Champion Enterprises 8-K Champion Enterprises Reports Net Income of $0.10 per Diluted Share for the Second Quarter of 2007

EXHIBIT 99.1

Contacts:
Laurie Van Raemdonck
Vice President, Investor Relations
(248) 340-7731
lvanraemdonck@championhomes.net

or

Phyllis Knight
Executive Vice President and CFO
(248) 340-9090

Champion Enterprises Reports Net Income of $0.10 per Diluted Share
for the Second Quarter of 2007

Manufacturing Segment Backlogs Increase 62 Percent Sequentially while Segment Margin Improves to
6.7 Percent; Cash From Operations Totals $23.6 Million for the Quarter

AUBURN HILLS, Mich., July 17, 2007– Champion Enterprises, Inc. (NYSE: CHB), a leader in factory-built construction, today announced results for its second quarter ended June 30, 2007. Revenues for the quarter decreased 11 percent to $330.4 million compared to $370.7 million for the second quarter of 2006. Income from continuing operations before income taxes totaled $10.0 million compared to $11.5 million for the second quarter of 2006. Net income for the quarter totaled $7.5 million, or $0.10 per diluted share, compared to net income of $112.1 million, or $1.44 per diluted share, for the same period of the prior year. Net income for the second quarter of 2006 included $101.9 million of income from the reversal of the previously recorded deferred tax asset valuation allowance.

North American Manufacturing Segment

• Manufacturing segment net sales for the second quarter decreased 19 percent to $258.3 million compared to $319.9 million in the same period of the prior year.

• Revenues from the sale of modular homes in the quarter totaled $80 million, representing 31 percent of manufacturing segment sales, down from $88 million in the second quarter of 2006, while homes sold into Canada grew 82 percent compared to the second quarter of last year and increased 25 percent over last quarter.

• Manufacturing segment income for the second quarter totaled $17.2 million compared to $21.0 million in the second quarter of 2006. Segment margins improved to 6.7 percent for the quarter compared to 6.6 percent in the same period last year, while the capacity utilization rate decreased slightly to 60 percent compared to 62 percent in the second quarter of 2006.

Champion Enterprises Reports Net Income of $0.10 per Diluted Share for the Second Quarter of 2007
Page 2

• Segment backlogs improved to $68 million at the end of the second quarter compared to $52 million at the same time last year and $42 million at the end of the first quarter.

International Manufacturing Segment

• International segment sales climbed to $56.9 million for the second quarter, up from $27.1 million in the same period of the prior year and $46.5 million last quarter.

• Segment income increased to $4.5 million for the period from $1.2 million in the second quarter of 2006 and $3.1 million in the first quarter, resulting in an improved margin of 7.8 percent compared to 4.4 percent in the same period last year and 6.7 percent last quarter.

• International segment order backlogs remained strong, with firm contracts and orders pending contracts under framework agreements totaling approximately $245 million, compared to approximately $120 million at the end of the second quarter of 2006 and approximately $250 million at the end of last quarter.

Retail Segment

• The retail segment reported second quarter 2007 revenues of $21.4 million compared to $35.0 million for the same period last year, a reflection of the significant ongoing challenges in the California housing markets.

• Retail segment income totaled $0.7 million for the quarter compared to $2.4 million in the second quarter of 2006, and segment margins were 3.1 percent compared to 6.8 percent for the same period of the prior year.

Other Highlights

• Cash and cash equivalents increased to $104.8 million at June 30, 2007 compared to $76.6 million at the end of the first quarter of 2007.

• Cash flow from continuing operating activities totaled $23.6 million for the quarter ended June 30, 2007 compared to $12.6 million for the same period last year, while free cash flow (cash flow from continuing operating activities less capital expenditures) improved to $21.8 million from $8.0 million for the second quarter of 2006.

• The Company amended its credit facility during the quarter to adjust both the allowed leverage and required interest coverage for the last 12 months ended June 30, 2007 and for the 12-month periods ending Sept. 29, 2007 and Dec. 29, 2007. The Company was in compliance with both requirements, as amended, for the period ended June 30, 2007.

