Fleetwood Reports Preliminary Revenues for Fiscal 2009 First Quarter

RIVERSIDE, Calif., July 31 /PRNewswire-FirstCall/ -- Fleetwood
Enterprises, Inc. (NYSE: FLE) announced today preliminary sales for the fiscal
2009 first quarter of approximately $287 million, a 41 percent drop from $488
million last year. Sales for the RV Group fell 52 percent, while Housing Group
revenues were off 15 percent in the quarter, which ended July 27, 2008.
"As we have previously reported, we continue to see market challenges in
all of our business units, particularly in motor homes," said Elden L. Smith,
president and chief executive officer. "We have been responding aggressively
to these challenges by taking down production to more closely match demand,
selling non-core businesses and idle real estate assets, and introducing new
product offerings to address changes in consumer preferences and economic
conditions. As the first quarter progressed, however, we saw an acceleration
of the negative trends caused by volatile fuel prices, the housing crisis, a
tighter lending environment, and declining consumer confidence. As a result,
RV dealers responded by making significant adjustments to reduce their
inventories. As a leader in the industry, we expect to be well positioned when
the market stabilizes, although we believe we must be prepared for the
likelihood that this will not occur until the spring of 2009 or later. We have
strong liquidity at the present time as a result of recent asset sales, an
equity offering, and availability under our revolving credit facility.
However, as we now anticipate negative cash flow from operations over the
balance of fiscal 2009, we believe it is prudent that we aggressively manage
liquidity. The holders of our $100 million 5% convertible senior subordinated
debentures have the right to require Fleetwood to repurchase them at par on
December 15, 2008. We have the right to satisfy the obligation with common
stock, with cash, or through some combination of the two, and we may also
explore alternative instruments with the holders of the debentures."
In the future, Fleetwood intends to accelerate the release of its
quarterly results from the release date that previously coincided with the
filing of our quarterly SEC reports. As a result, we will discontinue the
release of preliminary sales information. The release and conference call for
the first quarter are scheduled for Thursday, August 28, 2008, whereas last
year the results were released after Labor Day. The 10-Q is expected to be
filed on September 4, 2008.

PRELIMINARY REVENUES
(Dollars in Millions)

13 Weeks Ended
July 27, July 29, %
2008 2007 Change

Motor homes $119 $274 (57)%
Travel trailers 40 64 (38)
Supply 6 6 --

RV Group 165 344 (52)

Manufactured housing 98 136 (28)
Modular housing 24 8 200
Lumber -- -- --

Housing Group 122 144 (15)

Total revenues $287 $488 (41)%

About Fleetwood
Fleetwood Enterprises, Inc., through its subsidiaries, is a leading
producer of recreational vehicles and manufactured homes. This Fortune 1000
company, headquartered in Riverside, Calif., is dedicated to providing
quality, innovative products that offer exceptional value to its customers.
Fleetwood operates facilities strategically located throughout the nation,
including recreational vehicle, manufactured housing and supply subsidiary
plants. For more information, visit the Company's website at
http://www.fleetwood.com.
This press release contains certain forward-looking statements and
information based on the beliefs of Fleetwood's management as well as
assumptions made by, and information currently available to, Fleetwood's
management. Such statements, including, but not limited to, preserving
liquidity, reflect the current views of Fleetwood with respect to future
events and are subject to certain risks, uncertainties, and assumptions,
including risk factors identified in Fleetwood's 10-K and other SEC filings.
These risks and uncertainties include, without limitation, the lack of
assurance that we will regain sustainable profitability in the foreseeable
future; the effect of ongoing weakness in both the manufactured housing and
the recreational vehicle markets; the effect of a decline in home equity
values, volatile fuel prices and interest rates, global tensions, employment
trends, stock market performance, availability of financing generally, and
other factors that can and have had a negative impact on consumer confidence,
which in turn may reduce demand for our products, particularly recreational
vehicles; the availability and cost of wholesale and retail financing for both
manufactured housing and recreational vehicles; our ability to comply with
financial tests and covenants on existing debt obligations; our ability to
obtain, on reasonable terms if at all, the financing we will need in the
future to execute our business strategies and to meet the repayment terms of
our outstanding convertible debt instruments, including the 5% convertible
senior subordinated debentures; potential dilution associated with equity
financings we may undertake to raise additional capital and the risk that the
equity pricing may not be favorable; the cyclical and seasonal nature of both
the manufactured housing and recreational vehicle industries; the increasing
costs of component parts and commodities that we may be unable to recoup in
our product prices; the potential for excessive retail inventory levels in the
manufactured housing and recreational vehicle industries; the volatility of
our stock price; repurchase agreements with floorplan lenders, which could
result in increased costs; potential increases in the frequency of product
liability, wrongful death, class action, and other legal actions, including
actions resulting from products we receive from our suppliers; and the highly
competitive nature of our industries.
Contact: Lyle Larkin, Vice President - Treasurer (951) 351-3535
Kathy A. Munson, Director - Investor Relations, (951) 351-3650

SOURCE Fleetwood Enterprises, Inc.

Lyle Larkin, Vice President, Treasurer, +1-951-351-3535, or Kathy A. Munson,
Director, Investor Relations, +1-951-351-3650, both of Fleetwood Enterprises,
Inc.