GVW Holdings to sell Workhorse and Uptime Parts
to International Truck & Engine

GVW Holdings Corporation (GVW) has announced it has signed an agreement to sell its subsidiaries Workhorse Custom Chassis, LLC and Uptime Parts, LLC to International Truck and Engine Corporation, operating company of Navistar International Corporation (NYSE:NAV). The acquisition agreement was signed July 1 and will be completed over the next 30 to 90 days.

Workhorse, located in Union City, Ind., is a major manufacturer of chassis for Class A motor homes, buses and walk-in trucks. Uptime Parts, located in West Chicago, Ill., and Reno, Nev., supplies replacement and aftermarket parts for the RV, truck and bus markets Workhorse serves.

International produces International® brand commercial trucks, mid-range diesel engines and IC brand school buses and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. GVW will retain its remaining portfolio of companies, which includes Autocar and Union City Body Company (UCBC). “We intend to focus on growing these companies with the same innovation and imagination that has made Workhorse so successful,” said Andrew Taitz, chairman and CEO of GVW Holdings. “The GVW business model has always been to create value in specialized niche automotive markets, and this transaction will allow GVW Holdings to offer more resources in support of that vision at Autocar and UCBC."

“In addition, Autocar and UCBC will continue to be close partners with Workhorse and International,” said Taitz. “In fact, we are planning for Autocar to continue to assemble the Workhorse R Series diesel chassis and for UCBC to be a partner for integrated step-vans.”

International will provide management oversight, strategy and administration for Workhorse and Uptime Parts, but both will operate as independent and wholly owned subsidiaries of International. They will retain their present management structure and there are no plans reorganize, reduce or relocate facilities or staff. Workhorse products will continue to be sold through Workhorse certified up-fitters and dealers and marketed under the Workhorse brand.

International’s scale and overall capabilities will provide opportunities to reduce material costs, build on Workhorse’s premium product offering, as well as other efficiencies that may be integrated into Workhorse’s operations. Otherwise, Workhorse and Uptime Parts will continue to operate with the entrepreneurial spirit that has driven their success to date, but with the assets and capabilities of a $9.6 billion company behind them. “International hopes to continue to fuel the passion and determination that Workhorse and Uptime Parts has demonstrated,” said Tom Cellitti, vice president and general manager for International’s medium vehicle center. “Their success in their chosen markets has been nothing short of remarkable.”

Discussions with International grew out of Workhorse’s desire to integrate International’s VT 275 V6 diesel engine for Workhorse’s new W42 commercial chassis for walk-in trucks, which go into production later this year. International saw Workhorse as a unique business model that would complement its existing products and markets. International does not currently compete with Workhorse in any market and this provides an opportunity to expand its reach into the RV and the Class 2 to 5 commercial markets.

Winnebago Industries Receives 100,000th Chassis
from Workhorse Custom Chassis

Winnebago Industries, Inc. (NYSE:WGO), the leading motor home manufacturer, received the 100,000th chassis manufactured by Workhorse Custom Chassis, the leading manufacturer of chassis for Class A motor homes*, June 28th at its Forest City facilities.

Workhorse Custom Chassis representatives, Bob Wert, vice president of sales, marketing and product planning, John Margalski, director of RV sales, Larry Chandler, director of product planning, and Craig Finley, OEM account manager, made the presentation to Winnebago Industries’ Chairman and CEO Bruce Hertzke, President and CFO Ed Barker, Vice President of Sales and Marketing Roger Martin, Vice President of Manufacturing Bob Olson, Director of Purchasing Bill Fisher and Chassis and Electrical Design Engineering Manager Greg Schulz.

The Workhorse chassis, a 24,000-lb. GVWR W24 model, will be used for a new 2006 Winnebago Adventurer 38J motor home that will be delivered to Lazydays RV Super Center in Seffner, Fla., later this summer.

Winnebago Industries Chairman of the Board and CEO Bruce Hertzke received the new chassis from Workhorse. “We’re honored to help Workhorse celebrate this special milestone,” said Hertzke. “We’re always looking for new choices for our customers, and Workhorse has been an excellent partner in helping us provide such choices.”

Florida Third State to Become “RV Friendly”

With a stroke of a pen on June 8th, Florida’s Governor Jeb Bush officially declared Florida to be a part of the “RV Friendly” highway sign program. The law is designed to help RV travelers more easily locate establishments that cater to their needs. Florida joins Louisiana and Oregon as the only states to pass this legislation.