“Despite continuing difficulties in the U.S. housing markets, our results this quarter demonstrate the substantial efforts we’ve made to right size our organization and to improve efficiencies in our plants regardless of market conditions,” stated William Griffiths, chairman, president and chief executive officer of Champion Enterprises, Inc. “While our manufacturing segment sales declined 19 percent, our segment margin improved to 6.7 percent for the quarter, up from 6.6 percent last year. In addition,

Champion Enterprises Reports Net Income of $0.10 per Diluted Share for the Second Quarter of 2007
Page 3

the manufacturing segment ended the quarter on a strong note with backlogs improving over 30 percent year-over-year and over 60 percent since last quarter.

“Further, the international segment reported its strongest quarter since being acquired in April of 2006 by more than doubling both sales and segment income as compared to the second quarter of 2006.”

Griffiths concluded, “Finally, as a result of our strict focus on cash and working capital management, we nearly tripled free cash flow as compared to last year’s second quarter, adding further to the resources available for reinvestment in our longer-term growth and diversification strategy.”

Second Quarter 2007 Conference Call

Champion Enterprises will host a conference call on Wednesday, July 18, 2007 at 11 a.m. EDT to discuss these results and current business trends. To listen to the call, please call (888) 481-7939 for domestic callers or (617) 847-8707 for international callers. The passcode is 97414913. The call may also be heard live atwww.championhomes.com under the investor relations link.

A telephone replay of the call will be available approximately one hour after the call’s conclusion through Wednesday, Aug. 1, 2007. To access the telephone replay, please call (888) 286-8010 for domestic callers or (617) 801-6888 for international callers. The passcode is 80507364. The webcast replay will be available on the Company’s Web site under the investor relations link for 90 days.

About Champion

Auburn Hills, Michigan-based Champion Enterprises, Inc., a leader in factory-built construction, operates 32 manufacturing facilities in North America and the United Kingdom and works with over 3,000 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 visitwww.championhomes.com.

Forward-Looking Statements

This news release contains certain statements, including statements regarding future market conditions, the reinvestment of resources in Champion’s growth and diversification strategy, and backlogs and pending orders, each of which could be construed to be forward-looking statements within the meaning of the Securities and Exchange Act of 1934.

These statements reflect the Company’s views with respect to future plans, events and financial performance. The Company does not undertake any obligation to update the information contained herein, which speaks only as of the date of this press release. The Company has identified certain risk factors which could cause actual results and plans to differ substantially from those included in the forward-looking statements. These factors are discussed in the Company’s most recently filed Form 10-K and other SEC filings, in each case under the section entitled “Forward-Looking Statements,” and those discussions regarding risk factors are incorporated herein by reference.

– Tables Follow –

CHB/ 4
CHAMPION ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(Dollars and weighted shares in thousands, except per share amounts)

	Three Months Ended									Six Months Ended
	June 30,			July 1,			%			June 30,			July 1,			%
	2007			2006			Change			2007			2006			Change
				(Restated)									(Restated)
Net sales:
Manufacturing segment	$	258,319		$	319,943			(19	%)	$	457,615		$	651,594			(30	%)
International segment		56,887			27,131			110	%		103,418			27,131			281	%
Retail segment		21,354			35,043			(39	%)		39,424			62,321			(37	%)
Less: intercompany		(6,200	)		(11,400	)					(10,300	)		(23,800	)
Total net sales		330,360			370,717			(11	%)		590,157			717,246			(18	%)
Cost of sales		278,488			313,878			(11	%)		506,272			606,114			(16	%)
Gross margin		51,872			56,839			(9	%)		83,885			111,132			(25	%)
Selling, general and administrative expenses		36,747			40,027			(8	%)		73,647			77,258			(5	%)
Amortization of intangible assets		1,417			1,299			9	%		2,819			1,391			103	%
Operating income		13,708			15,513			(12	%)		7,419			32,483			(77	%)
Interest expense, net		3,723			4,011			(7	%)		7,763			6,081			28	%
Income (loss) from continuing operations before income taxes		9,985			11,502			(13	%)		(344	)		26,402			(101	%)
Income tax expense (benefit)		2,527			(100,503	)		103	%		(563	)		(99,303	)		99	%
Income from continuing operations		7,458			112,005			(93	%)		219			125,705			(100	%)
Income from discontinued operations, net of taxes		7			77			(91	%)		—			24			(100	%)
Net income	$	7,465		$	112,082			(93	%)	$	219		$	125,729			(100	%)
Basic income per share:
Income from continuing operations	$	0.10		$	1.47			(93	%)	$	—		$	1.65			(100	%)
Income from discontinued operations		—			—						—			—
Net income	$	0.10		$	1.47			(93	%)	$	—		$	1.65			(100	%)
Weighted shares for basic EPS		76,796			76,343						76,676			76,212
Diluted income per share:
Income from continuing operations	$	0.10		$	1.44			(93	%)	$	—		$	1.62			(100	%)
Income from discontinued operations		—			—						—			—
Net income	$	0.10		$	1.44			(93	%)	$	—		$	1.62			(100	%)
Weighted shares for diluted EPS		77,658			77,495						77,506			77,438

