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[LOGO]
COACHMEN INDUSTRIES, INC.
2831 Dexter DriveoP.O.Box 3300oElkhart, Indiana 46515
574/262-0123oFAX 574/262-8823
For immediate release Monday, August 25, 2003
COACHMEN(R) 2004 RVs EARN RAVE REVIEWS, PRODUCE $100
MILLION IN ORDERS
DEALERS THRILLED WITH ENTIRE LINE, OPERATIONAL CHANGES, NEW CONCORD "C+"
MIDDLEBURY, IND. - The "Wow! Factor" was on full display at the Coachmen
Recreational Vehicle Company's recent Dealer Seminar in Dallas. Coachmen RV
Company is a subsidiary of Coachmen Industries, Inc. (NYSE: COA).
Coachmen introduced its 2004 product lineup to an overwhelmingly enthusiastic
reception by its dealers. Revamped interiors and exteriors, innovative features,
dealer-requested product upgrades and a hot new Class "C+" motorhome - the sleek
Concord(TM) - were all greeted with a big thumbs-up by everyone in attendance.
And, $100 million in orders for the full range of 2004 Coachmen(R) recreational
vehicles.
"Everything looked gorgeous - there's no other way of putting it. They really
hit the nail on the head this year. The attention to detail, the fit-and-finish
- - it takes quality manufacturing to do it right like this. The entire display
looked wonderful, and all the 2004 models look great," said Marc LaBrecque,
President of Diamond RV Centre in Whatfield, Mass.
Mike Johnson, Owner of Texas Happy Camper in Burleson, Tex., was equally excited
about Coachmen's 2004 lineup. "They've got the right stuff for this year - an A+
for Coachmen. They just blew us away with their new interiors. I'm happy with
everything, and I've already sold all the units I ordered from the Seminar.
We're planning on a very good year."
"In my 20 years with this Company, this is the most positive reception our
dealers have ever had to the Company as a whole," stated Michael R. Terlep,
President of Coachmen Recreational Vehicle Company. "They were pleased with
everything: the product, service, operations, the attention to detail and the
fact that the product had come so far. Our efforts this last year to refine,
redefine and strategically position our products and model lines to offer our
dealers the total complete solution to attack the major market segments is
second to absolutely no one."
At the Seminar, dealers were able to view the 2004 models and place orders, and
attend various informational seminars and workshops. They also heard
presentations about the new
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Coachmen(R) 2004 RVs Earn Rave Reviews, Produce $100 Millin in Orders
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August 25, 2003
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models, the operational changes the Company was taking to both increase and
improve production (including the addition of product managers and two new
plants going into operation), and why the Company is poised for a strong,
successful year.
"The products on display at our Dealer Seminar reflect our ongoing commitment to
providing quality products our dealers can sell, and that exceed our customers'
expectations for enjoyment and satisfaction. During 2002, Coachmen's wholesale
shipments outpaced the industry in combined Class A and Class C motorhomes by 65
percent, and combined travel trailer and fifth wheel shipments by 37.9 percent.
The operational changes we've made and production facilities we've added should
keep that momentum going and increase our market share in all product
categories," added Terlep.
Terlep also said Coachmen listened to product suggestions from a variety of
sources, including its retail customers, its Dealer Council and members of the
Coachmen Caravan Camping Club, the nation's largest manufacturer-sponsored RV
Club. The Company then challenged its product development and design teams to
take the information they received and produce a lineup that would exceed
everyone's expectations. Judging by the response of the dealers, they succeeded.
"The products were overwhelmingly, absolutely wonderful. They literally took my
breath away. The `Wow!' is definitely back," said a happy Peter Kinden, General
Manager of Stier's RV Sales in Bakersfield, Calif.
The new Concord(TM) garnered the most favorable attention and created the most
excitement. A mini-motorhome without the normal front overhead bunk area, the
Concord(TM) will appeal to couples and Class A aficionados. Its curved,
eye-catching design includes a slideout, a high soft-touch ceiling, a front
entertainment center with a 24" TV and DVD player, and five large exterior
storage compartments, including Coachmen's ample and innovative Stow-n-Go(TM)
garage-like compartment in the rear, complete with built-in shelves.
