Thor Completes Purchase of Keystone RV Company; Acquisition Expected to be Highly Accretive to Earnings; Thor Becomes Largest Manufacturer of Travel Trailers   

    "The acquisition is expected to add approximately $0.50 to Thor earnings per share in fiscal 2002. In the fiscal year ended July 31, 2001, Thor's net income per share was $2.24," said Wade F.B. Thompson, chairman. "Keystone is expected to have sales for the year ending December of approximately $380 million, up from $246 million last year. It is expected to have net income in 2001 of approximately $15 million, about double last year. Keystone is the fastest growing recreation vehicle manufacturer and is one of the most successful start-up companies ever. It was ranked #2 in INC magazine's 2000 list of the 500 fastest growing private companies. H.Coleman Davis III, the company founder, will continue as Keystone's president and the entire management team will continue with the company," he added.

     Thor Industries, Inc. (NYSE: THO - news) announced today that it has completed the acquisition of Keystone RV Company, Goshen, IN for approximately $145 million, 55% in cash and 45% in Thor common shares. The final price is subject to audit and customary conditions.

     The combined company will have sales of approximately $1.2 billion. This makes Thor the largest manufacturer of travel trailers and fifth wheels with 25% of the market, a major manufacturer of motor homes, and the largest builder of small and mid-sized buses with about 37% of the market.

     Lazydays RV SuperCenter and Keystone RV signed a long-term dealership agreement covering Keystone’s travel trailer and fifth wheel product lines. The models that will be carried by Lazydays are Hornet and Challenger travel trailers and fifth wheels as well as Laredo and Everest fifth wheels

     Keystone’s strategy for adding Lazydays to its dealership network is to significantly improve its sales of travel trailers and fifth Wheels in Florida, although it is Lazydays’ plan to market the line to its entire North American customer base.

     Keystone CEO Cole Davis said, “The addition of Lazydays is a major step toward strengthening our national dealership network. We believe that our quality products are best matched with quality dealers such as Lazydays.”

     Lazydays also announced a long-term dealer agreement with National RV covering National RVs entire product line of motorhomes

     Dealers and other industry representatives will hear top executives from some of the leading companies in the RV business discuss the outlook for the RV market during the RV Dealers International Convention/Expo on September 23 at the Rio All-Suite Casino Resort in Las Vegas, NV. This special “Dealer’s Choice” panel, with participants selected through a survey of RV dealers, is sponsored by Deutsche Financial Services/The DFS Advantage. The convention runs from September 23-25.

     Scheduled to take part in the panel are: Tom Faludy, President, Carefree of Colorado; Bruce Hertzke, Winnebago Industries, Chairman, CEO, & President; Terry Mullan, President, Glendale RV; Jim Rogers, President & CEO, Kampgrounds of America (KOA); Thomas R. “Tim” McGuire, Chairman and CEO, The Coast Distribution System; and Kay Toolson, Chairman & CEO, Monaco Coach Corp.

     To register for the convention or for more information, visit www.rvda.org or call (703) 591-7130.

     Satisfaction with the overall RVing experience is on the rise, reveals a recently released study of 12,588 new RV owners commissioned by the Go RVing Coalition’s Committee on Excellence.

     The 2001 RV Consumer Satisfaction Survey, conducted by Roper Starch Worldwide, updates a similar study completed in 1999, providing baseline comparisons and valuable trend analysis on consumer satisfaction with the entire RV experience. Respondents purchased 2000-year model RVs prior to July 31, 2000.

     Satisfaction with the overall RVing experience jumped 10 percentage points for owners of towables and 6 percentage points for motorhome owners during the past two years, according to the 2001 study. More than three-fourths (78%) of RV owners are completely/very satisfied with their overall RVing experience, and 4 % are not very/not at all satisfied.

     Recent buyers of new RVs also report high levels of satisfaction with the products overall. In fact, overall satisfaction climbed 11 percentage points for both towables and motorhomes over the past two years, according to the findings.

     Looking ahead to the future, high participation levels are expected to continue among RV owners. Nearly all towable owners (97%) and motorhome owners (95%) intend to continue RVing over the next five years.

Moreover, nearly six in ten motorhome owners and seven in ten towable owners say they will buy another RV in the future. The number of new RV owners likely to purchase another RV has declined slightly compared to the 1999 study, which is likely a result of the current economic uncertainty, according to Roper Starch Worldwide.

The research is part of an industry-wide effort to deliver world-class travel and vacation experiences to new and current RV owners.

The 2001 study, designed as a “self-assessment” of consumer satisfaction with the entire RV experience, also provides valuable feedback to manufacturers, dealers, and campgrounds on what drives both satisfaction with and loyalty to the RVing experience. The benchmarking data and core measures will be tracked again in future editions of the study.

The 2001 study also confirms new RV owners are very satisfied with the dealership sales process. In fact, consumer satisfaction with the RV sales process grew 13 percentage points among towable owners and 11 percentage points for motorhome owners over the past two years.

Satisfaction with RV dealers for service and repair has also increased since 1999. This is especially notable for towable owners for whom satisfaction ratings have jumped from 5% to 69% overall. Moreover, fewer than one in five motorhome owners (18%) and one in seven towable owners (13%) report some level of dissatisfaction with overall dealership service experience.

Nearly three-quarters of RV owners also expressed high levels of satisfaction with the commercial and public campgrounds last visited. On average, only about 4% of motorhome and towable owners expressed some level of dissatisfaction with their last stay at a commercial or public campground.