See accompanying Notes to Financial Information.

(more)

CHB/ 5
CHAMPION ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)

	(UNAUDITED)		(UNAUDITED)
	June 30,		March 31,		December 30,
	2007		2007		2006
Assets:
Cash and cash equivalents	$	104,755	$	76,571	$	70,208
Accounts receivable, trade		73,646		58,099		47,645
Inventories		83,004		93,046		102,350
Deferred tax asset		31,565		32,126		32,303
Other current assets		11,836		9,834		10,677
Total current assets		304,806		269,676		263,183
Property, plant and equipment, net		106,653		110,598		112,527
Goodwill and other intangible assets, net		335,537		334,012		335,464
Deferred tax asset		76,880		76,235		71,600
Other non-current assets		17,012		17,245		17,841
Total assets	$	840,888	$	807,766	$	800,615
Liabilities and Shareholders’ Equity:
Accounts payable	$	88,363	$	72,784	$	54,607
Other accrued liabilities		149,223		144,791		148,596
Total current liabilities		237,586		217,575		203,203
Long-term debt		253,288		251,956		252,449
Deferred tax liability		10,178		10,327		10,600
Other long-term liabilities		32,504		32,562		32,601
Shareholders’ equity		307,332		295,346		301,762
Total liabilities and shareholders’ equity	$	840,888	$	807,766	$	800,615

See accompanying Notes to Financial Information.

(more)

CHB/ 6
CHAMPION ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED CASH FLOW STATEMENTS (UNAUDITED)
(In thousands)

	Three Months Ended						Six Months Ended
	June 30,			July 1,			June 30,			July 1,
	2007			2006			2007			2006
				(Restated)						(Restated)
Net income	$	7,465		$	112,082		$	219		$	125,729
Income from discontinued operations		(7	)		(77	)		—			(24	)
Adjustments:
Depreciation and amortization		5,005			4,833			10,032			8,064
Stock-based compensation		737			1,531			1,556			3,348
Change in deferred taxes		(257	)		(101,900	)		(4,492	)		(101,900	)
Loss (gain) on disposal of fixed assets		207			(542	)		(593	)		(4,528	)
Increase/decrease:
Accounts receivable		(14,732	)		5,713			(25,159	)		11,199
Inventories		10,361			2,317			19,705			5,952
Accounts payable		14,253			(10,131	)		32,285			(266	)
Accrued liabilities		3,550			97			(2,352	)		(10,394	)
Other, net		(3,026	)		(1,361	)		(743	)		2,014
Cash provided by continuing operating activities		23,556			12,562			30,458			39,194
Additions to property, plant and equipment		(1,769	)		(4,547	)		(3,647	)		(9,058	)
Acquisitions		—			(100,364	)		—			(123,192	)
Proceeds on disposal of fixed assets		2,586			1,143			3,404			5,763
Distributions from unconsolidated subsidiaries		884			—			884			—
Cash provided by (used for) investing activities		1,701			(103,768	)		641			(126,487	)
Payments on long-term debt		(543	)		(528	)		(1,036	)		(829	)
Proceeds from term loan		—			78,561			—			78,561
Increase in deferred financing costs		—			(980	)		—			(995	)
(Increase) decrease in restricted cash		—			(6	)		15			382
Common stock issued, net		957			1,333			1,421			1,955
Cash provided by financing activities		414			78,380			400			79,074
Cash (used for) provided by discontinued operations		(127	)		504			92			1,054
Effect of exchange rate changes on cash and cash equivalents		2,640			1,832			2,956			1,832
Increase (decrease) in cash and cash equivalents		28,184			(10,490	)		34,547			(5,333	)
Cash and cash equivalents at beginning of period		76,571			132,136			70,208			126,979
Cash and cash equivalents at end of period	$	104,755		$	121,646		$	104,755		$	121,646

See accompanying Notes to Financial Information.

