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Coachmen Industries Finalizes Transaction, Sells Lux Company

2 October 2000

Coachmen Industries Finalizes Transaction, Sells Lux Company

               Coachmen Re-Deploys Assets Into Core Businesses

    ELKHART, Ind., Oct. 2 Coachmen Industries, Inc.
announced today it has closed on its earlier announced sale of the
assets of the Lux Company, Coachmen Industries' manufacturer of seating
products for leisure use, located in Elkhart. The purchase includes Lux
Company's real estate, machinery and equipment, inventories and receivables.
Lux employees will also be retained by the buyer.
    Officials from Coachmen said the sale of Lux is part of its asset
utilization program to divest non-core assets and direct its energies and
focus on the company's two core businesses, recreational vehicles and modular
construction. "With this divestiture we continue to redirect assets into our
core businesses," stated Claire C. Skinner, Coachmen Chairman, CEO and
President. "With a clear focus on our core businesses, we are well positioned
to continue to execute our strategic plan for growth meeting the needs of our
customers while building shareholder value."
    Coachmen Industries, Inc. is one of the nation's leading full-line
manufacturers of recreational vehicles.  The company is also a leader in
modular construction.  Coachmen is one of the industry's best-known brand
names of RVs and All American Homes, one of the company's modular divisions,
is America's leading producer of modular homes. Coachmen is a publicly held
company with stock listed on the New York Stock Exchange (NYSE) under the COA
ticker symbol.