COACHMEN INDUSTRIES FINALIZES TRANSACTION, SELLS LUX COMPANY


COACHMEN RE-DEPLOYS ASSETS INTO CORE BUSINESSES

ELKHART,  Ind., Oct. 2 /PRNewswire/ -- Coachmen  Industries,  Inc. (NYSE:  COA -
news) announced today it has closed on its earlier  announced sale of the assets
of the Lux Company,  Coachmen  Industries'  manufacturer of seating products for
leisure use,  located in Elkhart.  The  purchase  includes  Lux  Company's  real
estate, machinery and equipment, inventories and receivables. Lux employees will
also be retained by the buyer.

Officials  from Coachmen  said the sale of Lux is part of its asset  utilization
program to divest  non-core  assets and  direct  its  energies  and focus on the
company's two core businesses,  recreational  vehicles and modular construction.
"With this divestiture we continue to redirect assets into our core businesses,"
stated Claire C. Skinner,  Coachmen Chairman,  CEO and President.  "With a clear
focus on our core businesses,  we are well positioned to continue to execute our
strategic  plan for growth  meeting the needs of our  customers  while  building
shareholder value."

Coachmen Industries, Inc. is one of the nation's leading full-line manufacturers
of recreational  vehicles. The company is also a leader in modular construction.
Coachmen is one of the industry's best-known brand names of RVs and All American
Homes, one of the company's modular divisions,  is America's leading producer of
modular homes.  Coachmen is a publicly held company with stock listed on the New
York Stock Exchange (NYSE) under the COA ticker symbol.