EXHIBIT 99.1


                                                                  Sept. 17, 2002
                                                                  Lee Posey
                                                                  Chairman

                         [PALM HARBOR HOMES LETTERHEAD]



                        PALM HARBOR HOMES IN DISCUSSIONS
                    TO OBTAIN ALTERNATE FLOOR PLAN FINANCING

                                   ----------

                     EXPECTS NO CHANGE IN CURRENT OPERATIONS

DALLAS (SEPT. 17, 2002) -- Palm Harbor Homes, Inc. (Nasdaq/NM: PHHM) today
announced that it is in discussions with a number of financial organizations to
provide floor plan financing. The Company is responding to Deutsche Bank's
decision to discontinue the portion of its business that provided financing for
inventories of manufactured homes. The Company currently has floor plan
facilities totaling $140 million of which $105 million is with Deutsche Bank and
two participating financial institutions.

         "We are highly confident that we will be able to obtain replacement
financing for the Deutsche line," remarked Lee Posey, chairman. "We have the
advantage of a very strong balance sheet that as of June 30, 2002 included $31.3
million in cash, shareholders' equity of $255.9 million and long-term debt of
only $2.5 million. We expect to accomplish this transition without any impact on
our ongoing operations. In our opinion, this is simply one more opportunity for
Palm Harbor to capitalize on the strength of our balance sheet in an industry
environment that is contracting."

         Palm Harbor Homes is one of the nation's leading marketers of factory
built homes. The Company markets nationwide through vertically integrated
operations, encompassing manufactured housing, modular housing, chattel and
mortgage bank financing, as well as 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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