Exhibit 99.1


             FLEETWOOD REPORTS DEFINITIVE AGREEMENT
                REACHED TO EXIT RETAIL BUSINESS


Riverside, Calif., July 7, 2005 - Fleetwood Enterprises, Inc.
(NYSE:FLE), one of the nation's largest producers of recreational
vehicles and manufactured housing, announced today that it has reached
a definitive agreement with two retail subsidiaries of Clayton Homes,
Inc. to sell the majority of the operating assets of Fleetwood Retail
Corp. (FRC), Fleetwood's manufactured housing retail company.

"Clayton Homes is an industry leader that will be a force in
manufactured housing for years to come," said Elden Smith, president
and CEO of Fleetwood Enterprises. "They are a well capitalized company
with a quality management team. Clayton is also a good customer of
Fleetwood and will be an ongoing partner as they continue to buy
Fleetwood products for former FRC locations."

Closing of the transaction is subject to customary conditions,
including additional due diligence and obtaining certain consents and
regulatory approvals. The sale price of $74 million includes the
inventory, fixed assets, and prepaid rent at selected Fleetwood-
operated stores. Fleetwood will retain ownership of 22 stores sublet to
an independent dealer and a handful of previously closed stores, as
well as various other assets with an estimated fair market value of
$41.7 million. In connection with the anticipated sale of FRC,
Fleetwood has recorded asset impairment charges of $50.8 million in the
fourth quarter.

Upon closure of the transaction, which is presently projected to be
early in Fleetwood's second fiscal quarter of 2006, the Company will
pay off its retail flooring facilities and FRC's portion of the
Company's secured credit facility.  As of fiscal year end, these debts
totaled approximately $80 million.

Fleetwood is also selling the retail loan portfolio of its manufactured
housing finance company, HomeOne Credit Corp. The Company has entered
into a non-binding letter of intent with Vanderbilt Mortgage, an
affiliate of Clayton Homes. It is currently anticipated that the
closing of the sale will occur during the first quarter of fiscal 2006.
Management expects that the portfolio will sell at a slight discount to
its carrying value, which was $70.9 million as of April 24, 2005. Upon
the sale of that asset, the Company will pay off the warehouse line of
credit, which was $40.7 million at the end of the fiscal year.

These transactions, combined with expected cash charges of
approximately $5-7 million in fiscal 2006, should result in a slightly
positive cash effect for Fleetwood after paying related liabilities.

About Fleetwood

Fleetwood Enterprises, Inc. 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
www.fleetwood.com.

About Clayton Homes

Clayton Homes and its subsidiaries (www.clayton.net) make up a
vertically integrated manufactured housing company with 32
manufacturing plants, 392 company-owned stores, more than 1,400
independent retailers, 83 manufactured housing communities and
subdivisions, and financial services operations that provide mortgage
services for more than 400,000 customers and insurance protection for
135,000 families.

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 10-K and other SEC filings. These risks and
uncertainties include, without limitation, the cyclical nature of both
the manufactured housing and recreational vehicle industries; ongoing
weakness in the manufactured housing market; continued acceptance of
the Company's products; the potential impact on demand for Fleetwood's
products as a result of changes in consumer confidence levels; the
effect of global tensions on consumer confidence; expenses and
uncertainties associated with the introduction and manufacturing of new
products; the future availability of manufactured housing retail
financing, as well as housing and RV wholesale financing; exposure to
interest rate and market changes affecting certain of the Company's
assets and liabilities; availability and pricing of raw materials;
changes in retail inventory levels in the manufactured housing and
recreational vehicle industries; competitive pricing pressures; the
ability to attract and retain quality dealers, executive officers and
other personnel; the Company's ability to successfully meet its
obligations with respect to Section 404 of the Sarbanes-Oxley Act; and
the Company's ability to obtain financing needed in order to execute
its business strategies.

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