----

----

|   | Indiana                                                           | 35-1101097                                                       |   |
|--------|-------------------------------------------------------------------|------------------------------------------------------------------|--------|
|   | (State of incorporation or      organization)                     | (IRS      Employer Identification No.)                           |   |
|   |                                                              |                                                             |   |
|   | 2831      Dexter Drive, Elkhart, Indiana 46514                    | 423      North Main Street, Middlebury, Indiana 46540            |   |
|   | (Current      Address of principal executive offices) (Zip Code)  | (Former      Address of principal executive offices) (Zip Code)  |   |
|   |                                                              |                                                             |   |
|   | (574)      266-2500                                               | (574)      825-5821                                              |   |
|   | (Registrant's current telephone      number, including area code) | (Registrant's former telephone      number, including area code) |   |

|   | Common      Stock, Without Par Value,            |                                             |   |
|--------|--------------------------------------------------|--------------------------------------------------|--------|
|   | and      associated Common Share Purchase Rights | New      York Stock Exchange                     |   |
|   | (Title      of each class)                       | (Name      of each exchange on which registered) |   |

| Large      accelerated filer  ¨ |   | Accelerated      filer  ¨ |   | Non-accelerated      filer  x |   | Smaller      reporting company  ¨ |
|------------------------------------------------|--------|------------------------------------------|--------|-----------------------------------------|--------|--------------------------------------------------|
|                                           |   |                                     |   |                                    |   |                                             |

| Document                                                                                                          | Parts of Form 10-K into which the Document is      Incorporated |
|-------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|
| Portions      of the Proxy Statement for the Annual Meetingof      Shareholders to be held on April 30, 2009 | Part      III                                                   |

----

----

----

----

----

|    |   | 2008    |                  | 2007    |   | 2006   |   |
|---------|--------|---------|-----------------------|---------|--------|--------|--------|
|    |   | Amount  |                  | %  |   | Amount |   | %  |   | Amount |   | %  |   |
| Housing |   | $  | 117.2                 |    |   | 98.0   |   | $ | 119.2 |   |   | 100.0 |   | $  | 159.7 |   |   | 100.0 |   |
|    |   |    |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other   |   | $       |    2.4 |    |   | 2.0    |   |   | - |   |   | - |   |   | - |   |   | - |   |
|    |   |    |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total   |   | $       | 119.6                 |    |   | 100.0  |   | $ | 119.2 |   |   | 100.0 |   | $ | 159.7 |   |   | 100.0 |   |

Note3

----

Note 2

Note 13

----

|   | • |   | The      restoration of credit markets capable of funding loans with sustainable      terms,                                                                                                             |
|--------|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • |   | Our      ability to obtain adequate bid and performance bonds,                                                                                                                                           |
|   | • |   | Our      ability to improve plant utilization and to achieve or maintain reductions      in costs as a result of the actions taken,                                                                      |
|   | • |   | Customer’s      confidence in our viability as a continuing entity and our ability to      continue to attract customers, particularly major  project,                                             |
|   | • |   | Our      ability to manage liabilities retained by the Company related to the RV      Segment within expectations,                                                                                       |
|   | • |   | The      health of the RV Industry which will have a direct impact on the magnitude      of repurchase obligations during the repurchase period,                                                         |
|   | • |   | Our      ability to minimize contingent liabilities and other draws upon our      liquidity,                                                                                                             |
|   | • |   | The      availability of adequate financing on acceptable terms to our builders,      contractors, suppliers and end customers to enable them to continue their      business relationships with us, and |
|   | • |   | The      overall strength and stability of general economic conditions of the      housing industry and constructionindustry.                                                                            |

----

Note6

----

|   |          |                                                                                              |
|--------|---------------|---------------------------------------------------------------------------------------------------|
|   | •  | short      and long-term interest rates,                                                          |
|   | •  | the      availability of financing for homebuyers,                                                |
|   | •  | consumer      confidence generally and the confidence of potential homebuyers in      particular, |

----

|   | • | U.S.      and global financial system and credit marketstability,                                                        |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------|
|   | • | private      and federal mortgage financing programs and federal and state regulation      of lending practices,         |
|   | • | federal      and state income tax provisions, including provisions for the deduction of      mortgage interest payments, |
|   | • | housing      demand from population growth and demographic changes, among other      factors,                            |
|   | • | employment      levels and job and personal income growth,                                                               |
|   | • | real      estate taxes, and                                                                                              |
|   | • | general      economic conditions, including inflation and  recessions.                                                   |

----

----

Note11

----

Note13

Note13

Note1

----

| Location                                                                   | Acreage |   | No.      of Buildings |   | Building      Area (Sq. Ft.) |   |
|----------------------------------------------------------------------------|---------|--------|-----------------------|--------|------------------------------|--------|
| Properties      Owned and Used by Registrant:                         |    |   |                  |   |                         |   |   |   |   |   |
| Housing      Group                                                         |    |   |                  |   |                         |   |   |   |   |   |
| Milliken,      Colorado                                                    |    |   | 23.0                  |   |                         | 1      |   |   | 151,675 |   |
| Decatur,      Indiana                                                      |    |   | 40.0                  |   |                         | 2      |   |   | 215,995 |   |
| Dyersville,      Iowa                                                      |    |   | 20.0                  |   |                         | 1      |   |   | 168,277 |   |
| Rutherfordton,      North Carolina *                                       |    |   | 36.8                  |   |                         | 1      |   |   | 169,177 |   |
| Rocky      Mount, Virginia                                                 |    |   | 44.7                  |   |                         | 6      |   |   | 137,693 |   |
| Subtotal                                                                   |    |   | 164.5                 |   |                         | 11     |   |   | 842,817 |   |
| Other                                                                      |    |   |                  |   |                         |   |   |   |   |   |
| Fitzgerald,      Georgia                                                   |    |   | 29.6                  |   |                         | 5      |   |   | 170,670 |   |
| Elkhart,      Indiana                                                      |    |   | 16.2                  |   |                         | 3      |   |   | 53,841 |   |
| Middlebury,      Indiana                                                   |    |   | 14.8                  |   |                         | 3      |   |   | 116,762 |   |
| Subtotal                                                                   |    |   | 60.6                  |   |                         | 11     |   |   | 341,273 |   |
| Total      owned and used                                                  |    |   | 225.1                 |   |                         | 22     |   |   | 1,184,090 |   |
|                                                                       |    |   |                  |   |                         |   |   |   |   |   |
| Properties      Leased and Used by Registrant:                             |    |   |                  |   |                         |   |   |   |   |   |
| Other                                                                      |    |   |                  |   |                         |   |   |   |   |   |
| Chino,      California                                                     |    |   | 4.7                   |   |                         | 3      |   |   | 84,296 |   |
| Elkhart,      Indiana                                                      |    |   | 2.8                   |   |                         | 1      |   |   | 43,000 |   |
| Total      leased and used                                                 |    |   | 7.5                   |   |                         | 4      |   |   | 127,296 |   |
|                                                                       |    |   |                  |   |                         |   |   |   |   |   |
| Properites      Owned by Registrant and Leased to Others:                  |    |   |                  |   |                         |   |   |   |   |   |
| Other                                                                      |    |   |                  |   |                         |   |   |   |   |   |
| Crooksville,      Ohio                                                     |    |   | 10.0                  |   |                         | 2      |   |   | 39,310 |   |
| Total      owned and leased                                                |    |   | 10.0                  |   |                         | 2      |   |   | 39,310 |   |
|                                                                       |    |   |                  |   |                         |   |   |   |   |   |
| Properties Owned by Registrant      and Available for Sale or Lease:  |    |   |                  |   |                         |   |   |   |   |
| Housing      Group                                                         |    |   |                  |   |                         |   |   |   |   |   |
| Decatur,      Indiana                                                      |    |   | 3.3                   |   |                         | 2      |   |   | 86,310 |   |
| Zanesville,      Ohio                                                      |    |   | 23.0                  |   |                         | 2      |   |   | 129,753 |   |
| Subtotal                                                                   |    |   | 26.3                  |   |                         | 4      |   |   | 216,063 |   |
| Other                                                                      |    |   |                  |   |                         |   |   |   |   |   |
| Middlebury,      Indiana                                                   |    |   | 132.8                 |   |                         | 0      |   |   | 0 |   |
| Pigeon      Forge, Tennessee                                               |    |   | 2.1                   |   |                         | 0      |   |   | 0 |   |
| Subtotal                                                                   |    |   | 134.9                 |   |                         | 0      |   |   | 0 |   |
| Total      owned and available for sale or lease                           |    |   | 161.2                 |   |                         | 4      |   |   | 216,063 |   |
|                                                                       |    |   |                  |   |                         |   |   |   |   |   |
| Total      Company                                                         |    |   | 403.8                 |   |                         | 32     |   |   | 1,566,759 |   |

----

| Proposal                                                                   |   | For        |   | Against |   | Abstain |
|----------------------------------------------------------------------------|--------|------------|--------|---------|--------|---------|
|                                                                       |   |       |   |    |   |    |
| Asset      Purchase Agreement and Sale of Recreational Vehicle    Business |   | 10,148,615 |   | 11,378  |   | 5,318   |

----

Executive Officers of the Registrant

|                        |                                                                                                     |
|-----------------------------|----------------------------------------------------------------------------------------------------------|
| Name                        | Position                                                                                                 |
|                        |                                                                                                     |
| Richard      M. Lavers      | President      and Chief Executive Officer                                                               |
|                        |                                                                                                     |
| Colleen      A. Zuhl        | Chief      Financial Officer                                                                             |
|                        |                                                                                                     |
| Michael      R. Terlep, Jr. | President,      CLI dba Coachmen RV Group and President, Coachmen Recreational Vehicle      Company, LLC |
|                        | (employment      was terminated in January 2009 in conjunction with the sale of RV      assets)          |
|                        |                                                                                                     |
| Rick      J. Bedell         | President,      CBI dba Coachmen Housing Group                                                           |
|                        |                                                                                                     |
| Leslie      G. Thimlar      | Vice      President, Human Resources                                                                     |
|  W.      Todd Woelfer  |  General      Counsel                                                                               |
|                        |                                                                                                     |

----

|             |   | High      & Low Sales Prices |             | Dividends      Declared |    |
|------------------|--------|----------------------------------|------------------|-------------------------|---------|
|             |   | 2008                             |             | 2007                    |    | 2008 |   | 2007 |   |
|             |   |                             |             |                    |    |   |   |   |   |   |   |   |   |
| 1st      Quarter |   | $                                | 6.01      - 2.75 |                    | $       | 11.74      - 10.53 |   | $ | - |   | $ | .03 |   |
|             |   |                             |             |                    |    |   |   |   |   |   |   |   |   |
| 2nd      Quarter |   |                             | 3.78      - 2.11 |                    |    | 11.20      - 9.66 |   |   | - |   |   | .03 |   |
|             |   |                             |             |                    |    |   |   |   |   |   |   |   |   |
| 3rd      Quarter |   |                             | 2.64      - 1.65 |                    |    | 9.76      - 6.35 |   |   | - |   |   | - |   |
|             |   |                             |             |                    |    |   |   |   |   |   |   |   |   |
| 4th      Quarter |   | $                           | 2.53      - 0.48 |                    | $  | 7.02      - 5.00 |   | $  | - |   | $ | - |   |

