---

Fleetwood Announces Preliminary Sales, Expects 1st Quarter Loss

2 August 2000

Fleetwood Announces Preliminary Sales, Expects 1st Quarter Loss

    RIVERSIDE, Calif. - Fleetwood Enterprises, Inc., the nation's leading 
manufacturer of recreational vehicles and a leading producer and retailer of 
manufactured housing, announced today that sales for the quarter ended July 30,
2000 were approximately $729 million, 24 percent below the $957 million reached 
in last year's record first quarter.  The Company attributed the revenue decline 
to a falloff in sales of both manufactured housing and recreational vehicles.

    The Company also indicated that it now expects to post a loss for the
first fiscal quarter as a result of reduced revenues and non-recurring costs
related to restructuring and downsizing.  "We previously announced on June 22
that we anticipated financial results slightly above the breakeven point in
the July quarter, but RV sales at both the wholesale and retail levels over
the past six weeks have been below our expectations," said Fleetwood President
Nelson W. Potter.  "Motor home sales in particular did not reach the level we
anticipated six weeks ago."

    "During the quarter, the Company reduced staffing at manufacturing plants
and at the corporate headquarters in response to declining sales volume.
Downsizing and restructuring actions have resulted in employee severance
payments and other plant closing costs that will have a material impact on
first quarter results," Potter said.

    Recreational vehicle revenues fell 34 percent in the quarter to
approximately $319 million, largely as a result of a slowdown in motor home
sales.  Motor home revenues slipped 50 percent to $152 million, reflecting
softening retail sales and steps taken by dealers to reduce inventories of
model year 2000 products.  Towable RV products fared better in the first
quarter, with the travel trailer and folding trailer divisions recording only
modest sales declines.  Travel trailer revenues eased six percent to
$140 million and folding trailer sales were off eight percent to about
$27 million.

    Potter said, "RV group profitability for the quarter was heavily
influenced by the slowdown in motor home sales and by sales discounts and
dealer incentives initiated to stimulate sales of certain slow-moving model
year 2000 motor home products.  The good news is that we have largely
eliminated the factory inventories of last year's models and have been
building only model year 2001 products for the past month."

    Total manufactured housing revenues of $402 million were off 13 percent
from last year's $462 million.  This reflects the challenging market
environment that has existed for over a year stemming from excessive retail
inventories and restrictive retail financing conditions.  First quarter
housing revenues included wholesale factory sales of $227 million to
independent retailers and retail sales of $175 million generated through
Company-owned sales centers.  This compares with $304 million and
$158 million, respectively, last year.  Gross manufacturing revenues were off
21 percent to $304 million, and included $77 million of intercompany sales to
Company-owned stores.

    "Even though we expect near-term market conditions for manufactured
housing to continue to be challenging, there are signs that adjustments are
taking place that will ultimately lead to a healthier market," Potter said.
"For example, we know that industry manufacturing and retail capacity has been
coming down.  Retail inventories are also declining, although not as fast as
we would like because of the restrictive financing environment," Potter said.

    In accordance with a recent SEC accounting pronouncement, the Company has
changed its revenue recognition policy on credit retail housing sales from
what is currently industry practice.  Effective with the first quarter, the
Company's retail housing operation will now record credit sales based
primarily on loan funding, which will slow revenue recognition.  This change,
which will be reflected as the cumulative effect of a change in accounting,
will have a negative impact on first quarter results.

    Final results of operations for the first quarter will be reported by the
Company in approximately four weeks.