COACHMEN INDUSTRIES, INC.

2831 Dexter Drive • P.O. Box 3300 • Elkhart, Indiana 46515 • 574/262-0123 • Fax 574/262-8823

NEWS RELEASE

For immediate release Monday, August 27, 2007

COACHMEN INDUSTRIES, INC. SUSPENDS DIVIDEND

Elkhart, Ind. - Coachmen Industries, Inc. (NYSE: COA) today announced that its Board of Directors has voted to suspend the payment of its quarterly dividend.  

“As previously announced, our Housing Group generated profits in the second quarter, our balance sheet is sound, and we have more than $40 million available on our credit lines.  However, given the roiling of the housing markets due to the sub-prime mortgage crisis, as well as other uncertainties creating challenges in both of our business segments, it is prudent to conserve cash and insure that we maintain comfortably adequate resources to fund the product development and marketing initiatives currently underway which are critical to generating earnings and providing acceptable returns to our shareholders in the future,” commented Richard M. Lavers, President and Chief Executive Officer.  “Therefore, out of an abundance of caution, the Board agreed with senior management’s recommendation to take this action.  When we return our Company to generating profits, we will certainly revisit the payment of a dividend.”  

Coachmen Industries, Inc. is one of America’s leading manufacturers of recreational vehicles, systems-built homes and commercial buildings, with prominent subsidiaries in each industry.  The Company’s well-known RV brand names include COACHMEN^â, GEORGIE BOYÔ, SPORTSCOACH^â and VIKING^â.  Through ALL AMERICAN HOMES^®, Coachmen is one of the nation’s largest producers of systems-built homes, and also a major builder of commercial structures with its ALL AMERICAN BUILDING SYSTEMSÔ products.  Coachmen Industries, Inc. is a publicly held company with stock listed on the New York Stock Exchange (NYSE) under the ticker COA.

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, increased interest rates the availability for floorplan financing for the Company’s recreational vehicle dealers and corresponding availability of cash to Company, uncertainties and timing

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Coachmen Industries, Inc. Suspends Dividend

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August 27, 2007

with respect to sales resulting from recovery efforts in the Gulf Coast, uncertainties regarding the impact on sales of the disclosed restructuring steps in both the recreational vehicle and housing and building segments, the ability of the company to generate taxable income in future years to utilize deferred tax assets and net operating loss carry-forwards available for use, the impact of performance on the valuation of intangible assets, the availability and the price of gasoline, price volatility of raw materials used in production, the Company’s dependence on chassis and other suppliers, the availability and cost of real estate for residential housing, the supply of existing homes within the company’s markets, the impact of home values on housing demand, the impact of sub-prime lending on the availability of credit for the broader housing market, the ability of the Housing and Building Group to perform in new market segments where it has limited experience, adverse weather conditions affecting home deliveries, competition, government regulations, legislation governing the relationships of the Company with its recreational vehicle dealers, dependence on significant customers within certain product types, consolidation of distribution channels in the recreational vehicle industry, consumer confidence, uncertainties of matters in litigation, 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:

     Jeffery A. Tryka, CFA

     Director of Planning and Investor Relations

     574-262-0123

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