Item12

----

|                                                           |   |   |    |    |   |    |    |   |    |    |   |
|----------------------------------------------------------------|--------|--------|---------|---------|--------|---------|---------|--------|---------|---------|--------|
|                                                           |   | 2008   |    | 2007    |   | 2006    |    | 2005   |    | 2004    |   |
|                                                           |   |   |    |    |   |    |    |   |    |    |   |
| Net      sales                                                 |   | $      | 119,596 |    | $      | 119,186 |    | $      | 159,672 |    | $      | 180,231 |   | $ | 208,592 |   |
| Gross      profit                                              |   |   | 17,379  |    |   | 12,847  |    |   | 19,933  |    |   | 24,171 |   |   | 34,696 |   |
| Net      income (loss) from continuing operations              |   |   | (18,679 | )       |   | (10,938 | )       |   | 1,041   |    |   | (1,891 | )  |   | 2,109 |   |
| Discontinued      operations:                                  |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
| Gain      (loss) from operations of discontinued entities |   |   | (40,636 | )  |   | (28,777 | )       |   | (35,744 | )       |   | (23,840 | ) |   | 11,490 |   |
| Gain      (loss) on sale of assets of discontinued entities    |   |   | (9,687  | )  |   | 963     |    |   | 2,898   |    |   | (620 | )  |   | 1,735 |   |
| Income      (loss) from discontinued operations                |   |   | (50,323 | )  |   | (27,814 | )  |   | (32,846 | )       |   | (24,460 | )  |   | 13,225 |   |
| Net      income (loss)                                         |   | $      | (69,002 | )       | $      | (38,752 | )       | $      | (31,805 | )       | $      | (26,351 | )  | $ | 15,334 |   |
|                                                           |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
| Earnings      (loss) per share - Basic                         |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
| Continuing      operations                                     |   | $      | (1.18   | )       | $      | (0.69   | )       | $      | 0.07    |    | $      | (0.12 | )  | $ | 0.14 |   |
| Discontinued      operations                                   |   |   | (3.19   | )  |   | (1.77   | )  |   | (2.10   | )  |   | (1.57 | )  |   | 0.85 |   |
| Net      earnings (loss) per share - Basic                     |   |   | (4.37   | )       |   | (2.46   | )       |   | (2.03   | )  |   | (1.69 | )  |   | .99 |   |
|                                                           |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
| Earnings      (loss) per share - Diluted                       |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
| Continuing      operations                                     |   |   | (1.18   | )       |   | (0.69   | )       |   | 0.07    |    |   | (0.12 | )  |   | 0.14 |   |
| Discontinued      operations                                   |   |   | (3.19   | )       |   | (1.77   | )  |   | (2.10   | )  |   | (1.57 | )  |   | 0.85 |   |
| Net      earnings (loss) per share - Diluted                   |   | $      | (4.37   | )       | $      | (2.46   | )       | $      | (2.03   | )  | $      | (1.69 | )  | $ | .99 |   |
|                                                           |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
| Cash      dividends per share                                  |   | $      | -       |    | $      | .06     |    | $      | .18     |    | $      | .24 |   | $ | .24 |   |
|                                                           |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
| At      year-end:                                              |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
|                                                           |   |   |    |    |   |    |    |   |    |    |   |   |   |   |   |   |
| Working      capital (1)                                       |   | $      | 4,694   |    | $      | 25,336  |    | $      | 62,784  |    | $      | 93,308 |   | $ | 121,312 |   |
| Total      assets                                              |   |   | 107,404 |    |   | 207,668 |    |   | 243,134 |    |   | 322,816 |   |   | 357,723 |   |
| Long-term      debt                                            |   |   | 2,190   |    |   | 3,010   |    |   | 3,862   |    |   | 12,913 |   |   | 14,943 |   |
| Shareholders'      equity                                      |   |   | 52,689  |    |   | 121,133 |    |   | 160,331 |    |   | 193,803 |   |   | 224,418 |   |
| Book      value per share                                      |   | $      | 3.33    |    | $      | 7.70    |    | $      | 10.20   |    | $      | 12.30 |   | $ | 14.27 |   |
| Number      of employees                                       |   |   | 754     |    |   | 2,305   |    |   | 2,655   |    |   | 3,677 |   |   | 4,416 |   |

Note12

Note 1

----

Note2

Note2

----

----

----

----

|                                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   | Percentage      Change |    |   |    |
|----------------------------------------------------------------------|---------------|----------|--------|----------------|---------|--------|---------|----------------|--------|---------|---------|----------------|---------|--------|---------|--------|------------------------|---------|--------|---------|
|                                                                 |          |     |   | Percentage     |    |   |    | Percentage     |   |    |    | Percentage     |    | 2008   |    | 2007   |                   |    |   |
|                                                                 |          |     |   | of             |    |   |    | of             |   |    |    | of             |    | to     |    | to     |                   |    |   |
|                                                                 |          | 2008     |   | Net      Sales |    | 2007   |    | Net      Sales |   | 2006    |    | Net      Sales |    | 2007   |    | 2006   |                   |    |   |
| Net sales:                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Housing                                                              |        $ | 117,191  |   | 98.0           | %       | $      | 119,186 |           | 100.0  | %       | $       | 159,672        |    | 100.0  | %       |   | (1.7                   | )%      | (25.4  | )%      |   |   |
| Other                                                                |          | 2,406    |   | 2.0            |    |   | -       |           | -      |    |    | -              |    | -      |    |   | 100.0                  |    | -      |    |   |   |
| Consolidated      total                                              |          | 119,596  |   | 100.0          |    |   | 119,186 |           | 100.0  |    |    | 159,672        |    | 100.0  |    |   | 0.3                    |    | (25.4  | )       |   |   |
|                                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Gross      profit:                                              |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Housing                                                              |          | 18,014   |   | 15.0           |    |   | 12,847  |           | 10.8   |    |    | 19,933         |    | 12.5   |    |   | 40.2                   |    | (35.5  | )  |   |   |
| Other                                                                |          | (635     | )      | (0.5           | )  |   | -       |           | -      |    |    | -              |    | -      |    |   | (100.0                 | )       | -      |    |   |   |
| Consolidated      total                                              |          | 17,379   |   | 14.5           |    |   | 12,847  |           | 10.8   |    |    | 19,933         |    | 12.5   |    |   | 35.3                   |    | (35.5  | )       |   |   |
|                                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Operating      expenses:                                        |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Selling                                                         |          | 7,077    |   | 5.9            |    |   | 8,278   |           | 7.0    |    |    | 8,325          |    | 5.2    |    |   | (14.5                  | )       | (0.6   | )       |   |   |
| General      and administrative                                 |          | 13,018   |   | 10.9           |    |   | 16,425  |           | 13.8   |    |    | 16,461         |    | 10.3   |    |   | (20.7                  | )  | (0.2   | )       |   |   |
| Impairments                                                     |          | 18,605   |   | 15.6           |    |   | -       |           | -      |    |    | -              |    | -      |    |   | 100.0                  |    | -      |    |   |   |
| Gain      on sale of assets, net                                |          | (44      | )      | (0.1           | )       |   | (74     | )         | (0.1   | )       |    | (7,996         | )  | (5.0   | )  |   | 40.5                   |    | (99.1  | )  |   |   |
| Consolidated      total                                              |          | 38,656   |   | 32.3           |    |   | 24,629  |           | 20.7   |    |    | 16,790         |    | 10.5   |    |   | 57.0                   |    | 46.7   |    |   |   |
|                                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Nonoperating      income                                        |          | (1,059   | )      | (0.9           | )       |   | (690    | )         | (0.6   | )  |    | (1,031         | )  | (0.6   | )  |   | (53.5                  | )  | 33.1   |    |   |   |
|                                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Income      (loss) from continuing operations before incometaxes     |          | (20,218  | )      | (16.9          | )       |   | (11,092 | )         | (9.3   | )       |    | 4,174          |    | 2.6    |    |   | (82.3                  | )  | (365.7 | )  |   |   |
| Tax      expense (credit)                                       |          | (1,539   | )      | (1.3           | )  |   | (154    | )         | (0.1   | )  |    | 3,133          |    | 1.9    |    |   | (899.4                 | )  | (104.9 | )       |   |   |
| Net      income (loss) from continuing operations                    |          | (18,679  | )      | (15.6          | )       |   | (10,938 | )         | (9.2   | )       |    | 1,041          |    | 0.7    |    |   | (70.8                  | )       | (115.1 | )       |   |   |
|                                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Discontinued      operations:                                   |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Loss      from operations of discontinued entities (net of    taxes) |          | (40,884  | )      | (34.2          | )  |   | (28,777 | )         | (24.1  | )       |    | (35,744        | )  | (22.4  | )       |   | (41.2                  | )  | 15.3   |    |   |   |
| Gain      (loss) on sale of discontinued RV assets (net of    taxes) |          | (9,439   | )      | (7.9           | )  |   | 963     |           | 0.8    |    |    | 2,898          |    | 1.8    |    |   | n/m                    |    | (66.8  | )  |   |   |
| Loss      from discontinued operations                               |          | (50,323) |   | (42.1          | )  |   | (27,814 | )         | (23.3  | )  |    | (32,846        | )  | (20.6  | )       |   | (80.9                  | )  | 15.3   |    |   |   |
|                                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |   |
| Net      loss                                                        | $             | (69,002  | )      | (57.7          | )%      | $      | (38,752 | )         | (32.5  | )%      |  $ | (31,805        | )  | (19.9  | )%      |   | (78.1                  | )%      | (21.8  | )%      |   |   |
|                                                                 |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |
|  n/m      - not meaningful                                      |          |     |   |           |    |   |    |           |   |    |    |           |    |   |    |   |                   |    |   |    |   |

Note12

Note1

----

|                                             |   | 2008   |   |  2007 |   | 2006   |    |
|--------------------------------------------------|--------|--------|--------|------------|--------|--------|---------|
| (Gain)      loss on sale of assets:              |   |   |   |       |   |   |    |   |   |   |
| Continuing      operations:                      |   |   |   |       |   |   |    |   |   |   |
| Tennessee      facility (All American)           |   | $      | -      |       | $      | -      |    | $ | (1,061 | ) |
| Virginia      property                           |   |   | -      |       |   | (71    | )       |   | (1,202 | ) |
| Texas      property (Grapevine, TX)              |   |   | -      |       |   | -      |    |   | (1,674 | ) |
| Florida      property (Palm Shores, FL)          |   |   | -      |       |   | -      |    |   | (1,180 | ) |
| Indiana      property (various)                  |   |   | -      |       |   | -      |    |   | (815 | ) |
| Corporate      aircraft                          |   |   | -      |       |   | -      |    |   | (1,792 | ) |
| Other                                            |   |   | (44    | )          |   | (3     | )       |   | (272 | ) |
| Total                                            |   |   | (44    | )          |   | (74    | )       |   | (7,996 | ) |
|                                             |   |   |   |       |   |   |    |   |   |   |
| Discontinued      operations (see Note      12): |   |   |   |       |   |   |    |   |   |   |
| Miller                                           |   |   | -      |       |   | -      |    |   | (2,522 | ) |
| Prodesign                                        |   |   | -      |       |   | -      |    |   | (1,899 | ) |
| All      American Homes - Kansas                 |   |   | -      |       |   | -      |    |   | 76 |   |
| RV      Group                                    |   |   | 9,439  |       |   | (963   | )  |   | (693 | ) |
| Total                                            |   |   | 9,439  |       |   | (963   | )       |   | (5,038 | ) |
|                                             |   |   |   |       |   |   |    |   |   |   |
| Total      (gain) loss on sale of assets         |   | $      | 9,395  |       | $      | (1,037 | )       | $ | (13,034 | ) |
|                                             |   |   |   |       |   |   |    |   |   |   |
| Impairments:                                     |   |   |   |       |   |   |    |   |   |   |
| Real      property                               |   | $      | 984    |       | $      | -      |    | $ | - |   |
| Note      receivable / investments               |   |   | 4,628  |       |   | -      |    |   | - |   |
| Total      impairments                           |   | $      | 5,612  |       | $      | -      |    | $ | - |   |
|                                             |   |   |   |       |   |   |    |   |   |   |
| Legal      expense recoveries (see Note 13)      |   | $      | (2,364 | )     | $      | -      |    | $ | (3,620 | ) |
|                                             |   |   |   |       |   |   |    |   |   |   |
| Goodwill      impairment charge                  |   | $      | 12,993 |       | $      | 3,872  |    | $ | - |   |

----

----

Note1

Note 3

Note11

----

Note1

----

Note 3

Note11

----

Note6

Consolidated Statements of Cash Flows

Note13

----

Note 13

|                                               | Payment      Period |
|----------------------------------------------------|---------------------|
|                                               | 2009                |   | 2010 |   | 2011 |   | 2012 |   | 2013 |   | Thereafter |   | Total |
| Long-term      debt                                | $                   | 819.3 |   | $ | 819.9 |   | $ | 769.9 |   | $ | 150.0 |   | $ | 150.0 |   | $ | 300.0 |   | $ | 3,009.1 |
| Floorplan      note payable                        |                | 3,096.0 |   |   | - |   |   | - |   |   | - |   |   | - |   |   |   |   |   | 3,096.0 |
| Operating      leases                              |                | 1,033.5 |   |   | 926.4 |   |   | 701.6 |   |   | 181.6 |   |   | - |   |   | - |   |   | 2,843.1 |
| Deferred      compensation obligations             |                | 4,259.9 |   |   | 401.1 |   |   | 368.9 |   |   | 319.3 |   |   | 179.6 |   |   | 1,835.7 |   |   | 7,364.5 |
| Open      purchase orders and purchase obligations |                | 1,271.7 |   |   | - |   |   | - |   |   | - |   |   | - |   |   |   |   |   | 1,271.7 |
| Interest      payments on long-term debt           |                | 38.8 |   |   | 25.9 |   |   | 14.4 |   |   | 8.1 |   |   | 5.8 |   |   | 4.7 |   |   | 97.7 |
|                                               |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                              | $                   | 10,519.2 |   | $ | 2,173.3 |   | $ | 1,854.8 |   | $ | 659.0 |   | $ | 335.4 |   | $ | 2,140.4 |   | $ | 17,682.1 |

| - | Projected      interest payments for variable-rate debt were calculated based on the      outstanding principal amounts and prevailing market rates as of December      31, 2008. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | The      open purchase orders and purchase obligations displayed in the table      represent amounts the Company anticipates will become payable within the      next year for goods and services it has negotiated for      delivery. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | Total      Amounts |      | Amount      of Commitment |   | Expiration      Per Period |
|-------------------------------------|--------|--------------------|-----------|---------------------------|--------|----------------------------|
|                                |   | Committed          |      | Less      Than One Year   |   | In      Excess of One Year |
| Letters      of credit              |   | $                  | 7,492.0   |                      | $      | 1,600.0                    |   | $ | 5,892.0 |
| Guarantees                          |   |               | 6,338.0   |                      |   | 6,338.0                    |   |   | - |
| Standby      repurchase obligations |   |               | 104,187.7 |                      |   | 98,073.8                   |   |   | 6,113.9 |
|                                |   |               |      |                      |   |                       |   |   |   |
|  Total                         |   | $                  | 118,017.7 |                      | $      | 106,011.8                  |   | $ | 12,005.9 |