“We can be proud that consumers are highly satisfied with the RVing experience. The study confirms we’re doing a good job overall,” said Committee on Excellence chairman Jim Sheldon, special assistant to the chairman of Monaco Coach Corporation’s Indiana Operations. “But we can continue to raise the bar. Armed with the survey findings, the RV industry will continually prioritize and act upon the drivers of satisfaction with a goal of improving RV service and product quality,” he added.

A total of 30,000 questionnaires were mailed to customers in February for the 2001 study, which was expanded to cover new research topics and achieved a 44% response rate. Comparisons in the survey report are statistically significant at the 95% confidence level.

     Blue Ox recently helped a group of North Carolina students transport an electric car throughout the state by donating a tow bar and base plate.

     The car, a 1999 Saturn SL, was a class project for the Currituck County High School students. The group, supervised by teacher Mark Wootton, entered their project in the Carolina Electric Vehicle Challenge, a cutting-edge educational program where students convert a full-size vehicle into an electricity-powered car. Following a successful entry in the challenge, the students towed the car to other events to showcase the project and teach others about electric power

     Automatic Equipment Manufacturing Co. president Jay Hesse said, “We were excited to help with the project. We encourage the enthusiasm and ingenuity of these students as they learn about and work toward improving the automotive manufacturing industry.”

     Former Starcraft RV vice president Rich Kelly died in August in Rapid City, SD, from injuries he suffered in a motorcycle accident.

     Kelly was a sales representative for Renegade Custom Coaches and Trailers for the past six months. Prior to that, he was in sales for Starcraft RV for 12 years.

     Fred Ellers, president of American Recreation Equipment, Inc. (ARE), a wholesale distributor in based in Palo Alto, CA, announced last month that the company has launched its business to business web site arewholesale.com.

     According to Ellers, the new site is designed for RV dealers and other businesses to see the company’s catalog on line and place orders directly from the web site.

   Until now, ARE has focused its business in the eleven western states, but with the new electronic catalog dealers from anywhere in the continental U.S. will be able to take advantage of the on line catalog and place orders with ARE.  

     Prior to shopping on line a new client will need to set up an account with ARE because the site is password protected, only allowing current accounts access to the products and pricing presented on line.

     Ellers said that he and his staff worked directly with the site development team at Web Site Management, Inc., based in Tempe, AZ, to develop the B2B site which Ellers believes will greatly enhance ARE’s wholesale distribution business.

The NEW 190-Popular on Chevrolet Express Van.

     Home & Park Motorhomes is pleased to introduce the Roadtrek 190-Popular on Chevrolet Express Van: a Motorhome Van with the comfort and conveniences of a large motorhome, the fuel economy and driving and parking ease of a van, AND the image and styling of a full-size SUV or luxury van conversion.

     At first glance, you might think it's just a typical luxury van with its aluminum wheels, ground effects, large windows, and sleek raised roof. You'll enjoy great driving performance, panoramic windows, abundant leg room, available leather seats, and power lumbar supports. But it also has all the features you've come to expect with the #1 selling North American class B... and more! The wide entry door provides easy access with a low entrance floor and higher standing height. Inside there's molded fiberglass counter and table tops with solid surfaces. The larger galley counter offers more clearance above, an under mounted sink with flush cover/cutting board, and a recessed stove with a flush cover. Instead a conventional roof top air conditioner, a 'Dometic' heat pump is recessed into the roof to reduce height and wind resistance. Ducted to ensure comfort throughout, it offers 12,000 BTUs of cooling while providing heat for cool nights. And we've put a second fresh water tank and half of the black water tank inside so the water system can be used in moderate sub-freezing conditions.

The first prototype was introduced August 13 at the Family Motor Coach Association's International Summer Convention in Redmond, Oregon. Reaction was excellent as one Roadtrek owner wrote: "I was thoroughly impressed with how Home & Park... has now designed one truly outstanding van motorhome..."

Dan Holt

     Dan Holt, founder and publisher of RV News magazine and co-founder and CEO of Web Site Management, Inc. (RV America On Line), is among a group of 12 inductees in the Class of 2001 Hall of Fame. The ceremonies took place on August 2, 2001, at the annual induction dinner in Elkhart, IN. The RV-MH Hall of Fame is a service of the RV-MH Heritage Foundation, Elkhart, IN.

     Holt was selected for the honor based on over his 25 years service to the RV industry and using RV News as a platform to influence the industry's direction as well as innovate through visionary thinking. He founded the industries first aftermarket-only trade show and assured that it would foster continuing education by promoting extensive use of seminars. That show is now the annual RVDA Expo. He recognized the importance of trained RV technicians and founded the first magazine expressly for them - The Professional RV Technician. His latest visionary endeavor, RV America On Line (www.rvamerica.com) now hosts over 200 RV industry web sites through this portal web site and attracts more than 500,000 unique visitors every month.

     In addition to Holt, the 2001 Hall of Fame Class of 2001 includes:

T. M. BURLINGAME -- STYLECREST PRODUCTS -- OHIO
He has spent over 35 years developing and introducing products to the manufactured housing industry. He was instrumental in bringing high efficiency heating and cooling appliances to the industry. He was a leader in the acceptance of fiberglass ducting systems. He developed the Blend Air System to reduce condensation problems in modern homes. He has been an active member of 7 state manufactured housing associations and has been very active in coordinating the procurement of industry materials for disaster relief.

WILLIAM L. EHRLE -- TEXAS MHA -- TEXAS
A twenty three year leader of his association, he is recognized as a consensus builder, and a brilliant legal and legislative strategist. He helped to develop the National Manufactured Housing Federation and was instrumental in merging it into the Manufactured Housing Institute. As a three term state legislator, he has helped to develop manufactured housing bills both national and for many state associations. He is a recognized lobbyist in his state and on capitol hill.

