COACHMEN INDUSTRIES EXPANDS MODULAR HOME SECTOR

           COACHMEN FINALIZES TRANSACTION, ACQUIRES MOD-U-KRAF HOMES

ELKHART,  Ind., June 22 /PRNewswire/ -- Coachmen  Industries,  Inc. (NYSE: COA -
news) of Elkhart,  Indiana closed on a transaction  today which  officially adds
Mod-U-Kraf Homes,  Inc. (OTC: MODU - news) to Coachmen's  expanding modular home
sector. Coachmen acquired the Rocky Mount, Virginia-based company for $11.75 per
share, or a total consideration of nearly $10 million.  The closing comes on the
heels of a Mod-U-Kraf shareholders meeting conducted on Wednesday, June 21 where
shareholders voted to approve the transaction. Mod-U-Kraf's shareholders will be
receiving instructions for exchanging their stock certificates for cash payments
in the mail.

"We are pleased Mod-U-Kraf shareholders have voted to approve this transaction,"
stated  Claire C.  Skinner,  Chairman  and Chief  Executive  Officer of Coachmen
Industries. Dale H. Powell, Mod-U-Kraf's President and Board Chairman concurred,
"We are very excited to join the Coachmen  team.  We believe  strongly  that the
association  with  Coachmen  will  provide us the  opportunity  to continue  our
growth, expand our facilities and offer our employees greater  opportunities." A
letter of intent to  acquire  all  outstanding  Mod-U-Kraf  shares was signed on
March 13, 2000.  The  proposal to acquire the modular home builder  demonstrated
Coachmen's  commitment  to a strategic  plan that  includes  growing its housing
group  through  expansion  of  existing  business  and  through  acquisition  of
companies that complement Coachmen's business goals. "Because Mod-U-Kraf matches
up well with our vision, values, practices and philosophies, we wanted to pursue
this acquisition opportunity," explained Skinner.

Mod-U-Kraf,  who will retain both  management and  employees,  will operate as a
separate entity under the Coachmen housing group. Also part of the housing group
is All American Homes, with five manufacturing  locations. All American Homes is
the leading  producer of modular,  precision-built  homes in the U.S. Unlike the
manufactured  housing industry,  Coachmen's modular homes are built to local and
state codes versus HUD codes.

Though  Mod-U-Kraf  is involved in the  production  of modular  housing like All
American  Homes,  the company  offers  Coachmen  new  ventures  with its Special
Projects Division.  Serving the commercial building sector, the Special Projects
Division builds motels, townhouses,  condominiums,  apartments,  dorms, business
offices,  day care  facilities and medical  offices.  All buildings  comply with
commercial  building codes and are reviewed by a third party inspection  agency.
Building  homes  for over 28 years,  Mod-U-Kraf  currently  operates  out of two
plants.  The company  markets its products in Virginia,  North  Carolina,  South
Carolina,  West Virginia,  Maryland,  Northern  Georgia,  Eastern  Tennessee and
Eastern Kentucky. In 1999, Mod-U-Kraf's sales were in the $22 million range.

Coachmen  Industries,   Inc.  is  one  of  the  nation's  leading  producers  of
recreational vehicles.  Recreational vehicles comprised 83 percent of Coachmen's
1999 sales and modular homes represented 17 percent.