----

----

----

----

INDEX

| General                                                     | 1-2   |
|------------------------------------------------------------------|-------|
| Election of Directors                                       | 3     |
| Meetings of the Board of      Directors                     | 4     |
| Committees of the Board                                     | 4     |
| Audit Committee Report                                      | 4-5   |
| Management Development /      Compensation Committee Report | 5-13  |
| Compensation Discussion and      Analysis                   | 14-19 |
| Summary Compensation      Table                             | 14    |
| Governance      Committee Report                            | 20-21 |
| Outside Director      Compensation                          | 22-23 |
| Directors' and Officers' Stock      Ownership               | 23    |
| Stock Ownership Information                                 | 24    |
| Independent Registered Public Accounting      Firm          | 24    |
| Audit and All Other Fees                                    | 24-25 |
| Appendix A                                                  | 26    |
| Proxy Card                                                  | 27-28 |

----

Index

COACHMEN INDUSTRIES, INC.

----

Index

----

Index

ELECTION OF DIRECTORS

|                                                                                  |   |                                                                                          | Year      First Elected |
|---------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|-------------------------|
| Name                                                                                  | Age    | Principal Occupation      (1)                                                                 | Director                |
|                                                                                  |   |                                                                                          |                    |
| NOMINEES      FOR ELECTION AS A DIRECTOR FOR A THREE-YEAR TERM EXPIRING IN      2011: |
| Geoffrey      B. Bloom                                                                | (66)   | Past      Chairman of the Board, Wolverine Worldwide, Inc. (Retired      2005)                | 1999                    |
| William      P. Johnson                                                               | (65)   | Chairman      of the Board of the Company,Chairman      of the Board & CEO, Flying J, LLC | 1978                    |
|                                                                                  |   |                                                                                          |                    |
| DIRECTORS      WHOSE TERMS EXPIRE IN 2009:                                            |
| Donald      W. Hudler                                                                 | (73)   | President      & CEO, DDH Investments of Texas                                            | 1999                    |
| John      A. Goebel                                                                   | (64)   | Past      President of Homecrest Corp. (Retired 2003)                                         | 2006                    |
|                                                                                  |   |                                                                                          |                    |
| DIRECTORS      WHOSE TERMS EXPIRE IN 2010:                                            |
| Robert      J. Deputy                                                                 | (69)   | Past      President & CEO, Godfrey Marine, Inc. (Retired 2006)                            | 1998                    |
| Richard      M. Lavers                                                                | (60)   | CEO      of the Company                                                                       | 2007                    |
| Edwin      W. Miller                                                                  | (62)   | Chairman      of the Board & CEO, Millennium Capital Group                                | 1998                    |

----

Index

MEETINGS OF THE BOARD OFDIRECTORS

2007 COMMITTEES OF THE BOARD

AUDIT COMMITTEE

| ·   | Appoint,      monitor and, if necessary, terminate the independent registered      public accounting firm serving as "independent auditors" and oversee      their activities and independence. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Review      the non-audit services provided by the independent auditors      and pre-approve such services. |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | Review      audit reports, periodic filings with the SEC of quarterly and annual      financial statements, and related financial  matters. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Oversee      management's activities in: |
|--------------------|------------------------------------------|

| o   | maintaining      the reliability and integrity of the accounting policies and      financial reporting and disclosure practices of      the Company; |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | establishing      and maintaining processes to assure that an adequate system of      internal control is functioning within the Company;    and |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | establishing      and maintaining reasonable processes to assure compliance by the      Company with all applicable laws, regulations and corporate policies,      including compliance, risk management and legal    affairs. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| ·   | reviewed      and discussed the audited financial statements for the fiscal year      ended December 31, 2007 with the Company's management and      the independent auditors (both with and without      management); |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | reviewed      and discussed the unaudited quarterly financial information, the      quarterly earnings press releases, any interim financial      press releases, and Quarterly Reports on Form 10-Q with management      and the independent auditors; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | discussed      with Ernst & Young LLP, the Company's independent auditors, the      matters required to be discussed by SAS 61 (Codification      of Statements on Auditing Standards), as amended by Statement on      Auditing Standards No. 90 (Communication With Audit      Committees) and applicable SEC regulations, with respect to the      quality, not just the acceptability of the Company's      accounting principles; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | received      the written disclosures and the Disclosure Communications letter from      Ernst & Young LLP as required by Rule 3600T of the Public Company      Accounting Oversight Board, which has adopted, on an interim basis,      Independence Standards Board Standard No. 1 (Independence Discussions      with Audit Committees) and has discussed with Ernst & Young LLP      its independence; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | discussed      the Company’s major financial risk exposures and reviewed steps taken to      monitor and control those risks. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

MANAGEMENT DEVELOPMENT/COMPENSATIONCOMMITTEE

| ·   | develop      and administer the compensation policies and practices of      the Company |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | administer      the Company's benefit, retirement programs and equity incentive plans      and recommend changes subject to the approval of the Board of      Directors |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | establish      executive compensation |
|--------------------|---------------------------------------|

| ·   | review      and recommend management development practices and  programs |
|--------------------|--------------------------------------------------------------------------|