There were numerous other models that had Coachmen RV dealers fired up to get
back to their dealerships and start selling, such as the new Class C
Freelander(TM) that features a King Bed. A long-time sales stalwart, the
Catalina(R) travel trailer and fifth wheel, was completely revamped inside with
a sparkling new look. The dazzling Sportscoach(R) Elite diesel pusher earned
praise for its one-piece molded fiberglass roof, triple slideout floor plans and
King Dome in-motion satellite system.
"A king bed in a Class C is great to see. Coachmen is ready to take over the
Class C market," Johnson commented.
"The Concord(TM) is simply phenomenal, and is a great product. And everything in
the Sportscoach(R) Elite is on target. It's a killer unit," said LaBrecque.
Throughout the Seminar, Coachmen dealers continued to be impressed by the
features and technology on display throughout the 2004 lineup.
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Coachmen(R) 2004 RVs Earn Rave Reviews, Produce $100 Millin in Orders
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August 25, 2003
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For example, the Sony Dream System speakers are recessed in the ceiling for a
clean look, and include a patent-pending Coachmen design innovation that lets
each speaker be rotated 180 degrees for complete listening enjoyment. Redefining
dinette seats, the Stanford and Boston dinettes offer the residential appeal of
a sofa with a comfortable innerspring seating design. Arched cathedral windows,
electronic fireplaces, hidden safes, Site Rite Dash(TM) for increased driver
visibility, soft-touch ceilings - dealers found something to like in every
model.
"The `Wow!' is here in a big way," exclaimed Johnson. "I'm happy and very
pleased with everything. Coachmen is the class of the industry."
Coachmen RV dealers also found new operational changes to their liking as well.
In order to provide a better Company focus on their different product
categories, Terlep discussed the recent hiring of two new product/sales
managers, Mike Scheetz and Jon Gallagher. Scheetz will oversee the diesel pusher
line while Gallagher will handle the Class Cs.
"The product managers will allow us to expand our markets better by providing
more focus on each market segment, and improve our speed and execution within
each market as well," said Terlep, adding that the Company planned to hire
several more in the near future.
"Getting product managers is great outside-the-box thinking," said LaBrecque.
"It's a very good idea that will really pay off down the road because they'll be
a big asset to dealers."
To further improve market focus, Terlep also reported on Coachmen's increased
production capacity, with two new plants now in operation. A state-of-the-art
127,000-sq. ft. Class C plant on the Company's Middlebury, Ind., complex 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.
In Fitzgerald, Ga., a new 100,000-sq. ft. towable plant recently began
production. Located approximately one mile from Coachmen's existing plant in
Fitzgerald, the Georgia Division will produce all nine lines of Coachmen(R) and
Shasta(R) brand travel trailers and fifth wheels.
"While many industries have been slashing jobs and operating their factories
well below capacity, demand for Coachmen's RVs has been increasing. The timing
is perfect for adding more production capacity as our momentum in the market
continues to gain speed, and these expansion plans will nurture continued growth
for Coachmen, as we fully intend to build upon this momentum. The additional
production capacity of these two plants will enable us to continue to increase
our market share, while better serving the needs of our customers," said Terlep.
With a powerful product lineup, product managers to focus on specific markets
and increased production capacity, Coachmen RV dealers left the Seminar filled
with enthusiasm for the coming year.
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Coachmen(R) 2004 RVs Earn Rave Reviews, Produce $100 Millin in Orders
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August 25, 2003
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"Coachmen really loaded our guns this year. I see a good year ahead, and bigger
growth than last year. We're going to rock `n' roll," predicted LaBrecque.
"This is a great time to be a Coachmen RV dealer," said Kinden.
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(R), SHASTA(R), SPORTSCOACH(R) and VIKING(R). Coachmen Industries is also one
of the largest systems-built home producers in the nation with its ALL AMERICAN
HOMES(R) subsidiary. Modular commercial 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, FURTHER DEVELOPMENTS
IN THE WAR ON TERRORISM AND RELATED INTERNATIONAL CRISES, 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, Ind.)
Email: rallen@coachmen.com
World Wide Web: www.coachmenrv.com
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