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EXHIBIT 99.1
[LOGO]
NEWS RELEASE
For immediate release Thursday, March 13, 2003
COACHMEN RV COMPANY GOING AND GROWING ...
MAJOR EXPANSION AT INDIANA AND GEORGIA FACILITIES
127,000 SQ. FT. STATE-OF-THE-ART NEW CLASS C PLANT - MIDDLEBURY, IND.
100,000 SQ. FT. TRAVEL TRAILER & Fifth Wheel Plant - Fitzgerald, Ga.
MIDDLEBURY, INDIANA--Coachmen Recreational Vehicle Company, LLC, a subsidiary of
Coachmen Industries (NYSE: COA), announced plans today to build a new class C
motorhome plant at its Middlebury, Ind. complex. The Company also said it has
agreed to acquire an additional facility in Fitzgerald, Ga. it will use to
expand towable production at its Georgia Division. The increased manufacturing
capacity will help Coachmen meet demand for its popular travel trailer, fifth
wheel and class C motorhome product lines.
Coachmen already broke ground in Middlebury on a state-of-the-art 127,000-sq.
ft. motorhome plant, which is expected to be in operation by early August.
Coachmen expects to add as many as 150 new employees to this new facility over
the next couple of years.
The 100,000-sq. ft. building in Fitzgerald, Ga. will produce travel trailers and
fifth wheels, and should be operational by June. About 50 new employees will be
added to Coachmen RV's Georgia Team when the plant starts production. As the new
plant ramps up production, more employees may be added.
"While many industries have been slashing jobs and operating their factories
well below capacity, demand for Coachmen's RVs has been increasing," said
Michael R. Terlep, President of Coachmen RV Company. "During 2002, Coachmen RV's
wholesale shipments outpaced the industry in combined class A and class C
motorhomes by 65 percent. The same is true for our combined travel trailer and
fifth wheel shipments, as we outpaced the industry by 37.9 percent."
"We are thrilled with Coachmen's decision to grow in Middlebury," said Indiana
Lt. Governor Joe Kernan, who leads the state's economic development efforts as
director of the Indiana Department of Commerce. "The company has been a crucial
part of our state's economy for many years and this expansion further
demonstrates its ongoing commitment to Indiana. We are proud of the team effort
put forth by the Department of Commerce, Middlebury and Coachmen that helped to
make this project a reality."
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Coachmen RV Company Going and Growing ...Major Expansion at Indiana and Georgia
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March 13, 2003
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"As a result of our successful product management strategies and more
importantly, the efforts of the dedicated Team Members of Coachmen RV, we are
very much in a growth mode and gaining momentum in the marketplace," added
Terlep. "So much so that during the last 18 months, we have struggled in
fulfilling the orders for our popular class C motorhomes in a timely manner. At
the same time, strong demand for our recently introduced Chaparral fifth wheel,
Somerset Dream Catcher fifth wheel and Captiva travel trailer has created lead
times for our dealers and retail customers that are much longer than desirable.
The additional production capacity these two plants will provide will enable us
to continue building up our market share, while better serving the needs of our
customers."
The new motorhome plant will be Coachmen's largest RV plant, and also the
Company's first to feature two assembly lines. Utilizing two assembly lines will
increase production efficiencies by segregating higher production-hour models
from lower production-hour models. The new plant also features over 24,000-sq.
ft. of mezzanines for offline manufacturing processes, such as assembling
cabinets, kitchen units and other modules, providing improved material flow and
manufacturing processes. Cranes will lower finished sections for installation in
the motorhomes.
The Company will produce its six class C Coachmen(R) and Shasta(R) product lines
in the plant, and will introduce a seventh class C product line this summer for
the 2004 model year.
"We're certainly looking forward to the completion of this new facility," said
Gary O'Dell, President of the Middlebury Town Council. "It's very modernistic in
design and we're excited to see its outcome. It will make the gateway to the
city look better, and we're very pleased it will add new jobs to Middlebury."
The new Georgia manufacturing facility, located in the former Irwin
Manufacturing plant, was built in 1996 and is approximately one mile from
Coachmen's existing plant. The Georgia Division of Coachmen RV will produce all
nine lines of Coachmen(R) and Shasta(R) brand travel trailers and fifth wheels.
The current 46,000-sq. ft. plant, owned and operated since 1971 by Coachmen RV,
has capacity to produce only four of these product lines.
"Coachmen RV is the number one selling brand throughout the seven southeastern
states serviced by our Georgia Division. It's only logical to add production
capacity to manufacture our entire towable line at our Georgia Division. This
new plant will enable us to continue our market share growth in the Southeast.
The additional capacity at our Georgia Division will also free up much needed
capacity at our Indiana manufacturing complex," Terlep said.
"Coachmen RV was recently ranked the number one selling model of travel trailer
in America, according to 2002 year-end reports issued by Statistical Surveys,
Inc., and has historically ranked as the leading selling model class C motorhome
in the nation. The time is right for adding more production capacity. These
expansion plans will nurture continued growth for Coachmen, as we fully intend
to build upon our momentum," concluded Terlep.
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Coachmen RV Company Going and Growing ...Major Expansion at Indiana and Georgia
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March 13, 2003
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Coachmen Recreational Vehicle Company, LLC markets travel trailers, fifth wheel
trailers, class A and class C motorhomes. A subsidiary of Elkhart, Indiana-based
Coachmen Industries, Inc., Coachmen RV Company was founded in 1964 in
Middlebury, Ind., where its headquarters and largest manufacturing facility are
located. Manufacturing sites are also located in Goshen, Ind., and Fitzgerald,
Ga. WALT DISNEY WORLD(R) Resort has designated Coachmen as the official
recreational vehicle of Disney's FORT WILDERNESS RESORT AND CAMPGROUND and
DISNEY'S WIDE WORLD OF SPORTS(TM) complex in Florida.
Coachmen Industries, Inc. is one of the nation's leading manufacturers of
recreational vehicles with well-known brand names including COACHMEN(R), GEORGIE
BOY(TM), SHASTA(R) and VIKING(R). Coachmen Industries is also the largest
modular home producer in the nation with its ALL AMERICAN HOMES(R) and
MOD-U-KRAF(R) subsidiaries. Modular commercial and telecommunication structures
are manufactured by the Company's Miller Building Systems subsidiary. Prodesign,
LLC is a subsidiary that custom thermoforms composite and plastic parts for
numerous industries under the PRODESIGN(R) brand. Coachmen Industries, Inc. is a
publicly held company with stock listed on the New York Stock Exchange (NYSE)
under the COA ticker symbol.
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Investors are cautioned not to
place undue reliance on forward-looking statements, which are inherently
uncertain. Actual results may differ materially from that projected or suggested
due to certain risks and uncertainties including, but not limited to: the
potential fluctuations in the Company's operating results; the condition of the
telecommunications industry which purchases modular structures; the availability
and the price of gasoline; the Company's dependence on chassis suppliers;
interest rates; the availability and cost of real estate for residential
housing; the ability of the housing and building segment to perform in new
market segments where it has limited experience; competition; government
regulations; legislation governing the relationships of the Company with its
recreational vehicle dealers; the impact of consumer confidence and economic
uncertainty on high-cost discretionary product purchases; the impact of
potential war against Iraq on the economy, consumer confidence, and oil
supplies; and other risks identified in the Company's SEC filings.
For more information:
Rich Allen, Corporate Communications, Coachmen Industries, Inc.
Phone: 574-262-0123 (Elkhart, IN)
E-mail: rallen@coachmen.com
World Wide Web: www.coachmenrv.com
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