----

Index

| ·   | Attract,      retain, reward and motivate highly talented employees, who will lead the      Company and achieve and inspire superior  performance; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      incentives to improve the performance of Coachmen overall and of each      business sector to which an executive is  assigned; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Align      the interests of management with those of the Company's shareholders      in both the short and long-term by placing a significant portion of      compensation "at risk," based upon the performance of the Company and      its business units. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      independent directors assessed Mr. Lavers’ 2006      performance.  They considered the Company’s and Mr. Lavers’      accomplishments of various objectives established when Mr. Lavers assumed      the role of CEO.  They noted that under Mr. Lavers’ leadership,      the Company had made significant progress in improving the operations of      the Company, reducing overall operating costs and changing the strategic      direction of the Company.  They also took into account the      challenges of assuming a significant leadership role in the Company,      especially when considering the overall financial performance over the two      previous years.  They also reviewed the significant increase in      responsibilities of Mr. Lavers as well as his total compensation when      compared to executives with similar responsibilities among the Company’s      peer group in addition to compensation requirements with a primary goal of      retention of the named executives.  After consideration of all      these factors, Mr. Lavers’ annual salary was set at    $360,000. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| ·   | With      regard to Ms. Zuhl the Committee considered her experience and leadership      within the area of the finance and accounting function, strong internal      controls established for the Company, as well as her management of      relationships with the Company’s banking partners.  The      Committee also considered her current salary level as compared to      executives of similar roles and responsibilities within the Company’s peer      group, with a primary goal of executive retention.  After      consideration of all these factors, Ms. Zuhl’s annual salary was set at      $175,000. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Committee reviewed Mr. Bedell’s qualifications and because his tenure did      not begin until 2007, the Committee relied primarily on an analysis of the      levels of compensation for executives of similar roles and      responsibilities within the Company’s peer group, as well as Mr. Bedell’s      past experience in leading a division of the Company when he was      previously associated with the Company and his salary at his previous      employer.  After consideration of all these factors, Mr.      Bedell’s annual salary was set at$265,000. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In      establishing Mr. Terlep’s annual salary, the Committee noted that he had      not received any increase in annual base salary since 2005.  The      Committee also considered his current salary level as compared to      executives of similar roles and responsibilities within the Company’s peer      group, with a primary goal of executive retention.  After      consideration of all these factors, Mr. Terlep’s annual salary was set at      $320,000. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Committee reviewed Mr. Thimlar’s performance with regard to the management      of the Company’s human resources, with particular consideration to his      management of employee benefit plans and associated expenses as well as      the level of voluntary employee turnover.  The Committee also      considered his current salary level as compared to executives of similar      roles and responsibilities within the Company’s peer group with a primary      goal of executive retention.  After consideration of all these      factors, Mr. Thimlar’s annual salary was set at  $102,000. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| ·   | reach      profitability for the consolidated Company in 2007 and      forward; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | redefine      and articulate a Company vision and strategy and effectively communicate      it throughout the Company; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | create      and foster a high-performance culture at the  Company; |
|--------------------|--------------------------------------------------------------------|

| ·   | implement      initiatives to drive future growth; |
|--------------------|----------------------------------------------------|

| ·   | maintain      a positive cash flow from operations and increase total cash balances in      2007; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | demonstrably,      continuously and significantly improve product  quality; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | increase      market share; |
|--------------------|-----------------------------|

| ·   | implement      marketing plans and directions for each operating  Segment; |
|--------------------|----------------------------------------------------------------------------|

| ·   | reduce      and manage voluntary employeeturnover; |
|--------------------|----------------------------------------------------|

| ·   | implement      a broad-based comprehensive management training program and establish      defined career paths and requirements;and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | establish      a system for ranking employee performance and remove underperforming      personnel. |
|--------------------|-----------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

|                                                                               | Deferred      compensation and other benefits      earned that would become payable immediately* | Potential      compensation to be earned      upon a change in control event** | Total      |
|------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|------------|
|            Mr.      Lavers  | $917,818                                                                                              | $1,689,120                                                                     | $2,606,938 |
|            Ms.      Zuhl    | $114,023                                                                                              | $503,560                                                                       | $617,583   |
|            Mr.      Bedell  | $105,440                                                                                              | $670,780                                                                       | $776,220   |
|            Mr.      Terlep  | $591,908                                                                                              | $746,540                                                                       | $1,338,448 |
|            Mr.      Thimlar | $174,542                                                                                              | $257,316                                                                       | $431,858   |

| *      -  | Under      the current change in control agreements, these amounts represent      compensation and benefits previously earned which would be required to be      paid upon a change in control of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **      - | Under      current agreements, these amounts would be payable only upon a subsequent      termination within three years of the change in      control.  Termination includes termination without cause, or the      resignation of the executive resulting from an adverse change or reduction      in the executive’s authority, duties, or responsibilities, a reduction in      or failure to pay any portion of executive’s annual base salary or bonus,      the failure to provide the executive with compensation and benefits which      are in the aggregate, no less favorable than those provided immediately      prior to the change in control, any material breach of any provision of      the change in control agreement, or the executive being required to      relocate to a principal place of employment more than 50 miles from the      current place of employment.  Amounts due upon such a      termination range from two to three times the executive’s base salary, the      executive’s target bonus, any unpaid supplemental deferred compensation      that had been accrued but unpaid, a special matching contribution to the      executive’s 401(k) plan account, payment of outplacement services and      medical, dental, life, disability and accidental death and dismemberment      benefits for the executive and the executive’s family members for two      years following the termination or until the executive becomes      employed. |

----

Index

----

Index

| ·   | Level      1: If the Company earns the minimum pre-tax profit of $1.25 million for      the first quarter, but does not meet the minimum pre-tax profit for the      full year, participants would earn 25% of the minimum annual      award. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      2: If the Company earns the maximum pre-tax profit of $2.5 million for the      first quarter, but does not meet the minimum pre-tax profit for the full      year, participants would earn 25% of the maximum annual    award. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      3: If the Company earns the minimum pre-tax profit of $5 million for the      full year, but does not meet the minimum pre-tax profit for the first      quarter, participants would earn the minimum annual award less 25% of the      minimum annual award. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      4: If the Company earns the maximum pre-tax profit of $10 million for the      full year, but does not meet the minimum pre-tax profit for the first      quarter, participants would earn the maximum annual award less 25% of the      minimum annual award. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      5: If the Company earns the maximum pre-tax profit of $10 million for the      full year and meets the maximum pre-tax profit for the first quarter,      participants would earn the maximum annual  award. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

