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Coachmen Industries Expands Modular Home Sector

23 June 2000

Coachmen Finalizes Transaction, Acquires Mod-U-Kraf Homes

    ELKHART, Ind. - Coachmen Industries, Inc. of Elkhart, Indiana closed on a 
transaction today which officially adds Mod-U-Kraf Homes, Inc. to Coachmen's 
expanding modular home sector. Coachmen acquired the Rocky Mount, Virginia-based 
company for $11.75 per share, or a total consideration of nearly $10 million. 
The closing comes on the heels of a Mod-U-Kraf shareholders meeting conducted 
on Wednesday, June 21 where shareholders voted to approve the transaction.  
Mod-U-Kraf's shareholders will be receiving instructions for exchanging their 
stock certificates for cash payments in the mail.

    "We are pleased Mod-U-Kraf shareholders have voted to approve this
transaction," stated Claire C. Skinner, Chairman and Chief Executive Officer
of Coachmen Industries. Dale H. Powell, Mod-U-Kraf's President and Board
Chairman concurred, "We are very excited to join the Coachmen team. We believe
strongly that the association with Coachmen will provide us the opportunity to
continue our growth, expand our facilities and offer our employees greater
opportunities."

    A letter of intent to acquire all outstanding Mod-U-Kraf shares was signed
on March 13, 2000. The proposal to acquire the modular home builder
demonstrated Coachmen's commitment to a strategic plan that includes growing
its housing group through expansion of existing business and through
acquisition of companies that complement Coachmen's business goals. "Because
Mod-U-Kraf matches up well with our vision, values, practices and
philosophies, we wanted to pursue this acquisition opportunity," explained
Skinner.

    Mod-U-Kraf, who will retain both management and employees, will operate as
a separate entity under the Coachmen housing group. Also part of the housing
group is All American Homes, with five manufacturing locations. All American
Homes is the leading producer of modular, precision-built homes in the U.S.
Unlike the manufactured housing industry, Coachmen's modular homes are built
to local and state codes versus HUD codes.

    Though Mod-U-Kraf is involved in the production of modular housing like
All American Homes, the company offers Coachmen new ventures with its Special
Projects Division. Serving the commercial building sector, the Special
Projects Division builds motels, townhouses, condominiums, apartments, dorms,
business offices, day care facilities and medical offices. All buildings
comply with commercial building codes and are reviewed by a third party
inspection agency.

    Building homes for over 28 years, Mod-U-Kraf currently operates out of two
plants. The company markets its products in Virginia, North Carolina, South
Carolina, West Virginia, Maryland, Northern Georgia, Eastern Tennessee and
Eastern Kentucky. In 1999, Mod-U-Kraf's sales were in the $22 million range.

    Coachmen Industries, Inc. is one of the nation's leading producers of
recreational vehicles. Recreational vehicles comprised 83 percent of
Coachmen's 1999 sales and modular homes represented 17 percent.