CLYDE GRAMBSCH -- CAMPER-RECREATION -- WISCONSIN
A pioneer manufacturer, he was a charter member of RVI – RVIA and served many years on its Board of Directors. He was instrumental in the creation of the fall Louisville RV Show by getting the national show moved from March to late fall to showcase new models. He was a key leader in promoting the merger of the MHMA travel trailer division into RVI and led the RVI sponsored caravan to Montreal Expo 67. His trailers were the first to offer inside/outside swing out kitchens and an electrically raised hard roof.

CURT HAMES -- HAMES HOMES -- IOWA
Always a politically active retailer, he has been responsible for laws allowing Sunday home sales, 14-foot wide home movement, tie down standards and requirements, and a landlord tenant relations law recognized as fair to all parties. He worked to get zoning laws that allow manufactured homes placed on private property and to eliminate sales tax on pre-owned homes

CHARLES MEREDITH -- CHARLIES MOBILE HOMES -- KENTUCKY
A 50 year housing and RV industry veteran, he is a founding member of Kentucky MHA and was its first President and its representative to the Federated States Association. He is a founding member and Past Chairman of RVI. He helped the Midwest Manufactured Housing Federation bring the annual Manufactured Housing Show to Louisville and successfully lobbied to get parking fees waived for all housing show participants.

VIRGIL MILLER -- NEWMAR CORPORATION -- INDIANA
Beginning his career in 1958, he has become widely recognized as the RV industry’s voice of reason, he has served two terms as the Indiana association’s RV Council Chairman. He has many years on the RVIA Board of Directors as Chairman of the Safety and Education Committee and on the Public and Legislative Affairs Committee. He is a tireless promoter of the RV Industry and its products.

JIM MOORE -- PENNSYLVANIA MHA -- PENNSYLVANIA
A twenty five-year state association executive, he developed both the Pennsylvania manufactured housing and RV shows to become nationally recognized industry showcases. He helped to develop HUD code installation procedures and is recognized as having been a mentor to state association leaders nation wide.

JOE and KAY PETERSON -- ESCAPEES -- TEXAS
Owner/developers of 18 RV parks in eleven states, they are widely recognized consumer educational seminar speakers at RV events. They have authored numerous self-help books on the RV lifestyle. For over twenty years they have developed the Escapees RV club, mail and message forwarding service, and coordinating medical insurance.

BILL PIERCE -- PIERCE HOMES -- MONTANA
A 28 year member of the Montana Manufactured Housing and RV Association he served four separate terms as it President. He developed a key public service campaign to promote manufactured housing in his state and was a leader in the effort to eliminate zoning restrictions on manufactured homes statewide. Both his RV and MH dealerships have won many awards for sales and appearance.

JOHN RITZENTHALER -- RITZCRAFT HOMES -- INDIANA/PENNSYLVANIA
A true pioneer, he began his career delivering units behind his own auto in the 1940s. As an early manufacturer, he used fiberglass fronts on his units as early as 1957. He was one of the early doublewide home manufacturers and one of the first to build regional manufacturing facilities to build specific designs for regional needs and codes.

An Arizona Business Since 1966

     MESA - July 12, 2001 - Robert Crist And Company RV was ranked as one of the top ten Holiday Rambler dealers in the nation for both towables and motorized recreational vehicles at a recent Holiday Rambler dealer meeting in South Bend, Indiana.

     The award is based on excellence in sales, marketing and customer service. "It recognizes our efforts at providing quality products and excellent service," said Robert Crist, vice president and general manager of Robert Crist And Company RV. "This award is a direct result of the hard work and team effort of all our employees."

     The dealership was ranked third out of all the Holiday Rambler dealers in the nation for its towable recreational vehicles and given the status of most improved dealer due to sales and high quality.

      "What's most important is selling a great product at a fair price to our customers and giving them the best buying experience possible," Crist said. "It is truly an honor to be recognized by Holiday Rambler for our efforts."

     Robert Crist And Company is a full-service recreational vehicle dealer that has been providing recreational vehicles, parts and services to Mesa, Arizona for the past 37 years. For more information about Robert Crist And Company, visit www.rvsrfun.com.

     BEND, Ore., June 25 -- SMC Corporation (Nasdaq: SMCC) announced today that it has agreed with Monaco Coach Corporation (NYSE: MNC - news) to the acquisition by Monaco of all of the outstanding shares of SMC pursuant to a cash tender offer by Monaco at a price of $3.70 per share. The Board of Directors of each company has approved the transaction. The transaction is subject to customary conditions, including the tender of at least 51% of the SMC shares

     Following completion of the tender offer, Monaco Coach Corporation would consummate a merger in which any remaining SMC shareholders would receive in cash the same price per share paid in the tender offer. The anticipated total transaction value exclusive of expenses is approximately $36 million, which includes the refinancing of $15 million of indebtedness under SMC's credit facility.

     SMC Corporation had consolidated sales of $190.7 million in 2000. The Company manufactures upper-end motorhomes under the Safari, Beaver and Harney Coach Works brand names. SMC operates manufacturing facilities in Harrisburg, Bend and Hines, Oregon. According to Statistical Surveys, Inc., SMC held 3.9% of the class A motorhome retail market year to date through April 2001. Together with Monaco Coach Corporation's class A retail market share of 16.7% through the same period, the combined company would have held 20.6% of the class A market, making the combined company the nation's largest producer of class A motorhomes. Year to date through April 2001, Monaco and SMC dealerships retailed a combined 2,151 class A units.