SUMMARY COMPENSATION TABLE:

| Name      and Principal Position                                 | Year   | Salary    | Bonus   | Stock      Awards | Option      Awards | Non-Equity      Incentive Plan Compensation | Change      in Pension Value and Non-qualified Deferred Compensation      Earnings | All      Other Compensation | Total    |
|------------------------------------------------------------------|--------|-----------|---------|-------------------|--------------------|---------------------------------------------|------------------------------------------------------------------------------------|-----------------------------|----------|
|                                                             |   | ($)       | ($)     | ($)               | ($)                | ($)                                         | ($)                                                                                | ($)                         | ($)      |
| (a)                                                              | (b)    | (c      ) | (d)     | (e)               | (f)                | (g)                                         | (h)                                                                                | (i)                         | (j)      |
|                                                             |   |      |    |              |               |                                        |                                                                               |                        |     |
| Richard      M. Lavers (1)                                       | 2007   | $347,500  | $0      | $0                | $0                 |  $167,688                              | $0                                                                                 | $74,339                     | $589,527 |
| Chief      Executive                                             | 2006   | $290,417  | $50,000 | $0                | $0                 |  $0                                    | $2,364                                                                             | $54,853                     | $397,634 |
| Officer                                                          | 2005   | $241,363  | $0      | $28,420           | $0                 |  $0                                    | $2,229                                                                             | $40,913                     | $312,925 |
|                                                             |   |      |    |              |               |                                        |                                                                               |                        |     |
| Colleen      A. Zuhl (2)                                         | 2007   | $165,500  | $0      | $0                | $0                 | $62,150                                | $0                                                                                 | $19,519                     | $247,169 |
| Chief      Financial Officer                                     | 2006   | $129,167  | $0      | $10,630           | $0                 | $2,470                                 | $0                                                                                 | $8,862                      | $151,129 |
|                                                             |   |      |    |              |               |                                        |                                                                               |                        |     |
| Rick      J. Bedell (3)                                          | 2007   | $265,000  | $0      | $0                | $0                 | $49,600                                     | $0                                                                                 | $28,676                     | $343,276 |
| President,      Coachmen                                         |   |      |    |              |               |                                        |                                                                               |                        |     |
| Housing      Group                                               |   |      |    |              |               |                                        |                                                                               |                        |     |
|                                                             |   |      |    |              |               |                                        |                                                                               |                        |     |
| Michael      R. Terlep, Jr.                                      | 2007   | $314,250  | $0      | $0                | $0                 | $39,900                                     | $0                                                                                 | $31,009                     | $385,159 |
| President,      CLI dba                                          | 2006   | $297,000  | $0      | $0                | $0                 | $0                                          | $3,506                                                                             | $28,842                     | $329,348 |
| Coachmen      RV Group                                           | 2005   | $297,000  | $0      | $42,630           | $0                 | $0                                          | $3,648                                                                             | $26,827                     | $370,105 |
| &      President, Coachmen Recreational Vehicle Company, LLC |   |      |    |              |               |                                        |                                                                               |                        |     |
|                                                             |   |      |    |              |               |                                        |                                                                               |                        |     |
| Leslie      G. Thimlar                                           | 2007   | $99,000   | $0      | $0                | $0                 | $16,900                                | $3,225                                                                             | $12,132                     | $131,257 |
| VP,      Human Resources                                         | 2006   | $90,000   | $0      | $0                | $0                 | $1,482                                 | $2,022                                                                             | $7,975                      | $101,479 |

| (1)   | Mr.      Lavers was appointed Chief Executive Officer on August 28, 2006. Prior to      that, Mr. Lavers served as Chief Financial Officer and Chief      Administrative Officer from December 5, 2005 to August 28, 2006. Prior to      December 5, 2005, Mr. Lavers served as Executive Vice President, General      Counsel and Secretary. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Ms.      Zuhl was appointed Chief Financial Officer on August 28,    2006. |
|-----------------|----------------------------------------------------------------------------|

| (3)   | Mr.      Bedell was appointed President of the Coachmen Housing Group on January 1,      2007. |
|-----------------|------------------------------------------------------------------------------------------------|

| (c)   | Included      in salary are amounts deferred under the Management      Development/Compensation Committee approved deferred compensation      agreements for certain corporate and subsidiary officers. These agreements      provide either lump sum or monthly payments to the executives upon      retirement based upon the executive's election under the plan. Deferred      salary amounts were as follows: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                               | 2007     | 2006    | 2005    |
|------------------------------------------------------------------------------------|----------|---------|---------|
|            Mr.      Lavers  | $106,875 | $82,604 | $34,136 |
|            Ms.      Zuhl    | $16,921  | $12,917 | n/a     |
|            Mr.      Bedell  | $26,500  | n/a     | n/a     |
|            Mr.      Terlep  | $31,425  | $29,700 | $29,700 |
|            Mr.      Thimlar | $4,108   | $1,800  | n/a     |

----

Index

| (d)   | Included      in bonus compensation are amounts deferred under the MDC Committee      approved deferred compensation agreements for certain corporate and      subsidiary officers. These agreements provide either lump sum or monthly      payments to the executives based upon the executive's election under the      plan.  Amounts are deferred in the year following the earning of      the incentive compensation.  Deferred bonus amounts were as      follows: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                               | 2007    | 2006 | 2005 |
|------------------------------------------------------------------------------------|---------|------|------|
|            Mr.      Lavers  | $20,000 | $0   | $0   |
|            Ms.      Zuhl    | $0      | $0   | n/a  |
|            Mr.      Bedell  | $0      | n/a  | n/a  |
|            Mr.      Terlep  | $0      | $0   | $0   |
|            Mr.      Thimlar | $0      | $0   | n/a  |

| (e)   | Restricted      Stock grants are awarded periodically to certain corporate and subsidiary      officers. The following grants were awarded to the Named Executive      Officers: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                               | 2007 | 2006    | 2005    |
|------------------------------------------------------------------------------------|------|---------|---------|
|            Mr.      Lavers  | $0   | $0      | $28,420 |
|            Ms.      Zuhl    | $0   | $10,630 | n/a     |
|            Mr.      Bedell  | $0   | n/a     | n/a     |
|            Mr.      Terlep  | $0   | $0      | $42,630 |
|            Mr.      Thimlar | $0   | $0      | n/a     |

