Rexhall Industries, Inc. to Open New Service Center and RV Sales Location in Arizona

26 October 2000

Rexhall Industries, Inc. to Open New Service Center and RV Sales Location in Arizona

    LANCASTER, Calif.--Oct. 26, 2000--Rexhall Industries, Inc. today announced that it would open a new service center and RV sales location in Mesa, Arizona under the name of "Price One RV" by Nov. 1, 2000.
    "This brand new service center and dealership will enable Rexhall to better serve its customers in the state of Arizona. With the untimely filing of bankruptcy by RV Supercenter, Rexhall found itself with over 80 units in inventory at RV Supercenter.
    "Though this was an immediate problem, it gave us the opportunity to set up other dealers in the state of Arizona and create a new service center, which should benefit all Rexhall customers. As of Oct. 25, 2000, Rexhall has set up three new dealerships in the state of Arizona.
    "RV Outlet Super Mall of Arizona will represent all lines of Rexhall's product in Bull Head City and the river markets in Arizona. In addition, he will have a dealership in Laughlin and Las Vegas, Nevada. Desert Country RV will have a dealership in the Phoenix/Mesa area and will represent RexAir, Anthem and American Clipper.
    "Our new subsidiary, `Price One RV' will partner with another dealership, RV 101, whose owner will act as our general manager. `Price One RV,' also in the Phoenix/Mesa area, will represent Aerbus, RoseAir and Vision. Through these three dealerships, Rexhall has already sold over half the inventory we repurchased from RV Supercenter. We believe strongly that the remaining inventory will be sold before the end of the fourth quarter," said William J. Rex, president & CEO.
    "This new subsidiary, `Price One RV,' gives Rexhall's shareholders approximately four acres with 20,000 square feet of new building under roof. We have purchased this at what we believe to be under market value, therefore, creating another asset for the shareholders of Rexhall Industries, Inc., and at the same time adding to our base of dealerships throughout Arizona," stated Rex.

    Forward-Looking Statements: Risk Factors. Statements of the company's intentions, expectations or beliefs are "forward-looking statements," based on assumptions and on facts known today. There are risks that actual developments will not be as favorable as the company's expectations, both because of risks existing today and because of new factors arising. Rexhall Industries does not intend to update this report.
    Rexhall's business is seasonal. The recreational vehicle industry has in the past enjoyed favorable recreational vehicle industry sales when there is low interest rates, low unemployment, and ready availability of motor fuel. Recent unprecedented increases in fuel costs have reduced sales, and the long-term effect is not known.
    Many of Rexhall's competitors are substantially larger, and many of its suppliers also have greater economic power, so that the volume and prices of both supplies and sales may be adversely affected. Rexhall's management intends to remain aware of these factors and react to them, but cannot predict their timing or significance.
    Visit this company's Investor Relations site at http://www.businesswire.com/cnn/rexl.htm.