EXHIBIT 99.1


MOODY'S LOWERS LONG-TERM RATINGS OF FLEETWOOD SENIOR IMPLIED TO B1 AND
SUBORDINATED TO B3

             APPROXIMATELY $287 MILLION OF DEBT SECURITIES AFFECTED



         Moody's Investors Service lowered its ratings of Fleetwood Enterprise.
Inc.'s long-term debt. Ratings lowered are: senior implied to B1 from Ba1;
subordinated debt to B3 from Ba3; and, trust preferred to "b3" from "ba3". The
outlook for these ratings is negative. The downgrade reflects Moody's
expectation that the highly challenging operating conditions in both of
Fleetwood's markets - manufactured housing and recreational vehicles - will
further erode the company's already weak debt protection measures and financial
flexibility. Operating challenges facing Fleetwood include: declining
availability of both wholesale and retail financing in the manufactured housing
sector, an oversupply of inventory and repossessed units in this sector, and
rapidly eroding demand in the recreational vehicle (RV) market.

         Approximately 50% of Fleetwood's revenues and 40% of its earnings have
historically been generated by its manufactured housing operations. The most
critical challenge facing the company is the contraction of available financing
to retail purchasers of manufactured housing, and the considerable concentration
of financing activity among a small number of lenders. Through early 2000, three
financial institutions - Conseco Finance, GreenPointe Financial, and Associates
First Capital - accounted for about two-thirds of the retail financing for
purchases of manufactured housing. Following a period of aggressive extensions
of credit to this sector and a dramatic loosening in underwriting standards,
these and other lenders experienced significant losses. As a result, Associates
exited the market in early 2000, and remaining lenders, including Conseco and
GreenPoint, have dramatically curtailed their lending to the sector by
tightening credit standards and reducing the amount of capital allocated to
manufactured housing. These restrictive lending conditions have significantly
eroded demand. They have also contributed to a large rise in the stock of
repossessed units and a growing overhang of unsold new units. This, in turn, has
resulted in downward pricing pressure within the sector. For the third quarter
ending January 31, 2001, Fleetwood reported that preliminary revenues had fallen
by 38% from the year earlier period, and nine-month revenues were down by 25%.

         The RV sector has accounted for about 50% of Fleetwood's revenues and
60% of its earnings. The weakening U.S. economy, in combination with eroding
consumer confidence, has contributed to severe declines in shipment levels.
Third quarter revenues were down by 40% and nine-month revenues were down by
35%.

         Fleetwood has taken some aggressive efforts to close excess production
capacity, reduce inventory levels, and lower its cost structure in the face of
the contraction within these two markets. Despite these efforts, the company's
operating performance for the six month

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period ending October 31, 2000 eroded considerably: operating income before
non-recurring charges was about $3 million compared with a $112 million profit
for the year earlier period, and EBITDA before non-recurring charges was $21
million versus $122 million in 1999. Moreover, the company expects to report
operating losses for both the third quarter (ending January 31) and the fourth
quarter (ending April 30) of 2001.

         This rapidly eroding operating environment has severely stressed
Fleetwood's debt protection measures and financial flexibility. For the LTM to
October 31, 2000 debt/EDITDA before non-recurring charges was 5.6 times, EBITDA
before non-recurring charges/interest was only 2.9 times, and
debt/capitalization was about 50%. This financial position could be further
stressed as a result of the large contingent liability associated with
repurchase commitments to providers of floor plan financing, and the risk of
impairment to $250 million in goodwill associated with its manufactured housing
retail outlets.

         Several initiatives recently undertaken by Fleetwood, could help to
mitigate the near-term strain on its financial position: inventory reductions
helped raise cash and marketable securities to $164 million compared with debt
and preferred stock of $541 million at October 31, 2000; a reduction in common
dividend payment should save about $20 million in annual cash flow; and, a $40
million line of credit from Ford Motor Credit Company is secured by RV chassis
inventory and will provide additional liquidity. In addition, Fleetwood is
currently negotiating to obtain a secured line of credit which would in part, be
used to replace some or all of the approximately $115 million in existing debt
that finances the company's manufactured housing retail inventory. Despite these
initiatives, Fleetwood's financial flexibility remains limited. If the company
is unable to finalize the new borrowing arrangements, and if it cannot improve
the prospects for slowing the pace of losses into early fiscal 2002, there could
be further pressure on the current ratings.

         Fleetwood Enterprises, Inc., headquartered in Riverside, CA, is the
nation's largest producer of recreational vehicles, and a leading producer and
retailer of manufactured housing.


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