----

----

**FORM      10-K**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**x**
**      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF      1934**

**¨**
**      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT      OF 1934**

**COACHMEN      INDUSTRIES, INC.**

*(Exact      name of registrant as specified in its charter)*

|   | **Indiana**                                               | **35-1101097**                                     |   |
|--------|-----------------------------------------------------------|----------------------------------------------------|--------|
|   | *(State                of incorporation or organization*) | *(IRS                Employer Identification No.)* |   |

**2831      Dexter Drive, Elkhart, Indiana 46514**

*(Address      of principal executive offices) (Zip Code)*

**(574)      262-0123**

*Registrant's      telephone number, including area code)*

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

**None**

**x**

**x**

| Large                accelerated filer  ¨ |   | Accelerated                filer  x  |   | Non-accelerated                filer  ¨ |
|----------------------------------------------------------|--------|-----------------------------------------------------|--------|--------------------------------------------------------|

**x**

**Documents      Incorporated by Reference**

| Document                                                                                                                                                                         | Parts                of Form 10-K into which the                Document is Incorporated |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                                                                                                                             |                                                                                     |   |   |
| Portions                of the Proxy Statement for the                Annual Meeting of                Shareholders to                be held on May                4, 2006 | Part                III                                                                  |

----

----

**Part      I**

| **Item                1.** | **Business** |
|----------------------------|--------------|

**Recreational      Vehicle Segment**

**RV      Segment Products**

Note 12

Note 11

----

**RV      Segment Marketing**

Note 12

**RV      Segment Business Factors**

----

**RV      Segment Competition and Regulation**

**Housing      and Building Segment**

**Housing      and Building Segment Products**

----

Note 11

**Housing      and Building Segment Marketing**

**Housing      and Building Segment Business Factors**

----

**Housing      and Building Segment Competition and Regulation**

**General**

**(Applicable      to all of the Company's principal markets)**

**Business      Segments**

|                                 |   | 2005   |   | 2004    |   | 2003   |   |
|--------------------------------------|--------|--------|--------|---------|--------|--------|--------|
|                                 |   | Amount |   | %  |   | Amount |   | %  |   | Amount |   | %  |   |
|                                 |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Recreational                Vehicles |   | $      | 522.2  |    |   | 74.3   |   | $ | 593.8 |   |   | 74.0 |   | $ | 461.7 |   |   | 72.5 |   |
|                                 |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Housing                and Buildings |   |   | 180.2  |    |   | 25.7   |   |   | 208.6 |   |   | 26.0 |   |   | 175.2 |   |   | 27.5 |   |
|                                 |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                |   | $      | 702.4  |    |   | 100.0  |   | $ | 802.4 |   |   | 100.0 |   | $ | 636.9 |   |   | 100.0 |   |

Note      2

----

**Seasonality**

**Employees**

Notes 8
9

**Research      and Development**

| **Item                1A.** | **Risk                Factors** |
|-----------------------------|---------------------------------|

*(References      to "we", "us" or "our" in the following discussion refer to the      Company.)*

**Risks        Relating to Our Business**

**The          recreational vehicle and housing industries are highly competitive, and          some of          our competitors have significantly greater resources than us.**

----

| ·   | traditional                    site-built homebuilders, |
|--------------------|---------------------------------------------------------|

| ·   | other                    system-built housing producers, and |
|--------------------|--------------------------------------------------------------|

| ·   | manufactured                    home producers. |
|--------------------|-------------------------------------------------|

**Actions          taken pursuant to our restructuring plan may have an adverse impact          on our earnings and financial position. **

| ·   | the                    timing of asset sales, |
|--------------------|-----------------------------------------------|

| ·   | prices                    realized on asset sales and resulting gains or losses, |
|--------------------|----------------------------------------------------------------------------------|

| ·   | the                    costs of closing or consolidating operations, and |
|--------------------|--------------------------------------------------------------------------|

| ·   | our ability                    to realize estimated cost savings resulting from the restructuring. |
|--------------------|---------------------------------------------------------------------------------------------------------|

**The          ability to attract and retain qualified senior managers may adversely          affect our operating results. **

----

**The          Recreational Vehicle and Housing businesses are cyclical, which can lead          to          fluctuations in our operating results. **

**Our businesses          are seasonal, leading to fluctuations in sales, production and operating          results          at various times during the calendar year. **

**We may          be unable to comply in the future with financial covenants in our senior          credit facility, which could restrict our ability to operate.**

**A          rise in the frequency and size of product liability, wrongful death, workers’compensation and other claims against us may result in a material adverse          effect on our business, operating results and financial condition.**

----

**Significant          warranty and “lemon law” claims against us may result in a material adverse          effect on our business, operating results and financial condition.**

**Increased          costs, including costs of component parts and labor may adversely          affect our profitability if such costs cannot be offset because of market          forces or price-protected contracts with builders. **

**Changes          to or increases in the regulations governing our businesses could have a          material impact on operating and financial results. **

| ·   | the                    National Highway Traffic Safety Administration (NHTSA), |
|--------------------|--------------------------------------------------------------------------------|

| ·   | the                    Transportation Recall Enhancement, Accountability, and Documentation                    Act                    (TREAD), |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | state                    lemon law statutes, |
|--------------------|----------------------------------------------|

| ·   | laws                    regulating the operation of vehicles on highways, |
|--------------------|---------------------------------------------------------------------------|

| ·   | state                    and federal product warranty statutes, |
|--------------------|-----------------------------------------------------------------|

| ·   | state                    legislation protecting motor vehicle dealerships, and |
|--------------------|--------------------------------------------------------------------------------|

| ·   | state                    and local zoning laws and building codes. |
|--------------------|--------------------------------------------------------------------|

----

**Changes          in favorable tax laws could adversely affect our results of operations.**

**Failure          to comply with environmental regulations could result in significantly          increased          costs and capital expenditures. **

**Changes          in labor practices could adversely affect our labor costs and          profitability. **

**Reduced          availability of financing for our dealers or retail customers could          adversely affect revenues and margins. **

**Repurchase          agreements with floorplan lenders could result in increased costs.**

----

**High          inventories of recreational vehicles among dealers could continue to negatively          affect our sales volume and profit margins. **

**Fuel          shortages, or higher prices for fuel, could have a negative effect on sales          of          recreational vehicles. **

**Changes          in consumer preferences and our ability to effectively adapt to those          preferences may adversely affect revenues and profitability.**

**New          product introductions may result in unanticipated expenses resulting in          reduced          earnings. **

**We depend          on a small group of suppliers for some of our components, and any business          interruption among these suppliers could adversely affect our production          costs and profitability. **

----

**The          consolidation of distribution channels within the RV industry could have          a          material negative effect on revenues and profitability. **

**The          market for our Housing and Building Segment is heavily concentrated in the          Midwestern United States, and a continued weakness in demand in that area          could          have a material negative effect on revenues and profitability.**

**The          performance of our Housing and Building Segment in new markets may          adversely affect revenues and profitability. **

| ·   | potential                    inability to meet contract specifications and timetables for                    large-scale                    projects, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | construction                    of new products with significantly different designs from single-family                    homes, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | compliance                    with state and local building codes and zoning laws, and |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | production                    scheduling to meet demand from existing builders and large projects. |
|--------------------|----------------------------------------------------------------------------------------------------|

| **Item                1B.** | **Unresolved                Staff Comments** |
|-----------------------------|----------------------------------------------|

----

| **Item                2.** | **Properties** |
|----------------------------|----------------|

|  Location                                                |   |  Acreage |   | No.                  of Buildings |   | Building                  Area(Sq.                  Ft.) |   |
|---------------------------------------------------------------|--------|---------------|--------|-----------------------------------|--------|----------------------------------------------------------|--------|
|                                                          |   |          |   |                              |   |                                                     |   |
| **Properties                  Owned and Used by Registrant:** |   |          |   |                              |   |                                                     |   |   |   |   |
|                                                          |   |          |   |                              |   |                                                     |   |   |   |   |
| **Recreational                  Vehicle Group**               |   |          |   |                              |   |                                                     |   |   |   |   |
|                                                          |   |          |   |                              |   |                                                     |   |   |   |   |
| Fitzgerald,                  Georgia                          |   |          | 29.6   |                              |   | 5                                                        |   |   | 170,670 |   |
| Elkhart,                  Indiana                             |   |          | 6.0    |                              |   | 1                                                        |   |   | 29,886 |   |
| Middlebury,                  Indiana                          |   |          | 167.7  |                              |   | 22                                                       |   |   | 1,018,261 |   |
| Centreville,                  Michigan                        |   |          | 105.0  |                              |   | 4                                                        |   |   | 84,865 |   |
| Subtotal                                                      |   |          | 308.3  |                              |   | 32                                                       |   |   | 1,303,682 |   |
|                                                          |   |          |   |                              |   |                                                     |   |   |   |   |
| **Housing                  and Building 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                |   |          | 37.8   |                              |   | 1                                                        |   |   | 169,177 |   |
| Zanesville,                  Ohio                             |   |          | 23.0   |                              |   | 2                                                        |   |   | 129,753 |   |
| Rocky                  Mount, Virginia                        |   |          | 39.6   |                              |   | 5                                                        |   |   | 137,693 |   |
| Subtotal                                                      |   |          | 183.4  |                              |   | 12                                                       |   |   | 972,570 |   |
|                                                          |   |          |   |                              |   |                                                     |   |   |   |   |
| ** Other**                                               |   |          |   |                              |   |                                                     |   |   |   |   |
|                                                          |   |          |   |                              |   |                                                     |   |   |   |   |
| Elkhart,                  Indiana                             |   |          | 16.4   |                              |   | 3                                                        |   |   | 53,841 |   |
| Middlebury,                  Indiana                          |   |          | 1.3    |                              |   | 2                                                        |   |   | 4,800 |   |
| Subtotal                                                      |   |          | 17.7   |                              |   | 5                                                        |   |   | 58,641 |   |
|                                                          |   |          |   |                              |   |                                                     |   |   |   |   |
| Total                  owned and used                         |   |          | 509.4  |                              |   | 49                                                       |   |   | 2,334,893 |   |
|                                                          |   |          |   |                              |   |                                                     |   |   |   |   |

