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Coachmen Industries Sells Assets of Lux Company

20 September 2000

Coachmen Industries Sells Assets of Lux Company

                 Sale Moves Coachmen's Strategic Plan Forward

    ELKHART, Ind., Sept. 20 Coachmen Industries, Inc.
announced today it has completed an agreement with a private
investor for the sale of the assets of the Lux Company, Coachmen Industries'
manufacturer of seating products for leisure use. The purchase includes Lux
Company's real estate, machinery and equipment, inventories and receivables.
The buyer will retain the employees of Lux.
    "Ensuring that our people will be well taken care of was a key element in
our negotiations," noted Claire C. Skinner, Chairman and Chief Executive
Officer of Coachmen Industries.
    Officials from the purchasing and selling companies concur that this
agreement should benefit all involved. "This sale is in line with Coachmen
Industries' strategic plan of asset utilization with a focus on our core
businesses and growth opportunities," added Skinner. "With this divestiture we
will be re-deploying assets into our two core businesses, recreational
vehicles and modular construction."  The transaction is expected to close
Sept. 29, 2000.