| (f)   | During      2007, 2006 and 2005, there were no stock option grants awarded from the      Company's 2000 Omnibus Stock Incentive Program to the executives named in      this proxy or to any other employee.  For option awards granted      in 2003 and 2002 which partially vested in 2007, 2006 and 2005, due to the      small number of shares covered by the options, as well as the value of the      shares covered by the options, the total compensation expense for those      years was deemed immaterial, resulting in zero option-related compensation      expense realized over thoseperiods. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Included      in non-equity incentive plan compensation are amounts deferred under the      MDC Committee approved deferred compensation agreements for certain      corporate and subsidiary officers. These agreements provide either lump      sum or monthly payments to the executives based upon the executive's      election under the plan.  Amounts are deferred in the year      following the earning of the incentive compensation.  Deferred      bonus amounts were as follows: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                               | 2007 | 2006 | 2005    |
|------------------------------------------------------------------------------------|------|------|---------|
|            Mr.      Lavers  | $0   | $0   | $23,876 |
|            Ms.      Zuhl    | $247 | $0   | n/a     |
|            Mr.      Bedell  | $0   | n/a  | n/a     |
|            Mr.      Terlep  | $0   | $0   | $0      |
|            Mr.      Thimlar | $148 | $0   | n/a     |

| (h)   | The      MDC Committee has approved deferred compensation agreements for certain      corporate and subsidiary officers.  These agreements provide      either a lump sum or monthly payments to executives upon retirement based      upon the executive’s election under the plan.  The benefits are      funded from Company-owned life insurance policies.  The amounts      in this column include the Company’s contribution under the deferred      compensation plan and interest earned above 120% of the applicable federal      rate.  The interest earned above 120% of the applicable federal      rate is presented above in column(h). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| (i)   | Included      in all other compensation are the following  amounts: |
|-----------------|---------------------------------------------------------------------|

|                        | *EBP      Employer Contribution | 401(k)      Employer Match | **Split      Dollar Life Insur-ance | *ESP      Employer Match | Travel      Allow-ance | ***Perquisites | Physicals | TOTAL      ALL OTHER COMPENSATION |
|-----------------------------|---------------------------------|----------------------------|-------------------------------------|--------------------------|------------------------|----------------|-----------|-----------------------------------|
| 2007      Compensation      |                            |                       |                                |                     |                   |           |      |                              |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Richard      M. Lavers      |                            | $6,200                     | $1,750                              | $53,438                  | $4,800                 | $7,465         | $686      | $74,339                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Colleen      A. Zuhl        |                            | $3,103                     | $1,130                              | $8,460                   | $4,800                 | $1,446         | $580      | $19,519                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Rick      J. Bedell         |                            | $4,726                     | $2,075                              | $13,250                  | $4,800                 | $3,318         | $507      | $28,676                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Michael      R. Terlep, Jr. |                            | $5,809                     | $600                                | $15,713                  | $4,800                 | $3,580         | $507      | $31,009                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Leslie      G. Thimlar      |                            | $2,352                     | $890                                | $2,054                   | $4,800                 | $1,384         | $652      | $12,132                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| 2006      Compensation      |                            |                       |                                |                     |                   |           |      |                              |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Richard      M. Lavers      | $1,000                          | $4,647                     | $1,600                              | $36,302                  | $4,800                 | $5,902         | $602      | $54,853                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Colleen      A. Zuhl        |                            | $2,233                     | $550                                | $1,033                   | $3,600                 | $1,446         | $0        | $8,862                            |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Michael      R. Terlep, Jr. |                            | $4,752                     | $560                                | $14,850                  | $4,800                 | $3,359         | $521      | $28,842                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Leslie      G. Thimlar      |                            | $1,440                     | $425                                | $720                     | $3,600                 | $1,384         | $406      | $7,945                            |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| 2005      Compensation      |                            |                       |                                |                     |                   |           |      |                              |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Richard      M. Lavers      | $1,000                          | $3,360                     | $1,480                              | $24,006                  | $4,800                 | $5,823         | $444      | $40,913                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |
| Michael      R. Terlep, Jr. |                            | $3,360                     | $530                                | $14,850                  | $4,400                 | $3,433         | $254      | $26,827                           |
|                        |                            |                       |                                |                     |                   |           |      |                              |

| *   | See      page 9 for further discussion of the Executive Savings Plan (ESP) and      Executive Benefit and Estate Accumulation Plan  (EBP). |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| **  | The      economic benefit of the Split Dollar Life Insurance represents the value      of the life insurance to the executive based on age and coverage      amounts. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *** | Perquisites      include Country Club Dues and Disability Insurance    Premiums. |
|-----|----------------------------------------------------------------------------------|

----

Index

|                 |            | Estimated      Future payouts under non-equity incentive plan awards | Estimated      future payouts under equity incentive plan awards |     |      |   |    |
|----------------------|-----------------|----------------------------------------------------------------------|------------------------------------------------------------------|----------|-----------|--------|---------|
| Name                 | Grant      Date | Threshold                                                            | Target                                                           | Maximum  | Threshold | Target | Maximum | All      other stock awards; Number of shares of stock or units | All      other option awards; Number of securities underlying    options | Exercise      or base price of option awards | Grant      Date Fair Value of Stock and Option Awards |
|                 |            | ($)                                                                  | ($)                                                              | ($)      | (#)       | (#)    | (#)     | (#) | (#) | ($/Sh) |   |
| (a)                  | (b)             | (c      )                                                            | (d)                                                              | (e)      | (f)       | (g)    | (h)     | (i) | (j) | (k) | (l) |
|                 |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |
| Richard      M.      | 1/1/2007        |                                                                 |                                                             | $197,280 | 12,000    | 15,000 | 18,000  |   |   |   |   |
| Lavers               |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |
|                 |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |
| Colleen      A. Zuhl | 1/1/2007        |                                                                 |                                                             | $73,980  | 8,000     | 10,000 | 12,000  |   |   |   |   |
|                 |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |
| Rick      J. Bedell  | 1/1/2007        |                                                                 |                                                             | $66,150  | 5,000     | 9,000  | 12,000  |   |   |   |   |
|                 |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |
| Michael      R.      | 1/1/2007        |                                                                 |                                                             | $48,150  | 3,000     | 9,000  | 12,000  |   |   |   |   |
| Terlep,      Jr.     |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |
|                 |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |
| Leslie      G.       | 1/1/2007        |                                                                 |                                                             | $24,120  | 3,000     | 4,500  | 6,000   |   |   |   |   |
| Thimlar              |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |
|                 |            |                                                                 |                                                             |     |      |   |    |   |   |   |   |