     SMC's Chairman of the Board of Directors, Mathew M. Perlot, and SMC's Chief Executive Officer, Curtis W. Lawler, who together hold approximately 70% of SMC's outstanding stock, have agreed with Monaco Coach Corporation to tender all of their shares in the tender offer and have granted Monaco Coach Corporation irrevocable proxies to vote their SMC shares against any competing acquisition proposals.

     SMC Corporation Chairman and founder, Mathew M. Perlot stated, ``This combination provides a solid basis for the future for our brands, our customers, and our suppliers. We are very pleased to become part of Monaco Coach and we look forward to great accomplishments.'' When the transaction closes, Mr. Perlot and Curtis W. Lawler, SMC's Chief Executive Officer, will retire.

     RVIA President Dave Humphreys was named recipient of the American Recreation Coalition’s (ARC) 2001 Sheldon Coleman Great Outdoors Award. In addition to his role at RVIA, Humphreys is also chairman of ARC.

     Recognizing an individual who has demonstrated outstanding efforts to sustain and enhance America’s outdoor legacy, the award was presented to Humphreys during the Thirteenth Great Outdoors Award Celebration held in Washington, D.C. in June.

     Humphreys was selected for more than two decades of service as a central player in national policy matters affecting recreation, travel and tourism. His advocacy of recreation has taken him to the White House to address U.S. Presidents, to meetings with each of the Secretaries of the Interior since 1981 and to appearances before numerous Congressional committees.

     Former recipients of the award include President George Bush (1990), National Geographic Society President Gilbert Grosvenor (1994) and former secretary of transportation Rodney Slater (1999).

     RV industry supplier, Dometic Corporation is separating from parent organization, AB Electrolux. The agreement is scheduled for completion during, the month of July,

     AB Electrolux, worldwide manufacturer of indoor and outdoor household appliances headquartered in Stockholm, Sweden, has decided to sell the Leisure Appliance Group, which includes Dometic Corporation. The divestment is part of the group’s continued focus on consumer durables for indoor and outdoor use as well as a selected range of corresponding products for professional users.

     The new owners are a Northern European private equity firm by the name of EQT and are dedicated to developing and growing acquired companies by making longstanding improvements to their operations and competitive position.

     As a result, according to John Waters, president of Dometic, the new ownership will allow Dometic Corporation to continue to uphold its substantial commitment of providing customers with the finest quality, products and service but with additional resources to employ new opportunities as an Independent entrepreneur company.

     Waters said, “The new ownership structures will not change our current business relations nor will it affect our management and personnel.”

For a long time, Dometic has successfully operated independently within the rest of Electrolux, which further ensures a smooth and efficient transition. Waters believes Dometic will no longer be a small company within a large organization fighting for resources, but rather the main concentration of new ownership, consequently, providing access to additional resources and development, as well as new opportunities for improved quality and service,

     The RV/MH Heritage Foundation has kicked off its eighth annual raffle, which benefits the national RV/MH Hall of Fame, museum and Library.

     First prize will be a motorhome or manufactured home of the winners choice, valued at up to $100,000, or $75,000 cash, in the drawing to be held December 14, 2001, at the foundation offices.

     Second prize is $15,000, third prize is $5,000 and 4th and 5th prizes are $1,000 each. A total of 100 prizes will be awarded from a total of 3500 tickets, making the odds of winning a prize 1 in 35.

     Individuals may purchase the $100 raffle tickets by credit card on line at www.rv-mh-hall-of-fame.org or by phone at 1-800-378-8694, by fax at 219-293-3466, or at the Foundation offices at 801 Benham Ave in Elkhart, IN.

     The mission of The RV/MH Heritage Foundation is to recognize individuals that have significantly contributed to the development and growth o the recreational vehicle and manufactured housing industries and to maintain the museum and library as a historical repository to promote public awareness and appreciation of the industries it serves.

     Keystone RV Company, Goshen, IN, announced in mid-May that the company is creating a new division with a projected first-year sales of $50 million. President and CEO Cole Davis said the company will develop an entirely new product line of lightweight travel trailers designed for towing with small SUVs and vans.

     Industry veteran Randy Graber of Elkhart has joined Keystone’s leadership team as vice president, general manager of the new division, Graber was formerly national sales manager at KZ Incorporated, LaGrange County, IN.

     According to Davis, Graber’s division will employ construction techniques and materials which have not previously been used in Keystone’s existing product lines, and some not used anywhere else in the RV industry.

     To accommodate their growth ‘, Keystone is building a 65,000 sq.-ft. plant for their Montana division, to be completed in November. At that time, the new division will move from temporary headquarters to the current Montana plant.

     KIT Manufacturing Company reported the passing of KIT President and General Manager, Harold D. Breach in April. Breach joined KIT Manufacturing in 1995 as general manager of KIT’s manufactured housing division. In 1999 he was promoted to the position of president and general manager of KIT Manufacturing. He was 65 years old.

     KIT Chairman and Chief Executive Officer Dan Pocapalia will assume Breach’s responsibilities as president.

     El Monte RV, one of the nation’s largest motorhome rental companies, has set a pace for rapid growth by opening its first licensee locations.

     Customers can now rent El Monte RV motorhomes from nearly 30 locations. The company, which offers 1,800 motorhomes and RVs for rent, recently opened locations in Seattle, Wash.; Roanoke, Va.; Salt Lake City, Utah; North Dallas, Texas; West Columbia, S.C.; Santa Fe, N.M.; Savannah and Augusta, Ga.; Miami, Fla.; Hartford, Conn.; and Van Nuys, Santa Cruz, San Jose, San Diego, San Bernadino, Redding, Oakland, Lancaster and Dublin, Calif. El Monte RV already has company-owned rental locations in Los Angeles and San Francisco, Calif.; Las Vegas, Nev.; New York and New Jersey; Orlando, Fla.; and Bellingham, Wash. The company is planning on opening additional locations in the future.