----

| Location                                                       |   |   | Acreage |   |   | No.                  ofBuildings |   |   | Building                  Area(Sq.                  Ft.) |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|----------------------------------|--------|--------|----------------------------------------------------------|--------|
| **Properties                  Leased and Used by Registrant:** |   |   |    |   |   |                             |   |   |                                                     |   |
|                                                           |   |   |    |   |   |                             |   |   |                                                     |   |
| **Recreational                  Vehicle Group**                |   |   |    |   |   |                             |   |   |                                                     |   |
|                                                           |   |   |    |   |   |                             |   |   |                                                     |   |
| Chino,                  California                             |   |   | 4.7     |   |   | 3                                |   |   | 84,296                                                   |   |
| Elkhart,                  Indiana                              |   |   | 7.8     |   |   | 1                                |   |   | 43,000                                                   |   |
| Subtotal                                                       |   |   | 12.5    |   |   | 4                                |   |   | 127,296                                                  |   |
|                                                           |   |   |    |   |   |                             |   |   |                                                     |   |
| **Other**                                                      |   |   |    |   |   |                             |   |   |                                                     |   |
|                                                           |   |   |    |   |   |                             |   |   |                                                     |   |
| Elkhart,                  Indiana                              |   |   | 1.6     |   |   | 1                                |   |   | 8,000                                                    |   |
|                                                           |   |   |    |   |   |                             |   |   |                                                     |   |
| Total                  leased and used                         |   |   | 14.1    |   |   | 5                                |   |   | 135,296                                                  |   |

|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|-----------|--------|
| **Properties                Owned by Registrant and Leased to Others:**                          |   |   |    |   |   |   |   |   |      |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| **Other**                                                                                             |   |   |    |   |   |   |   |   |      |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| Melbourne,                  Florida                                                                   |   |   | 7.5     |   |   | 1      |   |   | 32,000    |   |
| Crooksville,                  Ohio                                                                    |   |   | 10.0    |   |   | 2      |   |   | 39,310    |   |
| Total                  owned and leased                                                               |   |   | 17.5    |   |   | 3      |   |   | 71,310    |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| **Properties                  Owned by Registrant and Available for Sale or                  Lease:** |   |   |    |   |   |   |   |   |      |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| **Recreational                  Vehicle Group**                                                       |   |   |    |   |   |   |   |   |      |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| Elkhart,                  Indiana                                                                     |   |   | 20.5    |   |   | 6      |   |   | 233,367   |   |
| Middlebury,                  Indiana                                                                  |   |   | 3.1     |   |   | 5      |   |   | 120,382   |   |
| Edwardsburg,                  Michigan                                                                |   |   | 83.1    |   |   | 12     |   |   | 303,254   |   |
| Colfax,                  North Carolina                                                               |   |   | 7.8     |   |   | 0      |   |   | 0         |   |
| Subtotal                                                                                              |   |   | 114.5   |   |   | 23     |   |   | 657,003   |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| **Housing                  and Building Group**                                                       |   |   |    |   |   |   |   |   |      |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| Decatur,                  Indiana                                                                     |   |   | 3.3     |   |   | 2      |   |   | 86,310    |   |
| Elkhart,                  Indiana                                                                     |   |   | 20.0    |   |   | 4      |   |   | 132,300   |   |
| Wichita,                  Kansas                                                                      |   |   | 3.0     |   |   | 0      |   |   | 0         |   |
| Leola,                  Pennsylvania                                                                  |   |   | 20.0    |   |   | 2      |   |   | 113,100   |   |
| Springfield,                  Tennessee                                                               |   |   | 45.0    |   |   | 2      |   |   | 140,603   |   |
| Rocky                  Mount, Virginia                                                                |   |   | 8.2     |   |   | 0      |   |   | 0         |   |
| Subtotal                                                                                              |   |   | 99.5    |   |   | 10     |   |   | 472,313   |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| **Other**                                                                                             |   |   |    |   |   |   |   |   |      |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| Middlebury,                  Indiana                                                                  |   |   | 353.0   |   |   | 0      |   |   | 0         |   |
| Grapevine,                  Texas                                                                     |   |   | 8.6     |   |   | 0      |   |   | 0         |   |
| Subtotal                                                                                              |   |   | 361.6   |   |   | 0      |   |   | 0         |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| Total                  owned and available for sale or lease                                          |   |   | 575.6   |   |   | 33     |   |   | 1,129,316 |   |
|                                                                                                  |   |   |    |   |   |   |   |   |      |   |
| **Total                  Company**                                                                    |   |   | 1,116.6 |   |   | 90     |   |   | 3,670,815 |   |

----

| **Item                3.** | **Legal                Proceedings** |
|----------------------------|--------------------------------------|

| **Item                4.** | **Submission                of Matters to a Vote of Security                Holders** |
|----------------------------|---------------------------------------------------------------------------------------|

----

**Executive      Officers of the      Registrant**

|                                  |                                                                                                                                                                                                          |
|---------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name                                  | Position                                                                                                                                                                                                      |
|                                  |                                                                                                                                                                                                          |
| Claire                C. Skinner      | Chairman                of the Board and Chief Executive Officer                                                                                                                                              |
|                                  |                                                                                                                                                                                                          |
| Matthew                J. Schafer     | President                and Chief Operating Officer (Subsequent                to year-end, Mr. Schafer was terminated and Ms. Skinner assumed his                duties                on an interim basis) |
|                                  |                                                                                                                                                                                                          |
| Richard                M. Lavers      | Executive                Vice President, General Counsel and Secretary, Chief Financial Officer                and                Chief Administrative Officer                                                |
|                                  |                                                                                                                                                                                                          |
| Michael                R. Terlep, Jr. | President,                CLI dba Coachmen RV Group and President, Coachmen Recreational Vehicle                Company, LLC                                                                                  |

----

**Part      II**

| **Item                5.** | **Market                for Registrant's Common Equity and Related Stockholder                Matters** |
|----------------------------|---------------------------------------------------------------------------------------------------------|

|                       |   | High                & Low Sales Prices |                          | Dividends                Declared |   |
|----------------------------|--------|--------------------------------------------|-------------------------------|-----------------------------------|--------|
|                       |   | 2005                                       |                          | 2004                              |   | 2005 |   | 2004 |   |
|                       |   |                                       |                          |                              |   |   |   |   |   |   |   |   |   |
| 1st                Quarter |   | $                                          | 17.49                - $13.46 |                              | $      | 20.19                - $14.92 |   | $ | .06 |   | $ | .06 |   |
|                       |   |                                       |                          |                              |   |   |   |   |   |   |   |   |   |
| 2nd                Quarter |   |                                       | 14.11                - 11.22  |                              |   | 18.01                - 13.70 |   |   | .06 |   |   | .06 |   |
|                       |   |                                       |                          |                              |   |   |   |   |   |   |   |   |   |
| 3rd                Quarter |   |                                       | 14.50                - 11.23  |                              |   | 16.54                - 13.22 |   |   | .06 |   |   | .06 |   |
|                       |   |                                       |                          |                              |   |   |   |   |   |   |   |   |   |
| 4th                Quarter |   |                                       | 12.63                - 10.76  |                              |   | 17.99                - 13.70 |   |   | .06 |   |   | .06 |   |

Item      12

----

| **Item                6.** | **Selected                Financial Data** |
|----------------------------|--------------------------------------------|

|                                                                  |   |   |    |   |   |    |   |   |    |   |   |
|-----------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|
|                                                                  |   | 2005   |    | 2004   |   | 2003    |   | 2002   |    | 2001   |   |
|                                                                  |   |   |    |   |   |    |   |   |    |   |   |
| Net                sales                                              |   | $      | 702,425 |   | $      | 802,346 |   | $      | 636,891 |   | $      | 582,921 |   | $ | 479,287 |   |
| Gross                profit                                           |   |   | 55,960  |   |   | 112,826 |   |   | 92,395  |   |   | 88,585 |   |   | 62,448 |   |
| Net                income (loss) from continuing operations           |   |   | (19,360 | )      |   | 14,258  |   |   | 8,443   |   |   | 11,926 |   |   | (7,021 | ) |
| Discontinued                operations                                |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Income                (loss) from operations of discontinued entities |   |   | (6,370  | )      |   | (659    | )      |   | (1,078  | )      |   | (1,997 | ) |   | 3,070 |   |
| Gain                (loss) on sale of assets of discontinued entities |   |   | (620    | )      |   | 1,735   |   |   | -       |   |   | - |   |   | - |   |
| Income                (loss) from discontinued operations             |   |   | (6,990  | )      |   | 1,076   |   |   | (1,078  | )      |   | (1,997 | ) |   | 3,070 |   |
| Net                income (loss)                                      |   | $      | (26,350 | )      | $      | 15,334  |   | $      | 7,365   |   | $      | 9,929 |   | $ | (3,951 | ) |
|                                                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Earnings                (loss) per share - Basic                      |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Continuing                operations                                  |   |   | (1.24   | )      |   | .92     |   |   | .55     |   |   | .74 |   |   | (.44 | ) |
| Discontinued                operations                                |   |   | (.45    | )      |   | .07     |   |   | (.07    | )      |   | (.12 | ) |   | .19 |   |
| Net                earnings (loss) per share - Basic                  |   |   | (1.69   | )      |   | .99     |   |   | .48     |   |   | .62 |   |   | (.25 | ) |
|                                                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Earnings                (loss) per share - Diluted                    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Continuing                operations                                  |   |   | (1.24   | )      |   | .92     |   |   | .55     |   |   | .74 |   |   | (.44 | ) |
| Discontinued                operations                                |   |   | (.45    | )      |   | .07     |   |   | (.07    | )      |   | (.12 | ) |   | .19 |   |
| Net                earnings (loss) per share - Diluted                |   |   | (1.69   | )      |   | .99     |   |   | .48     |   |   | .62 |   |   | (.25 | ) |
|                                                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Cash                dividends per share                               |   |   | .24     |   |   | .24     |   |   | .24     |   |   | .22 |   |   | .20 |   |
|                                                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| At                year-end:                                           |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
|                                                                  |   |   |    |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Working                capital (1)                                    |   |   | 93,017  |   |   | 121,312 |   |   | 95,963  |   |   | 93,574 |   |   | 102,006 |   |
| Total                assets                                           |   |   | 322,816 |   |   | 357,723 |   |   | 310,688 |   |   | 293,195 |   |   | 288,560 |   |
| Long-term                debt                                         |   |   | 12,913  |   |   | 14,943  |   |   | 9,419   |   |   | 10,097 |   |   | 11,001 |   |
| Shareholders'                equity                                   |   |   | 193,803 |   |   | 224,418 |   |   | 211,151 |   |   | 209,426 |   |   | 208,640 |   |
| Book                value per share                                   |   |   | 12.30   |   |   | 14.27   |   |   | 13.58   |   |   | 13.37 |   |   | 13.09 |   |
| Number                of employees                                    |   |   | 3,677   |   |   | 4,416   |   |   | 4,490   |   |   | 4,233 |   |   | 3,788 |   |

Note 11
*Restructuring      Charges and*
*Discontinued      Operations*

----

| **Item                7.** | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------|

