CHB Champion Enterprises,

TROY, Mich., Oct. 27 /PRNewswire-FirstCall/ -- Champion Enterprises, Inc. (NYSE:CHB), a leader in factory-built construction, announced today that it has completed an amendment of its senior secured credit agreement. The amendment generally covers the period beginning Sept. 27, 2008 and ending Jan. 2, 2010. During the effected period, the financial covenants have been amended to eliminate the maximum senior leverage ratio, minimum interest coverage ratio and minimum fixed charge ratio in lieu of new minimum quarter-end liquidity and minimum twelve-month EBITDA covenants. During its third quarter ended Sept. 27, 2008, the Company borrowed $25.0 million under its revolving line of credit. Pursuant to the amendment, the Company repaid $10.0 million of the revolving loan and $23.5 million of its term debt allocated pro rata among the U.S. dollar denominated and Sterling denominated term loans, both due 2012. These transactions, together, resulted in a net debt reduction of $8.5 million. During the effected period, the interest rates for borrowings under the revolving line of credit and the U.S. dollar and Sterling denominated term loans were increased from the London Interbank Offered Rate ("LIBOR") plus 3.25 percent to LIBOR plus 6.50 percent. For all borrowings, interest of LIBOR plus 5.00 percent will be paid in cash while the remaining 1.50 percent may be paid in kind. Additionally, a LIBOR floor of 3.25 percent was provided for in the agreement. The interest rates may be reduced if the Company makes additional term loan prepayments during the effected period. For prepayments aggregating between $10 and $20 million the rate of interest on all remaining balances will be reduced to LIBOR plus 5.50 percent (of which 0.50 percent may be paid in kind); for prepayments aggregating between $20 and $30 million the rate will be reset to LIBOR plus 5.00 percent, all paid in cash; and for prepayments totaling $30 million or more the rate will be reset to LIBOR plus 4.50 percent, all paid in cash. The Company also agreed to reduce its synthetic letter of credit facility by $16.5 million by moving approximately $12.2 million of outstanding undrawn letters of credit to its revolving credit facility and canceling approximately $4.3 million of unused capacity. As a result, while the total size of the Company's revolving credit facility remains at $40 million, its unused capacity now stands at approximately $12.8 million. "We are pleased to have completed this amendment of our credit agreement during these trying times in our markets," stated William Griffiths, chairman, president and chief executive officer of Champion Enterprises, Inc. "The revised terms reduced Champion's strong cash position only modestly, and provide the Company with important additional flexibility through the end of 2009 as we manage through the uncertainties of today's environment." The Company plans to release its financial results for the third quarter ended Sept. 27, 2008 on Nov. 5, 2008. Details for Champion's quarterly conference call with analysts are available on its website http://www.championhomes.com/ under the "Investors" link. About Champion Troy, Michigan-based Champion Enterprises, Inc., a leader in factory-built construction, operates 32 manufacturing facilities in North America and the United Kingdom working with independent retailers, builders and developers. The Champion family of builders produces manufactured and modular homes, as well as modular buildings for government and commercial applications. For more information, please visit http://www.championhomes.com/. DATASOURCE: Champion Enterprises, Inc. CONTACT: Laurie Van Raemdonck, Vice President, Investor Relations, +1-248-614-8267, , or Phyllis Knight, Executive Vice President and CFO, +1-248-614-8200, both of Champion Enterprises, Inc. Web site: http://www.championhomes.com/ Company News On-Call: http://www.prnewswire.com/comp/110861.html

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