EXHIBIT 99.1



NEWS RELEASE

FOR IMMEDIATE RELEASE

AUGUST 18, 2003                            CMH CONTACT: CARL KOELLA, TREASURER
                                                           PHONE: 865-380-3206
                                                           FAX:   865-380-3784



                   CLAYTON HOMES WILL APPEAL COURT'S DECISION

Clayton Homes announced that a Tennessee trial court has refused to halt at a
preliminary stage the attempt by the Denver Area Meat Cutters and Employers
Pension Plan to enjoin its merger with a subsidiary of Berkshire Hathaway. The
court acknowledged that it made no finding of any wrongdoing, but it refused to
stop the plaintiff's action. While the merger has already been made effective by
the filing of the Certificate of Merger with the Delaware Secretary of State,
the Tennessee trial court's order precludes any additional actions in
furtherance of the merger including payment of the merger consideration to
stockholders. Clayton Homes believes that the decision of the trial court
conflicts with Delaware law and will seek an expedited appeal.

Clayton Homes, Inc. is a vertically integrated manufactured housing company with
20 manufacturing plants, 296 Company owned stores, 611 independent retailers, 86
manufactured housing communities, and financial services operations that provide
mortgage services for 168,000 customers and insurance protection for 100,000
families. Clayton Homes formerly traded on the New York Stock Exchange under the
symbol CMH.

Certain statements in this press release are "forward looking" statements within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements are not guaranties of future performance and actual results may
differ materially from those forecasted. Clayton Homes, Inc. undertakes no
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.