The “RV Friendly” markers – bright yellow circles with crescent smiles under the letters RV – could appear on Florida highways as early as this fall. Local businesses such as restaurants, hotels, travel destinations, attractions and gas stations will be able to place the “RV Friendly” markers under their “Gas-Food-Lodging” highway signs as long as they meet state requirements, including large parking spaces, entrances, exits and overhang clearances.

“We are thrilled to be one of the first states to get on board with this national program,” said Florida RV Trade Association’s (FRVTA) Executive Director Lance Wilson. “As popular a destination as Florida is for many RVers, we felt it was extremely important for us to push for this legislation and be one of the first states to get these signs up on the highway as soon as possible. We’d like to thank Representative Stan Jordan (R-Jacksonville) for his help in getting this bill passed and signed into law”.

RV ownership has reached record levels in the United States with an estimated 30 million RV enthusiasts, including renters. On American roads today are 7.2 million RVs, which include motorhomes, travel trailers, folding camping trailers and truck campers. That’s nearly one in every 12 vehicle-owning households in the United States, according to a study by the University of Michigan.

The FRVTA promotes and protects the RV industry in the state of Florida and produces a number of RV shows including the Florida RV SuperShow held every January in Tampa. For more information about the “RV Friendly” program, contact the FRVTA at 10510 Gibsonton Drive, Riverview, FL 33569 or call (813) 741-0488.

Curomax’s Internet-based Loan Origination Platform Enhances
Bank of the West’s RV and Marine Lending Capabilities
Platform connects lenders directly with Bank of the West

Curomax Limited, a leader in dealer finance e-commerce solutions and the originator of the premier multi-asset finance portal in North America, announced an agreement with San Francisco - based Bank of the West to enhance the bank’s United States marine and recreational vehicle (RV) lending capabilities. Bank of the West, with assets of $41 billion, is one of the largest RV and marine lenders in the United States.

When the service becomes available to Bank of the West clients early in the third quarter of this year, it will automate the process of financing an RV or marine product, enabling dealers to submit consumer loan applications electronically and improve their ability to track the status of individual deals.

“Bank of the West has invested significantly in its Dealer Lending Services and in particular its focus on recreation and marine dealer needs across the United States,” said John Wojcik, executive vice president of Bank of the West. “Curomax has done its research and has arrived in the U.S. RV and marine markets with a loan origination channel that we believe will fundamentally change how recreation and marine dealers interact with lenders in America. We believe that working with Curomax will help us facilitate that change.”

Dealers use Curomax to submit transactions to the lender of their choice, obtain on-line, realtime credit decisioning, update deal status and produce all necessary lender contract documentation. Additionally, through the use of its industry leading communication platform, Curomax efficiently facilitates deals with dealers and credit officers that require further information to be completed successfully.

“Curomax has set very high expectations for itself in delivering the premier loan origination solution for recreation and marine dealers in North America,” said Alan Bird, president and CEO of Curomax. “In order to deliver on that promise, we must provide a choice of the very best lenders in the marketplace. Adding Bank of the West to our application delivers on that commitment. The confidence Bank of the West has shown in us, is gratifying and we look forward to supporting them in the execution of its dealer lending strategies on-line.”

New performance data shows 8.L GM Vortec™ 8100
still the king of gas motor home power

The latest test data is in, and if there was ever any doubt, the numbers have erased it. The Big Block GM Vortec™ 8100 is still the finest Class A gas motor home engine on the road.

“Superior displacement and engineering is still the key,” said John Buttrey, vice president of engineering for Workhorse. “The Big-Block Chevy Vortec remains best in class in all the areas retail customers really care about.”

Recent tests showed a Vortec-powered motor home quicker in 40 to 60 mph acceleration, important in merging onto an Interstate, and in 50 to 70 mph acceleration for highway passing. In the 40-60 mph test, it took a motor home on Workhorse’s W22 Vortec-powered chassis 14.3 seconds versus 16 seconds for the same model motor home on Ford’s F53 chassis powered by the new Triton engine at the same 22,000 lb. GVWR. In the 50 to 70 mph test, the Vortec-powered motor home performed even better, reaching 70 mph in 20.2 seconds versus 22.8 seconds for the Triton-powered model.