     According to Joe Laing, corporate director of marketing for El Monte RV, the expansion is due to the continued demand for RV and motorhome rentals from both domestic and international travelers. More travelers are interested in RVs as a convenient, fully-contained way to travel that also offers a great deal of flexibility.”

     The RVDA Education Foundation is pleased to announce that it has awarded two Kindlund Family scholarships for the 2001-2002 academic year. Christopher Byrnes, of Laingsburg, MI, and Jamie Link, of Collinsville, IL, are the recipients of $2,500 scholarships.

     The scholarships are made possible through the generosity of the Newt and Joanne Kindlund Family. The Kindlunds are the founders of Holiday RV Superstores - now Holiday RV Superstores/Recreation USA. The Kindlunds, who sold the company to Atlas Holdings Recreational Holdings, Inc., in 1999, remain active in the business as consultants. The Kindlund Family, to date, has pledged $270,000 to the Foundation’s scholarship endowment.

     RV dealers and their employees can look forward to sharpening their sales management skills during the RV Dealers International Convention/Expo at the Rio All-Suite Casino Resort in Las Vegas, NV, Sept. 23-25, 2001.

     On Sept. 23, Randy Sobel from Sobel and Associates will present “Real World Strategies to Measure Sales Performance.” In this workshop, Sobel will focus on how dealers can motivate their salespeople to build a strong client base and teach sales managers and salespeople how to effectively follow-up with prospective buyers.

     Grayson Schwepfinger from Salesmaker Associates will discuss “Creating Value in Your Sales Presentations” on Sept. 24. Sales professionals will be taught how to get prospects to tell them which RV they are most likely to buy and how to use tie down questions to keep prospects involved in the buying process.

     Sales trainer Jon Quade will discuss “Motivating Your Sales Team: Training Techniques That Work” on Sept. 24. During this workshop, dealers will learn how to never again hold a dull sales meeting; how to ensure lasting results from sales training, and how to motivate sales professionals to learn.

     Also on September 24, Marty Azevedo from The Spader Companies will lead a panel discussion on “Where Have All the Good Ones Gone? Developing Sales Talent.” Dealers will share recruitment sources for salespeople, methods for developing sales talent, and strategies for retaining sales “stars.” Panelists include: Debbie Brunoforte from Little Dealer, Little Prices; Ross Hodgins from RV City; and Billy P. Ross from Super 1 RV.

Bruce Bentz of Capital RV Center in Bismarck, ND said, “The educational seminars at the convention have been very beneficial in the day-to-day operations of our business. RVDA always has a great selection of trainers,” RVDA Convention/Expo Committee Chairman Jeff Pastore of Hartville RV Center in Hartville, OH, said, “With more than 150 exhibitors in the Expo, the RV Industry’s leading companies are also on hand to offer sales ideas, tips, and advice you can use right away.”

     Fleetwood Enterprises, Inc. (NYSE: FLE) posted a worse-than-expected fiscal fourth-quarter loss due to weakness in both its businesses and charges related to a restructuring.

     Fleetwood’s RV sales have been hit by declining consumer spending. The company reported a net loss for the quarter ended April 29 of $44.5 million or $1.36 per share, including a charge of 21 cents per share from goodwill impairment and restructuring. The company reported a profit of $11.4 million or 37 cents per share, in the same period a year earlier.

     Fleetwood said revenues fell 40% to $547 million from $905 million, in line with a company forecast. Wall street analysts had been expecting the company to post a fourth-quarter loss of 44 to 88 cents per share, with a mean estimate of 64 cents, according to research firm Thompson Financial/First Call.

     For the fiscal year 2001, the Company incurred a net loss of $284.0 million or $8.67 per diluted share, compared with a profit of $83.5 million or $2.41 per diluted share for the corresponding period in the prior year.

     Fleetwood RV has announced the introduction of the 2002 Pioneer, their newest line of entry-level travel trailers and fifth wheels.

     Ed Earls, National Sales Manager– Pioneer, said. “Our new Pioneer towable line is aimed at entry-level first time buyers be they new retirees or a young family. Pioneer is built at a brand new factory dedicated to building the Pioneer line and will utilize a lean manufacturing environment. We are very excited about this new product and expect the Pioneer line to take its place as a top selling Fleetwood brand by model year 2002. The appeal of the product lies in the fact that it meet’s customer’s needs and it’s competitively priced.”

     The Pioneer lineup will include 13 travel trailers and three fifth wheels. The Pioneer line includes three interior décor packages.

     According to Earls, in addition to the new factory, Pioneer will also benefit from an entirely new production process. This new construction process will be more modular in its approach thereby allowing the factory associates to become more familiar building like components for different floor plans. The process simplifies manufacturing, reduces cost and makes for a cleaner looking finished product.

     Starcraft Corporation (OTC-BB: STCR) confirmed that they have completed the sale of the Starcraft van conversion operation to Centurion Vehicles of White Pigeon, Michigan.

     Thor Industries (NYSE: THO) and the Cancer Research Institute teamed up with New York City Mayor Rudy Giuliani and the NBA Retired Players Association last month as part of the companies “Drive Against Prostate Cancer” program. This was the second annual stop in New York City as part of a special focus on prostate cancer surrounding Fathers’ Day.

