COACHMEN
INDUSTRIES, INC.


2831
Dexter Drive • P.O. Box 3300 • Elkhart, Indiana 46514 • 574/266-2500 • Fax
574/266-2559





NEWS
RELEASE





For
immediate release Monday, February 2, 2009





COACHMEN
INDUSTRIES, INC. HOUSING GROUP PROFITABLE FOR 2008, DESPITE CONSOLIDATED LOSS
FOR FOURTH QUARTER





Elkhart, IN-Coachmen Industries, Inc.
(NYSE: COA) today announced its financial results for the fourth quarter and
full year ended December 31, 2008.





“As was
previously announced, we sold most of the assets of the RV Group on December 26,
2008. RV finished goods inventories and some other assets of the Group were sold
below book value. Combined with operating losses sustained by the RV Group
during the quarter, and the write-down of the remaining goodwill balances, this
resulted in a rather unusual overall book loss for the Company for both the
fourth quarter and the full year 2008. However, these actions also provide us
with a clean platform to measure the performance of the restructured company as
we move forward. In that regard, the overall book loss should not overshadow the
perhaps equally extraordinary performance of our Housing Group, which posted a
modest pre-tax profit for the full year 2008 as previously predicted,” said
Coachmen’s President and CEO, Rick Lavers.





Net sales
from continuing operations for the fourth quarter were $18.9 million compared to
$22.5 million reported for the same period in 2007. Gross profit for the quarter
increased to $0.3 million or 1.8% of revenues from $0.2 million or 1.0% of
revenues for the fourth quarter of 2007. The Company reported a net loss from
continuing operations of ($19.7) million, or ($1.24) per share, versus a net
loss from continuing operations of ($7.2) million, or ($0.46) per share in the
fourth quarter of 2007.  The results for the fourth quarter of 2008
include non-recurring, non-cash impairment charges of $15.2 million, or $0.96
per share.  Excluding these charges, net loss for the quarter ended
December 31, 2008 was ($4.5) million, or ($0.28) per share.  Net loss,
including discontinued operations, was ($52.1) million, or ($3.29) per share in
the fourth quarter of 2008, versus a net loss of ($13.8) million, or ($0.88) per
share, in the fourth quarter of 2007.





Net sales
from continuing operations for the twelve-month period ended December 31 were
$119.6 million versus $119.2 million reported for the same period last year.
Gross profit increased to $17.7 million, or 14.8% of revenues, from $12.8
million, or 10.8% of revenues, in 2007. Operating expenses increased to $38.6
million, from $24.6 million in 2007, primarily due to impairment charges. The
Company reported a net loss from continuing operations of ($19.2) million or
($1.22) per share, versus a net loss from continuing operations of ($10.9)
million or ($0.69) per share in 2007.  The results for 2008 include
non-recurring, non-cash impairment charges of $18.6 million, or $1.18 per
share.  Excluding these charges, net loss for the year ended December
31, 2008 was ($0.6) million, or ($0.04) per share.  Net loss,
including discontinued operations, was ($68.2) million, or ($4.31) per share in
2008, versus a net loss of ($38.8) million, or ($2.46) per share, in
2007.





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 Coachmen
Industries, Inc. Announces Fourth Quarter Results Page
2
 February 2, 2009




Discontinued
Operations





The RV
Industry unit shipments continued their downward spiral in the fourth quarter.
RV Industry numbers for December reported motorized shipments were down a
staggering 85.4% while towable shipments were down 72.7%. “Many of our former
competitors in the RV business are posting deep losses in step with these
chronically falling industry numbers, and some are no longer even in business.
While we were also dealing with these widespread market conditions in the fourth
quarter, Coachmen RV sales and margins were further impacted by the announcement
of the sale of the RV Group on November 21, 2008” said Lavers. “In most respects
the struggles of that industry will now be behind us, but we will still be
dealing with tail liabilities associated with a desperately sick RV Industry for
many months to come.  The expenses associated with those tail
liabilities have already been estimated and accrued for in the 2008 operating
results.”  Due to the sale of the assets of the RV Group, Coachmen’s
Recreational Vehicle results are now reported as discontinued
operations.





Housing
Group





According
to the U.S. Census Bureau, single family housing starts for the quarter were
down 43.8 % nationwide versus the same quarter in 2007. "The Housing Group's
core business of single family homes was also adversely affected by
deteriorating conditions in the nationwide housing market, and as expected, we
posted a pre-tax and operating loss for the fourth quarter," commented Housing
Group President Rick Bedell. "Nonetheless, the Housing Group's shipments of
single family homes did manage to beat the nationwide market numbers by 13.0
percentage points. A combination of our major project activities, improved gross
margins and reduced operating expenses, generated a pre-tax profit for the year
of $1.7 million compared with a pre-tax loss of ($7.4) million for the previous
year," concluded Bedell.