Also, in a 0 to 60 mph acceleration test towing a 4,000 lb trailer, the Vortec-powered coach came out significantly ahead, clocking 31.5 seconds versus 34.1 seconds for the Triton-powered vehicle. And, this clearly superior performance was achieved with better gas mileage: 8.8 mpg for the Vortec. versus 8.5 mpg for the new Triton.

Finally, the big block Vortec-powered motor home performed all of these feats at lower rpms and ran significantly quieter, measuring 3 decibels lower than the Triton-powered coach. “The Ford unit peaked at 47 percent higher sound pressure than the Vortec during full throttle 0 to 60 runs,” said Buttrey.

That’s no accident, but a great engineering combination, said Buttrey. He, explained, “Horsepower at the fly-wheel is what is typically quoted on engine power. We at Workhorse understand that the key driver of performance is how much of the horsepower actually gets to the rear wheels. That’s where the combination of Workhorse, Vortec and Allison makes a real difference.”

“We want our customers to know that they can safely use their motor home as they intended. They can get up to speed and pass slower moving vehicles without any worries,” said Bob Wert, vice president of sales, marketing and product planning for Workhorse. “The Vortec, coupled with the Allison transmission, provides the bragging rights for the best performing gas motor home out there.”

“Power and performance is what Workhorse is known for, and these new facts cement that reputation further. That the top ten RV dealers in the country averaged 79 percent of their Class A gas motor home sales with a Workhorse chassis shows that customers want that kind of value.”

Specializing in the manufacture of chassis for motor homes, walk-in trucks and buses, as well as integrated walk-in trucks, Workhorse Custom Chassis is ISO 9001 certified and considered a leader in the motor home and walk-in truck industries. For more information call toll-free 877-294-6773 or visit www.workhorse.com.

Key metrics customers care about the most:
 

Metric	Workhorse	Ford	Improvement
0-60 mph– towing	31.5	34.1	8.3%
40-60 mph- merging	14.3	16.0	11.8%
50-70 mph- passing	20.2	22.8	12.9%
Fuel Mileage (mpg)	8.8	8.5	3.5%
Noise	80 db	83 db	3 db

Allison now comes with a 5 year / 200,000 warranty – see dealer for details

Country Coach Hosts Employee Appreciation Summer Picnic

Country Coach, Inc., a manufacturer of luxury motorcoaches and one of the largest employers in Lane County, hosted its Summer Picnic on Saturday, July 9th. During this all-day summer event from 10:00 a.m. - 5:30 p.m. at the Lane Events Center in Eugene, the company treated its employees and their families to non-stop entertainment, games, door prizes, refreshments and live music. Guests enjoyed two live bands playing throughout the day, horseshoe pits, volleyball and basketball courts, Country Coach Olympic games for the adults, a pie eating contest, and an entire section of the picnic site dedicated to the children, including large inflatable play structures, face painters, children’s crafts, games, clowns, and more. A luncheon of barbecued chicken and smoked pork, corn on the cob, and all the fixings of a traditional picnic was served from noon to 1:30 p.m.

Monies raised at a celebrity dunk tank staffed by volunteers from the company’s management team benefited Local Aid while providing healthy doses of hilarity to its employees. Junction City, Oregon Local Aid has been providing emergency food boxes, prescription assistance, and utility assistance to Junction City families in need since 1945.

Country Coach is celebrating over 32 years of manufacturing excellence in the highline motorcoach industry. The company recognizes that it is the outstanding men and women who build these coaches that have helped establish Country Coach as The World’s Finest Motorcoaches on the road today. Saturday’s picnic event was one way that the Company has chosen to say, “Thank you for a job well done.”

America’s Largest RV Show Slated for Hershey this Fall

This September thousands of RV enthusiasts from across the nation will make their way to Hershey, PA for the 37th Annual Pennsylvania RV & Camping Show, America’s Largest RV Show. The event will be held September 12-18, 2005 at the HERSHEYPARK® Entertainment Complex in Hershey. Recently honored by Tradeshow Week 200 as the 9th largest tradeshow in the nation, the show will feature over 1,200 RVs from the smallest folding campers to the largest motorhomes from the nation’s top manufacturers. With over 1.4 million gross square feet of show space, the Pennsylvania RV & Camping Show is the largest of its kind. In addition to a wide variety of suppliers, vendors and educational speakers, the show also hosts the largest display of recreational park trailers found anywhere. Trade days will take place on Monday September 12 and Tuesday September 13. The show will open to the public on Wednesday September 14 and continue through Sunday September 18.