     Mayor Giuliani, a prostate cancer survivor, encouraged men over 40 to seek annual prostate cancer screenings. He said, “The importance of early detection of prostate cancer cannot be overemphasized. Men must get screened every year.”

     Thor’s Chairman, Wade Thompson, a prostate cancer survivor, was also in attendance at the event. The prostate cancer activities culminated in the 5K Fight Against Prostate Cancer road race in Central Park on Father’s Day.

     The drive’s mobile medical vehicle, built by the Airstream division of Thor, is equipped with two private rooms for screenings.

     Citing a “can do” attitude and entrepreneurial spirit, Workhorse Custom Chassis has named Martin Tire its Supplier of the Year. This is the first time Workhorse has given the honor.

     Jim Johnson, director of purchasing for Workhorse, said, “After careful consideration of more than 350 suppliers, the Workhorse team has determined that Martin Tire be awarded ‘Supplier of the Year.’ The award said, ‘Your superior responsiveness, service and quality, coupled with an entrepreneurial spirit and continuous improvement initiatives best exemplifies an ideal business partner.’”

     When Workhorse was founded in 1998, Johnson’s first major project as director of purchasing was to find a source to assemble tires for the company. The first company selected in the bid process could not meet Workhorse’s expectations and within a week the company turned to Martin Tire.

     According to Johnson, that is when owners Jerry Martin and Roger Clark established a warehousing facility in Mount Summit, IN, 42 miles from Union City. There, Rick Holder, manager of the Mount Summit facility drew together a crew that could assemble the rims and tires and twice daily deliver them, in sequence, to Workhorse."

     Johnson said Martin Tire’s support was invaluable to Workhorse’s unique start-up and development into a successful business enterprise.

     In an effort to boost consumer confidence and distinguish itself from its competition, Holiday RV Superstores, Inc. (NASDAQ: RVEE) has adopted the industry’s first money-back guarantee as well as expanded warranty program.

     The company plans to test these two consumer initiatives at its eight stores in Florida beginning in late summer. Based on consumer response, Recreation USA will consider expanding the programs to include all 16 stores.

     Marcus Lemonis, president, said, “Over the past several months, we have seen a shift in our product mix as consumers continue to turn to previously owned recreational vehicles. We feel that these initiatives will make purchasing a used vehicle easier for consumers by demonstrating that Recreation USA stands behind every vehicle we sell.

     “We are committed to being the industry leader by setting higher standards for sales and service. Our new money-back guarantee and expanded warranty offers consumers peace of mind – and allows the cmpany to set itself apart from our competition.

     The three-day money-back guarantee will cover all used“Quality Certified” RVs sold in the state of Florida through Recreation USA. Consumers will have three days or 100 miles from the time when they take delivery of their RV to return the vehicle for a full refund or exchange it for a vehicle of their choice.

     The www.internetweek.com web site posted a story on Winnebago’s new e-mail application running on Linux on a mainframe.

     The $743 million manufacturer plans to go online this month with 700 e-mail users on Bynari Insight Server running on Linux on an IBM mainframe. The application replaces a Microsoft Mail server, using Outlook as a client. The initial mail application was installed in 1986. The installation has since proved unreliable under Winnebago’s heavy e-mail traffic. The company receives about 2,000 daily incoming messages and 1,000 outgoing.

     Fleetwood announced that is has filed a registration statement with the Securities and Exchange Commission to register convertible trust preferred securities of Fleetwood’s newly formed subsidiary, Fleetwood Capital Trust II.

     Fleetwood intends to offer to exchange the new trust preferred securities for the existing 6% Convertible Trust Preferred Securities due February 15, 2028 of its subsidiary, Fleetwood Capital Trust

     Thor Industries, Inc. (NYSE; THO) announced results for the third quarter and nine months ended April 30, 2001.

     Net income for the quarter was $6,731,000 compared to $10,090,000 last year. E.P.S. for the quarter were 57 cents versus 83 cents last year. Sales for the quarter were $221,029,000 compared to $250,120,000 last year.

     Net income for the nine months was $18,286,000 compared to $26,460,000 last year. E.P.S. for the nine months were $1.54 versus $2.18 last year. Sales for the nine months were $604,031,000 compared to $674,439,000 last year.

     RV sales in the quarter were $146,706,000 versus $196,327,000 last year.

     Wade Thompson, Thor Chairman, said, “RV industry unit sales have been down in each of the past eleven months but the rate of decline has decrease each month since the beginning of 2001.”

     Sales decreased 15.0% to $45.1 million for the first quarter of 2001 from $53.1 million for the comparable period in 2000. Sales decreased primarily in the high-end Safari lines. Beaver sales increased by approximately 20% primarily in the recently redesigned Monterey and Contessa models. Harney sales decreased as lower revenues were partially offset by higher revenues of the Renegade.

     Retail sales for Class A units decreased by 7.2% in the first quarter of 2001 while the industry as a whole experienced a 25.1% decline. Gross profits were lower in the first quarter as a result of lower sales volumes.

     Rexhall Industries, Inc. (NASDAQ: REXL) announced lower revenues and income for its first quarter ended March 31, 2001, compared to the first quarter of 2000.

     Net revenues for the first quarter ended March 31, 2001 decreased 10.1% to $18,582,000 from $20,664,000 for the same quarter in 2000. Gross profit for the quarter was $2,505,000 versus $3,303,000 last year, which is a 24.2% decrease. Net income for the quarter was $119,000 or $0.04 per diluted share, compared with net income of $964,000 or $0.31 per diluted share last year.