| (e)   | Under      the 2007 Incentive Compensation Plan, each of the named executive officers      was awarded a specific percentage of the Company’s pre-tax      profits.  This portion of the Plan was not subject to any      maximum amount.  The MDC Committee also assigned a specific      bonus pool to be awarded to the Named Executive Officers based on the      achievement of specific personal goals established at the beginning of the      year.  The 2007 personal goal awards were not dependent upon the      profitability of the Company.  The maximum amount presented in      column (e) above represents the maximum available for only the personal      goal bonus pool. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Based      upon the Company's performance in 2007, the shares awarded in 2007 were      not earned and thus were forfeited as of December 31,  2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Based      upon the Company's performance in 2007, the shares awarded in 2007 were      not earned and thus were forfeited as of December 31,  2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | Based      upon the Company's performance in 2007, the shares awarded in 2007 were      not earned and thus were forfeited as of December 31,  2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | During      2007, 2006 and 2005, there were no stock option grants awarded from the      Company's 2000 Omnibus Stock Incentive Program to the executives named in      this proxy or to any other employee.  For option awards granted      in 2003 and 2002 which partially vested in 2007, 2006 and 2005, due to the      small number of shares covered by the options, as well as the value of the      shares covered by the options, the total compensation expense for those      years was deemed immaterial, resulting in zero option-related compensation      expense realized over thoseperiods. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                        | Option      Awards                                                    | Stock      Awards                                                                      |
|-----------------------------|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------|
|                        |                                                                  |                                                                                   |   |   |   |   |   |
| Name                        | Number      of Securities Underlying Unexercised Options- Exercisable | Number      of Securities Underlying      Unexercised  Options-Unexercisable | Equity      Incentive Plan Awards: Number of Securities Underlying Unexercised      Unearned Options | Option      Exercise Price | Option      Expiration Date | Number      of Shares or Units of Stock That Have Not Been Vested | Market      Value of shares or Units of Stock That Have Not BeenVested | Equity      Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights      That Have Not Vested | Equity      Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or      Other Rights That Have Not Vested |
|                        | #                                                                     | #                                                                                      | # | # |   | (#) | ($) | (#) | ($) |
| (a)                         | (b)                                                                   | (c      )                                                                              | (d) | (e) | (f) | (g) | (h) | (i) | (j) |
| Richard      M. Lavers      | 36,000                                                                | -                                                                                      |   | $10.00 | 10/6/2010 |   |   |   |   |
|                        | 5,500                                                                 | -                                                                                      |   | $16.50 | 2/19/2012 |   |   |   |   |
|                        | 1,600                                                                 | -                                                                                      |   | $11.18 | 3/28/2013 |   |   |   |   |
|                        |                                                                  |                                                                                   |   |   |   | 666 | $3,963 | 0 | $0 |
|                        |                                                                  |                                                                                   |   |   |   |   |   |   |   |
| Colleen      A. Zuhl        |                                                                  |                                                                                   |   |   |   | 1,000 | $5,950 | 0 | $0 |
|                        |                                                                  |                                                                                   |   |   |   |   |   |   |   |
| Rick      J. Bedell         |                                                                  |                                                                                   |   |   |   |   |   | 0 | $0 |
|                        |                                                                  |                                                                                   |   |   |   |   |   |   |   |
| Michael      R. Terlep, Jr. | 30,000                                                                | -                                                                                      |   | $10.00 | 10/6/2010 |   |   |   |   |
|                        | 5,550                                                                 | -                                                                                      |   | $16.50 | 2/19/2012 |   |   |   |   |
|                        | 1,600                                                                 | -                                                                                      |   | $11.18 | 3/28/2013 |   |   |   |   |
|                        |                                                                  |                                                                                   |   |   |   | 1,000 | $5,950 | 0 | $0 |
|                        |                                                                  |                                                                                   |   |   |   |   |   |   |   |
| Leslie      G. Thimlar      | 600                                                                   | -                                                                                      |   | $10.00 | 10/6/2010 |   |   | 0 | $0 |
|                        | 300                                                                   | -                                                                                      |   | $11.18 | 3/28/2013 |   |   |   |   |
|                        |                                                                  |                                                                                   |   |   |   |   |   |   |   |

| (g)   | Unvested      restricted stock grants vest in the years noted as  follows: |
|-----------------|----------------------------------------------------------------------------|

|            | 2008  | Total |
|-----------------|-------|-------|
| Mr.      Lavers | 666   | 666   |
| Mr.      Terlep | 1,000 | 1,000 |
| Ms.      Zuhl   | 1,000 | 1,000 |