Note1

Note 12

----

Note13

Note 8

----

New Accounting Pronouncements

Note 1

----

| • | the      ability of the management team to achieve desired  results;                                                                                                                                                                              |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | interest      rates, which affect the affordability of the Company's      products;                                                                                                                                                               |
| • | consumer      confidence and the availability of consumer credit;                                                                                                                                                                                 |
| • | the      availability of financing to the Company;                                                                                                                                                                                                |
| • | the      Company’s ability to utilize manufacturing resources      efficiently;                                                                                                                                                             |
| • | the      Company’s ability to introduce new homes and features that achieve      consumer acceptance;                                                                                                                                       |
| • | the      margins associated with the mix of products the Company sells in a      particular period;                                                                                                                                               |
| • | the      impact of sub-prime lending on the availability of credit for the broader      housing market;                                                                                                                                           |
| • | adverse      weather conditions affecting home deliveries;                                                                                                                                                                                        |
| • | potential      liabilities under repurchase agreements and guarantees;                                                                                                                                                                            |
| • | tax      law changes could make home ownership more expensive or less      attractive;                                                                                                                                                            |
| • | legislation      governing the relationships of the Company with its    builders;                                                                                                                                                                 |
| • | the      price volatility of materials used in production and the ability to pass      on rapidly increasing costs of product components and raw materials to end      buyers;                                                                    |
| • | the      availability and cost of real estate for residential    housing;                                                                                                                                                                         |
| • | the      increased size and scope of work of major projects, as compared to the      Company's traditional single-family homes business, with increased      reliance on third parties for performance which could impact the      Company;  |
| • | the      ability to perform in new market segments or geographic areas where it has      limited experience;                                                                                                                                      |
| • | the      supply of existing homes within the Company’s markets;                                                                                                                                                                             |
| • | the      impact of home values on housing demand;                                                                                                                                                                                                 |
| • | uncertainties      and timing with respect to sales resulting from recovery efforts in the      Gulf Coast;                                                                                                                                       |
| • | changing      government regulations, including those covering accounting      standards;                                                                                                                                                         |
| • | environmental      matters or product warranties and recalls, which may affect costs of      operations, revenues, product acceptance and  profitability;                                                                                         |
| • | changes      in property taxes and energy costs;                                                                                                                                                                                                  |
| • | changes      in federal income tax laws and federal mortgage financing      programs;                                                                                                                                                             |
| • | competition      in the industries in which the Company operates;                                                                                                                                                                                 |
| • | further      developments in the war on terrorism and related international      crises;                                                                                                                                                          |
| • | uncertainties      of matters in litigation and other risks and  uncertainties;                                                                                                                                                                   |
| • | the      ability of the Company to generate taxable income in future years to      utilize deferred tax assets and net operating loss carryforwards that are      available;                                                                      |
| • | the      collectibility of debt owed to the Company for sold  assets;                                                                                                                                                                             |
| • | the      Company’s ability to increase gross margins which are critical whether or      not there are increased sales;                                                                                                                      |
| • | the      Company’s use of incentives at either the wholesale or retail      level;                                                                                                                                                          |
| • | the      dependence on key customers within certain product  types;                                                                                                                                                                               |
| • | the      potential fluctuation in the Company’s operating  results;                                                                                                                                                                         |
| • | the      addition or loss of builders;                                                                                                                                                                                                            |
| • | the      introduction and marketing of competitive product by others, including      significant discounting offered by our competitors;                                                                                                          |
| • | uncertainties      regarding the impact of the disclosed restructuring  steps;                                                                                                                                                                    |
| • | the      ability to attract and retain qualified senior  managers.                                                                                                                                                                                |

----

----

| Index to Financial Statements                                                                                  | Page   |
|----------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                           |   |
| Financial      Statements:                                                                                     |   |
|                                                                                                           |   |
| Reports of Independent      Registered Public Accounting Firm                                                  | 37-38  |
|                                                                                                           |   |
| Consolidated Balance      Sheets at December 31, 2008 and 2007                                                 | 39     |
|                                                                                                           |   |
| Consolidated      Statements of Operations for the years ended December 31, 2008, 2007 and      2006           | 40     |
|                                                                                                           |   |
| Consolidated      Statements of Shareholders' Equity for the years ended December 31, 2008,      2007 and 2006 | 41     |
|                                                                                                           |   |
| Consolidated Statements of      Cash Flows for the years ended December 31, 2008, 2007 and      2006           | 42     |
|                                                                                                           |   |
| Notes to Consolidated Financial      Statements                                                                | 43-70  |
|                                                                                                           |   |
| Financial      Statement Schedule:                                                                             |   |
|                                                                                                           |   |
| II - Valuation and Qualifying      Accounts for the years ended December 31, 2008, 2007 and      2006          | 74     |

----

Index

Report of Independent Registered Public AccountingFirm

----

Index

Report of Independent Registered Public AccountingFirm

----

Index

Coachmen Industries, Inc. and Subsidiaries

|                                                                                                                       |   | 2008   |    | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
| Assets                                                                                                                          |   |   |    |   |   |   |   |
| CURRENT      ASSETS                                                                                                             |   |   |    |   |   |   |   |
| Cash      and cash equivalents                                                                                                  |   | $      | 15,745  |   | $      | 1,549 |   |
| Restricted      cash                                                                                                            |   |   | 1,600   |   |   | - |   |
| Trade      receivables, less allowance for doubtful receivables 2008 - $1,676 and      2007 - $744                              |   |   | 1,837   |   |   | 9,122 |   |
| Other      receivables                                                                                                          |   |   | 4,666   |   |   | 3,819 |   |
| Refundable      income taxes                                                                                                    |   |   | 1,559   |   |   | 1,628 |   |
| Inventories                                                                                                                     |   |   | 19,910  |   |   | 79,268 |   |
| Prepaid      expenses and other                                                                                                 |   |   | 4,390   |   |   | 3,804 |   |
| Assets      held for sale                                                                                                       |   |   | 2,913   |   |   | - |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| Total      current assets                                                                                                       |   |   | 52,620  |   |   | 99,190 |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| Property,      plant and equipment,    net                                                                                      |   |   | 30,922  |   |   | 52,932 |   |
| Goodwill                                                                                                                        |   |   | -       |   |   | 12,993 |   |
| Cash      value of life insurance, net of loans                                                                                 |   |   | 4,710   |   |   | 33,936 |   |
| Notes      receivable                                                                                                           |   |   | -       |   |   | 4,543 |   |
| Restricted      cash                                                                                                            |   |   | 17,321  |   |   | 1,193 |   |
| Other                                                                                                                           |   |   | 1,831   |   |   | 2,881 |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| TOTAL      ASSETS                                                                                                               |   | $      | 107,404 |   | $      | 207,668 |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| Liabilities      and Shareholders' Equity                                                                                       |   |   |    |   |   |   |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| CURRENT      LIABILITIES                                                                                                        |   |   |    |   |   |   |   |
| Short-term      borrowings                                                                                                      |   | $      | -       |   | $      | 20,073 |   |
| Accounts      payable, trade                                                                                                    |   |   | 11,414  |   |   | 15,042 |   |
| Accrued      income taxes                                                                                                       |   |   | 1,470   |   |   | 536 |   |
| Accrued      expenses and other liabilities                                                                                     |   |   | 31,127  |   |   | 33,235 |   |
| Floorplan      notes payable                                                                                                    |   |   | 3,096   |   |   | 4,116 |   |
| Current      maturities of long-term debt                                                                                       |   |   | 819     |   |   | 852 |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| Total      current liabilities                                                                                                  |   |   | 47,926  |   |   | 73,854 |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| Long-term      debt                                                                                                             |   |   | 2,190   |   |   | 3,010 |   |
| Deferred      income taxes                                                                                                      |   |   | 457     |   |   | 1,990 |   |
| Postretirement      deferred compensation benefits                                                                              |   |   | 3,104   |   |   | 7,632 |   |
| Other                                                                                                                           |   |   | 1,038   |   |   | 49 |   |
| Total      liabilities                                                                                                          |   |   | 54,715  |   |   | 86,535 |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES (Note      13)                                                                          |   |   |    |   |   |   |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| SHAREHOLDERS'      EQUITY                                                                                                       |   |   |    |   |   |   |   |
| Common      shares, without par value: authorized 60,000 shares; issued 2008 -      21,236 shares and 2007 - 21,180 shares |   |   | 92,688  |   |   | 92,552 |   |
| Additional      paid-in capital                                                                                                 |   |   | 7,213   |   |   | 7,856 |   |
| Accumulated      other comprehensive loss                                                                                       |   |   | (75     | )      |   | (48 | ) |
| Retained      earnings                                                                                                          |   |   | 10,925  |   |   | 79,927 |   |
| Treasury      shares, at cost, 2008 - 5,236 shares and 2007 - 5,402      shares                                            |   |   | (58,062 | )      |   | (59,154 | ) |
| Total      shareholders' equity                                                                                                 |   |   | 52,689  |   |   | 121,133 |   |
|                                                                                                                            |   |   |    |   |   |   |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                 |   | $      | 107,404 |   | $      | 207,668 |   |
|                                                                                                                            |   |   |    |   |   |   |   |

Notes toConsolidated Financial Statements

----

Index

Coachmen Industries, Inc. andSubsidiaries

|                                                                                                                          |   | 2008   |    | 2007    |   | 2006    |    |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|---------|--------|---------|---------|
| Net      sales                                                                                                                |   |   |    |    |   |    |    |   |   |   |
| Products                                                                                                                      |   | $      | 107,609 |    | $      | 105,898 |    | $ | 144,382 |   |
| Delivery      and set                                                                                                         |   |   | 11,987  |    |   | 13,288  |    |   | 15,290 |   |
|                                                                                                                          |   |   | 119,596 |    |   | 119,186 |    |   | 159,672 |   |
| Cost      of sales                                                                                                            |   |   |    |    |   |    |    |   |   |   |
| Products                                                                                                                      |   |   | 89,593  |    |   | 91,508  |    |   | 123,871 |   |
| Delivery      and set                                                                                                         |   |   | 12,624  |    |   | 14,831  |    |   | 15,868 |   |
|                                                                                                                          |   |   | 102,217 |    |   | 106,339 |    |   | 139,739 |   |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Gross      profit                                                                                                             |   |   | 17,379  |    |   | 12,847  |    |   | 19,933 |   |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Operating      expenses:                                                                                                      |   |   |    |    |   |    |    |   |   |   |
| Selling                                                                                                                       |   |   | 7,077   |    |   | 8,278   |    |   | 8,325 |   |
| General      and administrative                                                                                               |   |   | 13,018  |    |   | 16,425  |    |   | 16,461 |   |
| Impairments                                                                                                                   |   |   | 18,605  |    |   | -       |    |   | - |   |
| Gain      on sale of assets, net                                                                                              |   |   | (44     | )       |   | (74     | )       |   | (7,996 | ) |
|                                                                                                                          |   |   | 38,656  |    |   | 24,629  |    |   | 16,790 |   |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Operating      income (loss)                                                                                                  |   |   | (21,277 | )       |   | (11,782 | )       |   | 3,143 |   |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Nonoperating      (income) expense:                                                                                           |   |   |    |    |   |    |    |   |   |   |
| Interest      expense                                                                                                         |   |   | 1,635   |    |   | 999     |    |   | 917 |   |
| Investment      income                                                                                                        |   |   | (1,094  | )       |   | (1,487  | )       |   | (1,527 | ) |
| Other      income, net                                                                                                        |   |   | (1,600  | )       |   | (202    | )       |   | (421 | ) |
|                                                                                                                          |   |   | (1,059  | )  |   | (690    | )  |   | (1,031 | ) |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Income      (loss) from continuing operations before incometaxes                                                              |   |   | (20,218 | )       |   | (11,092 | )       |   | 4,174 |   |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Income      taxes (credit)                                                                                                    |   |   | (1,539  | )       |   | (154    | )  |   | 3,133 |   |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Net      income (loss) from continuing operations                                                                             |   |   | (18,679 | )       |   | (10,938 | )       |   | 1,041 |   |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Discontinued      operations                                                                                                  |   |   |    |    |   |    |    |   |   |   |
| Loss      from operations of discontinued entities (net of taxes (credits) of $947,      $(1,637), and $12,836, respectively) |   |   | (40,884 | )  |   | (28,777 | )       |   | (35,744 | ) |
| Gain      (loss) on sale of assets of discontinued entities (net of taxes of $0, $0      and $2,140, respectively)            |   |   | (9,439  | )  |   | 963     |    |   | 2,898 |   |
| Loss      from discontinued operations                                                                                        |   |   | (50,323 | )  |   | (27,814 | )  |   | (32,846 | ) |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Net      loss                                                                                                                 |   | $      | (69,002 | )       | $      | (38,752 | )       | $ | (31,805 | ) |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Earnings      (loss) per share - Basic                                                                                        |   |   |    |    |   |    |    |   |   |   |
| Continuing      operations                                                                                                    |   | $      | (1.18   | )       | $      | (0.69   | )       | $ | 0.07 |   |
| Discontinued      operations                                                                                                  |   |   | (3.19   | )  |   | (1.77   | )  |   | (2.10 | ) |
| Net      loss per share                                                                                                       |   |   | (4.37   | )       |   | (2.46   | )       |   | (2.03 | ) |
| Earnings      (loss) per share - Diluted                                                                                      |   |   |    |    |   |    |    |   |   |   |
| Continuing      operations                                                                                                    |   |   | (1.18   | )       |   | (0.69   | )       |   | 0.07 |   |
| Discontinued      operations                                                                                                  |   |   | (3.19   | )  |   | (1.77   | )  |   | (2.10 | ) |
| Net      loss per share                                                                                                       |   | $      | (4.37   | )       | $      | (2.46   | )       | $ | (2.03 | ) |
|                                                                                                                          |   |   |    |    |   |    |    |   |   |   |
| Number      of common shares used in the computation of earnings (loss) per      share:                                       |   |   |    |    |   |    |    |   |   |   |
| Basic                                                                                                                         |   |   | 15,799  |    |   | 15,727  |    |   | 15,633 |   |
| Diluted                                                                                                                       |   |   | 15,799  |    |   | 15,727  |    |   | 15,633 |   |