**OVERVIEW**

----

**Intensive      Recovery Plan**

**Housing      and Building Segment **

----

**Recreational      Vehicle Segment**

----

**RESULTS      OF OPERATIONS**

|                                                                        |   | Percentage                of Net Sales |   | Percent                Change |   |
|-----------------------------------------------------------------------------|--------|----------------------------------------|--------|-------------------------------|--------|
|                                                                        |   | Years                Ended December 31 |   | 2005                          |   | 2004 |   |
|                                                                        |   |                                   |   |                          |   |   |   | to |   | to |   |
|                                                                        |   | 2005                                   |   | 2004                          |   | 2003 |   | 2004 |   | 2003 |   |
|                                                                        |   |                                   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                sales                                                    |   |                                   | 100.0  | %                             |   | 100.0 | % |   | 100.0 | % |   | (12.5 | )% |   | 26.0 | % |
| Cost                of sales                                                |   |                                   | 92.0   |                          |   | 85.9 |   |   | 85.5 |   |   | (6.2 | ) |   | 26.6 |   |
| Gross                profit                                                 |   |                                   | 8.0    |                          |   | 14.1 |   |   | 14.5 |   |   | (50.4 | ) |   | 22.1 |   |
| Operating                expenses:                                          |   |                                   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Delivery                                                                    |   |                                   | 4.7    |                          |   | 4.3 |   |   | 4.4 |   |   | (3.7 | ) |   | 21.8 |   |
| Selling                                                                     |   |                                   | 4.0    |                          |   | 3.6 |   |   | 3.6 |   |   | (1.0 | ) |   | 25.0 |   |
| General                and administrative                                   |   |                                   | 4.4    |                          |   | 3.9 |   |   | 4.7 |   |   | (2.4 | ) |   | 6.2 |   |
| Asset                impairments                                            |   |                                   | .1     |                          |   | .0 |   |   | .0 |   |   | n/m |   |   | n/m |   |
| (Gain)                loss on sale of assets, net                           |   |                                   | .0     |                          |   | (.2 | ) |   | (.1 | ) |   | n/m |   |   | n/m |   |
| Total                operating expenses                                     |   |                                   | 13.2   |                          |   | 11.6 |   |   | 12.6 |   |   | .1 |   |   | 15.9 |   |
| Operating                income (loss)                                      |   |                                   | (5.2   | )                             |   | 2.5 |   |   | 1.9 |   |   | (283.2 | ) |   | 62.2 |   |
| Nonoperating                (income) expense:                               |   |                                   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                             |   |                                   | .5     |                          |   | .2 |   |   | .2 |   |   | 76.6 |   |   | 80.7 |   |
| Investment                income                                            |   |                                   | (.3    | )                             |   | (.3 | ) |   | (.2 | ) |   | (.5 | ) |   | 110.3 |   |
| Other                (income) expense                                       |   |                                   | (.1    | )                             |   | (.0 | ) |   | (.1 | ) |   | 33.2 |   |   | 14.2 |   |
| Total                nonoperating (income) expense                          |   |                                   | .1     |                          |   | (.1 | ) |   | (.1 | ) |   | (170.5 | ) |   | 111.0 |   |
| Income                (loss) from continuing operations before income taxes |   |                                   | (5.3   | )                             |   | 2.6 |   |   | 2.0 |   |   | (279.1 | ) |   | 63.6 |   |
| Income                taxes (credit)                                        |   |                                   | (2.5   | )                             |   | .8 |   |   | .7 |   |   | (372.9 | ) |   | 53.3 |   |
| Net                income (loss) from continuing operations                 |   |                                   | (2.8   | )                             |   | 1.8 |   |   | 1.3 |   |   | (235.8 | ) |   | 68.9 |   |
| Discontinued                operations                                      |   |                                   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from operations of discontinued entities       |   |                                   | (.9    | )                             |   | (.1 | ) |   | (.1 | ) |   | n/m |   |   | (38.9 | ) |
| Gain                (loss) on sale of assets of discontinued entities       |   |                                   | (.1    | )                             |   | .2 |   |   | .0 |   |   | n/m |   |   | n/m |   |
| Net                income (loss)                                            |   |                                   | (3.8   | )                             |   | 1.9 |   |   | 1.2 |   |   | (271.8 | ) |   | 108.2 |   |

Note 11
*Restructuring      Charges and*
*Discontinued      Operations*

----

**Comparison      of 2005 to 2004 **

|                                                                                                                                                |   | Wholesale                Share |   | Retail                Share |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|-----------------------------|--------|
|                                                                                                                                                |   | 2005                           |   | 2004                        |   | 2005 |   | 2004 |   |
|                                                                                                                                                |   |                           |   |                        |   |   |   |   |   |
| Class                A Motorhomes                                                                                                                   |   |                           | 7.6    | %                           |   | 7.9 | % |   | 7.9 | % |   | 7.1 | % |
| Gasoline                                                                                                                                            |   |                           | n/a    |                        |   | n/a |   |   | 10.2 | % |   | 9.5 | % |
| Diesel                                                                                                                                              |   |                           | n/a    |                        |   | n/a |   |   | 5.5 | % |   | 4.4 | % |
| Class                C Motorhomes                                                                                                                   |   |                           | 9.3    | %                           |   | 12.5 | % |   | 12.5 | % |   | 12.0 | % |
| Travel                Trailers                                                                                                                      |   |                           | 4.4    | %                           |   | 4.4 | % |   | 4.0 | % |   | 4.3 | % |
| Fifth                Wheels                                                                                                                         |   |                           | 1.7    | %                           |   | 2.1 | % |   | 2.1 | % |   | 2.4 | % |
| Camping                Trailers                                                                                                                     |   |                           | 10.0   | %                           |   | 14.6 | % |   | 9.9 | % |   | 11.9 | % |
| Total                                                                                                                                               |   |                           | 4.9    | %                           |   | 5.8 | % |   | 4.9 | % |   | 5.4 | % |
|                                                                                                                                                |   |                           |   |                        |   |   |   |   |   |   |   |
| *Wholesale                share based on wholesale unit shipment data as reported by the                Recreational Vehicle Industry Association.* |
| *Retail                share based on data provided by Statistical Surveys,                Inc.*                                                    |
|                                                                                                                                                |   |                           |   |                        |   |   |   |   |   |   |   |

----

Note 1

----

Note 2

Note 10

----

**Comparison      of 2004 to 2003 **

----

Note 1

Note 2

Note 10

**Liquidity      and Capital Resources **

Note 5

----

Consolidated Statements of Cash      Flows

Note 12
Critical Accounting Policies

----

**Principal      Contractual Obligations and Commercial Commitments **

|                                                       |   | Payment                Period |           |
|------------------------------------------------------------|--------|-------------------------------|----------------|
|                                                       |   | 2006                          |           | 2007 |   | 2008 |   | 2009 |   | 2010 |   | Thereafter |   |
|                                                       |   |                          |           |   |   |   |   |   |   |   |   |   |   |
| Credit                facility borrowings                  |   | $                             | 12.3           |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   | $ | - |   |
| Long-term                debt                              |   |                          | 2,222.6        |   |   | 2,590.6 |   |   | 2,245.5 |   |   | 5,650.1 |   |   | 1,063.2 |   |   | 1,363.5 |   |
| Operating                leases                            |   |                          | 1,112.7        |   |   | 1,031.1 |   |   | 841.3 |   |   | 810.0 |   |   | 691.0 |   |   | 514.1 |   |
| Deferred                compensation obligations           |   |                          | 925.6          |   |   | 559.7 |   |   | 408.0 |   |   | 411.3 |   |   | 400.6 |   |   | 8,000.3 |   |
| Open              purchase orders and purchase obligations |   |                          |  22,714.5 |   |   |  - |   |   |  - |   |   |  - |   |   |  - |   |   |  - |   |
| Interest              payments on long-term debt           |   |                          |  738.3    |   |   |  619.8 |   |   |  502.0 |   |   |  268.6 |   |   |  70.5 |   |   |  39.2 |   |

| Notes:     | -                  Projected interest payments for variable-rate debt were calculated                  based                  on the outstanding principal amounts and prevailing market rates                  as of                                      December 31, 2005.-                  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              |   | $      | 2,950.0                      |   | $      | 2,950.0                             |   | $      | -                                    |   |
| Guarantees                                    |   |   | 7,845.7                      |   |   | 6,197.1                             |   |   | 1,648.6                              |   |
| Standby                repurchase obligations |   |   | 278,362.8                    |   |   | 262,428.5                           |   |   | 15,934.3                             |   |
| Chassis                pool obligations       |   |   | 26,791.1                     |   |   | 26,791.1                            |   |   | -                                    |   |
| Financing                obligation           |   |   | 2,581.4                      |   |   | 2,581.4                             |   |   | -                                    |   |

**Critical      Accounting      Policies**

Note      1

**Long-Lived      Assets -**

----

**Revenue      Recognition -**

**Warranty      Reserves -**

**Litigation      and Product Liability Reserves -**
Note 12

**Income      Taxes -**
*Accounting      for Income Taxes*

**New      and Pending Accounting Policies **

*New      Accounting      Pronouncements*
Note      1

----

**Forward-Looking      Statements **

----

| **Item                  7A.** | **Quantitative                  and Qualitative Disclosures About Market                  Risk** |
|-------------------------------|--------------------------------------------------------------------------------------------------|

----

| **Item                    8.** | **Financial                    Statements and Supplementary Data** |
|--------------------------------|--------------------------------------------------------------------|

| **Index                to Financial Statements**                                                                                                                 | **Page** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                             |     |
| Financial                Statements:                                                                                                                             |     |
| Report                of Independent Registered Public                Accounting Firm                                                                            | 35       |
|                                                                                                                                                             |     |
| Report                of Independent Registered Public                Accounting Firm on Internal Control over Financial                Reporting                | 36       |
|                                                                                                                                                             |     |
| Consolidated                Balance Sheets at December 31, 2005 and                2004                                                                          | 37       |
|                                                                                                                                                             |     |
| Consolidated                Statements of Operations for                the years ended December 31, 2005, 2004 and 2003                                         | 38       |
|                                                                                                                                                             |     |
| Consolidated                Statements of                Shareholders' Equity for the years ended December 31, 2005, 2004                and                2003 | 39       |
|                                                                                                                                                             |     |
| Consolidated                Statements of Cash Flows for                the years ended December 31, 2005, 2004 and 2003                                         | 40       |
|                                                                                                                                                             |     |
| Notes                to Consolidated Financial                Statements                                                                                         | 41-67    |
|                                                                                                                                                             |     |
| Financial                Statement Schedule:                                                                                                                     |     |
| II                - Valuation and Qualifying Accounts for the                years ended December 31, 2005, 2004 and 2003                                        | 71       |

----

Index

**Report      of Independent Registered Public Accounting      Firm**

|   | /s/                Ernst & Young LLP |
|--------|------------------------------------------|

----

Index

**Report      of Independent Registered Public Accounting      Firm**

**On      Internal Control Over Financial Reporting**

** **

|   | /s/                Ernst & Young LLP |
|--------|------------------------------------------|

