999.  Rexhall reported a 67% increase in net
earnings through the first six months of 1999 on a 31% increase in sales
compared with the prior year period.  The Company was also recently ranked one
of America's 100 Fastest Growing Companies by Individual Investor magazine.
    Rexhall Industries, Inc. (http://www.rexhall.com) designs, manufactures and sells
various models of Class A motor homes used for leisure, travel and outdoor
activities.  Rexhall's six lines of Class A motor homes, sold through
approximately 100 dealer locations across the U.S., Canada and Europe, include
Aerbus, RexAir, Vision, American Clipper, Anthem and RoseAir.

    FORWARD-LOOKING STATEMENTS:  RISK FACTORS.  Rexhall's statements of its
intentions or expectations are "forward-looking statements", based on
assumptions and on facts known to the Company today.  There are risks that
actual developments will not be as favorable as Rexhall's expectations, both
because of risks existing today and because of new factors arising.  Rexhall
does not intend to update this report.  Rexhall's business is seasonal, and
the Company is approaching the annual period when sales decline.  The
recreational vehicle industry has in the past enjoyed favorable recreational
vehicle industry sales when there are low interest rates, low unemployment,
and ready availability of motor fuel.  Rexhall sees continual speculation that
interest rates will rise, and recent reports of decreased consumer confidence
may reduce sales.  Many of Rexhall's competitors are substantially larger, and
many of its suppliers also have greater economic power, so that the volume and
prices of both supplies and sales may be adversely affected.  Management
intends to remain aware of these factors and react to them, but cannot predict
their timing or significance.