(more)

CHB/ 7
CHAMPION ENTERPRISES, INC. AND SUBSIDIARIES
NOTES TO FINANCIAL INFORMATION (UNAUDITED)

(1) The results of operations for businesses acquired in 2006 are included in the Company’s results from continuing operations subsequent to the respective acquisition dates. Manufacturing segment acquisitions consist of Highland Manufacturing that was acquired on March 31, 2006, and North American Housing that was acquired on July 31, 2006. The Company’s international segment consists of Caledonian Building Systems Limited, which was acquired on April 7, 2006.

(2) The Company evaluates the performance of its manufacturing, international and retail segments based on income before amortization of intangible assets, interest, income taxes and general corporate expenses. A reconciliation of income (loss) from continuing operations before income taxes for the three and six months ended are as follows (dollars in thousands):

	June 30,			Related			July 1,			Related
Three months ended:	2007			Sales			2006			Sales
Manufacturing segment income	$	17,217			6.7	%	$	21,039			6.6	%
International segment income		4,458			7.8	%		1,199			4.4	%
Retail segment income		666			3.1	%		2,379			6.8	%
General corporate expenses		(7,416	)					(7,605	)
Amortization of intangible assets		(1,417	)					(1,299	)
Intercompany eliminations		200						(200	)
Interest expense, net		(3,723	)					(4,011	)
Income from continuing operations before income taxes	$	9,985			3.0	%	$	11,502			3.1	%

	June 30,			Related			July 1,			Related
Six months ended:	2007			Sales			2006			Sales
Manufacturing segment income	$	17,313			3.8	%	$	47,005			7.2	%
International segment income		7,582			7.3	%		1,199			4.4	%
Retail segment income		1,538			3.9	%		3,892			6.2	%
General corporate expenses		(16,695	)					(17,222	)
Amortization of intangible assets		(2,819	)					(1,391	)
Intercompany eliminations		500						(1,000	)
Interest expense, net		(7,763	)					(6,081	)
(Loss) income from continuing operations before income taxes	$	(344	)		(0.1	%)	$	26,402			3.7	%

(3) In the second quarter of 2006 the Company reversed its deferred tax asset valuation allowance totaling $101.9 million. The Company’s earnings subsequent to this reversal are fully taxed for financial reporting purposes. Income tax benefit for the six months ended June 30, 2007 is primarily based on the Company’s estimated effective consolidated tax rate for the full year plus any tax adjustments.

(4) For the year-to-date period ended June 30, 2007, gains on disposal of fixed assets resulted primarily from the sale of two idle plants, while for the same period in 2006, gains on disposal of fixed assets resulted primarily from the sale of an investment property in Florida and three idle plants.

(more)

CHB/ 8
CHAMPION ENTERPRISES, INC. AND SUBSIDIARIES
OTHER STATISTICAL INFORMATION (UNAUDITED)

	Three months ended									Six months ended
	June 30,			July 1,			%			June 30,			July 1,			%
	2007			2006			Change			2007			2006			Change
MANUFACTURING
Units sold:
HUD-Code		2,752			4,185			(34	%)		4,912			8,950			(45	%)
Modular		1,002			1,246			(20	%)		1,769			2,240			(21	%)
Canadian		430			236			82	%		774			538			44	%
Other		10			25			(60	%)		22			43			(49	%)
Total units sold		4,194			5,692			(26	%)		7,477			11,771			(36	%)
Less: intercompany		86			172			(50	%)		150			353			(58	%)
Units sold to independent retailers / builders		4,108			5,520			(26	%)		7,327			11,418			(36	%)
Floors sold		8,098			11,048			(27	%)		14,463			22,362			(35	%)
Multi-section mix		79	%		83	%					79	%		79	%
Average unit prices, excluding delivery
Total	$	55,100		$	51,300			7	%	$	55,000		$	50,500			9	%
HUD-Code	$	45,400		$	46,000			(1	%)	$	45,400		$	44,700			2	%
Modular	$	75,000		$	66,500			13	%	$	76,000		$	71,200			7	%

#####