----

Index

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Balance Sheets**

| **Assets**                                                                                                                                                    |   |   |       |    |   |         |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|---------|--------|--------------|---------|
|                                                                                                                                                          |   |   | 2005       |    |   | 2004         |    |
| CURRENT                ASSETS                                                                                                                                 |   |   |       |    |   |         |    |
| Cash                and cash equivalents                                                                                                                      |   | $      | 2,780      |    | $      | 14,992       |    |
| Marketable                securities                                                                                                                          |   |   | -          |    |   | 1,747        |    |
| Trade                receivables, less allowance for doubtful receivables 2005                - $1,240 and 2004 - $919                                        |   |   | 47,174     |    |   | 58,805       |    |
| Other                receivables                                                                                                                              |   |   | 1,969      |    |   | 4,209        |    |
| Refundable                income taxes                                                                                                                        |   |   | 10,284     |    |   | 244          |    |
| Inventories                                                                                                                                                   |   |   | 121,304    |    |   | 136,088      |    |
| Prepaid                expenses and other                                                                                                                     |   |   | 3,992      |    |   | 4,144        |    |
| Deferred                income taxes                                                                                                                          |   |   | 11,421     |    |   | 6,014        |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| Total                current assets                                                                                                                           |   |   | 198,924    |    |   | 226,243      |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| Property,                plant and equipment**,**                net                                                                                          |   |   | 67,581     |    |   | 82,351       |    |
| Goodwill                                                                                                                                                      |   |   | 17,383     |    |   | 18,132       |    |
| Cash                value of life insurance, net of loans                                                                                                     |   |   | 28,880     |    |   | 25,162       |    |
| Deferred                income taxes                                                                                                                          |   |   | 4,279      |    |   | -            |    |
| Assets                held for sale                                                                                                                           |   |   | 291        |    |   | 60           |    |
| Other                                                                                                                                                         |   |   | 5,478      |    |   | 5,775        |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| TOTAL                ASSETS                                                                                                                                   |   | $      | 322,816    |    | $      | 357,723      |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| **Liabilities                and Shareholders' Equity**                                                                                                       |   |   |       |    |   |         |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| CURRENT                LIABILITIES                                                                                                                            |   |   |       |    |   |         |    |
| Short-term                borrowings                                                                                                                          |   | $      | 12,276     |    | $      | 20,000       |    |
| Accounts                payable, trade                                                                                                                        |   |   | 31,658     |    |   | 33,805       |    |
| Accrued                income taxes                                                                                                                           |   |   | 533        |    |   | 2,479        |    |
| Accrued                expenses and other liabilities                                                                                                         |   |   | 54,856     |    |   | 39,466       |    |
| Floorplan                notes payable                                                                                                                        |   |   | 4,361      |    |   | 6,986        |    |
| Current                maturities of long-term debt                                                                                                           |   |   | 2,223      |    |   | 2,195        |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| Total                current liabilities                                                                                                                      |   |   | 105,907    |    |   | 104,931      |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| Long-term                debt                                                                                                                                 |   |   | 12,913     |    |   | 14,943       |    |
| Deferred                income taxes                                                                                                                          |   |   | -          |    |   | 3,512        |    |
| Postretirement                deferred compensation benefits                                                                                                  |   |   | 10,182     |    |   | 9,724        |    |
| Other                                                                                                                                                         |   |   | 11         |    |   | 195          |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| Total                liabilities                                                                                                                              |   |   | 129,013    |    |   | 133,305      |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| COMMITMENTS                AND CONTINGENCIES** **(Note                12)                                                                                |   |   |       |    |   |         |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| SHAREHOLDERS'                EQUITY                                                                                                                           |   |   |       |    |   |         |    |
| Common                shares, without par value: authorized                60,000 shares; issued 2005 - 21,134 shares                and 2004 - 21,108 shares |   |   | 92,164     |    |   | 91,850       |    |
| Additional                paid-in capital                                                                                                                     |   |   | 6,465      |    |        | 8,894        |         |
| Unearned                compensation                                                                                                                          |   |   |  (142 | )  |   |  (1,700 | )  |
| Accumulated                other comprehensive income (loss)                                                                                                  |   |   | (6         | )       |   |  92     |    |
| Retained                earnings                                                                                                                              |   |   | 154,246    |    |   | 184,284      |    |
| Treasury                shares, at cost, 2005 - 5,375 shares and                2004 - 5,384 shares                                                           |   |   | (58,924    | )       |   | (59,002      | )       |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| Total                shareholders' equity                                                                                                                     |   |   | 193,803    |    |   | 224,418      |    |
|                                                                                                                                                          |   |   |       |    |   |         |    |
| TOTAL                LIABILITIES AND SHAREHOLDERS'                EQUITY                                                                                      |   | $      | 322,816    |    | $      | 357,723      |    |

Notes      to Consolidated Financial Statements

----

Index

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Statements of Operations**

|                                                                                                                                                                                  |   | 2005   |    | 2004   |   | 2003    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Net                sales                                                                                                                                                              |   | $      | 702,425 |   | $      | 802,346 |   | $ | 636,891 |   |
| Cost                of sales                                                                                                                                                          |   |   | 646,465 |   |   | 689,520 |   |   | 544,496 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Gross                profit                                                                                                                                                           |   |   | 55,960  |   |   | 112,826 |   |   | 92,395 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Operating                expenses:                                                                                                                                                    |   |   |    |   |   |    |   |   |   |   |
| Delivery                                                                                                                                                                              |   |   | 32,762  |   |   | 34,005  |   |   | 27,909 |   |
| Selling                                                                                                                                                                               |   |   | 28,320  |   |   | 28,620  |   |   | 22,903 |   |
| General                and administrative                                                                                                                                             |   |   | 30,794  |   |   | 31,543  |   |   | 29,715 |   |
| Asset                impairments                                                                                                                                                      |   |   | 1,076   |   |   |    |   |   |   |   |
| (Gain)                loss on sale of assets, net                                                                                                                                     |   |   | (163    | )      |   | (1,448  | )      |   | (524 | ) |
|                                                                                                                                                                                  |   |   | 92,789  |   |   | 92,720  |   |   | 80,003 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Operating                income (loss)                                                                                                                                                |   |   | (36,829 | )      |   | 20,106  |   |   | 12,392 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Nonoperating                (income) expense:                                                                                                                                         |   |   |    |   |   |    |   |   |   |   |
| Interest                expense                                                                                                                                                       |   |   | 3,168   |   |   | 1,794   |   |   | 993 |   |
| Investment                income                                                                                                                                                      |   |   | (2,182  | )      |   | (2,193  | )      |   | (1,043 | ) |
| Other                (income) expense, net                                                                                                                                            |   |   | (461    | )      |   | (346    | )      |   | (303 | ) |
|                                                                                                                                                                                  |   |   | 525     |   |   | (745    | )      |   | (353 | ) |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Income                (loss) from continuing operations before                income taxes                                                                                            |   |   | (37,354 | )      |   | 20,851  |   |   | 12,745 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Income                taxes (credit)                                                                                                                                                  |   |   | (17,994 | )      |   | 6,593   |   |   | 4,302 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Net                income (loss) from continuing operations                                                                                                                           |   |   | (19,360 | )      |   | 14,258  |   |   | 8,443 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Discontinued                operations                                                                                                                                                |   |   |    |   |   |    |   |   |   |   |
| Income                (loss) from operations of discontinued                entities (net                of tax credits of $(4,426),                $(303), and $(546), respectively) |   |   | (6,370  | )      |   | (659    | )      |   | (1,078 | ) |
| Gain                (loss) on sale of assets of discontinued entities                (net                of taxes (credits) of $(431) and $816, respectively)                         |   |   | (620    | )      |   | 1,735   |   |   | - |   |
| Income                (loss) from discontinued operations                                                                                                                             |   |   | (6,990  | )      |   | 1,076   |   |   | (1,078 | ) |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Net                income (loss)                                                                                                                                                      |   | $      | (26,350 | )      | $      | 15,334  |   | $ | 7,365 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Earnings                (loss) per share - Basic                                                                                                                                      |   |   |    |   |   |    |   |   |   |   |
| Continuing                operations                                                                                                                                                  |   | $      | (1.24   | )      | $      | .92     |   | $ | .55 |   |
| Discontinued                operations                                                                                                                                                |   |   | (.45    | )      |   | .07     |   |   | (.07 | ) |
| Net                earnings (loss) per share                                                                                                                                          |   |   | (1.69   | )      |   | .99     |   |   | .48 |   |
| Earnings                (loss) per share - Diluted                                                                                                                                    |   |   |    |   |   |    |   |   |   |   |
| Continuing                operations                                                                                                                                                  |   |   | (1.24   | )      |   | .92     |   |   | .55 |   |
| Discontinued                operations                                                                                                                                                |   |   | (.45    | )      |   | .07     |   |   | (.07 | ) |
| Net                earnings (loss) per share                                                                                                                                          |   |   | (1.69   | )      |   | .99     |   |   | .48 |   |
|                                                                                                                                                                                  |   |   |    |   |   |    |   |   |   |   |
| Number                of common shares used in the computation                of earnings (loss) per share:                                                                           |   |   |    |   |   |    |   |   |   |   |
| Basic                                                                                                                                                                                 |   |   | 15,551  |   |   | 15,483  |   |   | 15,437 |   |
| Diluted                                                                                                                                                                               |   |   | 15,551  |   |   | 15,551  |   |   | 15,487 |   |

Notes      to Consolidated Financial Statements

----

Index

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Statements of Shareholders' Equity**

|                                                                                                                                                                                         |   |                                 |    |         |         |   |          |       |               |     |               | 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, 2003                                                                                                                                                    |   |                                 |    |         |         | 21,062 |          | $          | 91,283             |     | $                  | 6,133         |           | $   | -            |     | $            | (661   | )            | $             | 169,054 |   |   | (5,395 | ) | $ | (56,383 | ) | $  | 209,426 |   |
| Net                  income                                                                                                                                                                  |   | $                                    | 7,365   |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | -      |         |          | 7,365   |   |   | - |   |   | - |   |   | 7,365 |   |
| Net                  unrealized gain on securities net                  of taxes of $681                                                                                                     |   |                                 | 1,111   |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | 1,111  |         |          | -       |   |   | - |   |   | - |   |   | 1,111 |   |
| Net                  unrealized loss on cash flow hedges                  net of taxes of $98                                                                                                |   |                                 | (160    | )            |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | (160   | )            |          | -       |   |   | - |   |   | - |   |   | (160 | ) |
| Total                  comprehensive income                                                                                                                                                  |   | $                                    | 8,316   |         |         |   |          |       |               |     |               |          |           |     |         |     |         |   |         |          |    |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common shares upon                  the                  exercise of stock options                  net                  of tax benefit of                  $37 |   |                                 |    |         |         | -      |          |       | -                  |     |               | 112           |           |     | -            |     |         | -      |         |          | -       |   |   | 25 |   |   | 143 |   |   | 255 |   |
| Issuance                  of common shares underemployee                  stock purchase                  plan                                                                               |   |                                 |    |         |         | 24     |          |       | 256                |     |               | -             |           |     | -            |     |         | -      |         |          | -       |   |   | - |   |   | - |   |   | 256 |   |
| Issuance                  of common shares from                  treasury                                                                                                                    |   |                                 |    |         |         | -      |          |       | -                  |     |               | 1,371         |           |     | (1,136       | )        |         | -      |         |          | -       |   |   | 130 |   |   | 736 |   |   | 971 |   |
| Acquisition                  of common shares for                  treasury                                                                                                                  |   |                                 |    |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | -      |         |          | -       |   |   | (293 | ) |   | (4,354 | ) |   | (4,354 | ) |
| Cash                  dividends of $.24 per common                  share                                                                                                                    |   |                                 |    |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | -      |         |          | (3,719  | ) |   | - |   |   | - |   |   | (3,719 | ) |
| Balance                at December 31, 2003                                                                                                                                                  |   |                                 |    |         |         | 21,086 |          |       | 91,539             |     |               | 7,616         |           |     | (1,136       | )        |         | 290    |         |          | 172,700 |   |   | (5,533 | ) |   | (59,858 | ) |   | 211,151 |   |
|                                                                                                                                                                                         |   |                                 |    |         |         |   |          |       |               |     |               |          |           |     |         |     |         |   |         |          |    |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                Income - 2004                                                                                                                                                   |   |                                 |    |         |         |   |          |       |               |     |               |          |           |     |         |     |         |   |         |          |    |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                  |   | $                                    | 15,334  |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | -      |         |          | 15,334  |   |   | - |   |   | - |   |   | 15,334 |   |
| Net                  unrealized loss on securities net                  of taxes of $160                                                                                                     |   |                                 | (262    | )            |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | (262   | )            |          | -       |   |   | - |   |   | - |   |   | (262 | ) |
| Net                  unrealized gain on cash flow hedges                  net of taxes of $39                                                                                                |   |                                 | 64      |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | 64     |         |          | -       |   |   | - |   |   | - |   |   | 64 |   |
| Total                  comprehensive income                                                                                                                                                  |   | $                                    | 15,136  |         |         |   |          |       |               |     |               |          |           |     |         |     |         |   |         |          |    |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common shares uponthe                  exercise of stock options                  net                  of tax benefit of                  $46                   |   |                                 |    |         |         | -      |          |       | -                  |     |               | 250           |           |     | -            |     |         | -      |         |          | -       |   |   | 34 |   |   | 199 |   |   | 449 |   |
| Issuance                  of common shares underemployee                  stock purchase                  plan                                                                               |   |                                 |    |         |         | 22     |          |       | 311                |     |               | -             |           |     | -            |     |         | -      |         |          | -       |   |   | - |   |   | - |   |   | 311 |   |
| Issuance                  of common shares from                  treasury                                                                                                                    |   |                                 |    |         |         | -      |          |       | -                  |     |               | 1,028         |           |     | (564         | )        |         | -      |         |          | -       |   |   | 115 |   |   | 657 |   |   | 1,121 |   |
| Cash                  dividends of $.24 per common                  share                                                                                                                    |   |                                 |    |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | -      |         |          | (3,750  | ) |   | - |   |   | - |   |   | (3,750 | ) |
| Balance                at December 31, 2004                                                                                                                                                  |   |                                 |    |         |         | 21,108 |          |       | 91,850             |     |               | 8,894         |           |     | (1,700       | )        |         | 92     |         |          | 184,284 |   |   | (5,384 | ) |   | (59,002 | ) |   | 224,418 |   |
|                                                                                                                                                                                         |   |                                 |    |         |         |   |          |       |               |     |               |          |           |     |         |     |         |   |         |          |    |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                Income - 2005                                                                                                                                                   |   |                                 |    |         |         |   |          |       |               |     |               |          |           |     |         |     |         |   |         |          |    |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                                                                                                                                           |   | $                                    | (26,350 | )            |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | -      |         |          | (26,350 | ) |   | - |   |   | - |   |   | (26,350 | ) |
| Reversal                  of unrealized gain on securities                  net of taxes of $116                                                                                   |   |                                 | (188    | )            |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | (188   | )            |          | -       |   |   | - |   |   | - |   |   | (188 | ) |
| Net                  unrealized gain on cash flow hedges                  net of taxes of $57                                                                                                |   |                                 | 90      |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | 90     |         |          | -       |   |   | - |   |   | - |   |   | 90 |   |
| Total                  comprehensive income (loss)                                                                                                                                           |   | $                                    | (26,448 | )            |         |   |          |       |               |     |               |          |           |     |         |     |         |   |         |          |    |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of common shares uponthe                  exercise of stock options                  net                  of tax benefit of                  $7                    |   |                                 |    |         |         | -      |          |       | -                  |     |               | 164           |           |     | -            |     |         | -      |         |          | -       |   |   | 28 |   |   | 165 |   |   | 329 |   |
| Issuance                  of common shares underemployee                  stock purchase                  plan                                                                               |   |                                 |    |         |         | 26     |          |       | 314                |     |               | -             |           |     | -            |     |         | -      |         |          | -       |   |   | - |   |   | - |   |   | 314 |   |
| Issuance                  (cancellations) of common                  shares from treasury                                                                                                    |   |                                 |    |         |         | -      |          |       | -                  |     |               | (2,593        | )              |     | 1,558        |     |         | -      |         |          | -       |   |   | (19 | ) |   | (87 | ) |   | (1,122 | ) |
| Other                                                                                                                                                                                        |   |                                 |    |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | -      |         |          | 68      |   |   | - |   |   | - |   |   | 68 |   |
| Cash                  dividends of $.24 per common                  share                                                                                                                    |   |                                 |    |         |         | -      |          |       | -                  |     |               | -             |           |     | -            |     |         | -      |         |          | (3,756  | ) |   | - |   |   | - |   |   | (3,756 | ) |
| Balance                at December 31, 2005                                                                                                                                                  |   |                                 |    |         |         | 21,134 |          | $          | 92,164             |     | $                  | 6,465         |           | $        | (142         | )        | $            | (6     | )            | $             | 154,246 |   |   | (5,375 | ) | $ | (58,924 | ) | $  | 193,803 |   |