The Pennsylvania RV and Camping Show is managed by the Pennsylvania Recreation Vehicle and Camping Association (PRVCA) and is now entering its 37th year. Previously held at the PA State Farm Show Complex, the show will make the move to Hershey for the first time this year. “The move offers an exciting opportunity for us to try new things; and the location couldn’t be better,” says Rebecca Lenington, PRVCA Executive Vice President. Improvements this year include free parking for all exhibitors and attendees, three industry breakfasts with trainers like Paul Cummings, Randy Sobel, Jan Kelly and motivator Nido Qubein, a meet and greet with former Pittsburgh Steeler, Franco Harris, plus an industry party second to none with a BBQ in HERSHEYPARK® and concert by Grammy Award winning artist Ronnie Milsap. “The show this year is going to be more exciting than ever,” says Show Chairman Dan Saltzgiver, “everything the show has to offer and the excitement of HERHSEYPARK® will make this a ‘sweet’ event.”

The completeness of the show makes it a huge attraction, and all aspects of the industry are included. The Pennsylvania RV and Camping Show successfully sets itself apart from others by effectively merging trade and public days and being named the #1 Fastest Growing Hybrid Show (trade and public) in the nation by Tradeshow Week 200. The excitement of over 26 football fields of the latest RVs and camping accessories and the chance to meet with top industry representatives will make this an event not to be missed. Mark your calendars now for America’s Largest RV Show – September 12-18, 2005 at the HERSHEYPARK® Entertainment Complex in Hershey, PA. For more information visit www.largestRVshow.com.

Workhorse announces Round One
Dealer winners for 100,000th chassis promotion

Valley RV Center in McMinnville, Ore., and Pleasureland RV Center in St. Cloud, Minn., have each won a 2005 Harley-Davidson Dyna Glide as Round One winners of the Workhorse 100,000th Chassis Challenge.

Both dealerships ordered in excess of 80 percent of their Class A gas motor home inventory on Workhorse chassis to be eligible to win. Additionally, Pleasureland RV Center will receive $20,000 in cash back on future Workhorse orders as the winner of our Level 2 prize for ordering more than eight chassis in June.

“We are happy to reward Valley RV Center and Pleasureland RV Center for their participation,” said John Margalski, Workhorse director of RV sales. “We always appreciate our loyal dealers for making us what we are today.”

“It’s not over yet,” explained Margalski. “We have two more Harleys and a lot more cash to give away in our Round Two drawing to be held at the end of August. Dealers can still register for Round Two.”

Round Two extends the contest until Aug. 31 and the winner will be announced on Sept. 7. Participants who order 80 percent or more of their Class A gas motor home inventory on Workhorse chassis will be eligible to win a Harley-Davidson motorcycle and up to $125,000 in cash-back on Workhorse purchases.

“The response from the industry has been fantastic,” said Bob Wert, vice president of sales, marketing and product planning for Workhorse. “More than 250 dealerships registered to participate in the Challenge and we are looking forward to a great Round Two.”

The Workhorse 100,000th Chassis Challenge marks the production of Workhorse’s 100,000th chassis. To enter the contest, dealers should visit www.WorkhorseRewards.com and complete the Workhorse registration form. Or they may call 800-826-9532 for more details.

Airstream Accelerates Growth with Record Order
Input at National Dealer Meeting

Airstream, Inc., manufacturer of travel trailers and motor homes, hosted its dealer body and received record order input at its National Dealer Meeting and New Model Introduction, June 15-17 at Caesar’s Palace in Las Vegas, NV. The company, founded in 1931, launched its 75th anniversary celebration by presenting its dealers all of its 2006 models including travel trailers, Class A and Class B motor coaches, as well as new processes, services and support that continue Airstream’s outstanding dealer relationships.

Highlights of Airstream’s product presentation included its new A-Series diesel motor home, an all new “Parkway” and “Westfalia” Class B motor home built on the Dodge Sprinter chassis with a Mercedes-Benz diesel engine, a new 23’ Safari travel trailer, its Safari “Special Edition” trailer series, and a new 16’ Quiksilver Edition Bambi trailer developed in partnership with surf-style and apparel company Quiksilver. Airstream also presented its new Airstream Mobile Business Solutions division, which builds commercial vehicles for mobile marketing. Future products and designs presented included its new Base Camp trailer and new motor coach designs scheduled to be launched later this year. New processes, services and support included Airstream’s proprietary AirPort™ dealer communication system that features electronic warranty and parts ordering, and “LEADstream,” a new web-based sales lead-generation tool developed with Channelblade Technologies.

