EXHIBIT 99.1





                                                    June 7, 2002
                                                    Lee Posey
                                                    Chairman


                PALM HARBOR HOMES ACQUIRES NATIONWIDE HOMES, INC.

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             ACQUISITION EXPANDS BUSINESS BASE INTO MODULAR HOUSING

DALLAS (JUNE 7, 2002) -- Palm Harbor Homes, Inc. (Nasdaq/NM: PHHM) today
announced that it has acquired Nationwide Homes, Inc., a leading modular home
manufacturer headquartered in Martinsville, Va. The all-cash acquisition is
valued at approximately $32 million. Nationwide Homes, a privately-owned
company, generated revenues for 2001 of $57 million, and its acquisition is
expected to be immediately accretive to Palm Harbor's earnings per share for the
Company's current fiscal year ending March 2003.

         Lee Posey, chairman, remarked, "Nationwide is an excellent fit for our
business strategy and our culture. Nationwide's modular homes are built to high
quality standards, can be customized to meet each customer's needs and offer
clear value. They qualify for financing through conventional 30-year mortgages,
which eliminates many of the credit constraints currently being experienced by
the manufactured housing industry. This acquisition is an example of our
strategy of enhancing our growth prospects by using our strong financial
position to acquire companies that complement our existing operations and are
accretive to earnings.

         "This integration of a well-run, well-respected and profitable modular
home producer with a premier manufactured housing corporation is both unique and
ideal. Like Palm Harbor, Nationwide focuses on delivering consistently high
customer satisfaction. From engineering through quality construction processes,
Nationwide offers superior value to its customers. The majority of the homes
built by Nationwide are sold through builders to ultimate homeowners, and this
provides us with an important additional distribution channel. Palm Harbor will
have a wonderful opportunity to offer these builders a vastly expanded array of
factory-built housing choices. We expect to achieve even greater growth and
profitability by expanding the Nationwide business model into a number of new
markets over time."

         Ron Evans, president of Nationwide, said, "On behalf of the entire
Nationwide team, we are very pleased to be joining the Palm Harbor organization.
Our corporate philosophies are closely aligned, and we believe that this
business combination will enhance the career opportunities and potential for our
team members. Supported by the strong financial resources of Palm Harbor,
Nationwide has outstanding prospects for growth. Modular housing offers
consumers a customized, high quality home with the added value of reliable
construction




schedules and a definite cost advantage over site-built homes. We are excited
about the opportunity to link our marketing programs with those of Palm Harbor
and in doing so, expand the sales potential for each company."

         Palm Harbor Homes is one of the nation's leading manufacturers and
marketers of multi-section manufactured homes. The Company markets nationwide
through vertically integrated operations, encompassing manufacturing, marketing,
financing and insurance.



         This press release contains projections and other forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934. These projections and statements reflect the Company's current views with
respect to future events and financial performance. No assurance can be given,
however, that these events will occur or that these projections will be achieved
and actual results could differ materially from those projected as a result of
certain factors. A discussion of these factors is included in the Company's
periodic reports filed with the Securities and Exchange Commission.


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