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Monaco Coach Expects Q3 Results Marginally Lower Than Expectations

16 October 2000

Monaco Coach Corporation Expects Third Quarter Results Marginally Lower Than Expectations

    COBURG, Ore., Oct. 16 Monaco Coach Corporation
today indicated that it expects to announce its third quarter 2000 earnings
slightly below expectations.  The Company expects to report revenues of
approximately $226 million for the period ending September 30, 2000, an
approximate 15% increase over the same period last year.  However, earnings
may fall 3-5 cents below the consensus estimate of 55 cents per share.
    "Although retail demand for our products remained strong throughout the
summer months and we continue to gain market share, the competitive
environment within our industry has resulted in continued price discounting at
the wholesale level," stated Executive Vice President and Chief Financial
Officer John Nepute.  "These discounts have placed considerable pressure on
gross margins and earnings despite increases in unit shipments and revenues."