----

Index

|                        | Option      Awards                         | Stock      Awards               |
|-----------------------------|--------------------------------------------|---------------------------------|
|                        |                                       |                            |   |   |
| Name                        | Number      of Shares Acquired on Exercise | Value      Realized on Exercise | Number      of Shares Acquired on Vesting | Value      Realized on Vesting |
|                        | #                                          | $                               | (#) | ($) |
| (a)                         | (b)                                        | (c      )                       | (d) | (e) |
| Richard      M. Lavers      |                                       |                            | 667 | $7,204 |
|                        |                                       |                            |   |   |
| Colleen      A. Zuhl        |                                       |                            |   |   |
|                        |                                       |                            |   |   |
| Rick      J. Bedell         |                                       |                            |   |   |
|                        |                                       |                            |   |   |
| Michael      R. Terlep, Jr. |                                       |                            | 1,000 | $10,800 |
|                        |                                       |                            |   |   |
| Leslie      G. Thimlar      |                                       |                            |   |   |
|                        |                                       |                            |   |   |

| Name      and Principal Position | Executive      Contributions in Last FY | Registrant      Contributions in Last FY | Aggregate      Earnings in Last FY | Aggregate      Withdrawals / Distributions | Aggregate      Balance at Last FYE |
|----------------------------------|-----------------------------------------|------------------------------------------|------------------------------------|--------------------------------------------|------------------------------------|
|                             | $                                       | ($)                                      | ($)                                | ($)                                        | $                                  |
| (a)                              | (b)                                     | (c      )                                | (d)                                | (e)                                        | (f)                                |
|                             |                                    |                                     |                               |                                       |                               |
| Richard      M. Lavers           | $106,875                                | $53,438                                  | $(13,751)                          | $0                                         | $720,538                           |
|                             |                                    |                                     |                               |                                       |                               |
|                             |                                    |                                     |                               |                                       |                               |
| Colleen      A. Zuhl             | $16,921                                 | $8,460                                   | $(168)                             | $0                                         | $40,043                            |
|                             |                                    |                                     |                               |                                       |                               |
|                             |                                    |                                     |                               |                                       |                               |
| Rick      J. Bedell              | $26,500                                 | $13,250                                  | $(460)                             | $0                                         | $39,290                            |
|                             |                                    |                                     |                               |                                       |                               |
|                             |                                    |                                     |                               |                                       |                               |
| Michael      R. Terlep, Jr.      | $31,425                                 | $15,713                                  | $1,645                             | $0                                         | $543,758                           |
|                             |                                    |                                     |                               |                                       |                               |
|                             |                                    |                                     |                               |                                       |                               |
| Leslie      G. Thimlar           | $4,108                                  | $2,054                                   | $10,800                            | $0                                         | $150,332                           |
|                             |                                    |                                     |                               |                                       |                               |

| (c)   | Amounts      reported herein as Registrant contributions are also included in the      Summary Compensation Table as a component of “All Other Compensation” for      each Named Executive Officer. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

GOVERNANCE COMMITTEE

| ·   | oversee      compliance with the Statement of Business Principles and Code of      Conduct |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | review      any material related partytransactions |
|--------------------|----------------------------------------------------|

| ·   | ensure      good performance of Board governancesystem |
|--------------------|--------------------------------------------------------|

| ·   | recommend      to full Board its organization, procedures and      governance principles |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | recommend      to full Board committee assignments andcharters |
|--------------------|----------------------------------------------------------------|

| ·   | work      with the CEO to establish agendas |
|--------------------|---------------------------------------------|

| ·   | manage      and oversee evaluation of the Board, Board committees and individual      Directors |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | evaluate      desired Board composition and identify individuals qualified to      become Board members |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | recommend      Director nominees for vacancies and at each annual meeting of      shareholders |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | consider      Director nominees recommended by shareholders if such recommendations      are submitted in writing to the Committee in accordance with the      Company's Bylaws |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | oversee      Board member orientation andeducation |
|--------------------|----------------------------------------------------|

| ·   | recommend      to full Board outside Directorcompensation |
|--------------------|-----------------------------------------------------------|

| ·   | work      with Management Development/Compensation Committee on      management objectives, overall code compliance, CEO evaluation,      management development andsuccession |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

OUTSIDE DIRECTOR COMPENSATION

| Name      and Principal Position  |   | Fees      earned or paid in cash | Stock      Awards | Option      Awards | Non-equity      incentive plan compensation | Change      in pension value and nonqualified deferred compensation      earnings | All      Other Compen-sation | Total   |
|-----------------------------------|--------|----------------------------------|-------------------|--------------------|---------------------------------------------|-----------------------------------------------------------------------------------|------------------------------|---------|
|                              |   | $                                | ($)               | ($)                | ($)                                         | $                                                                                 | ($)                          | ($)     |
| (a)                               |   | (b)                              | (c      )         | (d)                | (e)                                         | (f)                                                                               | (g)                          | (h)     |
| William      P. Johnson, Chairman | 2007   |                             | $77,719           |               |                                        | $18,467                                                                           |                         | $96,186 |
| Geoffrey      B. Bloom            | 2007   |                             | $50,035           |               |                                        |                                                                              |                         | $50,035 |
| Robert      J. Deputy             | 2007   |                             | $47,235           |               |                                        |                                                                              |                         | $47,235 |
| John      A. Goebel               | 2007   |                             | $32,275           |               |                                        |                                                                              |                         | $32,275 |
| Donald      W. Hudler             | 2007   |                             | $45,135           |               |                                        |                                                                              |                         | $45,135 |
| Edwin      W. Miller              | 2007   |                             | $37,654           |               |                                        |                                                                              |                         | $37,654 |
| Philip      G. Lux (1)            | 2007   |                             | $31,721           |               |                                        |                                                                              |                         | $31,721 |

| (c)   | On      May 3, 2007, the following stock awards were made (grant date fair value      of $10.51) in connection with the Directors’ service for the period May      2007 to May 2008: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                               | Shares |
|------------------------------------------------------------------------------------|--------|
|            Mr.      Johnson | 6,222  |
|            Mr.      Bloom   | 3,711  |
|            Mr.      Deputy  | 3,445  |
|            Mr.      Goebel  | 3,711  |
|            Mr.      Hudler  | 3,245  |
|            Mr.      Miller  | 3,511  |