As a result of this presentation, Airstream received 68% more orders this year than it did at its 2004 dealer meeting, and two and a half times the number of orders it received in 2003.

“Dealers recognize Airstream’s incredible momentum, especially after Airstream has been one of the fastest growing companies in the RV industry for each of the last two years. This record order input reflects the company’s focus on its core values of quality, innovation and design, the same three attributes Airstream was founded upon in 1931. Airstream understands the dealer success formula and is providing its distribution channel with innovative products and tools that accelerate their success with a variety of new customers.”

Daytona Beach, Florida, Selected to Host 2006 Rally

The event that has been known for several years as the Great North American RV Rally is simplifying itself. Beginning in 2006, the event coordinators will refer to it as "The Rally," and what better place to jump-start their new image than in Daytona Beach, Florida?

Daytona Motor Speedway, and its annual race, the Daytona 500, became a third-year recipient of the Good Sam Club Welcome Mat Award for being the most RV-friendly NASCAR event in 2005. To express their gratitude, Rally event coordinators chose Daytona Beach, Florida, for the 2006 gathering hosted by the Good Sam Club, Camping World President's Club, Coast to Coast Resorts, Woodall's and MotorHome and Trailer Life magazines.

The Rally will be held April 7-10, 2006, and will feature an incredible lineup of activities, contests, seminars and entertainers for all participants.

This year's Rally has wrapped up in Redmond, Oregon. While there, RVers enjoyed such events as the construction of the World's Largest S'more, Oreo stacking contests, a dog show, valuable seminars and nightly entertainment.

"We had a fantastic turnout this year in Redmond," said Rally Director Bev Dalton. "It's very encouraging to see so many people making the journey from every state and even from Canada to come to our event. We had nearly 100 RVs come from Florida alone, so we are expecting an even greater turnout for the 2006 Rally."

Known for being the home of NASCAR and the "World Center of Racing," Daytona Beach offers visitors much more than fast cars and white, sandy beaches. Historic attractions, such as the Main Street Pier, Oceanfront Boardwalk and the Clocktower in Oceanfront Park add to the city's ambience and world-class restaurants can be found throughout. Additionally, Daytona Beach is also home to the new Ladies Professional Golf Association (LPGA) as well as the Halifax Harbor Marina.

For more information regarding the 2006 Rally, visit www.rv.net/rally. 

Fleetwood RV Helps Provide a “Safe Haven” to Riverside County
Partnership with Child Abuse Agency and Sheriff’s Department
Helps Launch New Community Program

Fleetwood RV, a leading producer of recreational vehicles, announced its collaboration with Mobile Safe Haven, a community program from Prevent Child Abuse Riverside County and the Riverside County Sheriff’s Department. PCA Riverside County , the county’s designated lead agency tasked with child abuse and neglect prevention, hosted a rollout event in downtown Riverside July 12th to showcase the program.

Mobile Safe Haven provides a Community Response Vehicle (CRV) offering children from highrisk homes an immediate, non-traumatic environment while law enforcement and or child protective services conduct investigation activities. The program was initiated in response to the high rate of emotional trauma children may incur during social services’ responses to emergency incidents.

PCA Riverside County, in conjunction with the Sheriff’s department and Fleetwood RV, modified four Fleetwood Jamboree 24D Class C motor homes into kid-friendly mobile sites. The rear double beds were removed and replaced with additional side dinettes, while the kitchen ranges and ovens were replaced with specially designed cribs and pens for small children to safely play during field investigations. The units were also equipped with 20-inch color televisions and DVD/VCR players, and the units’ lounge chairs were outfitted for child car seats.

“Fleetwood RV is extremely proud to participate in a community program such as Mobile Safe Haven,” said Chris Braun, Executive Vice President of Fleetwood RV. “Working with PCA Riverside County and the Sheriff’s department to offer a valuable and much needed service to the Riverside community was something we were highly motivated to do.”

“The Riverside Sheriff’s department and Fleetwood RV played an integral role in launching the Mobile Safe Haven program,” said Theresa Larsen, Executive Director of PCA Riverside County. “Thanks to their dedication, Prevent Child Abuse Riverside County will be able to offer a vital and indispensable service to the community.”

Blue Ox Tow Bar Trade in Program Continues

“Due to the success of the Trade in program over the past year we have decided to continue the program,” said President Jay Hesse.

