FLE Fleetwood Enterprises

- U.S. Army Barracks in Texas to Be Built by Trendsetter Homes Division - RIVERSIDE, Calif., Sept. 17 /PRNewswire-FirstCall/ -- Fleetwood Enterprises, Inc. (NYSE:FLE) announced today that its modular division, Trendsetter Homes, has been selected to build the living units for new U.S. Army housing at Fort Sam Houston in San Antonio, Texas, the world's largest military medical training facility. Terms of the multi-million dollar contract were not disclosed. Construction of the 682 modular sections will be completed at Fleetwood's facility in Belton, Texas. The living units will make up the majority of the new METC (Medical Education Training Campus) dormitories, which will house up to 2,400 military medical personnel for short-term training and education. "With the recent successful completion of the living units for Fort Sill and the second phase of Fort Bliss, we are ready to start on this new project immediately," said Charles E. Lott, president of Fleetwood's Housing Group. "The Army has budgeted $16.5 billion through fiscal 2011 for its Barracks Realignment and Closure 2005 program, which, unlike previous Army programs, largely involves new construction. We are pleased to participate in upgrading the military's housing, which provides a means for us to expand our modular business, while the tough housing market persists. Our plans include continuing to pursue similar opportunities." 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 Jacobs Engineering Group, Inc.; 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 19 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 http://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 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 those regarding the recovery of our industries, 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, the availability of financing in general, and other factors that can have a negative impact on consumer confidence, which 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; the effect on our sales of aggressive discounting by competitors; 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; our ability to meet the repayment terms of our outstanding convertible debt instruments, including the 5% convertible senior subordinated debentures; potential dilution associated with 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; 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 JoAnne Foist, Director of Marketing Services, 951-351-3367 DATASOURCE: Fleetwood Enterprises, Inc. CONTACT: Lyle Larkin, +1-951-351-3535, or JoAnne Foist, +1-951-351-3367, both of Fleetwood Enterprises, Inc. Web site: http://www.fleetwood.com/ http://www.trend-setterhomes.com/

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