Notes        to Consolidated Financial Statements

----

Index

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Statements of Cash Flows **

|                                                                                                                                            |   | 2005   |    | 2004   |   | 2003    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                            |   |   |    |   |   |    |   |   |   |   |
| Net                income (loss)                                                                                                                |   | $      | (26,350 | )      | $      | 15,334  |   | $ | 7,365 |   |
| Adjustments                to reconcile net income (loss) to net cash provided by (used in)                operating                activities: |   |   |    |   |   |    |   |   |   |   |
| Depreciation                                                                                                                                    |   |   | 8,554   |   |   | 9,402   |   |   | 9,678 |   |
| Provision                for doubtful receivables                                                                                               |   |   | 988     |   |   | 200     |   |   | 574 |   |
| Provision                for write-down of assets to net realizable value                                                                       |   |   | 9,241   |   |   | -       |   |   | - |   |
| Net                realized and unrealized (gains)/losses on marketable                securities and derivatives                               |   |   | (311    | )      |   | 93      |   |   | (74 | ) |
| (Gain)                loss on sale of properties and other assets, net                                                                          |   |   | 1,592   |   |   | (4,305  | )      |   | (471 | ) |
| Increase                in cash surrender value of life insurance policies                                                                      |   |   | (1,142  | )      |   | (1,074  | )      |   | (2,055 | ) |
| Deferred                income tax provision (benefit)                                                                                          |   |   | (13,198 | )      |   | (892    | )      |   | 309 |   |
| Tax                benefit from stock options exercised                                                                                         |   |   | 7       |   |   | 46      |   |   | 37 |   |
| Other                                                                                                                                           |   |   | (848    | )      |   | 2,696   |   |   | 2,170 |   |
| Changes                in certain assets and liabilities, net of effects of                acquisitions and dispositions:                       |   |   |    |   |   |    |   |   |   |   |
| Trade                receivables                                                                                                                |   |   | 12,883  |   |   | (15,076 | )      |   | (17,732 | ) |
| Inventories                                                                                                                                     |   |   | 14,784  |   |   | (34,789 | )      |   | (16,090 | ) |
| Prepaid                expenses and other                                                                                                       |   |   | 152     |   |   | 478     |   |   | (210 | ) |
| Accounts                payable, trade                                                                                                          |   |   | (2,147  | )      |   | 3,319   |   |   | 11,685 |   |
| Income                taxes - accrued and refundable                                                                                            |   |   | (11,986 | )      |   | 366     |   |   | 3,525 |   |
| Accrued                expenses and other liabilities                                                                                           |   |   | 12,765  |   |   | 1,880   |   |   | (2,270 | ) |
| Net                cash provided by (used in) operating                activities                                                               |   |   | 4,984   |   |   | (22,322 | )      |   | (3,559 | ) |
|                                                                                                                                            |   |   |    |   |   |    |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                            |   |   |    |   |   |    |   |   |   |   |
| Proceeds                from sales of marketable securities                                                                                     |   |   | 1,933   |   |   | 3,629   |   |   | 30,975 |   |
| Proceeds                from sale of properties and other assets                                                                                |   |   | 1,846   |   |   | 7,034   |   |   | 2,869 |   |
| Investments                in marketable securities                                                                                             |   |   | (2,549  | )      |   | (2,582  | )      |   | (26,072 | ) |
| Purchases                of property and equipment                                                                                              |   |   | (5,696  | )      |   | (16,477 | )      |   | (12,067 | ) |
| Other                                                                                                                                           |   |   | 48      |   |   | (1,377  | )      |   | 902 |   |
| Net                cash used in investing activities                                                                                            |   |   | (4,418  | )      |   | (9,773  | )      |   | (3,393 | ) |
|                                                                                                                                            |   |   |    |   |   |    |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                            |   |   |    |   |   |    |   |   |   |   |
| Proceeds                from short-term borrowings                                                                                              |   |   | 232     |   |   | 39,938  |   |   | 32,000 |   |
| Payments                of short-term borrowings                                                                                                |   |   | (7,956  | )      |   | (17,952 | )      |   | (27,000 | ) |
| Proceeds                from long-term debt                                                                                                     |   |   | 241     |   |   | 8,036   |   |   | 571 |   |
| Payments                of long-term debt                                                                                                       |   |   | (2,243  | )      |   | (1,307  | )      |   | (1,161 | ) |
| Proceeds                from borrowings on cash value of life insurance                policies                                                 |   |   | -       |   |   | 20,000  |   |   |   |   |
| Repay                borrowings against cash value of life insurance                policies                                                    |   |   | -       |   |   | (5,000  | )      |   | - |   |
| Issuance                of common shares under stock incentive                plans                                                             |   |   | 636     |   |   | 714     |   |   | 474 |   |
| Cash                dividends paid                                                                                                              |   |   | (3,756  | )      |   | (3,750  | )      |   | (3,719 | ) |
| Purchases                of common shares for treasury                                                                                          |   |   | -       |   |   | -       |   |   | (4,354 | ) |
| Other                                                                                                                                           |   |   | 68      |   |   | -       |   |   | - |   |

| Net                cash provided by (used in) financing activities |   |   | (12,778 | )      |   | 40,679 |   |   | (3,189  | )      |
|--------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
| Increase                (decrease) in cash and cash equivalents    |   |   | (12,212 | )      |   | 8,584  |   |   | (10,141 | )      |
|                                                               |   |   |    |   |   |   |   |   |    |   |
| CASH                AND CASH EQUIVALENTS                           |   |   |    |   |   |   |   |   |    |   |
| Beginning                of year                                   |   |   | 14,992  |   |   | 6,408  |   |   | 16,549  |   |
| End                of year                                         |   | $      | 2,780   |   | $      | 14,992 |   | $      | 6,408   |   |
|                                                               |   |   |    |   |   |   |   |   |    |   |
| Supplemental                disclosures of cash flow information:  |   |   |    |   |   |   |   |   |    |   |
| Cash                paid during the year for:                      |   |   |    |   |   |   |   |   |    |   |
| Interest                                                           |   | $      | 2,314   |   | $      | 1,460  |   | $      | 1,109   |   |
| Income                taxes                                        |   |   | 2,240   |   |   | 7,114  |   |   | 2,130   |   |

Notes      to Consolidated Financial Statements

----

Index

**Coachmen      Industries, Inc. and Subsidiaries**

**Notes      to Consolidated Financial Statements**

**1.   NATURE      OF OPERATIONS AND ACCOUNTING      POLICIES.**

**Nature      of Operations - **

**Principles      of Consolidation - **

**Use      of Estimates - **

**Revenue      Recognition - **

**Cash      Flows and Noncash Activities - **

|                                                                                                                   |   | 2005   |   | 2004   |   | 2003  |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|-------|--------|
| Issuance                (cancellations) of common shares, at market value, in lieu of cash                compensation |   | $      | (1,122 | )      | $      | 1,121 |   | $ | 991 |   |
| Note                receivable received in connection with the sale of certain assets                (see Note 11)     |   |   | -      |   |   | 1,000 |   |   | - |   |

**Concentrations      of Credit Risk -**

----

Index

**Coachmen      Industries, Inc. and Subsidiaries**

**Notes      to Consolidated Financial Statements, Continued**

**1.         NATURE OF OPERATIONS AND ACCOUNTING POLICIES, Continued.**

**Marketable      Securities - **
** **
** **

|                                                                 |   | 2004   |                 |
|----------------------------------------------------------------------|--------|--------|----------------------|
|                                                                 |   |   |                 |
| Cost                                                                 |   | $      | 1,807                |   |
| Recognized                losses for other-than-temporary impairment |   |   | (                356 | ) |
| Unrealized                gains                                      |   |   | 296                  |   |
|                                                                 |   |   |                 |   |
| Market                value                                          |   | $      | 1,747                |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries**