Notes toConsolidated Financial Statements

----

Index

Coachmen Industries, Inc. andSubsidiaries

|                                                                                             |   |               |      |    |   |   |   |       |   |         |    | Accumulated   |   |     |   |     |    |   |    |          |    |
|--------------------------------------------------------------------------------------------------|--------|--------------------|-----------|---------|--------|--------|--------|------------|--------|--------------|---------|---------------|--------|----------|--------|----------|---------|--------|---------|---------------|---------|
|                                                                                             |   |               |      |    |   |   |   | Additional |   |         |    | Other         |   |     |   |     |    |   |    | Total         |    |
|                                                                                             |   | Comprehensive      |      | Common  |   | Shares |   | Paid-In    |   | Unearned     |    | Comprehensive |   | Retained |   | Treasury |    | Shares |    | Shareholders' |    |
|                                                                                             |   | Income      (Loss) |      | Number  |   | Amount |   | Capital    |   | Compensation |    | Income(Loss)  |   | Earnings |   | Number   |    | Amount |    | Equity        |    |
| Balance      at January 1, 2006                                                                  |   |               |      |    |   | 21,134 |   | $          | 92,164 |         | $  | 6,465         |   | $   | (142   | )        | $  | (6     | )  | $        | 154,246 |   |   | (5,375 | ) | $  | (58,924 | ) | $  | 193,803 |   |   |
| Comprehensive      Loss - 2006                                                                   |   |               |      |    |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                    |   | $                  | (31,805   | )       |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | -      |    |          | (31,805 | ) |   | - |   |   | - |   |   | (31,805 | ) |   |
| Net      unrealized (loss) on cash flow hedges                                                   |   |               | (4        | )  |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | (4     | )  |          | -       |   |   | - |   |   | - |   |   | (4 | )  |   |
| Total      comprehensive loss                                                                    |   | $                  | (31,809   | )       |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares upon the exercise of stock options net of tax benefit of      $25 |   |               |      |    |   | -      |   |       | -      |         |    | 284           |   |     | -      |     |    | -      |    |          | -       |   |   | 64 |   |   | 376 |   |   | 660 |   |   |
| Issuance      of common shares under employee stock purchase plan                                |   |               |      |    |   | 22     |   |       | 218    |         |    | -             |   |     | -      |     |    | -      |    |          | -       |   |   | - |   |   | - |   |   | 218 |   |   |
| Issuance      (cancellations) of common shares from treasury                                     |   |               |      |    |   | -      |   |       | -      |         |    | 899           |   |     | 142    |     |    | -      |    |          | -       |   |   | (122 | ) |   | (764 | ) |   | 277 |   |   |
| Cash      dividends of $.18 per common share                                                     |   |               |      |    |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | -      |    |          | (2,818  | ) |   | - |   |   | - |   |   | (2,818 | ) |   |
| Balance      at December 31, 2006                                                                |   |               |      |    |   | 21,156 |   |       | 92,382 |         |    | 7,648         |   |     | -      |     |    | (10    | )       |          | 119,623 |   |   | (5,433 | ) |   | (59,312 | ) |   | 160,331 |   |   |
|                                                                                             |   |               |      |    |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      Loss - 2007                                                                   |   |               |      |    |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                    |   | $                  | (38,752   | )       |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | -      |    |          | (38,752 | ) |   | - |   |   | - |   |   | (38,752 | ) |   |
| Net      unrealized (loss) on cash flow hedges                                                   |   |               |  (38 | )  |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | (38    | )       |          | -       |   |   | - |   |   | - |   |   | (38 | ) |   |
| Total      comprehensive loss                                                                    |   | $                  | (38,790   | )       |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of common shares under employee stock purchase plan                                |   |               |      |    |   | 24     |   |       | 170    |         |    | -             |   |     | -      |     |    | -      |    |          | -       |   |   | - |   |   | - |   |   | 170 |   |   |
| Issuance      (cancellations) of common shares from treasury                                     |   |               |      |    |   | -      |   |       | -      |         |    | 208           |   |     | -      |     |    | -      |    |          | -       |   |   | 31 |   |   | 158 |   |   | 366 |   |   |
| Cash      dividends of $.06 per common share                                                     |   |               |      |    |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | -      |    |          | (944    | ) |   | - |   |   | - |   |   | (944 | ) |   |
| Balance      at December 31, 2007                                                                |   |               |      |    |   | 21,180 |   | $          | 92,552 |         | $       | 7,856         |   | $        | -      |     | $       | (48    | )       | $             | 79,927  |   |   | (5,402 | ) | $ | (59,154 | ) | $ | 121,133 |   |   |
|                                                                                             |   |               |      |    |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      Loss – 2008                                                             |   |               |      |    |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                    |   | $                  | (69,002   | )       |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | -      |    |          | (69,002 | ) |   | - |   |   | - |   |   | (69,002 | ) |   |
| Net      unrealized (loss) on cash flow hedges                                                   |   |               | (27       | )       |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | (27    | )       |          | -       |   |   | - |   |   | - |   |   | (27 | ) |   |
| Total      comprehensive loss                                                                    |   | $                  | (69,029   | )  |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
| Shares      repurchased for the Treasury                                                         |   |               |      |    |   | -      |   |       | -      |         |    | -             |   |     | -      |     |    | -      |    |          | -       |   |   | (31 | ) |   | (55 | ) |   | (55 | ) |   |
| Issuance      of common shares under employee stock purchase plan                                |   |               |      |    |   | 56     |   |       | 136    |         |    | -             |   |     | -      |     |    | -      |    |          | -       |   |   | - |   |   | - |   |   | 136 |   |   |
| Issuance      (cancellations) of common shares from treasury                                     |   |               |      |    |   | -      |   |       | -      |         |    | (643          | )      |     | -      |     |    | -      |    |          | -       |   |   | 197 |   |   | 1,147 |   |   | 504 |   |   |
| Balance      at December 31, 2008                                                                |   |               |      |    |   | 21,236 |   | $          | 92,688 |         | $       | 7,213         |   | $        | -      |     | $       | (75    | )       | $             | 10,925  |   |   | (5,236 | ) | $ | (58,062 | ) | $ | 52,689 |   |   |
|                                                                                             |   |               |      |    |   |   |   |       |   |         |    |          |   |     |   |     |    |   |    |          |    |   |   |   |   |   |   |   |   |   |   |

Notes toConsolidated Financial Statements

----

Index

Coachmen Industries, Inc. and Subsidiaries

| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                            |   | 2008   |    | 2007   |   | 2006    |    |
|-------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|---------|
| Net      loss                                                                                         |   | $      | (69,002 | )      | $      | (38,752 | )       | $ | (31,805 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities:                 |   |   |    |   |   |    |    |   |   |   |
| Depreciation                                                                                          |   |   | 4,225   |   |   | 5,790   |    |   | 6,533 |   |
| Provision      for doubtful receivables                                                               |   |   | 1,140   |   |   | 512     |    |   | 1,631 |   |
| Provision      for write-down of assets to net realizable value                                       |   |   | 1,505   |   |   | -       |    |   | - |   |
| Net      unrealized loss on cash flow hedges                                                          |   |   | (27     | )      |   | (38     | )       |   | (4 | ) |
| Goodwill      impairment charge                                                                       |   |   | 12,993  |   |   | 3,872   |    |   | - |   |
| Impairment      charges                                                                               |   |   | 6,264   |   |   | -       |    |   | - |   |
| Loss      on sale of businesses                                                                       |   |   | 9,439   |   |   | -       |    |   | - |   |
| Gain      on sale of properties and other assets, net                                                 |   |   | (44     | )      |   | (1,037  | )       |   | (13,183 | )  |
| Increase      in cash surrender value of life insurance policies                                      |   |   | (90     | )      |   | (1,129  | )       |   | (317 | ) |
| Deferred      income tax provision (benefit)                                                          |   |   | (1,533  | )      |   | (2,534  | )  |   | 20,224 |   |
| Tax      benefit from stock options exercised                                                         |   |   | -       |   |   | -       |    |   | 25 |   |
| Other                                                                                                 |   |   | (3,993  | )      |   | 1,100   |    |   | 127 |   |
| Changes      in certain assets and liabilities, net of effects of acquisitions and      dispositions: |   |   |    |   |   |    |    |   |   |   |
| Trade      receivables                                                                                |   |   | (116    | )      |   | 15,977  |    |   | 16,642 |   |
| Inventories                                                                                           |   |   | 35,819  |   |   | 4,243   |    |   | 25,627 |   |
| Prepaid      expenses and other                                                                       |   |   | (777    | )      |   | 153     |    |   | (582 | )  |
| Accounts      payable, trade                                                                          |   |   | (3,628  | )      |   | (1,956  | )       |   | (13,150 | ) |
| Income      taxes - accrued and refundable                                                            |   |   | 1,003   |   |   | 9,710   |    |   | (1,051 | ) |
| Accrued      expenses and other liabilities                                                           |   |   | (2,786  | )      |   | (2,687  | )       |   | (15,750 | )  |
| Net      cash used in operating activities                                                            |   |   | (9,608  | )      |   | (6,776  | )       |   | (5,033 | )  |
|                                                                                             |   |   |    |   |   |    |    |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                            |   |   |    |   |   |    |    |   |   |   |
| Proceeds      from sale of businesses                                                                 |   |   | 25,238  |   |   | -       |    |   | - |   |
| Proceeds      from sale of properties and other assets                                                |   |   | 357     |   |   | 1,787   |    |   | 28,104 |   |
| Investments      in marketable securities and cash surrender value                                    |   |   | (667    | )      |   | (1,688  | )       |   | (2,574 | ) |
| Purchases      of property and equipment                                                              |   |   | (2,088  | )      |   | (3,618  | )       |   | (4,622 | ) |
| Other                                                                                                 |   |   | (7,154  | )      |   | 310     |    |   | (517 | )  |
| Net      cash provided by (used in) investing activities                                              |   |   | 15,686  |   |   | (3,209  | )  |   | 20,391 |   |
|                                                                                             |   |   |    |   |   |    |    |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                            |   |   |    |   |   |    |    |   |   |   |
| Proceeds      from short-term borrowings                                                              |   |   | 16,813  |   |   | 11,037  |    |   | 11,713 |   |
| Payments      of short-term borrowings                                                                |   |   | (37,906 | )      |   | (288    | )       |   | (14,910 | ) |
| Proceeds      from long-term debt                                                                     |   |   | -       |   |   | -       |    |   | 255 |   |
| Payments      of long-term debt                                                                       |   |   | (853    | )      |   | (1,077  | )       |   | (10,452 | ) |
| Proceeds      from borrowings on cash value of life insurance    policies                             |   |   | 48,983  |   |   | -       |    |   | - |   |
| Repayment      of borrowings on cash value of life insurance    policies                              |   |   | (19,000 | )      |   | -       |    |   | - |   |
| Issuance      of common shares under stock incentive plans                                            |   |   | 136     |   |   | 170     |    |   | 878 |   |
| Tax      benefit from stock options exercised                                                         |   |   | -       |   |   | -       |    |   | (25 | ) |
| Cash      dividends paid                                                                              |   |   | -       |   |   | (944    | )       |   | (2,818 | ) |
| Purchases      of common shares for treasury                                                          |   |   | (55     | )      |   | (15     | )       |   | (129 | )  |
| Other                                                                                                 |   |   | -       |   |   | -       |    |   | 1 |   |
| Net      cash provided by (used in) financing activities                                              |   |   | 8,118   |   |   | 8,883   |    |   | (15,487 | ) |
| Increase      (decrease) in cash and cash equivalents                                                 |   |   | 14,196  |   |   | (1,102  | )       |   | (129 | ) |
|                                                                                             |   |   |    |   |   |    |    |   |   |   |
| CASH      AND CASH EQUIVALENTS                                                                        |   |   |    |   |   |    |    |   |   |   |
| Beginning      of year                                                                                |   |   | 1,549   |   |   | 2,651   |    |   | 2,780 |   |
| End      of year                                                                                      |   | $      | 15,745  |   | $      | 1,549   |    | $ | 2,651 |   |
| Supplemental      disclosures of cash flow information:                                               |   |   |    |   |   |    |    |   |   |   |
| Cash      paid during the year for interest                                                           |   | $      | 599     |   | $      | 663     |    | $ | 1,383 |   |
| Cash      refunded during the year for income taxes                                                   |   |   | (35     | )      |   | (9,032  | )  |   | (127 | )  |
| Operating      cash received related to insurance settlement                                          |   |   | 988     |   |   | -       |    |   | 2,875 |   |
| Gain      on sale of assets - Continuing operations                                                   |   |   | (44     | )      |   | (1,037  | )       |   | (8,689 | ) |
| (Gain)      loss on sale of assets - Discontinued operations                                          |   | $      | 9,439   |   | $      | -       |    | $ | (4,345 | )  |

