FOR IMMEDIATE RELEASE

INVESTOR AND MEDIA CONTACTS:

Anthony S. Cleberg Colleen T. Bauman
Chief Financial Officer Investor Relations
(248) 340-9090 (248) 340-7731

CHAMPION MANAGEMENT REPORT

Auburn Hills, Michigan, September 18, 2001 - The following management report
from Walter R. Young, Chairman, President and CEO of Champion Enterprises, Inc.
(NYSE: CHB), was posted to Champion's website and sent to interested parties
today.

With the horrific events that occurred last week, we'd like to express our
concerns to all those who have been affected, including our shareholders and
financial partners. Our response, both for the country and here at Champion,
must be to continue on and to minimize the disruption. With that in mind, we
issue this Management Report.

This month I'll highlight current industry conditions and update you on the
progress we're making as we continue to work through this industry cycle.

CURRENT MARKET CONDITIONS.

INDUSTRY. Obviously the industry situation is different before and after
September 11th. Before then, total demand held up well, down only 13% from a
year earlier. However, approximately 30% of this demand was from repossessions,
which are estimated to be about 90,000 homes this year. Retailer inventories
continued downward, by about 10,000 homes this year and 55,000 since mid-1999.
As a result, we are estimating industry new HUD-code shipments will be down this
year to 195,000 homes, the lowest since 1991. Industry shipments in July were
off 17.5% and we feel that August was relatively better.

OUR INDUSTRY ESTIMATES AND FORECASTS

(Homes, in 000's) 1999 2000 2001 2002
---- ---- ---- ----

Total consumer demand 393 358 -9% 305 -15% 305
Consumer repossessions 50 75 +50% 90 +20% 70 -22%
New consumer sales 343 283 -17% 215 -24% 235 +9%
New retail inventory 148 116 96 81
Production shipments 349 251 -28% 195 -22% 220 +13%

While we estimate these numbers using available data for total HUD-code
demand, repossessions, retail sales, retailer inventories and production, the
available data is becoming less reliable. For example, tracking of HUD-code
homes is becoming more difficult because the majority of the industry's
financing is now with conventional loans, which are not captured in sales data
for certain states. Also, the growing number of modular homes built and sold in
the industry is not tracked in any of the available data. With these trends we
believe that the industry is performing better than the above estimates
indicate. We are working with trade associations and others to create more
timely and accurate industry numbers.

Since September 11th consumer traffic has slowed considerably. The length
and severity of consumer reactions will depend on many factors, few of which are
positive. Therefore, while there will be little impact on industry statistics in
September, the future will be affected. The impact of the terrorist attack is
impossible to predict during the next six months as it comes on top of our
industry's normal seasonally slower period.

CHAMPION BUSINESS UPDATE. For the quarter, we estimate that our sales should be
about $440 million, which will be down only 6% from a year ago when revenues
totaled $466 million. With sales off 39% in the first quarter and 20% in the
second quarter, this will be a dramatic sequential improvement. The progress
we're making will be reflected in our earnings, which should be in the range of
$0.03 to $0.06 per diluted share for the quarter. This amount will compare to an
$0.08 per diluted share loss a year ago and will be our first positive
year-over-year earnings comparison since the down cycle began more than two
years ago. An update on each of our businesses follows:

MANUFACTURING. Profitability at our manufacturing operations continues to
improve. For the quarter, manufacturing margins as a percent of sales should be
better than the 3.5% in the third quarter of last year excluding nonrecurring
items. August incoming wholesale order rates were up about 8% per plant from a
year ago and our wholesale backlog at the end of the month totaled about $61
million, rising from $43 million at the end of June. Our independent
distribution continues to benefit from improved business practices and low
inventory levels, which declined slightly again during the month.

RETAIL. On a same store basis, consumer traffic at company-owned retail
locations was down about 6% year-over-year in August. This compares to a 13%
drop in the second quarter. Inventory levels now average 13 new homes per
location, down from 15 at the beginning of the quarter and below our original
goal for the end of the year.

At the end of August, our floor plan payable was reduced to $73 million,
$52 million of which was with Conseco Finance. We recently amended our floor
plan agreement with Conseco and now have targets to reduce borrowings with them
to $48 million by September and $40 million by year end. Floor plan credit lines
with other finance companies total $30 million and we continue to look for other
financing sources.

GENESIS. Genesis continues to ramp up, with August year-to-date sales to
builders and developers increasing substantially from a year ago. These homes
now represent over 7% of wholesale shipments (up from 4% in 2000) and 13% of
wholesale revenues (compared to 7% last year). The 12 plants building these
homes now have 42% of their production dedicated to this initiative as they
transition to 100% of production over the next few years.

Efforts to reduce inventory, lower debt and keep tight controls over
expenses and cash flows continued in August. Consolidated inventories declined
slightly for the month and are down 18% year-to-date. We've paid down our debt
by $42 million this year, including $8 million in August. Net of cash, total
debt as a percent of total capital was 45% at the end of the month, compared to
50% at the end of June.

Our drive to strengthen our capital structure and to increase profitability
was designed so that we would be well positioned coming out of the industry
balancing of the past two years and economic slowdown of the past year. These
same actions better prepare us for whatever occurs in the coming weeks and
months.

As a reminder, our third quarter results will be announced on October 17,
2001. We'll talk then.

Walt Young

Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is the
industry's leading manufacturer and has produced more than 1.5 million homes
since the company was founded. The company operates 49 homebuilding facilities
in 16 states and western Canada and 230 company-owned retail centers in 28
states. Champion's homes are also sold by over 1,000 independent retail
locations that have joined either the Champion Home Center or Alliance of
Champions retail distribution networks. Further information can be found on our
website, www.championhomes.net.

This management report contains certain statements, including statements
about sales, margins and profitability, assessments of future industry trends
and forecasts, consumer loan performance, prospects for our independent
retailers, the effect of retail programs, short-term and long-term goals, and
initiatives and strategies, which could be construed to be forward looking
statements within the meaning of the Securities and Exchange Act of 1934. These
statements reflect the company's views with respect to future plans, events and
financial performance. The company does not undertake any obligation to update
the information contained herein, which speaks only as of the date of this
management report. The company has identified certain risk factors which could
cause actual results and plans to differ substantially from those included in
the forward looking statements. These factors are discussed in the company's
most recently filed Form 10-K, and that discussion regarding risk factors is
incorporated herein by reference.