Coachmen
Industries will conduct a conference call to discuss these financial results at
10:00 a.m. (Eastern Time), Tuesday, February 3, 2009. Members of the news
media, investors and the general public are invited to access a live broadcast
of the conference call over the internet at www.earnings.com. The online replay
will be available at approximately 12:00 p.m. (Eastern Time) and continue for 30
days.





Coachmen
Industries, Inc. is one of America's premier manufacturers of systems-built
construction, as well as specialty vehicles. Through ALL AMERICAN HOMES® and
MOD-U-KRAF®, the Company is one of the nation's largest producers of
systems-built homes, and also a major builder of commercial and multi-family
residential structures with its ALL AMERICAN BUILDING SYSTEMSTM products.
Coachmen Industries, Inc. is a publicly held company with stock listed on the
New York Stock Exchange (NYSE) under the ticker COA.





This
release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned not to place
undue reliance on forward-looking statements, which are inherently uncertain.
Actual results may differ materially from that projected or suggested due to
certain risks and uncertainties including, but not limited to, the potential
fluctuations in the Company's operating results, increased interest rates the
availability for floorplan financing for the Company's builders and
corresponding availability of cash to Company, uncertainties and timing with
respect to sales resulting from recovery efforts in the Gulf Coast,
uncertainties regarding the impact on sales of the disclosed restructuring steps
in housing and building segments, the ability of the company to generate taxable
income in future years to utilize deferred tax assets and net operating loss
carry-forwards available for use, the impact of performance on the valuation of
intangible assets, the availability and the price of gasoline, price volatility
of raw materials used in production, the Company's dependence on suppliers, the
availability and cost of real estate for residential housing, the supply of
existing homes within the company's markets, the impact of home values on
housing demand, the impact of sub-prime lending on the availability of credit
for the broader housing market, the ability of the Company to perform in new
market segments where it has limited experience, adverse weather conditions
affecting home deliveries, competition, government regulations, legislation
governing the relationships of the Company with its builders, dependence on
significant customers within certain product types, consolidation of
distribution channels, consumer confidence, uncertainties of matters in
litigation, current litigation relating to and Congressional inquiry surrounding
the Company's use of components containing formaldehyde in its products, further
developments in the war on terrorism and related international crises, oil
supplies, and other risks identified in the Company's SEC filings.





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 Coachmen
Industries, Inc. Announces Fourth Quarter Results
 Page
3
 February 2, 2009




For more
information:





Thomas
Gehl                                                                                     Colleen
Zuhl


Secretary                                                                           Chief
Financial Officer


574-266-2531





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 Coachmen
Industries, Inc. Announces Fourth Quarter Results
 Page
4
 February 2, 2009





Coachmen
Industries, Inc. and Subsidiaries


Consolidated
Statements of Operations


(in
thousands, except per share amounts)


(Unaudited)


Three
      Months Ended December 31,
                                              
                                              
                                              Twelve Months
      Ended December 31,2008
                                              
                                              2007
                                              
                                              
                                              2008
                                              
                                              2007Net
      sales
                                              
                                              $
                                              18,859
                                              
                                              $
                                              22,483
                                              
                                              
                                              $
                                              119,596
                                              
                                              $
                                              119,186Gross
      profit - $
                                              
                                              
                                              333
                                              
                                              
                                              234
                                              
                                              
                                              
                                              17,676
                                              
                                              
                                              12,847Gross
      profit - %
                                              
                                              
                                              1.8
                                              %
                                              
                                              1.0
                                              %
                                              
                                              
                                              14.8
                                              %
                                              
                                              10.8
                                              %GS&A
      - $
                                              
                                              
                                              6,163
                                              
                                              
                                              6,377
                                              
                                              
                                              
                                              20,064
                                              
                                              
                                              24,703GS&A
      - %
                                              
                                              
                                              32.7
                                              %
                                              
                                              28.4
                                              %
                                              
                                              
                                              16.8
                                              %
                                              
                                              20.7
                                              %(Gain)
      loss on sale of assets, net - $
                                              
                                              
                                              5
                                              
                                              
                                              -
                                              
                                              
                                              
                                              (44
                                              )
                                              
                                              (74
                                              )(Gain)
      loss on sale of assets, net - %
                                              