**Notes      to Consolidated Financial Statements, Continued**

**1.         NATURE OF OPERATIONS AND ACCOUNTING POLICIES, Continued.**

|                                                                                                   |   | 2005   |   | 2004   |   | 2003   |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                   |   |   |   |   |   |   |   |
| Interest                income                                                                         |   | $      | 510    |   | $      | 143    |   | $ | 105 |   |
| Increase                in cash value of life insurance policies                                       |   |   | 1,116  |   |   | 1,148  |   |   | 1,241 |   |
| Dividend                income on preferred stocks                                                     |   |   | 54     |   |   | 770    |   |   | 415 |   |
| Net                realized gains (losses) on sale of preferred stocks and bond                funds   |   |   | 505    |   |   | 586    |   |   | (342 | ) |
| Net                realized gains (losses) on closed U.S. Treasury bond futures                options |   |   | (12    | )      |   | (55    | )      |   | 82 |   |
| Other                than temporary unrealized losses on preferred stocks                              |   |   | -      |   |   | (390   | )      |   | (458 | ) |
| Unrealized                gains (losses) on open U.S. Treasury bond futures options                    |   |   | 9      |   |   | (9     | )      |   | - |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                  |   | $      | 2,182  |   | $      | 2,193  |   | $ | 1,043 |   |

**Fair      Value of Financial Instruments - **
Note 9

*Accounting      for Derivative Instruments and Hedging Activities*

**Inventories      - **

----

Index

**Coachmen      Industries, Inc. and Subsidiaries**

**Notes      to Consolidated Financial Statements, Continued**

**1.         NATURE OF OPERATIONS AND ACCOUNTING POLICIES, Continued.**

**Property,      Plant and Equipment -**

| 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  |   |

**Long-Lived      Assets - **
Note 11

**Warranty      Expense - **

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued**

**1.         NATURE OF OPERATIONS AND ACCOUNTING POLICIES, Continued.**

|                                                                                                                   |   | 2005   |    | 2004   |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
|                                                                                                                   |   |   |    |   |   |
| Balance                of accrued warranty at January 1                                                                |   | $      | 10,140  |   | $      | 8,658 |   |
|                                                                                                                   |   |   |    |   |   |   |   |
| Warranties                issued during the period and changes in liability for pre-existing                warranties |   |   | 34,771  |   |   | 22,189 |   |
|                                                                                                                   |   |   |    |   |   |   |   |
| Cash                settlements made during the period                                                                 |   |   | (24,906 | )      |   | (20,707 | ) |
|                                                                                                                   |   |   |    |   |   |   |   |
| Balance                of accrued warranty at December 31                                                              |   | $      | 20,005  |   | $      | 10,140 |   |

**Stock-Based      Compensation - **

|                                                                 |   |                                  Plan Year |   |
|----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                 |   | 2005                                                                                                                            |   | 2004 |   | 2003 |   |
|                                                                 |   |                                                                                                                            |   |   |   |   |   |   |   |   |
| Contingent                shares awarded                             |   |                                                                                                                            | 75,600 |   |   | 99,600 |   |   | 88,500 |   |
|                                                                 |   |                                                                                                                            |   |   |   |   |   |   |   |   |
| Shares                forfeited                                      |   |                                                                                                                            | 13,400 |   |   | 19,500 |   |   | 88,500 |   |
|                                                                 |   |                                                                                                                            |   |   |   |   |   |   |   |   |
| Contingent                shares outstanding as of December 31, 2005 |   |                                                                                                                            | 62,200 |   |   | 80,100 |   |   | - |   |

Note 8

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**1.         NATURE OF OPERATIONS AND ACCOUNTING POLICIES, Continued.**

*Accounting      for Stock-Based Compensation*
**:      **

|                                                                                                                                                                                         |   | 2005   |    | 2004   |   | 2003   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|
|                                                                                                                                                                                         |   |   |    |   |   |   |   |
| Net                income (loss), as reported                                                                                                                                                |   | $      | (26,350 | )      | $      | 15,334 |   | $ | 7,365 |   |
|                                                                                                                                                                                         |   |   |    |   |   |   |   |   |   |   |
| Add:                Stock-based compensation expense (credit) under variable plan included                in                earnings, net                of taxes                            |   |   | (865    | )      |   | 584    |   |   | 347 |   |
|                                                                                                                                                                                         |   |   |    |   |   |   |   |   |   |   |
| Deduct:                Total stock-based employee compensation (expense) credit determined                under                fair value method for                all awards, net of taxes |   |   | 761     |   |   | (739   | )      |   | (943 | ) |
|                                                                                                                                                                                         |   |   |    |   |   |   |   |   |   |   |
| Pro                forma net income (loss)                                                                                                                                                   |   | $      | (26,454 | )      | $      | 15,179 |   | $ | 6,769 |   |
|                                                                                                                                                                                         |   |   |    |   |   |   |   |   |   |   |
| Earnings                (loss) per share:                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |
|                                                                                                                                                                                         |   |   |    |   |   |   |   |   |   |   |
| Basic                - as reported                                                                                                                                                           |   |   | (1.69   | )      |   | .99    |   |   | .48 |   |
| Basic                - pro forma                                                                                                                                                             |   |   | (1.70   | )      |   | .98    |   |   | .44 |   |
|                                                                                                                                                                                         |   |   |    |   |   |   |   |   |   |   |
| Diluted                - as reported                                                                                                                                                         |   |   | (1.69   | )      |   | .99    |   |   | .48 |   |
| Diluted                - pro forma                                                                                                                                                           |   |   | (1.70   | )      |   | .98    |   |   | .44 |   |

|                                   |   |                      2003 |                      |
|----------------------------------------|--------|----------------------------------------------------|---------------------------|
|                                   |   |                                               |                      |   |
| Risk                free interest rate |   |                                               | 3.05                      | % |
| Expected                life           |   |                                               | 4.00                years |   |
| Expected                volatility     |   |                                               | 49.4                      | % |
| Expected                dividends      |   |                                               | 1.8                       | % |

**New      Accounting Pronouncements -**
*Share-Based      Payment*
*Accounting      for Stock-Based Compensation*
*Accounting      for Stock Issued to Employees*
*Statement      of Cash Flows*

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**1.         NATURE OF OPERATIONS AND ACCOUNTING POLICIES, Continued.**

**Research      and Development Expenses - **

**Shipping      and Handling Costs - **
** **

**Comprehensive      Income (Loss) -**

|                                             |   | UnrealizedGains(Losses)on                Securities |   | UnrealizedGains(Losses)on                Cash FlowHedges |   | AccumulatedOtherComprehensiveIncome(Loss) |   |
|--------------------------------------------------|--------|-----------------------------------------------------|--------|----------------------------------------------------------|--------|-------------------------------------------|--------|
|                                             |   |                                                |   |                                                     |   |                                      |   |
| Balances                at January 1, 2003       |   | $                                                   | (661   | )                                                        | $      | -                                         |   | $ | (661 | ) |
| Other                comprehensive income (loss) |   |                                                | 1,111  |                                                     |   | (160                                      | )      |   | 951 |   |
|                                             |   |                                                |   |                                                     |   |                                      |   |   |   |   |
| Balances                at December 31, 2003     |   |                                                | 450    |                                                     |   | (160                                      | )      |   | 290 |   |
| Other                comprehensive income (loss) |   |                                                | (262   | )                                                        |   | 64                                        |   |   | (198 | ) |
|                                             |   |                                                |   |                                                     |   |                                      |   |   |   |   |
| Balances                at December 31, 2004     |   |                                                | 188    |                                                     |   | (96                                       | )      |   | 92 |   |
| Other                comprehensive income (loss) |   |                                                | (188   | )                                                        |   | 90                                        |   |   | (98 | ) |
|                                             |   |                                                |   |                                                     |   |                                      |   |   |   |   |
| Balances                at December 31, 2005     |   | $                                                   | 0      |                                                     | $      | (6                                        | )      | $ | (6 | ) |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**1.         NATURE OF OPERATIONS AND ACCOUNTING POLICIES, Continued.**

**Volume-Based      Sales and Dealer Incentives - **

**Income      Taxes - **

**Reclassifications      - **

**2.   SEGMENT      INFORMATION.**

Note 1
Note 11

|                                            |   | 2005   |    | 2004   |   | 2003    |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| Net                sales:                       |   |   |    |   |   |    |   |   |   |   |
| Recreational                vehicles            |   |   |    |   |   |    |   |   |   |   |
| Motorhomes                                      |   | $      | 350,876 |   | $      | 421,325 |   | $ | 303,631 |   |
| Travel                trailers and fifth wheels |   |   | 149,263 |   |   | 143,253 |   |   | 135,075 |   |
| Camping                trailers                 |   |   | 15,152  |   |   | 22,776  |   |   | 17,483 |   |
| Truck                campers                    |   |   | -       |   |   | 4       |   |   | 14 |   |
| Parts                and supplies               |   |   | 6,903   |   |   | 6,396   |   |   | 5,499 |   |
|                                            |   |   |    |   |   |    |   |   |   |   |
| Total                recreational vehicles      |   |   | 522,194 |   |   | 593,754 |   |   | 461,702 |   |
| Housing                and buildings            |   |   | 180,231 |   |   | 208,592 |   |   | 175,189 |   |
|                                            |   |   |    |   |   |    |   |   |   |   |
| Consolidated                total               |   | $      | 702,425 |   | $      | 802,346 |   | $ | 636,891 |   |
|                                            |   |   |    |   |   |    |   |   |   |   |
| Gross                profit                     |   |   |    |   |   |    |   |   |   |   |
| Recreational                vehicles            |   | $      | 15,307  |   | $      | 57,723  |   | $ | 42,498 |   |
| Housing                and buildings            |   |   | 40,653  |   |   | 54,923  |   |   | 49,948 |   |
| Other                reconciling items          |   |   | -       |   |   | 180     |   |   | (51 | ) |
| Total                                           |   | $      | 55,960  |   | $      | 112,826 |   | $ | 92,395 |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**2.         SEGMENT INFORMATION, Continued.**

|                                                            |   |  2005 |    |  2004 |   |  2003 |   |
|-----------------------------------------------------------------|--------|------------|---------|------------|--------|------------|--------|
| Operating                expenses                               |   |       |    |       |   |       |   |   |   |   |
| Recreational                vehicles                            |   | $          | 55,049  |       | $      | 47,051     |   | $ | 41,102 |   |
| Housing                and buildings                            |   |       | 43,335  |       |   | 45,530     |   |   | 37,636 |   |
| Other                reconciling items                          |   |       | (5,595  | )          |   | 139        |   |   | 1,265 |   |
| Total                                                           |   | $          | 92,789  |       | $      | 92,720     |   | $ | 80,003 |   |
|                                                            |   |       |    |       |   |       |   |   |   |   |
| Operating                income/(loss)                          |   |       |    |       |   |       |   |   |   |   |
| Recreational                vehicles                            |   | $          | (39,742 | )          | $      | 10,672     |   | $ | 1,396 |   |
| Housing                and buildings                            |   |       | (2,682  | )          |   | 9,393      |   |   | 12,312 |   |
| Other                reconciling items                          |   |       | 5,595   |       |   | 41         |   |   | (1,316 | ) |
| Total                                                           |   | $          | (36,829 | )          | $      | 20,106     |   | $ | 12,392 |   |
|                                                            |   |       |    |       |   |       |   |   |   |   |
| Pre-tax                income/(loss) from continuing operations |   |       |    |       |   |       |   |   |   |   |
| Recreational                vehicles                            |   | $          | (40,760 | )          | $      | 10,628     |   | $ | 1,226 |   |
| Housing                and buildings                            |   |       | (2,403  | )          |   | 9,834      |   |   | 12,522 |   |
| Other                reconciling items                          |   |       | 5,809   |       |   | 389        |   |   | (1,003 | ) |
| Total                                                           |   | $          | (37,354 | )          | $      | 20,851     |   | $ | 12,745 |   |
|                                                            |   |       |    |       |   |       |   |   |   |   |
| Total                assets                                     |   |       |    |       |   |       |   |   |   |   |
| Recreational                vehicles                            |   | $          | 152,501 |       | $      | 174,101    |   | $ | 126,157 |   |
| Housing                and buildings                            |   |       | 83,338  |       |   | 111,099    |   |   | 105,056 |   |
| Other                reconciling items                          |   |       | 86,977  |       |   | 72,523     |   |   | 79,475 |   |
| Total                                                           |   | $          | 322,816 |       | $      | 357,723    |   | $ | 310,688 |   |

