Exhibit 99.1

           FLEETWOOD ANNOUNCES MOTOR HOME PRODUCTION CONSOLIDATION

          -- Production of motor homes in Paxinos, Pennsylvania,
               will be relocated to plants in Decatur, Indiana --


Riverside, Calif., October 10, 2008 - Fleetwood Enterprises, Inc. (NYSE:FLE)
announced today that it is relocating motor home production from its plant in
Paxinos, Pa., to its plants in Decatur, Ind. The Paxinos manufacturing
facility, which builds Class A gas and Class C products, will cease operations
effective early December 2008. The full line of products currently built in
Paxinos will be transferred to the Decatur manufacturing complex, which
currently builds Class A diesel products, during the fiscal third quarter.
Fleetwood's other Class A gas and Class C facility in Riverside, Calif., will
not be affected by this consolidation.

"This is a difficult but necessary operational change," said Paul Eskritt,
president of Fleetwood's RV Group. "We are now in the fourth year of a
declining motor home market and current forecasts indicate further declines
into 2009. We firmly believe that the market will rebound, and we have enough
excess capacity in Decatur to handle this consolidation as well as a healthy
increase in market demand. Our Decatur personnel have experience building both
Class A and Class C motor homes, so we expect the transition to be smooth. In
addition to greater capacity utilization, other advantages of the relocation
include the closer proximity of our Indiana plants to most of our primary
suppliers, as well as a larger portion of our dealer network in the East."

This consolidation will not affect the availability of Fleetwood motor homes
to dealers or consumers in the marketplace. All current brands and models will
continue to be offered. Fleetwood remains committed to providing the best
quality, highest value products to all its customers.

The Company expects to recognize costs related to the consolidation of
approximately $2.2 million in its fiscal second quarter, with an additional
$2.0 million in its fiscal third quarter. Any potential impairment charges on
the Paxinos plant are being evaluated. Ongoing savings are estimated to
approach $1.5 million per quarter beginning with the fiscal fourth quarter.
Cash generated by a permanent reduction to working capital by the end of the
fiscal third quarter is expected to more than offset the costs of the
consolidation.

"We are naturally concerned about the impact this action has on our
associates, many of whom have long-term service with Fleetwood," Eskritt said.
"This decision in no way reflects on our excellent workforce or the Paxinos
community. The difficult decision to close the plant is strictly market-
related. Our associates were notified today of the consolidation, and they
will be entitled to pay and benefits for at least 60 days. In addition, career
assistance will be provided to all those affected."

The Paxinos plant, which opened in 1973, currently employs approximately 325
people.

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 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 costs, charges and savings related to
the consolidation, 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.


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