                                              
                                              -
                                              %
                                              
                                              -
                                              %
                                              
                                              
                                              -
                                              %
                                              
                                              (0.1
                                              )%Impairment
      charge - $
                                              
                                              
                                              15,156
                                              
                                              
                                              -
                                              
                                              
                                              
                                              18,605
                                              
                                              
                                              -Impairment
      charge - %
                                              
                                              
                                              80.4
                                              %
                                              
                                              -
                                              %
                                              
                                              
                                              15.6
                                              %
                                              
                                              -
                                              %Total
      operating expenses - $
                                              
                                              
                                              21,324
                                              
                                              
                                              6,377
                                              
                                              
                                              
                                              38,625
                                              
                                              
                                              24,629Total
      operating expenses - %
                                              
                                              
                                              113.1
                                              %
                                              
                                              28.4
                                              %
                                              
                                              
                                              32.3
                                              %
                                              
                                              20.7
                                              %Operating
      loss - $
                                              
                                              
                                              (20,991
                                              )
                                              
                                              (6,143
                                              )
                                              
                                              
                                              (20,949
                                              )
                                              
                                              (11,782
                                              )Operating
      loss - %
                                              
                                              
                                              (111.3
                                              )%
                                              
                                              (27.3
                                              )%
                                              
                                              
                                              (17.5
                                              )%
                                              
                                              (9.9
                                              )%Outside interest
      expense
                                              
                                              
                                              744
                                              
                                              
                                              326
                                              
                                              
                                              
                                              1,635
                                              
                                              
                                              999Outside
      investment income
                                              
                                              
                                              (409
                                              )
                                              
                                              (111
                                              )
                                              
                                              
                                              (1,094
                                              )
                                              
                                              (1,487
                                              )Other
      income
                                              
                                              
                                              (1,035
                                              )
                                              
                                              (24
                                              )
                                              
                                              
                                              (1,600
                                              )
                                              
                                              (202
                                              )Other
      (income) expense
                                              
                                              
                                              (700
                                              )
                                              
                                              191
                                              
                                              
                                              
                                              (1,059
                                              )
                                              
                                              (690
                                              )Pre-tax
      loss from continuing operations - $
                                              
                                              
                                              (20,291
                                              )
                                              
                                              (6,334
                                              )
                                              
                                              
                                              (19,890
                                              )
                                              
                                              (11,092
                                              )Pre-tax
      loss from continuing operations - %
                                              
                                              
                                              (107.6
                                              )%
                                              
                                              (28.2
                                              )%
                                              
                                              
                                              (16.6
                                              )%
                                              
                                              (9.3
                                              )%Tax
      expense (credit)
                                              
                                              
                                              (641
                                              )
                                              
                                              841
                                              
                                              
                                              
                                              (641
                                              )
                                              
                                              (154
                                              )Net
      loss from continuing operations
                                              
                                              
                                              (19,650
                                              )
                                              
                                              (7,175
                                              )
                                              
                                              
                                              (19,249
                                              )
                                              
                                              (10,938
                                              )Discontinued
      operations:Loss
      from discontinued RV operations (net of taxes)
                                              
                                              
                                              (22,947
                                              )
                                              
                                              (6,663
                                              )
                                              
                                              
                                              (39,447
                                              )
                                              
                                              (27,814
                                              )Loss
      on sale of discontinued RV assets (net of taxes)
                                              
                                              
                                              (9,464
                                              )
                                              
                                              -
                                              
                                              
                                              
                                              (9,464
                                              )
                                              
                                              -Loss
      from discontinued operations
                                              
                                              
                                              (32,411
                                              )
                                              
                                              (6,663
                                              )
                                              
                                              
                                              (48,911
                                              )
                                              
                                              (27,814
                                              )Net
      loss
                                              
                                              
                                              (52,061
                                              )
                                              
                                              (13,838
                                              )
                                              
                                              
                                              (68,160
                                              )
                                              
                                              (38,752
                                              )Loss
      per share - Basic & DilutedContinuing
      operations
                                              
                                              
                                              (1.24
                                              )
                                              
                                              (0.46
                                              )
                                              
                                              
                                              (1.22
                                              )
                                              
                                              (0.69
                                              )Discontinued
      operations
                                              
                                              
                                              (2.05
                                              )
                                              
                                              (0.42
                                              )
                                              
                                              
                                              (3.09
                                              )
                                              
                                              (1.77
                                              )Net
      loss per share – Basic & Diluted
                                              
                                              $
                                              (3.29
                                              )
                                              $
                                              (0.88
                                              )
                                              