|                                 |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Total                goodwill        |   |   |   |   |   |   |   |   |   |   |
| Recreational                vehicles |   | $      | 4,132  |   | $      | 4,132  |   | $      | 4,132  |   |
| Housing                and buildings |   |   | 13,251 |   |   | 14,000 |   |   | 14,822 |   |
| Total                                |   | $      | 17,383 |   | $      | 18,132 |   | $      | 18,954 |   |

|                                   |   | 2005   |   | 2004   |   | 2003   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Interest                expense:       |   |   |   |   |   |   |   |   |   |   |
| Recreational                vehicles   |   | $      | 1,171  |   | $      | 135    |   | $ | 278 |   |
| Housing                and buildings   |   |   | 339    |   |   | 212    |   |   | 96 |   |
| Other                reconciling items |   |   | 1,658  |   |   | 1,447  |   |   | 619 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                total      |   | $      | 3,168  |   | $      | 1,794  |   | $ | 993 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |
| Depreciation:                          |   |   |   |   |   |   |   |   |   |   |
| Recreational                vehicles   |   | $      | 3,515  |   | $      | 2,852  |   | $ | 2,140 |   |
| Housing                and buildings   |   |   | 2,879  |   |   | 3,058  |   |   | 3,109 |   |
| Other                reconciling items |   |   | 709    |   |   | 1,687  |   |   | 2,541 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                total      |   | $      | 7,103  |   | $      | 7,957  |   | $ | 7,790 |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**3.   INVENTORIES.**

|                           |   | 2005   |    | 2004   |   |
|--------------------------------|--------|--------|---------|--------|--------|
|                           |   |   |    |   |   |
| Raw                materials   |   | $      | 33,413  |   | $      | 39,524 |   |
| Work                in process |   |   | 20,795  |   |   | 21,173 |   |
| Improved                lots   |   |   | 261     |   |   | 2,236 |   |
| Finished                goods  |   |   | 66,835  |   |   | 73,155 |   |
|                           |   |   |    |   |   |   |   |
| Total                          |   | $      | 121,304 |   | $      | 136,088 |   |

**4.   PROPERTY,      PLANT AND      EQUIPMENT.**

|                                              |   | 2005   |    | 2004   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|
|                                              |   |   |    |   |   |
| Land                and improvements              |   | $      | 13,255  |   | $      | 15,671 |   |
| Buildings                and improvements         |   |   | 68,007  |   |   | 78,359 |   |
| Machinery                and equipment            |   |   | 31,468  |   |   | 33,241 |   |
| Transportation                equipment           |   |   | 16,279  |   |   | 16,127 |   |
| Office                furniture and fixtures      |   |   | 19,080  |   |   | 20,311 |   |
|                                              |   |   |    |   |   |   |   |
| Total                                             |   |   | 148,089 |   |   | 163,709 |   |
| Less,                accumulated depreciation     |   |   | 80,508  |   |   | 81,358 |   |
|                                              |   |   |    |   |   |   |   |
| Property,                plant and equipment, net |   | $      | 67,581  |   | $      | 82,351 |   |

**5.   SHORT-TERM      BORROWINGS.**

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**6.   LONG-TERM      DEBT.**

|                                                                                                                                                                                                                                                                                             |   | 2005   |   | 2004   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Term                Loan, variable rate (7.2% and 4.5% at December 31, 2005 and 2004,                respectively), maturities through 2009                                                                                                                                                      |   | $      | 6,438  |   | $      | 7,188 |   |
| Obligations                under industrial development revenue bonds, variable rates (effective                weighted average interest rates of                3.7% and 2.1% at December 31, 2005 and 2004, respectively), with                various                maturities through 2015 |   |   | 8,035  |   |   | 9,200 |   |
| Obligations                under Community Development Block Grants                                                                                                                                                                                                                              |   |   | -      |   |   | 2 |   |
| Obligations                under capital leases, interest imputed at rates ranging from 2.9%                to 6.8%,                with maturities through 2011                                                                                                                                 |   |   | 663    |   |   | 748 |   |
|                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Subtotal                                                                                                                                                                                                                                                                                         |   |   | 15,136 |   |   | 17,138 |   |
|                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Less,                current maturities of long-term debt                                                                                                                                                                                                                                        |   |   | 2,223  |   |   | 2,195 |   |
|                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Long-term                debt                                                                                                                                                                                                                                                                    |   | $      | 12,913 |   | $      | 14,943 |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**6.         LONG-TERM DEBT, Continued. **

** **

**7.   ACCRUED      EXPENSES AND OTHER      LIABILITIES.**

|                                                                                                                                                                |   | 2005   |        | 2004   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|
|                                                                                                                                                                |   |   |        |   |   |
| Wages,                salaries, bonuses and commissions                                                                                                             |   | $      | 3,156       |   | $      | 5,366 |   |
| Dealer                incentives, including volume bonuses, dealer trips, interest                reimbursement, co-op advertising and                other rebates |   |   | 4,284       |   |   | 5,119 |   |
| Warranty                                                                                                                                                            |   |   | 20,005      |   |   | 10,140 |   |
| Insurance-products                and general liability, workers compensation, group health and                other                                                |   |   | 6,833       |   |   | 5,589 |   |
| Customer                deposits and unearned revenues                                                                                                              |   |   | 10,029      |   |   | 7,340 |   |
| Litigation                                                                                                                                                          |   |   |  3,740 |   |   |  520 |   |
| Interest                                                                                                                                                            |   |   |  1,980 |   |   |  551 |   |
| Sales                and property taxes                                                                                                                             |   |   |  1,948 |   |   |  1,979 |   |
| Other                current liabilities                                                                                                                            |   |   | 2,881       |   |   | 2,862 |   |
|                                                                                                                                                                |   |   |        |   |   |   |   |
| Total                                                                                                                                                               |   | $      | 54,856      |   | $      | 39,466 |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**8.   COMMON      STOCK MATTERS AND EARNINGS PER SHARE.**

**Stock      Option Plan **

|                                          |   | Numberof                Shares |   | Weighted-AverageExercisePrice |   |
|-----------------------------------------------|--------|--------------------------------|--------|-------------------------------|--------|
|                                          |   |                           |   |                          |   |
| Outstanding,                January 1, 2003   |   |                           | 716    |                          | $      | 15.74 |   |
| Granted                                       |   |                           | 36     |                          |   | 12.41 |   |
| Canceled                                      |   |                           | (180   | )                             |   | 18.17 |   |
| Exercised                                     |   |                           | (26    | )                             |   | 8.66 |   |
|                                          |   |                           |   |                          |   |   |   |
| Outstanding,                December 31, 2003 |   |                           | 546    |                          |   | 15.05 |   |
| Granted                                       |   |                           | -      |                          |   | - |   |
| Canceled                                      |   |                           | (184   | )                             |   | 20.52 |   |
| Exercised                                     |   |                           | (35    | )                             |   | 12.21 |   |
|                                          |   |                           |   |                          |   |   |   |
| Outstanding,                December 31, 2004 |   |                           | 327    |                          |   | 12.26 |   |
| Granted                                       |   |                           | -      |                          |   | - |   |
| Canceled                                      |   |                           | (15    | )                             |   | 14.69 |   |
| Exercised                                     |   |                           | (28    | )                             |   | 11.66 |   |
|                                          |   |                           |   |                          |   |   |   |
| Outstanding,                December 31, 2005 |   |                           | 284    |                          | $      | 12.19 |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**8.         COMMON STOCK MATTERS AND EARNINGS PER SHARE, Continued.**

|                                         |  Options                Outstanding   | Options                Exercisable   |
|----------------------------------------------|------------------------------------------------------|------------------------------------------------|
|                                         |                                                 |                                           |   |   |   |
|                                         |  Number                Outstanding at           | Weighted-Average                Remaining      | Weighted-Average | Number                Exercisable at | Weighted-Average |
|  Range                of Exercise Price |  December                31, 2005               | Contractual                Life                | Exercise                Price | December                31, 2005 | Exercise                Price |
|                                         |                                                 |                                           |   |   |   |
|  $7.88                - $12.00          |  201                                            |  5.1                                      |  $10.46 |  193 |  $10.43 |
|  12.01                - 17.00           |  71                                             |  6.3                                      |                   16.12 |  51 |                   16.24 |
|  17.01                - 18.68           |  12                                             |  7.0                                      |                   18.15 |  8 |                   18.27 |
|                                         |                                                 |                                           |   |   |   |
|                                         |  284                                            |                                           |   | 252 |   |

**Stock      Award Programs**

*Accounting      for Certain Transactions Involving Stock Compensation*

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**8.         COMMON STOCK MATTERS AND EARNINGS PER SHARE, Continued.**

|                                          |   | Numberof                Shares |         |
|-----------------------------------------------|--------|--------------------------------|--------------|
| Outstanding,                January 1, 2003   |   |                           |  -      |   |
| Granted                                       |   |                           |  88,500 |   |
| Forfeited                                     |   |                           |  (1,800 | )  |
|                                          |   |                           |         |   |
| Outstanding,                December 31, 2003 |   |                           | 86,700       |   |
| Granted                                       |   |                           | 99,600       |   |
| Forfeited                                     |   |                           | (17,190      | ) |
|                                          |   |                           |         |   |
| Outstanding,                December 31, 2004 |   |                           | 169,110      |   |
| Granted                                       |   |                           | 75,600       |   |
| Forfeited                                     |   |                           | (102,410     | ) |
|                                          |   |                           |         |   |
| Outstanding,                December 31, 2005 |   |                           | 142,300      |   |

**Stock      Purchase Plan **

**Earnings      Per Share **

|                                                                                                          |   | 2005   |    | 2004   |   | 2003   |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|
| Numerator:                                                                                                    |   |   |    |   |   |   |   |   |   |   |
| Net                income (loss) available to common stockholders                                             |   | $      | (26,350 | )      | $      | 15,334 |   | $ | 7,365 |   |
| Denominator:                                                                                                  |   |   |    |   |   |   |   |   |   |   |
| Number                of shares outstanding, end of period:                                                   |   |   |    |   |   |   |   |   |   |   |
| Common                stock                                                                                   |   |   | 15,759  |   |   | 15,724 |   |   | 15,553 |   |
| Effect                of weighted average contingently liable shares outstanding during                period |   |   | (245    | )      |   | (172   | )      |   | (77 | ) |
| Effect                of weighted average shares outstanding during period                                    |   |   | 37      |   |   | (69    | )      |   | (39 | ) |
| Weighted                average number of common shares used in basic EPS                                     |   |   | 15,551  |   |   | 15,483 |   |   | 15,437 |   |
| Effect                of dilutive securities                                                                  |   |   |    |   |   |   |   |   |   |   |
| Stock                options and awards                                                                       |   |   | -       |   |   | 68     |   |   | 50 |   |
| Weighted                average number of common shares used in diluted EPS                                   |   |   | 15,551  |   |   | 15,551 |   |   | 15,487 |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**8.         COMMON STOCK MATTERS AND EARNINGS PER SHARE, Continued.**

**Shareholder      Rights Plan **

**9.   COMPENSATION      AND BENEFIT      PLANS.**

**Incentive      Compensation **

**Deferred      Compensation **

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**9.         COMPENSATION AND BENEFIT PLANS, Continued.**