----

Index

|                                                                               | Shares | Grant      DateFair      Value | Vest      Date   |
|------------------------------------------------------------------------------------|--------|--------------------------------|------------------|
|            Mr.      Johnson | 1,000  | $10.51                         | May      3, 2009 |
|            Mr.      Bloom   | 1,000  | $10.51                         | May      3, 2009 |
|            Mr.      Deputy  | 1,000  | $10.51                         | May      3, 2009 |
|            Mr.      Goebel  | 1,000  | $10.51                         | May      3, 2009 |
|            Mr.      Hudler  | 1,000  | $10.51                         | May      3, 2009 |
|            Mr.      Miller  | 1,000  | $10.51                         | May      3, 2009 |

| (f)   | Represents      interest earned on deferred compensation plan account.  Mr.      Johnson is a participant in the Executive Benefit and Estate Accumulation      Plan which is described in more detail on page  9. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1)   | Mr.      Lux retired from the Board of Directors on May 3,  2007 |
|-----------------|------------------------------------------------------------------|

DIRECTORS' AND OFFICERS' STOCKOWNERSHIP

|                                                                           |                                      |         |               | Director           |              | Executive          |                |                   |
|--------------------------------------------------------------------------------|-------------------------------------------|--------------|--------------------|--------------------|-------------------|--------------------|---------------------|------------------------|
|                                                                           |                                      |         |               | Compensation       | Shares            | Officers’    |                |                   |
|                                                                           |                                      |         |               | Grant              | Held      in      | Deferred           | Total               |                   |
|                                                                           | Shares                                    | Exercisable  | Vesting            | 401      (k)       | Common            | Shares             | %      of           |
|                                                                           | Beneficially                              | Within       | Within             | Plan      as of    | Stock             | Beneficially       | Shares              |
| Name                                                                           | Owned                                     | 60      Days | 60      Days       | Dec. 31,      2007 | Units             | Owned              | Outstanding         |
|                                                                           |                                      |         |               |               |              |               |                |                   |
| W.P.      Johnson                                                              | 58,824                                    |         | 3,000              | 1,000              | -                 | -                  | 62,824              | *                      |
| G.B.      Bloom                                                                | 26,402                                    |         | 3,000              | 1,000              | -                 | -                  | 30,402              | *                      |
| R.J.      Deputy                                                               | 128,501                                   |         | 3,000              | 1,000              | -                 | -                  | 132,501             | *                      |
| J.A.      Goebel                                                               | 19,318                                    |         | -                  | -                  | -                 | -                  | 19,318              | *                      |
| D.W.      Hudler                                                               | 23,580                                    |         | 3,000              | 1,000              | -                 | -                  | 27,580              | *                      |
| R.M.      Lavers                                                               | 6,451                                     | (2)          | 43,100             | -                  | 318               | 35,950             | 85,819              | *                      |
| E.W.      Miller                                                               | 27,399                                    |         | 3,000              | 1,000              | -                 | -                  | 31,399              | *                      |
| R.      J. Bedell                                                              |       3,543 |         | -                  | -                  | 1,810             | 855                | 6,208               | *                      |
| M.R.      Terlep, Jr.                                                          | 6,039                                     | (2)          | 37,100             | -                  | 321               | 4,348              | 47,808              | *                      |
| L.G.      Thimlar                                                              | 1,474                                     | (1)          | 900                | -                  | -                 | 226                | 2,600               | *                      |
| C.A.      Zuhl                                                                 | 2,228                                     |         | -                  | -                  | -                 | 598                | 2,826               | *                      |
| All      Current Directors and Executive Officers as a group (12      persons) |   303,759                       |         |   96,100 |   5,000  |   2,449 |   41,977 |   449,285 |   2.8      % |

----

Index

STOCK OWNERSHIP INFORMATION

| Name and Address of      Beneficial Owner                                   | Number of Shares      Beneficially Owned | Percent of      Class |
|-----------------------------------------------------------------------------|------------------------------------------|-----------------------|
|                                                                        |                                     |                  |   |
| Third      Avenue Management LLC                                            | 2,411,438                                |                  | 15.3% |
| 622      Third Avenue, 32nd      Floor                                      |                                     |                  |   |
| New      York, New York 10017                                               |                                     |                  |   |
|                                                                        |                                     |                  |   |
| First      Pacific Advisors, Inc.                                           | 2,274,900                                |                  | 14.4% |
| 11400      West Olympic Blvd., Suite 1200                                   |                                     |                  |   |
| Los      Angeles, California 90064                                          |                                     |                  |   |
|                                                                        |                                     |                  |   |
| Donald      Smith & Co., Inc.                                           | 1,565,800                                |                  | 9.9% |
| 152      West 57th      Street                                              |                                     |                  |   |
| New      York, New York 10019                                               |                                     |                  |   |
|                                                                        |                                     |                  |   |
| Dimensional      Fund Advisors, Inc.                                        | 1,282,321                                |                  | 8.1% |
| 1299      Ocean Avenue                                                      |                                     |                  |   |
| Santa      Monica, California 90401                                         |                                     |                  |   |
|                                                                        |                                     |                  |   |
| Commonwealth      of Pennsylvania Public School Employees Retirement System | 839,870                                  |                  | 5.3% |
| 5      North 5th      Street                                                |                                     |                  |   |
| Harrisburg,      Pennsylvania  17101                              |                                     |                  |   |

INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

AUDIT AND ALL OTHER FEES

|                                    | 2007     | 2006     |
|-----------------------------------------|----------|----------|
| Annual      Audit Fees                  | $481,250 | $530,915 |
| Audit-Related      Fees                 | -        | 2,580    |
| Total      Audit and Audit-Related Fees | 481,250  | 533,495  |
|                                    |     |     |
| Other Non-Audit      Fees               |     |     |
| Tax      Fees – Other             | 83,525   | 134,534  |
| All      Other Fees                     | 1,500    | 1,500    |
| Total      Other Non-Audit Fees         | 85,025   | 136,034  |
|                                    |     |     |
| Total      Fees                         | $566,275 | $669,529 |
|                                    |     |     |