Consumers have the opportunity to get something back when they trade their used tow bar into a new Aventa II, Alexus or Aladdin tow bar. Any tow bar – any brand - is eligible to trade in for the program. This program is designed to allow consumers to use their current tow bar as a method in reducing their cost when looking at a new system.

“The average RVer buys or trades their towed vehicle every 2 to 3 years. The average RVer buys or trades coaches every 5 to 6 years. The problem is the average RVer still has the same tow bar they started with or at least have owned their current bar longer than one or both of their vehicles” says Mark Penlerick, Blue Ox Engineering Team Leader. When you buy a new tow car, you trade – why not your tow bar? Blue Ox encourages consumers to consider trading as a means to keep their towing system up to date.

For more information on the Blue Ox tow bar trade-in program and complete line of Blue Ox® towing, braking, steering controls, and weight distributing hitch systems, carriers, and accessories, contact Blue Ox®, One Mill Rd., PO Box P, Pender NE 68047; phone (402) 385-3051; Fax (402) 385- 3360; e-mail info@blueox.us

Country Coach Casuals for Active RV Lifestyles

Country Coach, Inc., has expanded its Country Coach Casuals apparel and aftermarket items which are offered online at the company’s web site: www.countrycoach.com. New inventory at the CC Casuals outlet in Junction City, Oregon includes highly respected quality apparel lines and items of specific interest to RV enthusiasts. Choose from colorful caps, resort style polos and t-shirts, cozy fleece pullovers, leather jackets, and Country Coach women’s wear. All tastefully sport the recognized Country Coach logo. Especially popular with RV enthusiasts because of its easy care, quality workmanship, comfortable styling and affordable pricing, Country Coach Casuals apparel is gaining increasing popularity at rallies across the country.

In addition to showings at the Country Coach International rallies, RVers may also stop by the Customer Care Center in Junction City, Oregon at 210 East Sixth Avenue, Monday through Friday to select leisure fashions from Country Coach. Stock on hand also includes bathroom scales, thermal and ceramic mugs, and a sundry of accessories like hitch covers, bath squeegees, carpet cleaning kits, umbrellas, flags, chrome license plate frames, and more. For more information regarding upcoming Country Coach Casuals shopping opportunities at rallies nationwide, call 800-654-0223. To go shopping, visit the CC Casuals store at www.countrycoach.com. To place an order, please call Katrina Damon at the Country Coach Customer Care Center, (800) 654-0223, Monday-Friday, 8:30 a.m. – 4:30 p.m. Country Coach International Club members receive a discount when ordering.

Country Coach manufactures Highline motorcoaches in lengths ranging from 34’ to 45 feet. These 102-inch wide-body diesel pusher engine luxury coaches include the Inspire, Allure, Intrigue, Magna, Affinity, and Country Coach Prevost Conversion. With quad slides available, expanded livability for recreation travels is just a phone call away. CCI also builds the DynoMax chassis upon which the Inspire, Allure, Intrigue, Magna, and Affinity are based. Call the Customer Support Team at 800-654- 0223 for more information. Or, visit on-line at www.countrycoach.com.

Country Coach, Inc. and its sister company National RV are subsidiaries of National R.V. Holdings, Inc., traded on the New York Stock Exchange under the symbol “NVH”. National R.V. Holdings, Inc., through its two wholly owned subsidiaries, National R.V., Inc. (NRV) and Country Coach, Inc. (CCI), is one of the nation's leading producers of motorized recreation vehicles. NRV is located in Perris, California where it produces Class A gas and diesel motor homes under model names Dolphin, Islander, Sea Breeze, Tradewinds and Tropi-Cal.
 

Coachmen Industries, Inc.
Announces Preliminary Expectation for Second Quarter

In Coachmen’s Housing and Building Group, continued softness in its core Midwest residential housing markets again impacted three of the company’s more profitable business units, resulting in lower sales and profits for the segment as a whole. Sales were further impacted by the Group’s continuing challenge to deliver its finished homes on a timely basis in some areas, due to incomplete or delayed site preparation work by the Group’s independent builders.

Actions to Improve Operations

Claire C. Skinner, Chairman and Chief Executive Officer, remarked, “We expected to see improvements in both our RV and Housing markets during the second quarter, which did not occur. Accordingly, in late May we launched a series of aggressive steps that needed to be taken, in light of the market conditions and our unacceptable level of profitability.”