                                              $
                                              (4.31
                                              )
                                              $
                                              (2.46
                                              )Weighted
      average shares outstanding:Basic
                                              
                                              
                                              15,834
                                              
                                              
                                              15,743
                                              
                                              
                                              
                                              15,801
                                              
                                              
                                              15,727Diluted
                                              
                                              
                                              15,834
                                              
                                              
                                              15,743
                                              
                                              
                                              
                                              15,801
                                              
                                              
                                              15,727





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 Coachmen
Industries, Inc. Announces Fourth Quarter Results
 Page
5
 February 2, 2009


Coachmen Industries, Inc. and
Subsidiaries


Consolidated
Balance Sheets


(in
thousands)





December
      31,
                    
                    
                    December
      31,2008
                    
                    
                    2007Assets
                    
                    
                    (Unaudited)CURRENT
      ASSETSCash
      and cash equivalents
                    
                    $
                    15,745
                    
                    $
                    1,549Restricted
      cash
                    
                    
                    1,600
                    
                    
                    -Accounts
      receivable
                    
                    
                    2,002
                    
                    
                    9,122Inventories
                    
                    
                    19,960
                    
                    
                    79,268Refundable
      income taxes
                    
                    
                    1,559
                    
                    
                    1,628Prepaid
      expenses and other
                    
                    
                    9,320
                    
                    
                    7,623Assets
      held for sale
                    
                    
                    2,913
                    
                    
                    -Total
      current assets
                    
                    
                    53,099
                    
                    
                    99,190Property,
      plant and equipment, net
                    
                    
                    30,922
                    
                    
                    52,932Goodwill
                    
                    
                    -
                    
                    
                    12,993Cash
      value of life insurance, net of loans
                    
                    
                    4,462
                    
                    
                    33,936Notes
      receivable
                    
                    
                    -
                    
                    
                    4,543Restricted
      cash – long term
                    
                    
                    17,321
                    
                    
                    1,193Other
                    
                    
                    1,831
                    
                    
                    2,881TOTAL
      ASSETS
                    
                    $
                    107,635
                    
                    $
                    207,668Liabilities
      and Shareholders' EquityCURRENT
      LIABILITIESShort-term
      borrowings & current portion of LT debt
                    
                    $
                    819
                    
                    $
                    20,925Accounts
      payable, trade
                    
                    
                    10,920
                    
                    
                    15,042Floor
      plan notes payable
                    
                    
                    3,096
                    
                    
                    4,116Accrued
      income taxes
                    
                    
                    1,470
                    
                    
                    536Accrued
      expenses and other liabilities
                    
                    
                    28,708
                    
                    
                    33,235Total
      current liabilities
                    
                    
                    45,013
                    
                    
                    73,854Long-term
      debt
                    
                    
                    2,190
                    
                    
                    3,010Postretirement
      deferred compensation benefits
                    
                    
                    4,508
                    
                    
                    7,632Deferred
      income taxes
                    
                    
                    1,355
                    
                    
                    1,990Other
                    
                    
                    1,038
                    
                    
                    49Total
      liabilities
                    
                    
                    54,104
                    
                    
                    86,535Total
      shareholders' equity
                    
                    
                    53,531
                    
                    
                    121,133TOTAL
      LIABILITIES AND SHAREHOLDERS' EQUITY
                    
                    $
                    107,635
                    
                    $
                    207,668




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 Coachmen
Industries, Inc. Announces Fourth Quarter Results
 Page
6
 February 2, 2009





Coachmen
Industries, Inc. and Subsidiaries


Condensed
Consolidated Statements of Cash Flows


(in
thousands)


(Unaudited)





Twelve
      Months Ended December 31,2008
                          
                          2007Net
      loss
                          
                          $
                          (68,160
                          )
                          $
                          (38,752
                          )Depreciation
                          
                          
                          4,225
                          
                          
                          5,790Changes
      in current assets and liabilities
                          
                          
                          54,104
                          
                          
                          26,186Net
      cash used in operating activities
                          
                          
                          (9,831
                          )
                          
                          (6,776
                          )Net
      cash provided by (used in) investing activities
                          
                          
                          15,909
                          
                          
                          (3,209
                          )Net
      borrowings
                          
                          
                          8,037
                          
                          
                          9,672Issuance
      of stock
                          
                          
                          81
                          
                          
                          155Dividends
      paid
                          
                          
                          -
                          
                          
                          (944
                          )Net
      cash provided by financing activities
                          
                          
                          8,118
                          
                          
                          8,883Increase
      (decrease) in cash and cash equivalents
                          
                          
                          14,196
                          
                          
                          (1,102
                          )Beginning
      of period
                          
                          
                          1,549
                          
                          
                          2,651End
      of period
                          
                          $
                          15,745
                          
                          $
                          1,549








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 Coachmen
Industries, Inc. Announces Third Quarter Results
 Page
7
 February 2, 2009