----

Index

----

Index

APPENDIX A

----

----

Index

| COACHMEN      INDUSTRIES, INC.P.O.      BOX 30MIDDLEBURY,      IN 46540 | VOTE BY INTERNET - www.proxyvote.comUse      the Internet to transmit your voting instructions and for electronic      delivery of information up until 11:59 P.M. Eastern Time the day before      the cut-off date or meeting date. Have your proxy card in hand when you      access the web site and follow the instructions to obtain your records and      to create an electronic voting instruction form. ELECTRONIC      DELIVERY OF FUTURE SHAREHOLDER COMMUNICATIONSIf      you would like to reduce the costs incurred by Coachmen Industries, Inc.      in mailing proxy materials, you can consent to receiving all future proxy      statements, proxy cards and annual reports electronically via e-mail or      the Internet. To sign up for electronic delivery, please follow the      instructions above to vote using the Internet and, when prompted, indicate      that you agree to receive or access shareholder communications      electronically in future years. VOTE      BY PHONE - 1-800-690-6903Use      any touch-tone telephone to transmit your voting instructions up until      11:59 P.M. Eastern Time the day before the cut-off date or meeting date.      Have your proxy card in hand when you call and then follow the      instructions. VOTE      BY MAILMark,      sign and date your proxy card and return it in the postage-paid envelope      we have provided or return it to Coachmen Industries, Inc., c/o      Broadridge, 51 Mercedes Way, Edgewood, NY 11717. YOUR      VOTE IS IMPORTANT |
|-------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| TO VOTE, MARK BLOCKS      BELOW IN BLUE OR BLACK INK AS FOLLOWS: | CCHMN1 | KEEP THIS PORTION FOR      YOUR RECORDS |
|------------------------------------------------------------------|--------|-----------------------------------------|

----

| THIS      PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. |        DETACH      AND RETURN THIS PORTION ONLY |
|-----------------------------------------------------------|------------------------------------------------------|

|   |  COACHMEN INDUSTRIES, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                        |     |        |                          |                                                                                                                                                      |   |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|-------------|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|   | THE      BOARD OF DIRECTORS RECOMMENDS A VOTE FOR                                                                                                                                                                                                                                                                                                                                                                                                                      |     |        |                          |                                                                                                                                                      |   |
|   | THE      PROPOSAL BELOW:                                                                                                                                                                                                                                                                                                                                                                                                                                               | ForAll   | WithholdAll | For      AllExcept            | To withhold      authority to vote for any individual nominee(s), mark "For All Except" and      write the number(s) of the nominee(s) on the line below. |   |
|   | Vote      On Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                 |     |        |                          |                                                                                                                                                      |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   | 1.  Election of      two (2) directors, each to serve for a three-year term expiring in      2011.                                                                                                                                                                                                                                                                                                                                                                |   m |   m    |   m                      |                                                                                                                                                      |   |   |
|   | (1)  Geoffrey      B. Bloom                                                                                                                                                                                                                                                                                                                                                                                                                                       |     |        |                          |                                                                                                                                                      |   |   |
|   | (2)  William P.      Johnson                                                                                                                                                                                                                                                                                                                                                                                                                                 |     |        |                          |                                                                                                                                                      |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   | Proposal(s)                                                                                                                                                                                                                                                                                                                                                                                                                                                            |     |        |                          |                                                                                                                                                      |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   | 2.  To transact      such other business as may properly come before the meeting or any      adjournment thereof.                                                                                                                                                                                                                                                                                                                                                 |     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   | THIS PROXY WHEN      PROPERLY EXECUTED WILL BE VOTED AS SPECIFIED.  IF NO DIRECTION IS      MADE, THIS PROXY WILL BE VOTED FOR THE ELECTION OF    DIRECTORS.                                                                                                                                                                                                                                                                                                      |     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   | If you do not vote      by telephone or Internet, please sign and date this proxy card and return      it promptly in the enclosed postage-paid envelope, or otherwise to Proxy      Services, P.O. Box 9138, Farmingdale, NY 11735-9585, so these shares      may be represented at the Annual Meeting.  If you vote by telephone      or Internet, it is not neccesary to return this proxycard.                                                           |     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |
|   | Proxy card must be      signed and dated below.                                                                                                                                                                                                                                                                                                                                                                                                                        |     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   | NOTE:  Please      sign exactly as name appears to the right.  When shares are held by      joint tenants, both should sign.  When signing as attorney, executor,      administrator, trustee, or guardian, please give title as such.  If      shareholder is a corporation, please sign in full corporate name by      President or other authorized officer.  If a partnership, please sign      in partnership name by authorized person. |     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |
|   | Signature      [PLEASE SIGN WITHIN BOX]                                                                                                                                                                                                                                                                                                                                                                                                                                | Date     |        | Signature      (Joint Owners) | Date                                                                                                                                                      |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     |        |                          |                                                                                                                                                      |   |   |

Index

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                           |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | COACHMEN      INDUSTRIES, INC. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                           |   |
| PROXY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                           | PROXY  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                           |   |
| THIS      PROXY IS BEING SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| The undersigned      shareholder(s) of Coachmen Industries, Inc., as Indiana corporation,      hereby appoint(s) Richard M. Lavers and William P. Johnson, and each of      them, as my (our) proxies, each with the power to appoint a substitute,      and hereby authorizes them, and each of them individually, to represent      and to vote, as designated on the reverse, all of the shares of Coachmen      Industries, Inc. which the undersigned is or may be entitled to vote at      the Annual Meeting of Shareholders to be held at the RV/MH Hall of Fame,      Elkhart, Indiana, at 10:00 a.m. local time, on May 1, 2008, or any      adjournment thereof, with the same authority as if the undersigned were      personally present. |
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| YOUR SIGNATURE ON      THIS PROXY IS YOUR ACKNOWLEGEMENT OF RECEIPT OF THE NOTICE OF MEETING AND      PROXY STATEMENT.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| PLEASE      DATE, SIGN AND RETURN THE PROXY CARD PROMPTLY, USING THE ENCLOSED      ENVELOPE.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| (Continued      and to be dated and signed on reverse side.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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