Companywide, salaried positions were reduced by approximately 12.5%. This reduction should result in annualized savings of more than $5 million, while the associated severance costs will negatively impact the second quarter by $0.4 million. In addition to the salaried workforce reductions, the Company reduced its hourly workforce by 10% across both of its business segments. In the RV segment, capacity has been temporarily reduced, with closure of a towable facility and one of the two Class C mini-motorhome production lines. All RV Service Operations, including customer service, parts, warranty and business systems, have been consolidated into one unit, to reduce staffing and eliminate duplicative activities. To improve ongoing operating efficiencies, with the new model year numerous product lines were consolidated, slower selling models were eliminated, options were significantly reduced, and where possible, selling prices were increased. In the Housing and Building segment, the administrative operations of the Indiana and Ohio facilities have been consolidated to better manage the challenging Midwest market and reduce over- head costs. “All of these actions were necessary to minimize losses in the current climate, and will also position the Company for improved profitability as the markets return to normalcy,” noted Chairman Skinner.

RV Dealer Seminars

In mid-June, Coachmen RV Company and Georgie Boy Manufac-turing unveiled their new 2006 models to their dealers. Both dealer meetings enjoyed significant success, with dealers expressing optimism about the summer selling season, and enthusiasm about the Company’s products. These dealer meetings resulted in combined initial dealer orders of 4,978 units worth $198 million, which was a 40% increase over the 2004 seminars, the previous best in the Company’s history. “Although we are extremely pleased with our recent dealer events, it is important to note that these orders may not all translate into timely sales,” said Chairman Skinner. “Though improving, dealer inventories are still higher than normal. Therefore, if retail demand does not improve as much as dealers are anticipating, they may not have adequate wholesale credit capacity to accept delivery when their ordered units are ready to ship. Nevertheless, we are very pleased with the dealers’ enthusiastic reaction to our new products, and are encouraged by their optimism regarding the recent trends in retail activity.”

2005 Outlook Uncertain

“Due to the current uncertainty in both of our core businesses, at this point, the second half of 2005 cannot be forecasted with any degree of accuracy,” said Chairman Skinner. “Based on our performance in the second quarter, it appears that we will not be able to Coachmen Industries, Inc. Announces Preliminary Expectations For Second Quarter meet our full-year earnings guidance provided at the end of the first quarter. At the same time, the recently released reports on Consumer Confidence by the Conference Board and the University of Michigan show that this important indicator rose significantly in June, which is quite consistent with our dealer’s subjective observations. We are continuing to assess all available information regarding our markets and the changing business environment. We expect to provide additional thoughts on the remainder of the year in conjunction with our formal earnings release on July 25. In the interim, we are encouraged by recent order trends among our RV dealers, and we are steadfast in our commitment to continue reducing costs and improving operating performance throughout our Company.”

SmarTire Completes Major Financing

SmarTire Systems Inc. (OTCBB: SMTR) announced the Company has completed a major financing with Cornell Capital Partners LP that has resulted in net proceeds of $11 million plus a $160 million Standby Equity Distribution Agreement. The Company issued convertible debentures totaling $30 million that bear interest at a rate of 10.0% per annum, have a term of three years, and are convertible into common stock at $0.1125 per share. Also included in this financing are 62.5 million warrants with an exercise price of $0.16 per share.

Cornell Capital is a New Jersey-based investment fund managed by Yorkville Advisors Management, LLC. Complete terms of the financings will be released in the Company’s 8-K filing.

Jeff Finkelstein, Chief Financial Officer of SmarTire stated, “This major financing represents one of the most important milestones in the history of our company. Completion of this financing sends a very clear and positive message to our customers, suppliers and strategic partners that SmarTire now has the resources necessary to execute on its business plan. The Company has expanded its business strategy beyond tire monitoring opportunities to include a wider range of wireless sensing and control applications that utilize SmarTire’s patented technologies. This financing enables us to launch and maintain a long-term sales and marketing program into this exciting market sector.”
 

Go RVing Consumer Satisfaction Research Report
Shows Opportunities, Challenges for RV Industry

The Go RVing Coalition, formed in 1994, consists of RV manufacturers, component suppliers, dealers and campgrounds. Go RVing works to provide the public and media with pertinent information about the benefits of RV travel and to foster customer satisfaction with the RV experience through customer research conducted by its Committee on Excellence. For more information, visit GoRVing.com.

