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KIT Announces Results for Second Quarter Fiscal 2000

14 June 2000

KIT Announces Results for Second Quarter Fiscal 2000

    LONG BEACH, Calif. - KIT Manufacturing Company reported net income of 
$865,000, or $0.80 per share, for the current fiscal quarter in comparison to 
net income of $150,000, or $0.14 per share, for the same period in 1999.  Net 
income was $1,042,000, or $0.96 for the first six months of fiscal 2000 compared
to $277,000, or $0.25 for fiscal 1999.  The sale of property in Chino, 
California contributed an after tax gain of $853,000, or $0.79 per share for the 
quarter and  $0.78 per share for the six months ended April 30, 2000.

    Net sales, company-wide, declined 8% from the comparable quarter in the
prior fiscal year.  Manufactured housing sales reflected a 16% decrease, while
recreational vehicles posted a 1% decrease in sales in comparison to the
second quarter in fiscal 1999.  Year-to-date sales were 10% lower than the
first six months of fiscal 1999.  Homes sales posted an 18% decline and RV
sales declined 2% year-to-date compared to the six months ended April 30,
1999.

    According to Dan Pocapalia, KIT's Chairman of the Board and Chief
Executive Officer, "The manufactured housing sales continue to be negatively
affected by industry-wide excess inventory levels, lenders' tightened credit
standards and rising interest rates.  Despite the sales decline, KIT continues
to outperform the industry that is down 23% through March 2000 in KIT's market
regions.  The modest decline in RV sales is a seasonal result.  Recent reports
from our dealer body regarding the new 2000 model year RV products have been
extremely favorable in regards to competitive value and retail movement."

    KIT Manufacturing Company
    Condensed Statements of Income
                     Three Months Ended April 30,  Six Months Ended April 30,
     (Unaudited)          2000           1999         2000          1999
    Sales              $14,908,000   $16,184,000  $25,874,000   $28,828,000
    Cost and expenses   14,887,000    15,959,000   25,580,000    28,415,000
    Income before gain
     on sale of property    21,000       225,000      294,000       413,000
    Gain on sale
     of property         1,455,000            --    1,455,000            --
    Provision for
     income taxes          611,000        75,000      707,000       136,000
    Net income            $865,000      $150,000   $1,042,000      $277,000
    Net income
     per share-basic
     and diluted             $0.08         $0.14        $0.96         $0.25
    Shares outstanding-
     basic and diluted   1,082,806     1,110,934    1,090,491     1,110,934