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Fleetwood Announces Capital Structure Developments and Dividend Reduction

13 December 2000

Fleetwood Announces Capital Structure Developments and Dividend Reduction

    RIVERSIDE, Calif., Dec. 13 Fleetwood Enterprises, Inc.
today announced developments and plans regarding its capital
structure and also a reduction in its regular dividend to Common shareholders.
Fleetwood noted that during its second fiscal quarter, it finalized a $40
million line of credit with Ford Motor Credit Company to finance motor home
chassis and that it is currently negotiating to obtain a secured line of
credit to replace some or all of the Company's existing manufactured housing
retail inventory debt.
    The Company also announced that yesterday its Board of Directors declared
a quarterly cash dividend of four cents per share of Common stock, payable
February 14, 2001 to shareholders of record January 5, 2001.  Previously, the
Company had paid a 19 cent per share quarterly cash dividend.
    Commenting on the dividend reduction, Fleetwood Chairman and Chief
Executive Officer Glenn Kummer said, "The Company's liquidity improved
significantly during the quarter ended October 29, 2000, driven mainly by
inventory reductions, which resulted in positive cash flow from operations.
However, we believe the Board's action is a prudent one in light of current
industry conditions, recent operating performance and our expectation that the
seasonally slow third quarter will generate a larger loss than that reported
for the second quarter.  The dividend action will free up cash of almost $20
million annually, which should facilitate debt reduction and maintain the
Company's financial flexibility."