Manufacturers to Draw SuperShow Space

The Florida RV Trade Association (FRVTA) will hold the space drawing for the 2006 Florida RV SuperShow on Tuesday, August 9th through Thursday, August 11th. Each manufacturer that has returned their contract with a deposit will be called during the drawing to pick a space in the show. The “Grandfathered Drawing Order” will determine the order in which space is selected.

The theme of the 2006 Florida RV SuperShow is “See For Yourself!” This theme emphasizes the fact that RVs have undergone many changes recently and many of the amenities you just have to “See For Yourself!” to believe.

Industry Day at the 2006 Florida RV SuperShow will be Tuesday, January 17th from 10am- 5pm. Attendees will be treated to coffee and donuts in the morning, a free lunch and cocktail party and dinner that evening. Public Days will run Wednesday, January 18th through Sunday, January 22nd. Admission to the RV SuperShow is only $8.00 for adults and that includes a second day admission and children under 16 are FREE. The RV SuperShow hours are Wednesday - Saturday 9am-6pm, and Sunday 9am-5pm. Wednesday is Senior Citizens Day with seniors receiving $1.00 off the cost of admission (not valid with other discounts).

For more information on the 2006 Florida RV SuperShow or to register for Industry Day, contact the Florida RV Trade Association at 10510 Gibsonton Drive, Riverview, Florida 33569 or visit our website at www.frvta.org.

Park Trailer Sales Up Nearly 15% in First Quarter

National shipments of recreational park trailers were up nearly 15 percent during the first quarter, thanks to a sharp increase in consumer demand for affordable vacation cottages, according to the Recreational Park Trailer Industry Association (RPTIA).

“The recreational park trailer business has become one of the fastest growing segments of the RV industry, thanks to the rising cost of real estate and Americans’ seemingly insatiable demand for weekend retreats,” said William Garpow, a 30-year RV industry veteran who serves as RPTIA’s executive director. “There is simply no letup in demand for these products.” Indeed, RPTIA reported 2,400 shipments during January, February and March of this year, compared to 2,100 shipments during the same period a year earlier, an increase of 15 percent. The 2005 statistics are significant, Garpow said, because they indicate that park trailer manufacturers and their dealers are selling units at a pace that will likely eclipse last year’s production figures, which were the highest in the history of the park model business.

RPTIA reported 9,186 park trailer shipments during calendar 2004, up 30 percent from the 7,074 shipments reported during the same period in 2003. Previously, RPTIA reported 7,363 shipments in 2002; 7,388 in 2001; 8,343 in 2000; and 8,161 in 1999.

Garpow said the high volume of recreational park trailer or “park model” shipments reflects rising real estate prices, which are prompting record numbers of consumers to look for more affordable vacation dwellings.

Indeed, while condos and site-built homes in resort areas typically cost $200,000 or $300,000 or more, park models generally cost less than $50,000, with the average price being in the $35,000 range. Most park models are placed on campsites, which can be leased for $1,500 to $5,000 per year, depending on location. However, some consumers also place their units on private property and use them as vacation homes, subject to local zoning requirements.

Some of the biggest names in the campground business, including Billings, Mont.-based Kampgrounds of America Inc. (KOA), Milford, Ohio-based Leisure Systems, which franchises the Yogi Bear’s Jellystone Park Camp Resorts, and Frisco, Texas-based Thousand Trails Inc., are also boosting their supplies of park models this year, primarily to accommodate travelers who do not have RVs but want to enjoy a campground or RV resort setting.

“They’re definitely in demand with campers,” said Mike Gast, director of communications for Billings, Mont.-based Kampgrounds of America, Inc. (KOA), which has about 60 park models among its more than 470 locations across North America, adding, “I think you’ll see a nice steady growth in (the park model) business for some time.”

RPTIA, for its part, represents 41 recreational park trailer manufacturers that have pledged to the association that they will adhere to the American National Standards Institute ANSI A119.5 standard, which mandates more than 500 separate safety requirements for recreational park trailers. RPTIA assists its members in complying with the ANSI standard by providing unannounced inspections of the units being produced at the members’ manufacturing facilities by accredited third party engineering firms. Members of the association who are in compliance with the standards program have the right to proudly display RPTIA’s gold, blue and green oval seal, which is typically placed adjacent to the primary entrance to the recreational park trailer.

To obtain photos, statistics, consumer and campground contacts or other information regarding the growth of the recreational park trailer industry, please contract William Garpow at (770) 251-2672 or visit the association’s website at www.rptia.com.

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