Notes toConsolidated Financial Statements

----

Index

Coachmen Industries, Inc. and Subsidiaries

| 1. | NATURE      OF OPERATIONS AND ACCOUNTINGPOLICIES. |
|----|---------------------------------------------------|

|                                                                                                 |   | 2008 |   | 2007   |   | 2006  |   |
|------------------------------------------------------------------------------------------------------|--------|------|--------|--------|--------|-------|--------|
| Issuance      (cancellations) of common shares, at market value, in lieu of cash      compensation   |   | $    | 234    |   | $      | 116   |   | $ | 125 |   |
| Notes      receivable received in connection with the sale of certain assets (see      Note      12) |   | $    | -      |   | $      | 2,610 |   | $ | 5,920 |   |

----

Index

| 1. | NATURE      OF OPERATIONS AND ACCOUNTING POLICIES,  Continued. |
|----|----------------------------------------------------------------|

|                                                   |   | 2008   |   | 2007    |   | 2006   |   |
|--------------------------------------------------------|--------|--------|--------|---------|--------|--------|--------|
| Interest      income                                   |   | $      | 288    |    | $      | 477    |   | $ | 384 |   |
| Increase      in cash value of life insurance policies |   |   | 1,255  |    |   | 1,003  |   |   | 1,138 |   |
| Dividend      income on preferred stocks               |   |   | 7      |    |   | 7      |   |   | 5 |   |
| Net      loss on investment in joint ventures          |   |   | (456   | )  |   | -      |   |   | - |   |
|                                                   |   |   |   |    |   |   |   |   |   |   |
| Total                                                  |   | $      | 1,094  |    | $      | 1,487  |   | $ | 1,527 |   |

----

Index

| 1. | NATURE      OF OPERATIONS AND ACCOUNTING POLICIES,  Continued. |
|----|----------------------------------------------------------------|

|                           |   |                   |                                                                           |   | Fair      Value Measurements at Reporting Date Using |   |
|--------------------------------|--------|------------------------|--------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                           |   |                   |                                                                           |   |                                                 |   |   |   |   |   |   |   |
|                           |   |                   |                                                                           |   | Quoted      Prices in                                |   |   |   |   |   |   |   |
|                           |   |                   |                                                                           |   | Active      Markets                                  |   |   | Significant |   |   | Significant |   |
|                           |   |                   |                                                                           |   | For      Identical                                   |   |   | Other      Observable |   |   | Unobservable |   |
|                           |   |                   |                                                                           |   | Assets                                               |   |   | Inputs |   |   | Inputs |   |
|                           |   | Total      as of       |                                                                           |   |                                                 |   |   |   |   |   |   |   |
|  Description              |   | December      31, 2008 |                                                                           |   |  (Level      1)                                 |   |   |  (Level      2) |   |   |  (Level      3) |   |
|                           |   |                   |                                                                           |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents |   | $                      | 15,745                                                                         |   |                                                 | $      | 15,745 |   |   | $ | - |   |   | $ | - |   |
|                           |   |                   |                                                                           |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Restricted      cash           |   |                   |             18,921 |   |                                                 |   | 18,921 |   |   |   |   |   |   |   |   |   |
|                           |   |                   |                                                                           |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Rate Swap (1)    |   |                   | (75                                                                            | )      |                                                 |   | - |   |   |   | (75 | ) |   |   | - |   |
|                           |   |                   |                                                                           |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                            |   | $                      | 34,591                                                                         |   |                                                 | $      | 34,666 |   |   | $ | (75 | ) |   | $ | - |   |

| Land      improvements                                                           |   |   | 3-15      years  |   |
|----------------------------------------------------------------------------------|--------|--------|------------------|--------|
| Buildings      and improvements                                                  |   |   | 10-30      years |   |
| Machinery      and equipment                                                     |   |   | 3-10      years  |   |
| Transportation      equipment                                                    |   |   | 2-7      years   |   |
| Office      furniture and fixtures, including capitalized computer      software |   |   | 2-10      years  |   |

----

Index

| 1. | NATURE      OF OPERATIONS AND ACCOUNTING POLICIES,  Continued. |
|----|----------------------------------------------------------------|

Note12

|                                              |   |    |    |
|---------------------------------------------------|--------|---------|---------|
| Balance      at January 1, 2006                   | $      | 17,383  |    |
| Sale      of business                             |   | (518    | )       |
| Balance      at December 31, 2006                 |   | 16,865  |    |
| Impairment      charge in discontinued operations |   | (3,872  | )  |
| Balance      at December 31, 2007                 | $      | 12,993  |    |
| Impairment      charge                            |   | (12,993 | )       |
| Balance      at December 31, 2008                 | $      | -       |    |

----

Index

| 1. | NATURE      OF OPERATIONS AND ACCOUNTING POLICIES,  Continued. |
|----|----------------------------------------------------------------|

|                                                                             |   | 2008   |    | 2007    |   | 2006    |   |
|----------------------------------------------------------------------------------|--------|--------|---------|---------|--------|---------|--------|
| Balance      of accrued warranty at January 1                                    |   | $      | 8,123   |    | $      | 11,099  |   | $ | 20,005 |   |
| Warranties      issued and changes in liability for pre-existing      warranties |   |   | 14,873  |    |   | 16,787  |   |   | 21,598 |   |
| Cash      settlements made during the period                                     |   |   | (13,308 | )  |   | (19,763 | )      |   | (30,504 | ) |
|                                                                             |   |   |    |    |   |    |   |   |   |   |
| Balance      of accrued warranty at December 31                                  |   | $      | 9,688   |    | $      | 8,123   |   | $ | 11,099 |   |

New and Pending AccountingPronouncements

----

Index

| 1. | NATURE      OF OPERATIONS AND ACCOUNTING POLICIES,  Continued. |
|----|----------------------------------------------------------------|

----

Index

| 1. | NATURE      OF OPERATIONS AND ACCOUNTING POLICIES,  Continued. |
|----|----------------------------------------------------------------|

| 2. | BASIS      OF PRESENTATION. |
|----|-----------------------------|

----

Index

| 2. | BASIS      OF PRESENTATION, Continued. |
|----|----------------------------------------|

----

Index

| 2. | BASIS      OF PRESENTATION, Continued. |
|----|----------------------------------------|

| 3. | SEGMENT      INFORMATION. |
|----|---------------------------|

Note12

Note 12

|              |   | 2008   |    | 2007    |   | 2006    |   |
|-------------------|--------|--------|---------|---------|--------|---------|--------|
| Net      sales    |   |   |    |    |   |    |   |   |   |   |
| Housing           |   | $      | 117,191 |    | $      | 119,186 |   | $ | 159,672 |   |
| Other             |   |   | 2,405   |    |   | -       |   |   | - |   |
|              |   |   |    |    |   |    |   |   |   |   |
| Total             |   | $      | 119,596 |    | $      | 119,186 |   | $ | 159,672 |   |
|              |   |   |    |    |   |    |   |   |   |   |
| Gross      profit |   |   |    |    |   |    |   |   |   |   |
| Housing           |   | $      | 18,014  |    | $      | 12,847  |   | $ | 19,933 |   |
| Other             |   |   | (635    | )  |   | -       |   |   | - |   |
|              |   |   |    |    |   |    |   |   |   |   |
| Total             |   | $      | 17,379  |    | $      | 12,847  |   | $ | 19,933 |   |

----

Index

| 3. | SEGMENT      INFORMATION, Continued. |
|----|--------------------------------------|

|                                                  |   | 2008    |    | 2007    |    | 2006    |    |
|-------------------------------------------------------|--------|---------|---------|---------|---------|---------|---------|
| Operating      expenses                               |   |    |    |    |    |    |    |   |   |   |
| Housing                                               |   | $       | 16,551  |    | $  | 20,200  |    | $  | 17,284 |   |
| Other                                                 |   |    | 22,105  |    |    | 4,429   |    |   | (494 | )  |
|                                                  |   |    |    |    |    |    |    |   |   |   |
| Total                                                 |   | $  | 38,656  |    | $  | 24,629  |    | $  | 16,790 |   |
|                                                  |   |    |    |    |    |    |    |
| Operating      income (loss)                          |   |    |    |    |    |    |    |   |   |   |
| Housing                                               |   | $       | 1,463   |    | $       | (7,353  | )       | $ | 2,649 |   |
| Other                                                 |   |    | (22,740 | )       |    | (4,429  | )       |   | 494 |   |
|                                                  |   |    |    |    |    |    |    |   |   |   |
| Total                                                 |   | $       | (21,277 | )       | $       | (11,782 | )       | $ | 3,143 |   |
|                                                  |   |    |    |    |    |    |    |   |   |   |
| Pre-tax      income (loss) from continuing operations |   |    |    |    |    |    |    |   |   |   |
| Housing                                               |   | $  | 1,324   |    | $  | (7,434  | )  | $  | 2,665 |   |
| Other                                                 |   |    | (21,542 | )  |    | (3,658  | )  |   | 1,509 |   |
|                                                  |   |    |    |    |    |    |    |   |   |   |
| Total                                                 |   | $  | (20,218 | )       | $  | (11,092 | )  | $  | 4,174 |   |

| Total      assets   |   |   |    |   |   |    |   |   |    |   |
|---------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Housing             |   | $      | 43,456  |   | $      | 54,601  |   | $      | 57,968  |   |
| Other               |   |   | 63,948  |   |   | 153,067 |   |   | 185,166 |   |
|                |   |   |    |   |   |    |   |   |    |   |
| Total               |   | $      | 107,404 |   | $      | 207,668 |   | $      | 243,134 |   |
|                |   |   |    |   |   |    |   |   |    |   |
| Total      goodwill |   |   |    |   |   |    |   |   |    |   |
| Housing             |   | $      | -       |   | $      | -       |   | $      | -       |   |
| Other               |   |   | -       |   |   | 12,993  |   |   | 16,865  |   |
|                |   |   |    |   |   |    |   |   |    |   |
| Total               |   | $      | -       |   | $      | 12,993  |   | $      | 16,865  |   |

|                  |   | 2008   |   | 2007   |   | 2006   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|
| Interest      expense |   |   |   |   |   |   |   |   |   |   |
| Housing               |   | $      | 159    |   | $      | 341    |   | $ | 281 |   |
| Other                 |   |   | 1,476  |   |   | 658    |   |   | 636 |   |
|                  |   |   |   |   |   |   |   |   |   |   |
| Total                 |   | $      | 1,635  |   | $      | 999    |   | $ | 917 |   |
|                  |   |   |   |   |   |   |   |   |   |   |
| Depreciation          |   |   |   |   |   |   |   |   |   |   |
| Housing               |   | $      | 2,000  |   | $      | 2,295  |   | $ | 2,522 |   |
| Other                 |   |   | 321    |   |   | 339    |   |   | 465 |   |
|                  |   |   |   |   |   |   |   |   |   |   |
| Total                 |   | $      | 2,321  |   | $      | 2,634  |   | $ | 2,987 |   |