     Bill Rex, president and CEO, said, “Poor economic fundamentals continue to affect our industry. Shipments industry-wide were down 35% when comparing the first quarters of 2001 to 2000, with Rexhall’s shipments being down 33%. However, we are encouraged by the recent interest rate decreases and the gains the major stock market indices have made. Hopefully, these will translate into stronger consumer confidence and spending.”

     Comparing the quarter ended April 1, 2000 to quarter ended March 31, 2001, First Quarter net sales decreased 11.2% to $211.2 million opposed to $238.0 million for the same period last year.

     Gross sales dollars on motorized products were down 10.9%, as increases in the company’s products that were newly introduced in 2000 were more than offset by decreases in other motorized products. The company’s gross towable sales were down only 2.7% as the McKenzie towable operations reported strong increases which nearly offset decreases on the Holiday Rambler towable products. The company’s overall unit sales were down 18.3% in the first quarter of 2001 with motorized and towable unit sales down 21.1% and 13.0% respectively.

     The company’s average unit gross selling price increased in the first quarter of 2001 to $94,000 from $86,000 in the comparable 2000 quarter due to the company’s strong mix of diesel motor coaches. The company’s continued mix of less expensive diesel and gasoline motor coaches is expected to keep the overall average selling price below $100,000.

     Gross profit for the first quarter of 2001 decreased to $25.5 million, down from $37.3 million in 2000, and gross margin decreased from 15.7% in the first quarter of 2000 to 12.1% in the first quarter of 2001. Gross margin in the first quarter of 2001 was significantly impacted by above normal sales discounts, which net against gross sales. Other major contributors to the change in gross margin include production inefficiencies created from reduced production, shifting the volume among the production lines in the plants, and shifting the mix of products on those lines.

     The Coast Distribution System, Inc. (AMEX: CRV) reported financial results for the quarter ended March 31, 2001, and posted a loss. Coast lost $48,000, or $.01 per share, in the three months ended March 31, 2001 and earned $413,000, or $.10 per share, in the three months ended March 31, 2000.

     Revenue for the first quarter of 2001 was $37.9 million as compared to $43.9 million for the first quarter of 2000

     Tim McGuire, chairman and CEO of Coast, said, “Demand in both the RV and marine markets is substantially below last year and we expect it to continue to be soft for the remainder of the year. The supply chain strategies that we initiated during the last quarter of 2000 have begun to show results. As a consequence of these changes, we reduced our inventories by $8.5 million and correspondingly, our bank borrowings by $9.5 million when compared to March 31, 2000. Additionally, during the quarter we reduced general and administrative expenses by 12% when compared to the first quarter of 2000. However, we have yet to achieve the service levels we expect our strategies to yield in the second half of this year.

     “We remain committed to reducing the assets and expenses required to run our business and more importantly, to gain a comparative service advantage in our markets going forward. Change is always difficult and carries a cost for everyone involved. We expect that there will be bumps in the road ahead but we strongly believe that we will be well positioned when our markets rebound.”

     This was the title of a story that hit the wires via www.thestandard.com and authored by Zillah Bahar. The article spoke of recreation vehicles heading for the open road despite rising gas prices.

     The author states, “The fall in consumer confidence has put the kibosh on a period of spectacular growth predicated on how effectively the RV industry could use technology to transform a hulking, diesel-powered vehicle into a luxury apartment.”

     Four major players in the RV industry were discussed in the article: Coachman, Fleetwood, National RV and Winnebago. She also quoted Chris Morrison, RVIA’s director of public relations who said, “We’re still down from where we were, but seeing signs of improvement.”

     Thor Industries, Inc. (NYSE:THO) announced today that it has reached an agreement to acquire Keystone RV Company, Goshen, IN, the fastest growing company in the recreation vehicle industry, for approximately $145 million. The price will be paid 55% in cash and 45% in Thor common stock.

     The combined company will have sales of approximately $1.2 billion and will make Thor the largest manufacturer of travel trailers and fifth wheels, a major manufacturer of motorhomes, and the largest builder of small and mid-sized buses.

     Keystone, founded by H. Coleman Davis III in 1996, builds travel trailers and fifth wheels and is expected to have sales in 2001 of approximately $380 million, up from $246 million last year. Mr. Davis will continue as president of Keystone and Keystone's entire management team will continue with the company.

     “Keystone has a very strong management team which accounts for its extraordinary success over the past 6 years,” said Wade F.B. Thompson, Thor chairman. “There are many opportunities for purchasing and other synergies between the companies. Despite RV industry shipments being down 16% this year, Keystone sales are up 65% through September,” he added.

     “We look forward to being a key part of Thor's continuing growth,” said Mr. Davis. “The merger creates the #1 company in travel trailers and fifth wheels with 25% of the market. Thor has the best long-term record in the RV industry. It is the only public RV company that has been profitable every year since its founding in 1980 and it provides Keystone with the resources to continue our aggressive growth strategy,” he added.

“We look forward to being a key part of Thor's continuing growth,” said Mr. Davis. “The merger creates the #1 company in travel trailers and fifth wheels with 25% of the market. Thor has the best long-term record in the RV industry. It is the only public RV company that has been profitable every year since its founding in 1980 and it provides Keystone with the resources to continue our aggressive growth strategy,” he added.

The transaction is expected to close by November 9, 2001 and is subject to customary conditions.

Virgil Miller, Chairman of Newmar Corp.

     Virgil Miller is stepping down as President of Newmar Corporation and has selected Dick Parks, former senior vice president of Fleetwood's RV Group as his replacement.

     Miller, who is in ill health, was promoted to chairman of the board.

