Fleetwood Enterprises Signs Contract to Supply Additional Modular Housing to the...

Fleetwood Enterprises Signs Contract to Supply Additional Modular Housing to
the U.S. Army

- Third Phase of Barracks at Fort Bliss to Be Built by Trendsetter Homes
Division -

RIVERSIDE, Calif., March 30 /PRNewswire-FirstCall/ -- Fleetwood Enterprises,
Inc. (OTC Bulletin Board: FLTWE) announced today that its Trendsetter Homes
division has signed a contract to supply modular military housing to the U.S.
Army for the third phase of construction at Fort Bliss in El Paso, Texas.
Terms of the multi-million dollar contract were not disclosed.

To complete Task Order III of the Fort Bliss project, Trendsetter Homes,
Fleetwood's modular division, will continue the offsite construction of the
primary component of the Army's new permanent barracks at its facility in
Belton, Texas. Trendsetter has already supplied 18 buildings for the project,
composed of 1,176 apartment units. This phase will entail at least three more
buildings, each of which will have 64 apartments. Fleetwood estimates that its
Texas plant will build the modules through mid-May, with site completion
continuing through approximately September. This phase is expected to complete
the Unaccompanied Enlisted Personnel Housing permanent barracks at Fort Bliss.
The Army is considering a number of similar projects at other bases, many of
which Trendsetter is actively pursuing.

"We are proud of our service to the Army and our ongoing relationship with the
U.S. Army Corps of Engineers," said Charles E. Lott, President of Fleetwood's
Housing Group. "Working with our partners, we have successfully accelerated
the Army's ability to provide high quality, modern housing for the Fort Bliss
troops. Fleetwood's modular building process significantly decreases
construction time as well as congestion, noise, and debris management issues
associated with conventional site-built structures, making it a desirable
candidate for numerous other building applications."

Undertaken by the U.S. Army in support of the Military Housing Transformation
Initiative, the project will contribute to significantly upgrading on-base
housing at Fort Bliss, which encompasses 1.1 million acres of land. It is also
the site of the Army's Air Defense Artillery Center, responsible for the
education and training of Air Defense Artillery soldiers and units. Fleetwood
has teamed with several companies that have expertise in various areas of
development and construction in connection with this contract. Hensel Phelps
is the prime contractor and owner of the government contract; the
architectural and engineering leadership is being provided by The Benham
Companies; and The Warrior Group, which is tasked with delivering completed
living units, contracted with Fleetwood to construct the modular units.

About Trendsetter Homes
Trendsetter Homes is the modular housing division of Fleetwood Homes, which
operates 12 facilities nationwide and is headquartered in Riverside, Calif.
Trendsetter produces modular residential and commercial buildings in a
factory-controlled environment for residential builders and the military. The
Trendsetter Homes website can be accessed at www.trend-setterhomes.com.

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, factory-built housing and supply subsidiary plants. For
more information, visit Fleetwood's website at 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 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 most recent 10-Q and other
SEC filings. These risks and uncertainties include, without limitation, the
significant demands on our liquidity while current economic and credit
conditions are severely affecting our operations; the lack of assurance that
we will be able to successfully restructure, emerge from Chapter 11, and
regain sustainable profitability following our recent bankruptcy filing; our
potential inability to decrease our operating losses and negative cash flow;
the effect of ongoing weakness in both the manufactured housing and
recreational vehicle markets, especially the recreational vehicle market which
has deteriorated sharply in recent months; the volatility of our stock price;
the effect of a decline in home equity values, volatile fuel prices and
interest rates, global tensions, employment trends, stock market performance,
credit crisis, availability of financing generally, and other factors that can
and have had a negative impact on consumer confidence, and which may continue
to 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 and future debt obligations; our ability to obtain,
on reasonable terms if at all, the debtor-in-possession and other financing we
will need in the future to execute our business strategies; potential dilution
associated with future equity or equity-linked 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;
repurchase agreements with floorplan lenders, which we currently expect could
result in increased costs due to the deteriorated market conditions; expenses
and uncertainties associated with the entry into new business segments or the
manufacturing, development, and introduction of new products; the potential
for excessive retail inventory levels and dealers' desire to reduce inventory
levels in the manufactured housing and recreational vehicle industries; the
effect on our sales, margins and market share from aggressive discounting by
competitors; potential increases in the frequency and size of product
liability, wrongful death, class action, and other legal actions; and the
highly competitive nature of our industries and changes in our competitive
landscape.

Contact: Kathy Munson, Director of Investor Relations, 951-351-3650 - Andrew
Griffiths, Senior Vice President-CFO, 951-351-3367

SOURCE Fleetwood Enterprises, Inc.

Kathy Munson, Director of Investor Relations, +1-951-351-3650, or Andrew
Griffiths, Senior Vice President-CFO, +1-951-351-3367, both of Fleetwood
Enterprises, Inc.