----

Index

| 4. | INVENTORIES. |
|----|--------------|

|                 | December      31, |   | December      31, |   |
|----------------------|-------------------|--------|-------------------|--------|
|                 | 2008              |   | 2007              |   |
| Raw      materials   |              |   |              |   |   |   |
| Housing              | $                 | 4,157  |              | $      | 5,989 |   |
| Other                |              | 902    |              |   | 11,789 |   |
|                 |              |   |              |   |   |   |
| Total                |              | 5,059  |              |   | 17,778 |   |
|                 |              |   |              |   |   |   |
| Work      in process |              |   |              |   |   |   |
| Housing              |              | 2,392  |              |   | 2,941 |   |
| Other                |              | 385    |              |   | 12,913 |   |
|                 |              |   |              |   |   |   |
| Total                |              | 2,777  |              |   | 15,854 |   |
|                 |              |   |              |   |   |   |
| Improved      lots   |              |   |              |   |   |   |
| Housing              |              | 434    |              |   | 645 |   |
|                 |              |   |              |   |   |   |
| Total                |              | 434    |              |   | 645 |   |
|                 |              |   |              |   |   |   |
| Finished      goods  |              |   |              |   |   |   |
| Housing              |              | 10,816 |              |   | 10,953 |   |
| Other                |              | 824    |              |   | 34,038 |   |
|                 |              |   |              |   |   |   |
| Total                |              | 11,640 |              |   | 44,991 |   |
|                 |              |   |              |   |   |   |
| Total                | $                 | 19,910 |              | $      | 79,268 |   |

Note12

| 5. | PROPERTY,      PLANT AND EQUIPMENT. |
|----|-------------------------------------|

|                                    |   | 2008   |   | 2007   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|
|                                    |   |   |   |   |   |
| Land      and improvements              |   | $      | 7,700  |   | $      | 11,452 |   |
| Buildings      and improvements         |   |   | 32,849 |   |   | 59,765 |   |
| Machinery      and equipment            |   |   | 10,637 |   |   | 24,429 |   |
| Transportation      equipment           |   |   | 11,035 |   |   | 14,654 |   |
| Office      furniture and fixtures      |   |   | 13,992 |   |   | 17,274 |   |
|                                    |   |   |   |   |   |   |   |
| Total                                   |   |   | 76,213 |   |   | 127,574 |   |
| Less,      accumulated depreciation     |   |   | 45,291 |   |   | 74,642 |   |
|                                    |   |   |   |   |   |   |   |
| Property,      plant and equipment, net |   | $      | 30,922 |   | $      | 52,932 |   |

----

Index

| 6. | SHORT-TERM      BORROWINGS. |
|----|-----------------------------|

| 7. | LONG-TERM      DEBT. |
|----|----------------------|

|                                                                                                                                                                                                                                      |   | 2008   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Obligations      under industrial development revenue bonds, variable rates (effective      weighted-average interest rates of 1.3% and 3.6% at December 31, 2008 and      2007, respectively), with various maturities through      2015 |   | $      | 2,850  |   | $      | 3,600 |   |
|                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Other                                                                                                                                                                                                                                     |   |   | 159    |   |   | 262 |   |
|                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Subtotal                                                                                                                                                                                                                                  |   |   | 3,009  |   |   | 3,862 |   |
|                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Less,      current maturities of long-term debt                                                                                                                                                                                           |   |   | 819    |   |   | 852 |   |
|                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |
| Long-term      debt                                                                                                                                                                                                                       |   | $      | 2,190  |   | $      | 3,010 |   |

----

Index

| 7. | LONG-TERM      DEBT, Continued. |
|----|---------------------------------|

| 8. | ACCRUED      EXPENSES AND OTHER LIABILITIES. |
|----|----------------------------------------------|

|                                                                                                                             |   | 2008   |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Wages,      salaries, bonuses, commissions and othercompensation                                                                 |   | $      | 5,022  |   | $      | 2,432 |   |
| Dealer      incentives, including volume bonuses, dealer trips, interest      reimbursement, co-op advertising and other rebates |   |   | 989    |   |   | 1,577 |   |
| Warranty                                                                                                                         |   |   | 9,688  |   |   | 8,123 |   |
| Insurance-products      and general liability, workers compensation, group health and      other                                 |   |   | 6,320  |   |   | 8,519 |   |
| Customer      deposits and unearned revenues                                                                                     |   |   | 2,545  |   |   | 4,208 |   |
| Litigation                                                                                                                       |   |   | 270    |   |   | 930 |   |
| Interest                                                                                                                         |   |   | 395    |   |   | 751 |   |
| Sales      and property taxes                                                                                                    |   |   | 920    |   |   | 1,837 |   |
| Deferred      gain on sale of real estate                                                                                        |   |   | 814    |   |   | 1,145 |   |
| Repurchase      liability                                                                                                        |   |   | 2,671  |   |   | 926 |   |
| Other      current liabilities                                                                                                   |   |   | 1,493  |   |   | 2,787 |   |
|                                                                                                                             |   |   |   |   |   |   |   |
| Total                                                                                                                            |   | $      | 31,127 |   | $      | 33,235 |   |

----

Index

| 9. | COMMON      STOCK MATTERS AND EARNINGS PERSHARE. |
|----|--------------------------------------------------|

|                                |   | Numberof      Shares |      | Weighted-AverageExercisePrice |    |
|-------------------------------------|--------|----------------------|-----------|-------------------------------|---------|
| Outstanding,      January 1, 2006   |   |                 | 284       |                          |  $ | 12.19 |   |
| Granted                             |   |                 | -         |                          |    | - |   |
| Canceled                            |   |                 | (71       | )                             |    | 13.60 |   |
| Exercised                           |   |                 | (64       | )                             |    | 9.95 |   |
|                                |   |                 |      |                          |    |   |   |
| Outstanding,      December 31, 2006 |   |                 | 149       |                          |    | 12.48 |   |
| Granted                             |   |                 | -         |                          |    | - |   |
| Canceled                            |   |                 | (15       | )                             |    |  14.80 |   |
| Exercised                           |   |                 | -         |                          |    | - |   |
|                                |   |                 |      |                          |    |   |   |
| Outstanding,      December 31, 2007 |   |                 |  134 |                          |    |  12.20 |   |
| Granted                             |   |                 | -         |                          |    | - |   |
| Canceled                            |   |                 | (1        | )                        |    | 15.78 |   |
| Exercised                           |   |                 | -         |                          |    | - |   |
|                                |   |                 |      |                          |    |   |   |
| Outstanding,      December 31, 2008 |   |                 | 133       |                          | $       | 12.18 |   |

|                                       |   | Options Outstanding and      Exercisable |   |
|--------------------------------------------|--------|------------------------------------------|--------|
|                                       |   |                                     |   |
|  Range      of Exercise               |   | Number      Outstanding at               |   | Weighted-AverageRemaining |   | Weighted-Average |   |
| Price                                      |   | December      31, 2008                   |   | Contractual      Life |   | Exercise      Price |   |
| $10.00      - $12.00                       |   | 89                                       |   | 2.1 |   | $10.17 |   |
|   12.01      -   17.00 |   | 39                                       |   | 3.3 |   |        16.01 |   |
| $17.01      - $18.68                       |   | 5                                        |   | 3.3 |   | $18.68 |   |
|                                       |   |                                     |   |   |   |   |   |
|                                       |   | 133                                      |   |   |   |   |   |

----

Index

| 9. | COMMON STOCK MATTERS AND      EARNINGS PER SHARE,Continued.  |
|----|-------------------------------------------------------------------|

----

Index

| 9. | COMMON      STOCK MATTERS AND EARNINGS PER SHARE,Continued. |
|----|-------------------------------------------------------------|

Note12

|                                |   | Numberof      Shares |     |
|-------------------------------------|--------|----------------------|----------|
| Outstanding,      December 31, 2005 |   |                 | 142,300  |   |
| Granted                             |   |                 | 110,000  |   |
| Forfeited                           |   |                 | (252,300 | ) |
|                                |   |                 |     |   |
| Outstanding,      December 31, 2006 |   |                 | -        |   |
| Granted                             |   |                 | 139,500  |   |
| Forfeited                           |   |                 | (139,500 | )  |
|                                |   |                 |     |   |
| Outstanding,      December 31, 2007 |   |                 | -        |   |
| Granted                             |   |                 | 351,375  |   |
| Forfeited                           |   |                 | (205,187 | )  |
|                                |   |                 |     |   |
| Outstanding,      December 31, 2008 |   |                 | 146,188  |   |

|                                                       |   | Plan      Year |    |
|------------------------------------------------------------|--------|----------------|---------|
|                                                       |   | 2008           |    | 2007 |   | 2006 |   |
| Contingent      shares awarded                             |   |           | 351,375 |   |   | 139,500 |   |   | 110,000 |   |
|                                                       |   |           |    |   |   |   |   |   |   |   |
| Shares      forfeited                                      |   |           | 205,187 |   |   | 139,500 |   |   | 110,000 |   |
|                                                       |   |           |    |   |   |   |   |   |   |   |
| Contingent      shares outstanding as of December 31, 2008 |   |           | 146,188 |   |   | - |   |   | - |   |

----

Index

| 9. | COMMON      STOCK MATTERS AND EARNINGS PER SHARE,Continued. |
|----|-------------------------------------------------------------|

|                                                              |   | 2008   |    | 2007   |   | 2006    |    |
|-------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|---------|
| Numerator:                                                   |   |   |    |   |   |    |    |   |   |   |
| Net loss      available to common stockholders               |   | $      | (69,002 | )      | $      | (38,752 | )  | $ | (31,805 | ) |
|                                                              |   |   |    |   |   |    |    |   |   |   |
| Denominator:                                                      |   |   |    |   |   |    |    |   |   |   |
| Number      of shares outstanding, end of period:                 |   |   |    |   |   |    |    |   |   |   |
| Weighted-average      number of common shares used in Basic EPS   |   |   | 15,799  |   |   | 15,727  |    |   | 15,633 |   |
| Stock      options and awards                                     |   |   | -       |   |   | -       |    |   | - |   |
|                                                              |   |   |    |   |   |    |    |   |   |   |
| Weighted-average      number of common shares used in Diluted EPS |   |   | 15,799  |   |   | 15,727  |    |   | 15,633 |   |

----

Index

| 10. | COMPENSATION      AND BENEFIT PLANS. |
|-----|--------------------------------------|

Note12

----

Index

11.

|           |   | 2008   |   | 2007   |   | 2006   |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|
| Federal:       |   |   |   |   |   |   |   |
| Current        |   | $      | (36    | )      | $      | -      |   | $ | - |   |
| Deferred       |   |   | (1,533 | )      |   | (141   | )      |   | 2,803 |   |
|           |   |   | (1,569 | )      |   | (141   | )      |   | 2,803 |   |
| State:    |   |   |   |   |   |   |   |   |   |   |
| Current   |   |   | 30     |   |   | -      |   |   | - |   |
| Deferred  |   |   | -      |   |   | (13    | )      |   | 330 |   |
|           |   |   | 30     |   |   | (13    | )      |   | 330 |   |
|           |   |   |   |   |   |   |   |   |   |   |
| Total     |   | $      | (1,539 | )      | $      | (154   | )      | $ | 3,133 |   |

|                                                                                         |   | 2008   |   | 2007    |   | 2006   |   |
|----------------------------------------------------------------------------------------------|--------|--------|--------|---------|--------|--------|--------|
|                                                                                         |   |   |   |    |   |   |   |   |   |   |
| Computed      federal income tax at federal statutory rate                                   |   | $      | (7,076 | )       | $      | (3,882 | )      | $ | 1,461 |   |
| Changes      resulting from:                                                                 |   |   |   |    |   |   |   |   |   |   |
| Decrease      (increase) in cash surrender value of life insurance      contracts            |   |   | 985    |    |   | (449   | )      |   | (370 | ) |
| Loss      on sale of stock of Miller Building Systems, Inc.                                  |   |   |   |    |   | -      |   |   | (1,690 | ) |
| Current      year state income taxes, net of federal income tax      benefit                 |   |   | 19     |    |   | (9     | )      |   | 218 |   |
| Valuation      allowance for NOL, AMT, deferred tax assets and general business      credits |   |   | 5,403  |    |   | 3,928  |   |   | 3,494 |   |
| Recognition      of deferred tax liability related to goodwill impairment                    |   |   | (898   | )  |   | -      |   |   | - |   |
| Other,      net                                                                              |   |   | 28     |    |   | 258    |   |   | 20 |   |
|                                                                                         |   |   |   |    |   |   |   |   |   |   |
| Total                                                                                        |   | $      | (1,539 | )       | $      | (154   | )      | $ | 3,133 |   |

