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, JUNE 18, 2002 -- 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 this Management Report, I want to update you on Champion's outlook
and our view of industry conditions.

Champion Outlook

         Increasingly, through May and early June, it has become apparent that
Champion and the industry are in for another tough year. As a result of
continued tightening of consumer financing and the changeover of wholesale
(floor plan) financing, it appears that industry wholesale shipments could drop
even more than the 4% we projected in our most recent industry forecast. As a
result, our earnings outlook for the remainder of 2002 no longer meets our
earlier estimates and we are now taking further actions to align our capacity
with these lower expectations.

         This year's seasonal upturn has been weak, resulting in a larger loss
than we previously anticipated. We now estimate a loss for the second quarter in
the range of $0.17 to $0.21 per diluted share, excluding gains of $0.07 per
diluted share for debt retirement and charges of $0.06 per diluted share for
costs to close retail locations and to consolidate a manufacturing plant. These
closing costs, which include non-cash fixed asset impairment charges, relate to
our current decision to close 33 retail stores throughout the country and to
consolidate a homebuilding facility. For the quarter, revenues are estimated to
be in the range of $355 million to $365 million and EBITDA in the range of
$500,000 to $3.5 million. This EBITDA forecast excludes the following pretax
items: $5.9 million for gains from debt retirement; $5.0 million for
closing-related costs, including $1.9 million for non-cash fixed asset
impairment charges; and $2.6 million of losses at the locations to be closed or
consolidated.

         In the same quarter a year ago, we had revenues of $428 million and
earnings of $0.02 per diluted share, excluding non-cash fixed asset impairment
charges of $0.01 per diluted share. EBITDA was $19.3 million, excluding $2.8
million for losses at closed retail locations and non-cash fixed asset
impairment charges.




         We continue to manage the business for cash and keep capacity aligned
with demand, just as we've done since the down cycle began. We're keeping tight
controls over capital expenditures and working capital. At May month end, cash
and cash equivalents totaled $77 million, excluding $35 million in restricted
cash for letter of credit collateralization. We had $13 million of floor plan
liability outstanding. Since the beginning of the year, we have retired $58
million of floor plan debt and believe we could reborrow a substantial portion
of this amount from existing floor plan lenders or other sources. The closing of
the retail stores and the consolidating of the manufacturing plant are estimated
to improve cash by over $12 million during the next nine months.

         Our practice of deferring payment of retailer volume discounts until
after homes are sold to consumers has impacted our performance positively and
negatively. This practice differs from many of our competitors who pay discounts
shortly after the homes are purchased for inventory. By incentivizing retailers
to sell homes, we have improved their inventory turns, limited our risks
associated with financially weaker retailers and mitigated our wholesale
repurchase loss exposure. We have lost some wholesale market share, but still
believe that this policy is the right one for us and the industry. May 2002
year-to-date wholesale repurchase losses were $500,000 compared to $3.3 million
for the same period in 2001.

         Our recent capital structure improvements materially strengthen our
ability to work through the remaining industry challenges. By now, we thought
we'd be in a growth mode, particularly when industry wholesale shipment
comparisons turned positive in last year's fourth quarter. Currently, we feel it
is necessary to remain fiscally conservative until the industry demonstrates
consistent year-over-year improvements.

         Retail customer traffic levels remain slightly ahead of a year ago, but
financing approval rates are lower due to the tight credit standards now
maintained by lenders. We're encouraged that our independent retailer
distribution channel is getting stronger. We now have 600 independent retail
locations that are members of our Champion Home Center (CHC) distribution
network, up 27% already this year. These retailers benefit from the programs
offered exclusively to CHCs, including consumer retail financing through
HomePride, our new finance company.

         The startup of HomePride has been smooth. Going after quality not
quantity, our ramp up has been slower than originally planned. That's okay,
because doing it right is much better than doing it too quickly and we are
sticking to our strategy of high quality customers. We're benefiting from CIT's
technologically advanced systems and are processing almost all loan applications
over the Internet.

         With continued weakness in the traditional manufactured housing market,
we're very pleased by the growth in our modular housing business. Sales of these
homes, which are built to local building codes as opposed to the Federal HUD
code, now represent 6.5% of our production, up from 4.5% a year earlier. The
number of these homes sold has grown by 30% through the first five months of
2002.





Industry View

         The industry has many indications that it has stabilized and growth is
on the way. Despite the tight consumer financing and dropping inventories,
industry wholesale shipments for the first four months are essentially flat
compared to the prior year. Consumer traffic is slightly better than a year ago.
Delinquencies and repossessions from the public finance companies appear to be
finally peaking and even dropping! Inventory levels, while shrinking, have very
little more to decline. It is only a matter of when the industry begins to show
positive year-over-year comparisons.

         It's been almost three years since this down cycle began. We are
disappointed that the positive signs we saw in the fourth and first quarters
have been disrupted despite the tremendous progress made by the industry. While
we believe that the worst of the industry correction is behind us, unfortunately
some further fallout remains. In the end, Champion will be there as a strong,
vertically integrated housing company. We appreciate your trust and patience as
we continue to position the company for long-term growth.


         Champion Enterprises, Inc., headquartered in Auburn Hills, Michigan, is
the industry's leading manufacturer and has produced nearly 1.6 million homes
since the company was founded. Following the closings and consolidation
announced today, the company will operate 46 homebuilding facilities in 16
states and two western Canadian provinces and 181 retail locations in 27 states.
Independent retailers, including 600 Champion Home Center locations, and
approximately 400 builders and developers also sell Champion-built homes. The
company also provides financing for retail purchasers of its homes. Further
information can be found at the company's website, www.championhomes.net.

         This Management Report contains certain statements, including
statements regarding industry forecasts and assessments, earnings, revenue and
EBITDA estimates and expected future results, cash flow improvements, and growth
opportunities, 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 other SEC filings, and those discussions
regarding risk factors are incorporated herein by reference.