Coachmen
Industries, Inc. and Subsidiaries


Segment
Data – Continuing Operations


(in
thousands)


(Unaudited)





Three
      Months Ended December 31,
                                              
                                              Twelve
      Months Ended December 31,2008
                                              
                                              2007
                                              
                                              2008
                                              
                                              2007Net
      salesHousing
                                              
                                              $
                                              17,662
                                              
                                              $
                                              22,483
                                              
                                              $
                                              117,191
                                              
                                              $
                                              119,186Other
                                              
                                              
                                              1,197
                                              
                                              
                                              -
                                              
                                              
                                              2,406
                                              
                                              
                                              -Consolidated
      total
                                              
                                              $
                                              18,859
                                              
                                              $
                                              22,483
                                              
                                              $
                                              119,596
                                              
                                              $
                                              119,186Gross
      profitHousing
                                              
                                              $
                                              574
                                              
                                              $
                                              234
                                              
                                              $
                                              18,302
                                              
                                              $
                                              12,847Other
                                              
                                              
                                              (241
                                              )
                                              
                                              -
                                              
                                              
                                              (626
                                              )
                                              
                                              -Consolidated
      total
                                              
                                              $
                                              333
                                              
                                              $
                                              234
                                              
                                              $
                                              17,676
                                              
                                              $
                                              12,847Gross
      profit percentageHousing
                                              
                                              
                                              3.2
                                              %
                                              
                                              1.0
                                              %
                                              
                                              15.6
                                              %
                                              
                                              10.8
                                              %Other
                                              
                                              
                                              (20.1
                                              )%
                                              
                                              -
                                              %
                                              
                                              (26.0
                                              )%
                                              
                                              -
                                              %Consolidated
      total
                                              
                                              
                                              1.8
                                              %
                                              
                                              1.0
                                              %
                                              
                                              14.8
                                              %
                                              
                                              10.8
                                              %Operating
      expensesHousing
                                              
                                              $
                                              3,821
                                              
                                              $
                                              5,257
                                              
                                              $
                                              16,485
                                              
                                              $
                                              20,200Other
                                              
                                              
                                              17,503
                                              
                                              
                                              1,120
                                              
                                              
                                              22,140
                                              
                                              
                                              4,429Consolidated
      total
                                              
                                              $
                                              21,324
                                              
                                              $
                                              6,377
                                              
                                              $
                                              38,625
                                              
                                              $
                                              24,629Operating
      expenses percentageHousing
                                              
                                              
                                              21.6
                                              %
                                              
                                              23.4
                                              %
                                              
                                              14.1
                                              %
                                              
                                              16.9
                                              %Other
                                              
                                              
                                              n /
      m
                                              %
                                              
                                              n /
      m
                                              %
                                              
                                              n /
      m
                                              %
                                              
                                              n /
      m
                                              %Consolidated
      total
                                              
                                              
                                              113.1
                                              %
                                              
                                              28.4
                                              %
                                              
                                              32.3
                                              %
                                              
                                              20.7
                                              %Operating
      income (loss)Housing
                                              
                                              $
                                              (3,247
                                              )
                                              $
                                              (5,023
                                              )
                                              $
                                              1,817
                                              
                                              $
                                              (7,353
                                              )Other
                                              
                                              
                                              (17,744
                                              )
                                              
                                              (1,120
                                              )
                                              
                                              (22,766
                                              )
                                              
                                              (4,429
                                              )Consolidated
      total
                                              
                                              $
                                              (20,991
                                              )
                                              $
                                              (6,143
                                              )
                                              $
                                              (20,949
                                              )
                                              $
                                              (11,782
                                              )Pre-tax
      income (loss) from continuing operationsHousing
                                              
                                              $
                                              (3,301
                                              )
                                              $
                                              (5,163
                                              )
                                              $
                                              1,679
                                              
                                              $
                                              (7,434
                                              )Other
                                              
                                              
                                              (16,990
                                              )
                                              
                                              (1,171
                                              )
                                              
                                              (21,569
                                              )
                                              
                                              (3,658
                                              )Consolidated
      total
                                              
                                              $
                                              (20,291
                                              )
                                              $
                                              (6,334
                                              )
                                              $
                                              (19,890
                                              )
                                              $
                                              (11,092
                                              )






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