----

Index

|                                                             | 2008   |    |   | 2007   |   |
|------------------------------------------------------------------|--------|---------|--------|--------|--------|
| Current      deferred tax asset (liability):                     |   |    |   |   |   |   |   |
| Accrued      warranty expense                                    | $      | 3,098   |   |   | $      | 2,623 |   |
| Accrued      self-insurance                                      |   | 1,769   |   |   |   | 2,172 |   |
| Inventories                                                      |   | 445     |   |   |   | 826 |   |
| Receivables                                                      |   | 511     |   |   |   | 283 |   |
| Prepaid      insurance                                           |   | (372    | )      |   |   | (533 | ) |
| Litigation      reserve                                          |   | 103     |   |   |   | 353 |   |
| Other                                                            |   | 1,241   |   |   |   | 392 |   |
| Valuation      allowance                                         |   | (6,795  | )      |   |   | (6,116 | ) |
|                                                             |   |    |   |   |   |   |   |
| Net      current deferred tax asset                              | $      | -       |   |   | $      | - |   |
|                                                             |   |    |   |   |   |   |   |
| Noncurrent      deferred tax asset (liability):                  |   |    |   |   |   |   |   |
| Deferred      compensation                                       | $      | 2,786   |   |   | $      | 3,225 |   |
| Property      and equipment and other real estate                |   | (414    | )      |   |   | (948 | ) |
| Intangible      assets                                           |   | -       |   |   |   | (702 | ) |
| Notes      receivable                                            |   | 402     |   |   |   | 348 |   |
| Federal      net operating loss carryforwards                    |   | 37,087  |   |   |   | 20,883 |   |
| Impairments                                                      |   | 7,890   |   |   |   | - |   |
| Alternative      minimum tax credit carryover                    |   | 586     |   |   |   | 623 |   |
| Federal      and state research and development credit carryover |   | 1,738   |   |   |   | 1,738 |   |
| State      net operating loss carryforwards                      |   | 3,780   |   |   |   | 4,152 |   |
| Other                                                            |   | 662     |   |   |   | 598 |   |
| Valuation      allowance                                         |   | (54,974 | )      |   |   | (31,907 | ) |
|                                                             |   |    |   |   |   |   |   |
| Net      noncurrent deferred tax liability                       | $      | (457    | )      |   | $      | (1,990 | ) |

----

Index

|                                                              | (in      thousands) |   |
|-------------------------------------------------------------------|---------------------|--------|
| Balance      at January 1, 2007                                   | $                   | 2,416  |   |
| Additions      based on tax positions related to the current year |                | -      |   |
| Additions      for tax positions of prior years                   |                | -      |   |
| Reductions      for tax positions of prior years                  |                | -      |   |
| Settlements                                                       |                | -      |   |
|                                                              |                |   |   |
| Balance      at December 31, 2007                                 | $                   | 2,416  |   |
| Additions      based on tax positions related to the current year |                | -      |   |
| Additions      for tax positions of prior years                   |                | 1,090  |   |
| Reductions      for tax positions of prior years                  |                | -      |   |
| Settlements                                                       |                | -      |   |
|                                                              |                |   |   |
| Balance      at December 31, 2008                                 | $                   | 3,506  |   |

12.

----

Index

|                                              | 2008   |   |   | 2007   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|
| Current      assets                               | $      | 827    |   |   | $      | 70,867 |   |
| Properties      and equipment                     |   | 2,102  |   |   |   | 21,228 |   |
| Long-term      assets                             |   | -      |   |   |   | 2,044 |   |
|                                              |   |   |   |   |   |   |   |
| Total      assets of discontinued operations      | $      | 2,929  |   |   | $      | 94,139 |   |
|                                              |   |   |   |   |   |   |   |
| Current      liabilities                          | $      | 18,791 |   |   | $      | 23,292 |   |
| Long-term      liabilities                        |   | 986    |   |   |   | 41 |   |
|                                              |   |   |   |   |   |   |   |
| Total      liabilities of discontinued operations | $      | 19,777 |   |   | $      | 23,333 |   |

----

Index

----

Index

13.

----

Index

Note8

----

Index

----

Index

|                                                         |   | 2008               |
|-------------------------------------------------------------------|--------|--------------------|
|                                                              |   | Quarter      Ended |
|                                                              |   | March      31      |   | June      30 |   | September      30 |   | December      31 |   |
|                                                              |   |               |   |   |   |   |   |   |   |
| Net      sales from continuing operations                         |   | $                  | 30,839 |   | $ | 38,332 |   | $ | 31,566 |   | $ | 18,859 |   |
| Gross      profit from continuing operations                      |   |               | 5,524 |   |   | 6,967 |   |   | 4,852 |   |   | 36 |   |
| Net income      (loss) from continuing operations            |   |               | 1,252 |   |   | 2,945 |   |   | (3,796 | ) |   | (19,080 | ) |
| Net income      (loss)                                  |   |               | 1,326 |   |   | (2,962 | ) |   | (14,463 | ) |   | (52,903 | ) |
| Net earnings      (loss) per common share - Basic  |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                        |   |               | 0.08 |   |   | 0.19 |   |   | (0.24 | ) |   | (1.21 | ) |
| Discontinuing      operations                                |   |               | - |   |   | (0.37 | )  |   | (0.68 | )  |   | (2.14 | )  |
|                                                              |   |               | 0.08 |   |   | (0.18 | ) |   | (0.92 | ) |   | (3.35 | ) |
| Net      earnings (loss) per common share - Diluted          |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                        |   |               | 0.08 |   |   | 0.19 |   |   | (0.24 | ) |   | (1.21 | ) |
| Discontinuing      operations                                     |   |               | - |   |   | (0.37 | )  |   | (0.68 | )  |   | (2.14 | ) |
|                                                              |   | $                  | 0.08 |   | $  | (0.18 | ) | $  | (0.92 | ) | $ | (3.35 | ) |
|                                                              |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | 2007               |
|                                                              |   | Quarter      Ended |
|                                                              |   | March      31      |   | June      30 |   | September      30 |   | December      31 |   |
|                                                              |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Net      sales from continuing operations                         |   | $                  | 26,092 |   | $ | 38,535 |   | $ | 32,076 |   | $ | 22,483 |   |
| Gross      profit from continuing operations                      |   |               | 2,293 |   |   | 6,063 |   |   | 4,257 |   |   | 234 |   |
| Net income      (loss) from continuing operations            |   |               | (3,540 | )  |   | 1,106 |   |   | (1,329 | ) |   | (7,175 | ) |
| Net income      (loss)                                  |   |               | (10,447 | )  |   | (10,123 | )  |   | (4,344 | ) |   | (13,838 | ) |
| Net earnings      (loss) per common share - Basic  |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                        |   |               | (0.23 | )  |   | 0.07 |   |   | (0.08 | ) |   | (0.46 | ) |
| Discontinuing      operations                                |   |               | (0.44 | )  |   | (0.71 | ) |   | (0.19 | ) |   | (0.42 | ) |
|                                                              |   |               | (0.67 | )  |   | (0.64 | )  |   | (0.27 | ) |   | (0.88 | ) |
| Net earnings      (loss) per common share - Diluted     |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                        |   |               | (0.23 | )  |   | 0.07 |   |   | (0.08 | ) |   | (0.46 | ) |
| Discontinuing      operations                                     |   |               | (0.44 | )  |   | (0.71 | ) |   | (0.19 | ) |   | (0.42 | ) |
|                                                              |   | $                  | (0.67 | )  | $  | (0.64 | )  | $  | (0.27 | ) | $ | (0.88 | ) |

Note12

Note1

Note 12

----

Index

----

Index

| •  | Pertain      to the maintenance of records that, in reasonable detail, accurately and      fairly reflect the transactions and dispositions of the assets of the      Company; |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •  | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles, and that our receipts and expenditures are being      made only in accordance with authorizations of management and directors;      and |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •  | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of our assets that could have      a material effect on the financialstatements. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

page 38

----

Index

Executive Officers of the Registrant

Item12.               Security Ownership of CertainBeneficial Owners and Management

----

Index

| Plan      Category                                          |   | #      of securitiesto      be issuedupon      exercise ofoutstanding      options,warrants      and rights |    | Weighted-averageexercise      price ofoutstanding      options,warrants      and rights |   | #      of securities remaining available for future issuance under equity      compensation plans |   |
|-------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|
|                                                        |   |                                                                                                        |    |                                                                                    |   |                                                                                              |   |
| Equity      compensation plans approved by shareholders     |   |                                                                                                        | 132,750 |                                                                                    | $      | 12.18                                                                                             |   |   | 1,161,339 |   |
|                                                        |   |                                                                                                        |    |                                                                                    |   |                                                                                              |   |   |   |   |
| Equity      compensation plans not approved by shareholders |   |                                                                                                        | -       |                                                                                    |   | -                                                                                                 |   |   | - |   |
|                                                        |   |                                                                                                        |    |                                                                                    |   |                                                                                              |   |   |   |   |
| Total                                                       |   |                                                                                                        | 132,750 |                                                                                    | $      | 12.18                                                                                             |   |   | 1,161,339 |   |

Item8

Financial Statements

Reportsof Independent Registered Public Accounting Firm

Consolidated Balance Sheets at December 31, 2008 and2007

Consolidated Statements of Operations for theyears ended December 31, 2008, 2007 and 2006

Consolidated Statements of Shareholders' Equity forthe years ended December 31, 2008, 2007 and 2006

Consolidated Statements of Cash Flows for the years endedDecember 31, 2008, 2007 and 2006

Notes toConsolidated Financial Statements

Financial Statement Schedule

Schedule II - Valuation and QualifyingAccounts

Notes tothe Consolidated Financial Statements

Exhibits

Index to Exhibits

----

Index

SCHEDULE II

| Description                                                      |   | Balance      atBeginningof      Period |   | Additions      Chargedto      Costsand      Expenses |   | Payment      orUtilization |   | Balance      at Endof      Period |    |
|------------------------------------------------------------------|--------|----------------------------------------|--------|------------------------------------------------------|--------|----------------------------|--------|-----------------------------------|---------|
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |
| Fiscal      year ended December 31, 2008:                        |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Allowance      for doubtful accounts:                            |   | $                                      | 744    |                                                 | $      | 1,305                      |   | $                                 | 373     |        (A) | $ | 1,676 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Product      warranty reserves:                                  |   |                                   | 8,123  |                                                 |   | 14,873                     |   |                              | 13,308  |        (B) |   | 9,688 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Repurchase      agreement and Corporate guarantee loss reserves: |   |                                   | 926    |                                                 |   | 2,637                      |   |                              | 892     |   |   | 2,671 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Valuation      allowance against deferred tax assets:            |   |                                   | 38,023 |                                                 |   | 23,746                     |   |                              | -       |   |   | 61,769 |   |
|  Fiscal      year ended December 31, 2007:                  |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Allowance      for doubtful accounts:                            |   |                                   | 1,134  |                                                 |   | 512                        |   |                              | 902     |        (A) |   | 744 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Product      warranty reserves:                                  |   |                                   | 11,099 |                                                 |   | 16,787                     |   |                              | 19,763  |        (B) |   | 8,123 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Repurchase      agreement and Corporate guarantee loss reserves: |   |                                   | 635    |                                                 |   | 618                        |   |                              | 327     |   |   | 926 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Valuation      allowance against deferred tax assets:            |   |                                   | 24,731 |                                                 |   | 13,292                     |   |                              | -       |   |   | 38,023 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Fiscal      year ended December 31, 2006:                        |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Allowance      for doubtful accounts:                            |   |                                   | 1,240  |                                                 |   | 1,631                      |   |                              | (1,737  | )      (A) |   | 1,134 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Product      warranty reserves:                                  |   |                                   | 20,005 |                                                 |   | 21,598                     |   |                              | (30,504 |         (B))      (C) |   | 11,099 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Repurchase      agreement and Corporate guarantee loss reserves: |   |                                   | 775    |                                                 |   | 356                        |   |                              | (496    | )  |   | 635 |   |
|                                                             |   |                                   |   |                                                 |   |                       |   |                              |    |   |   |   |   |
| Valuation      allowance against deferred tax assets:            |   | $                                      | -      |                                                 | $      | 24,731                     |   | $                                 | -       |   | $ | 24,731 |   |

| (A)        | Write-off      of bad debts, less recoveries.                                                                                                                                         |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B)        | Claims      paid, less recoveries.                                                                                                                                                    |
| (C)   | Reflects      increase due to specific warranty issues which occurred in 2005, primarily      camping trailer lift systems and sidewall lamination issues within      the RV Segment. |

