RVRESOLVE

Fleetwood Enterprises, Inc. has settled all ongoing litigation with The Coleman Company, Inc., and all pending proceedings have been dismissed. Fleetwood paid Coleman $10 million in cash and agreed to release Coleman from the restriction on licensing its name to an RV company. In 2005, Fleetwood posted an appeal bond, supported by a letter of credit, in the amount of $18 million, and to date has recorded cumulative accounting charges of $19.2 million. The reversal of $9.2 million of the prior charges, as a result of the settlement, will flow through discontinued operations in the fourth quarter of fiscal 2008. The cancellation of the letter of credit will release borrowing capacity of $18 million under the Company's credit facility and will enhance liquidity by a net $8 million.