     In response to many travelers who are stranded as a result of the recent crisis and the closing of airports throughout the nation, El Monte RV, one of the nation's largest motorhome rental companies, has announced that it is waving rental fees for international customers who are unable to leave the United States for up to five days.

     El Monte RV customers currently renting motorhomes who have no options for air travel to leave the country as scheduled will be allowed to keep their vehicles free of charge up until Sept. 17. The company also is waving fees for international travelers whose travel plans have been delayed to the United States. El Monte RV also announced that it would not charge fees for cancellations, changes and delays to accommodate travelers whose plans have been interrupted or altered due to recent tragic events.

     Joe Laing, El Monte RV, said "We have travelers who are stranded and people visiting from other countries who can't get home and have no place to turn. We're doing everything we can to help accommodate them during this tragic time."

U.S. Supreme Court Justice Clarence Thomas and RVIA President David Humphreys.

     United States Supreme Court Justice Clarence Thomas visited RVIA headquarters on July 31 to meet with RVIA president Dave Humphreys and the RVIA staff. Justice Thomas is an avid RVer and wanted to meet the people who represent a lifestyle he cherishes.

     While addressing the staff, Justice Thomas gave a resounding testimonial to the benefits of RV travel. He said he was convinced to buy an RV because he had heard that people in RV parks and campgrounds were the best people anywhere. He can now attest to that statement, noting he has never had a bad experience traveling in a motorhome

     Justice Thomas described how he convinced his wife that an RV was the perfect vacation home. With a map of the United States before them, Justice Thomas drew boxes around all of the towns in which other Justices owned vacation homes. He then drew a box in the center of the U.S. and put wheels on it, explaining that their vacation home could go to any of those locations and more. "It's a condo on wheels," said Justice Thomas.

     The first hand educational experience that RV travel affords to children was another benefit Justice Thomas espoused. He explained that he is raising his 9-year-old grand-nephew and has taken the opportunity to take him to numerous national landmarks. As a result, he noted, whenever lessons on these historical landmarks are taught in school his grand- nephew can say, "I've been there," and he's already a step ahead. Justice Thomas extolled the values of celebrating the open road in an RV. He explained that his childhood was confined to just three counties in Georgia. "I used to wonder where all of those cars traveling down Highway 19 were going. Now I know," he said.

     He expressed his true appreciation for the opportunity to travel anywhere, anytime and even at a moment's notice. He urged RVIA staff to appreciate and take advantage of an American's right to travel freely -- a right not granted in many other nations.

The RVIA and Go RVing websites received praise from Justice Thomas. He said he gained more information about RVs and RV travel from these sites than any other he has visited.

Justice Thomas spent nearly four hours at RVIA, taking time to personally meet every staff member and have his picture taken with him or her.

     Fleetwood Enterprises, Inc. (NYSE: FLE) has named Chuck Wilkinson executive vice president ­ operations. In this expanded role he will be responsible for Fleetwood's wholesale and retail Manufactured Housing operations and its Recreational Vehicle Group, as well as its supply subsidiaries.

     In a related move, Carl Betcher, who had served as senior vice president of the company's RV group, has stepped down.

     President and CEO Nelson W. Potter said, "Chuck has done an exceptional job during an extremely difficult time in the manufactured housing industry. Under his leadership our manufactured housing group has continued to perform profitably and our retail housing division has quickly realized improved results. We believe that Chuck possesses the energy, experience and leadership qualities to guide the financial and operational improvement of our RV group.

     "Carl has made significant contributions to the company over the past in both our Housing and RV businesses,'' Potter continued. ``We wish him the best in his future career endeavors.''

     Wilkinson, a 16-year Fleetwood veteran, has served as senior vice president - housing group since January 2000. Before that, he had served as the company's vice president - Western region for the Housing Group.

     Some lucky dealer attending the National RV Show in Louisville later this month will go home the proud owner of a 2002 Harley Davidson, courtesy of Workhorse Custom Chassis.

     The Harley motorcycle is the grand prize in Workhorse's dealer promotion.

     Richard Fish, vice president of motor homes sales and marketing for Workhorse, said, “Last year, Workhorse awarded a luxury golf vacation for two. That promotion was very successful, driving sales of motorhomes on Workhorse platforms. We expect this year's promotion to generate even more excitement.”

     Once qualified, a dealer earns one entry in the contest for each motorhome on a Workhorse platform ordered during the show–multiple orders yield multiple entries. The prize will be awarded to the winning dealer on December 30.

     Scott Fetzer recently assigned its Powerwinch Division to Carefree of Colorado, according Tom Faludy, president of Carefree of Colorado.

     Headquartered in Monroe, OH, Powerwinch has been manufacturing a leading brand of 12v winches and windlasses for the marine industry since 1966.

     Faludy said, both Powerwinch and Carefree are in the recreational products business and both share some similar distribution. Carefree’s success in creating two separate business units, one focused on the RV aftermarket via two-step distribution and another focused on RV OEMs, provide Powerwinch a proven model for growth.”

     Faludy pointed out that Carefree of Colorado recently changed its mission statement from “ . . . comfort and convenience products for recreation vehicles . . . ” to “ . . . comfort and convenience products for recreation . . .”

     Faludy said, “This change anticipated the move into the marine market. With Powerwinch as part of Carefree, the businesses and most important, our customers will benefit from respective engineering and marketing strengths that will yield important new cross-over opportunities–i.e., an ever more exciting array of new products.”

New RVDA Chairman Craig Jensen

     Craig Jensen of Blaine Jensen RV Center, Kaysville, UT, was elected chairman of the RVDA board of directors at the recent RV Dealers International Convention/Expo in Las Vegas. Jensen will serve for one year.