----

Index

|                      |   | COACHMEN      INDUSTRIES, INC. |   |
|---------------------------|--------|--------------------------------|--------|
|                      |   |                           |   |
| Date:      March 24, 2009 |   |                           |   |
|                      |   |                           |
|                      |   |                           |
|                      |   | /s/      R. M. Lavers          |
|                      |   | R.      M. Lavers              |
|                      |   | (Chief      Executive Officer) |
|                      |   |                           |
|                      |   |                           |
|                      |   |                           |
|                      |   | /s/      C. A. Zuhl            |
|                      |   | C.      A. Zuhl                |
|                      |   | (Chief      Financial Officer) |
|                      |   |                           |
|                      |   |                           |
|                      |   | /s/      S. L. Patterson       |
|                      |   | S.      L. Patterson           |
|                      |   | (Corporate      Controller)    |

| /s/      G. B. Bloom  |   | /s/      D. W. Hudler                  |
|-----------------------|--------|----------------------------------------|
| G.      B. Bloom      |   | D.      W. Hudler                      |
| (Director)            |   | (Director)                             |
|                  |   |                                   |
|                  |   |                                   |
|                  |   |                                   |
| /s/      R. J. Deputy |   | /s/      W. P. Johnson                 |
| R.      J. Deputy     |   | W.      P. Johnson                     |
| (Director)            |   | (Director,      Chairman of the Board) |
|                  |   |                                   |
|                  |   |                                   |
|                  |   |                                   |
| /s/      J. A. Goebel |   | /s/      E. W. Miller                  |
| J.      A. Goebel     |   | E.      W. Miller                      |
| (Director)            |   | (Director)                             |
|                  |   |                                   |

----

Index

INDEX TO EXHIBITS

| Number      AssignedIn      RegulationS-K, Item 601 | Description of Exhibit                                                                                                                                                                                                                                                                                                                    |
|-----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                |                                                                                                                                                                                                                                                                                                                                      |
| (3)(a)(i)                                           | Articles      of Incorporation of the Company as amended on May 30, 1995 (incorporated      by reference to Exhibit 3(i) to the Company's Annual Report on Form 10-K      for the fiscal year ended December 31, 1995).                                                                                                                   |   |
|                                                |                                                                                                                                                                                                                                                                                                                                      |   |
| (3)(a)(ii)                                          | Articles      of Amendment to Articles of Incorporation (incorporated by reference to      Exhibit 4.2 to the Company's Form S-3 Registration Statement, File No.      333-14579).                                                                                                                                                        |   |
|                                                |                                                                                                                                                                                                                                                                                                                                      |   |
| (3)(b)                                              | By-Laws      as modified through May 1, 2008 (incorporated by reference to Exhibit 3(b)      to the Company's Quarterly Report on Form 10-Q for the quarter      ended June 30, 2008).                                                                                                                                               |   |
|                                                |                                                                                                                                                                                                                                                                                                                                      |   |
| (4)(a)                                              | Credit      Agreement dated as of June 30, 2003 among Coachmen Industries, Inc., the      Lenders named therein, and Bank One, Indiana, N.A. (incorporated by      reference to Exhibit 4(a) to the Company's Quarterly Report on Form 10-Q      for the quarter ended June 30, 2003).                                                    |   |
|                                                |                                                                                                                                                                                                                                                                                                                                      |   |
| (4)(b)                                              | Stockholder      Rights Agreement (incorporated by reference to Exhibit 1 to Form 8-A dated      January 5, 2000).                                                                                                                                                                                                                        |   |
|                                                |                                                                                                                                                                                                                                                                                                                                      |   |
| (4)(c)                                              | Loan      and Security Agreement dated as of August 2, 2006 among Coachmen      Industries, Inc., the Lenders named therein and LaSalle Business Credit,      LLC (incorporated by reference to Exhibit 4 to the Company’s Form 8-K      filed August 3, 2006).                                                                     |   |
|                                                |                                                                                                                                                                                                                                                                                                                                      |   |
| (4)(d)                                              | Amendment      No. 1 to Loan and Security Agreement dated as of August 2, 2006 among      Coachmen Industries, Inc., the Lenders named therein and LaSalle Business      Credit, LLC (incorporated by reference to Exhibit 4(d) to the Company’s      Annual Report on Form 10-K for the fiscal year ended December 31,      2006). |   |
|                                                |                                                                                                                                                                                                                                                                                                                                      |   |
| (4)(e)                                              | Amendment      No. 2 to Loan and Security Agreement dated as of August 2, 2006 among      Coachmen Industries, Inc., the Lenders named therein and LaSalle Business      Credit, LLC (incorporated by reference to Exhibit 4(e) to the Company’s      Annual Report on Form 10-K for the fiscal year ended December 31,      2006). |   |

| *(10)(a)    | Executive      Benefit and Estate Accumulation Plan, as amended and restated effective as      of September 30, 2000 (incorporated by reference to Exhibit 10(a) to the      Company's Annual Report on Form 10-K for the fiscal year ended December      31, 2001).                             |   |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|        |                                                                                                                                                                                                                                                                                             |   |
| *(10)(b)    | 2000      Omnibus Stock Incentive Program (incorporated by reference to Exhibit A to      the Company's Proxy Statement dated March 27, 2000 for its Annual Meeting      in 2000).                                                                                                               |   |
|        |                                                                                                                                                                                                                                                                                             |   |
| *(10)(b)(i) | Resolution      regarding Amendment of 2000 Omnibus Stock Incentive Program adopted by the      Company's Board of Directors on July 27, 2000 (incorporated by reference      to Exhibit 10(b)(i) to the Company's Annual Report on Form 10-K for the      fiscal year ended December 31, 2001). |   |
|        |                                                                                                                                                                                                                                                                                             |   |
| *(10)(c)    | Form      of Change in Control Agreements for certain executive officers (Tier 1)      (incorporated by reference to Exhibit 10(c) to the Company's Annual Report      on Form 10-K for the fiscal year ended December 31, 2000).                                                                |   |
|        |                                                                                                                                                                                                                                                                                             |   |
| *(10)(d)    | Form      of Change in Control Agreements for certain executive officers (Tier 2)      (incorporated by reference to Exhibit 10(d) to the Company's Annual Report      on Form 10-K for the fiscal year ended December 31, 2000).                                                                |   |
|        |                                                                                                                                                                                                                                                                                             |   |
| *(10)(e)    | Coachmen      Industries, Inc. Supplemental Deferred Compensation Plan (Amended and      Restated as of January 1, 2003) (incorporated by reference to Exhibit      10(e) to the Company's Annual Report on Form 10-K for the fiscal year      ended December 31, 2004).                         |   |
|        |                                                                                                                                                                                                                                                                                             |   |
| *(10)(f)    | Executive      Annual Performance Incentive Plan effective January 1, 2002 (incorporated      by reference to Exhibit 10(f) to the Company's Annual Report on Form 10-K      for the fiscal year ended December 31, 2002).                                                                       |   |

----

Index

|     |                                                                                                                                                                                                                                                                                          |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *(10)(g) | Long      Term Incentives Performance Based Restricted Stock Plan effective January      1, 2003 (incorporated by reference to Exhibit 10(g) to the Company's      Annual Report on Form 10-K for the fiscal year ended December 31,      2002).                                              |   |
|     |                                                                                                                                                                                                                                                                                          |   |
| *(10)(h) | Form      of Restricted Stock Agreement under the Coachmen Industries, Inc. Long      Term Incentives Performance Based Restricted Stock Plan (incorporated by      reference to Exhibit 10(h) to the Company's Annual Report on Form 10-K for      the fiscal year ended December 31, 2004). |   |
|     |                                                                                                                                                                                                                                                                                          |   |
| (10)(i)  | Loan      and Security Agreement dated as of August 2, 2006 among Coachmen      Industries, Inc., the Lenders named therein and LaSalle Business Credit,      LLC (included in Exhibit 4(c)).                                                                                                 |   |
|     |                                                                                                                                                                                                                                                                                          |   |   |
| (10)(j)  | Amendment      No. 1 to Loan and Security Agreement dated as of August 2, 2006 among      Coachmen Industries, Inc., the Lenders named therein and LaSalle Business      Credit, LLC (included in Exhibit 4(d)).                                                                              |   |
|     |                                                                                                                                                                                                                                                                                          |   |
| (10)(k)  | Amendment      No. 2 to Loan and Security Agreement dated as of August 2, 2006 among      Coachmen Industries, Inc., the Lenders named therein and LaSalle Business      Credit, LLC (included in Exhibit 4(e)).                                                                              |   |

| (10)(l)       | Form      of the 2006 Restricted Stock Award Agreement and listing of the maximum      number of shares each Executive Officer may earn under the Agreements      (incorporated by reference to Exhibit 10(a) to the Company's Quarterly      Report on Form 10-Q for the quarter ended March 31, 2006).                              |   |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| (10)(m)       | Program      Agreement and related Repurchase Agreement dated as of May 10, 2004      between Textron Financial Corporation and certain subsidiaries of Coachmen      Industries, Inc. (incorporated by reference to Exhibit 10.2 to the      Company's Quarterly Report on Form 10-Q for the quarter ended September      30, 2004). |   |
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| *(10)(n)      | Summary      of Life Insurance and Long Term Disability Benefits for Executives      (incorporated by reference to Exhibit 10(q) to the Company's Annual Report      on Form 10-K for the fiscal year ended December 31, 2004).                                                                                                       |   |
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| *(10)(o)      | Description      of Non-management Director Compensation (incorporated by reference to      Exhibit 10(r) to the Company's Annual Report on Form 10-K for the fiscal      year ended December 31, 2004).                                                                                                                              |   |
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| (10)(p)  | Mentor      Protégé Agreement between Coachmen Industries, Inc. and The Warrior Group,      Inc. (incorporated by reference to Exhibit 10.1 to the Company's Current      Report on Form 8-K filed August 19, 2005).                                                                                                        |   |
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| (10)(q)       | Severance      and Early Retirement Agreement and General Release of All Claims dated      October 23, 2006 among Coachmen Industries, Inc. and Claire C. Skinner      (incorporated by reference to Exhibit 10(a) to the Company's Quarterly      Report on Form 10-Q for the quarter ended September 30,    2006).                  |   |
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| (10)(r)       | Form      of the 2006 Restricted Stock Award Agreement and listing of the maximum      number of shares each Executive Officer may earn under the Agreements      (incorporated by reference to Exhibit 10(a) to the Company's Quarterly      Report on Form 10-Q for the quarter ended September 30,    2006).                       |   |
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| (10)(s)       | 2007      Restricted Stock Award Agreement under the 2007 Long-Term Incentive Plan      (incorporated by reference to Exhibit 10(a) to the Company’s Quarterly      Report on Form 10-Q for the quarter ended March 31, 2007).                                                                                                  |   |
|     |                                                                                                                                                                                                                                                                                                                                  |   |
| (10)(t)       | Standard      Purchase Agreement dated October 26, 2006, between All American Building      Systems and the Warrior Group, Inc. (incorporated by reference to Exhibit      10(b) to the Company’s Quarterly Report on Form 10-Q for the quarter ended      March 31, 2007).                                                     |   |
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| (10)(u)       | Standard      Purchase Agreement dated December 20, 2007 between All American Building      Systems and the Warrior Group, Inc. (incorporated by reference to Exhibit      10.1 to the Company’s Current Report on Form 8-K filed January 25,      2008).                                                                       |   |
|          |                                                                                                                                                                                                                                                                                                                                  |   |
| (10)(v)       | Standard      Purchase Agreement dated December 20, 2007 between All American Building      Systems and the Warrior Group, Inc. (incorporated by reference to Exhibit      10.2 to the Company’s Current Report on Form 8-K filed January 25,      2008).                                                                       |   |

----

Index

| (10)(w) | Asset      Purchase Agreement dated November 20, 2008 between Coachmen Industries,      Inc. and several of its subsidiaries and Forest River, Inc. (incorporated      by reference to Exhibit 2 to the Company’s Current Report of Form 8-K      filed November 24, 2008).                               |   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|    |                                                                                                                                                                                                                                                                                                            |   |
| (10)(x) | Promissory      Note dated February 26, 2009 in the original principal amount of      $2,719,454.29 by Coachmen Industries, Inc. and its subsidiaries payable to      Forest River, Inc. (incorporate by reference to Exhibit 10.1 to the      Company’s Current Report on Form 8-K filed March 3, 2009). |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (10)(y) | Agreement      with ARBOC Mobility, LLC (incorporated by reference to Exhibit 10(c) to      the Company’s Quarterly Report on Form 10-Q for the quarter ended March      31, 2008).                                                                                                                       |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (11)    | No      Exhibit - See Consolidated Statements of      Operations and Note 9 of Notes to Consolidated Financial      Statements, contained herein.                                                                                                                                                               |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (14)    | Code      of Ethics (incorporated by reference to Exhibit 14 to the Company's Annual      Report on Form 10-K for the fiscal year ended December 31,      2003).                                                                                                                                                |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (21)    | Registrant and      Subsidiaries of the Registrant.                                                                                                                                                                                                                                                             |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (23)    | Consent of Ernst &      Young LLP.                                                                                                                                                                                                                                                                          |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (31.1)  | Rule 13a-14(a)      Certification of Chief Executive Officer.                                                                                                                                                                                                                                                   |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (31.2)  | Rule 13a-14(a)      Certification of Chief Financial Officer.                                                                                                                                                                                                                                                   |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (32.1)  | Section 1350      Certification of Chief Executive Officer.                                                                                                                                                                                                                                                     |   |
|    |                                                                                                                                                                                                                                                                                                            |   |
| (32.2)  | Section 1350      Certification of Chief Financial Officer.                                                                                                                                                                                                                                                     |   |

----

----