**Supplemental      Deferred Compensation **

**Employee      Benefit Plans **

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**10.   INCOME      TAXES.**

|                                                    |   |  2005 |    |  2004 |   |  2003 |   |
|---------------------------------------------------------|--------|------------|---------|------------|--------|------------|--------|
| Federal:                                                |   |       |    |       |   |       |   |
|                   Current                     |   | $          | (8,673  | )          | $      | 7,090      |   | $ | 3,515 |   |
|                 Deferred                      |   |       | (5,888  | )          |   | (1,587     | )      |   | 273 |   |
|                                                    |   |       |    |       |   |       |   |   |   |   |
|                                                    |   |       | (14,561 | )          |   | 5,503      |   |   | 3,788 |   |
|                                                    |   |       |    |       |   |       |   |   |   |   |
| State:                                             |   |       |    |       |   |       |   |   |   |   |
|                 Current                  |   |       | (2,964  | )          |   | 1,192      |   |   | 491 |   |
|                 Deferred                 |   |       | (469    | )          |   | (102       | )      |   | 23 |   |
|                                                    |   |       |    |       |   |       |   |   |   |   |
|                                                    |   |       | (3,433  | )          |   | 1,090      |   |   | 514 |   |
|                                                    |   |       |    |       |   |       |   |   |   |   |
|                    Total  |   | $          | (17,994 | )          | $      | 6,593      |   | $ | 4,302 |   |

|                                                                                                                                                               |   |  2005 |    |  2004 |   |  2003 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|---------|------------|--------|------------|--------|
| Computed              federal income tax at federal statutory rate                                                                                                 |   | $          | (13,074 | )          | $      | 7,298      |   | $ | 4,460 |   |
| Changes              resulting from:                                                                                                                               |   |       |    |       |   |       |   |   |   |   |
| Increase                in cash surrender value of life insurance contracts                                                                                        |   |       | (397    | )          |   | (395       | )      |   | (434 | ) |
| Current                year state income taxes, net of federal income tax benefit                                                                                  |   |       | (1,942  | )          |   | 436        |   |   | 347 |   |
| Preferred                stock dividend exclusion                                                                                                                  |   |       | (9      | )          |   | (189       | )      |   | (100 | ) |
| Extraterritorial                income exclusion                                                                                                                   |   |       | (71     | )          |   | (57        | )      |   | (50 | ) |
| Tax                benefit on prior years' federal and state research and development                (R&D) credits                                             |   |       | (2,378  | )          |   | 0          |   |   | 0 |   |
| Tax                benefit of current years' federal R&D tax credit carryforward, AMT                credit carryforward                and other credits |   |       | (454    | )          |   | 0          |   |   | 0 |   |
| Decrease                in federal tax reserves, net of additional state tax                reserves                                                               |   |       | 53      |       |   | (487       | )      |   | 0 |   |
| Other,                net                                                                                                                                          |   |       | 278     |       |   | (13        | )      |   | 79 |   |
|                                                                                                                                                               |   |       |    |       |   |       |   |   |   |   |
| Total                                                                                                                                                              |   | $          | (17,994 | )          | $      | 6,593      |   | $ | 4,302 |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

**10.        INCOME TAXES, Continued.**

|                                                             |   | 2005   |   | 2004   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Current                deferred tax asset (liability):           |   |   |   |   |   |   |   |
| Accrued                warranty expense                          |   | $      | 6,815  |   | $      | 2,979 |   |
| Accrued                self-insurance                            |   |   | 1,900  |   |   | 1,991 |   |
| Inventories                                                      |   |   | 956    |   |   | 572 |   |
| Receivables                                                      |   |   | 471    |   |   | 365 |   |
| Prepaid                insurance                                 |   |   | (602   | )      |   | (394 | ) |
| Litigation                reserve                                |   |   | 1,421  |   |   | 198 |   |
| Other                                                            |   |   | 460    |   |   | 303 |   |
|                                                             |   |   |   |   |   |   |   |
| Net                current deferred tax asset                    |   | $      | 11,421 |   | $      | 6,014 |   |
|                                                             |   |   |   |   |   |   |   |
| Noncurrent                deferred tax asset (liability):        |   |   |   |   |   |   |   |
| Deferred                compensation                             |   | $      | 3,950  |   | $      | 3,721 |   |
| Property                and equipment and other real estate      |   |   | (636   | )      |   | (5,216 | ) |
| Intangible                assets                                 |   |   | (2,459 | )      |   | (2,361 | ) |
| Alternative                minimum tax credit carryover          |   |   | 171    |   |   | - |   |
| Federal                research and development credit carryover |   |   | 420    |   |   | - |   |
| State                net operating loss carryforward credits     |   |   | 2,777  |   |   | - |   |
| Other                                                            |   |   | 56     |   |   | 344 |   |
|                                                             |   |   |   |   |   |   |   |
| Net                noncurrent deferred tax asset (liability)     |   | $      | 4,279  |   | $      | (3,512 | ) |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

| **11.  ** | **RESTRUCTURING                CHARGES AND DISCONTINUED                OPERATIONS.** |
|---------------------|--------------------------------------------------------------------------------------|

**Housing      and Building Segment**

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued **

| **11.  ** | **RESTRUCTURING                CHARGES AND DISCONTINUED OPERATIONS,                Continued.** |
|---------------------|-------------------------------------------------------------------------------------------------|

|                                          |   | 2005   |   | 2004   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |
| Cash                                          |   | $      | 242    |   | $      | (72 | ) |
| Accounts                and other receivables |   |   | 4,401  |   |   | 6,483 |   |
| Prepaid                Expenses               |   |   | 510    |   |   | 410 |   |
| Inventories                                   |   |   | 10,423 |   |   | 11,855 |   |
| Other                long-term assets         |   |   | 124    |   |   | 305 |   |
| Fixed                assets                   |   |   | 34     |   |   | 11,207 |   |
| Accounts                payable               |   |   | (1,777 | )      |   | (2,595 | ) |
| Other                current liabilities      |   |   | (5,341 | )      |   | (3,282 | ) |
|                                          |   |   |   |   |   |   |   |
| Net                assets held for sale       |   | $      | 8,616  |   | $      | 24,311 |   |

**Recreational      Vehicle Segment**

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued**

| **11.  ** | **RESTRUCTURING                CHARGES AND DISCONTINUED OPERATIONS,                Continued.** |
|---------------------|-------------------------------------------------------------------------------------------------|

|                                          |   | 2005   |   | 2004   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |
| Accounts                and other receivables |   | $      | 781    |   | $      | 1,001 |   |
| Prepaid                expenses               |   |   | 51     |   |   | 37 |   |
| Inventories                                   |   |   | 909    |   |   | 2,057 |   |
| Other                long-term assets         |   |   | 437    |   |   | 220 |   |
| Fixed                assets                   |   |   | 4,144  |   |   | 4,401 |   |
| Accounts                payable               |   |   | (116   | )      |   | (486 | ) |
| Other                current liabilities      |   |   | (495   | )      |   | (798 | ) |
|                                          |   |   |        |   |   |   |   |
| Net                assets held for sale  |   | $      | 5,711  |   | $      | 6,432 |   |

**12. COMMITMENTS      AND CONTINGENCIES. **

**Lease      Commitments **

**Obligation      to Purchase Consigned Inventories **

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued**

**12.       COMMITMENTS AND CONTINGENCIES, Continued.**

**Repurchase      Agreements**

**Corporate      Guarantees**

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued**

**12.       COMMITMENTS AND CONTINGENCIES, Continued.**

**Share      Repurchase Programs**

**Financing      Obligation**

**Self-Insurance      **

Note      7

**Change      of Control Agreements **

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued**

**12.       COMMITMENTS AND CONTINGENCIES, Continued.**

Note 9

**Litigation      **

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued**

**13. UNAUDITED      INTERIM FINANCIAL      INFORMATION.**

|                                                            |   | 2005                            |
|-----------------------------------------------------------------|--------|------------------------------------------------|
|                                                            |   | Quarter                Ended    |
|                                                            |   |  March                31                  |   |  June                30 |   |  September                30 |   |  December                31 |   |
|                                                            |   |                                           |   |   |   |   |   |   |   |
| Net              Sales                                          |   | $                                              | 192,249 |   | $ | 190,031 |   | $ | 180,168 |   | $ | 139,977 |   |
| Gross              profit                                       |   |                                           | 18,786 |   |   | 20,121 |   |   | 13,715 |   |   | 3,338 |   |
| Net loss              from continuing operations           |   |                                           | (953 | ) |   | (1,660 | ) |   | (6,175 | ) |   | (10,572 | ) |
| Net              loss                                      |   |                                           | (1,386 | ) |   | (1,470 | ) |   | (9,346 | ) |   | (14,148 | ) |
| Net              loss per common share - Basic        |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                            |   |                                           | (.06 | ) |   | (.10 | ) |   | (.40 | ) |   | (.68 | ) |
| Discontinuing                operations                    |   |                                           | (.03 | ) |   | .01 |   |   | (.20 | ) |   | (.23 | ) |
|                                                            |   |                                           | (.09 | ) |   | (.09 | ) |   | (.60 | ) |   | (.91 | ) |
| Net              loss per common share - Diluted           |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                            |   |                                           | (.06 | ) |   | (.10 | ) |   | (.40 | ) |   | (.68 | ) |
| Discontinuing                operations                         |   |                                           | (.03 | ) |   | .01 |   |   | (.20 | ) |   | (.23 | ) |
|                                                            |   |                                           | (.09 | ) |   | (.09 | ) |   | (.60 | ) |   | (.91 | ) |
|                                                            |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   | 2004                       |
|                                                            |   | Quarter                Ended                   |
|                                                            |   |                                           | March                31 |  |   | June                30 |   |   | September                30 |   |   | December                31 |   |
|                                                            |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Net              sales                                     |   | $                                              | 184,501 |   | $ | 215,783 |   | $ | 214,865 |   | $ | 187,197 |   |
| Gross              profit                                       |   |                                           | 22,300 |   |   | 33,232 |   |   | 33,489 |   |   | 23,805 |   |
| Net              income from continuing operations         |   |                                           | 1,139 |   |   | 5,580 |   |   | 5,843 |   |   | 1,696 |   |
| Net              income                                    |   |                                           | 641 |  |   | 5,191 |   |   | 5,941 |   |   | 3,561 |   |
| Net              income (loss) per common share - Basic    |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                       |   |                                           | .07 |   |   | .36 |   |   | .37 |   |   | .11 |  |
| Discontinuing                operations                    |   |                                           | (.03 | ) |   | (.02 | ) |   | .01 |   |   | .12 |   |
|                                                            |   |                                           | .04 |   |   | .34 |   |   | .38 |   |   | .23 |   |
| Net              income (loss) per common share - Diluted  |   |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                       |   |                                           | .07 |   |   | .36 |   |   | .37 |   |   | .11 |   |
| Discontinuing                operations                    |   |                                           | (.03 | ) |   | (.02 | ) |   | .01 |   |   | .12 |   |
|                                                            |   |                                           | .04 |   |   | .34 |   |   | .38 |   |   | .23 |   |

----

Index

**Coachmen      Industries, Inc. and Subsidiaries **

**Notes      to Consolidated Financial Statements, Continued**

**13.       UNAUDITED INTERIM FINANCIAL INFORMATION, Continued.**

Note 11
Note 11

----

Index

| **Item                9.** | **Changes                in and Disagreements with Accountants on Accounting and Financial                Disclosure** |
|----------------------------|------------------------------------------------------------------------------------------------------------------------|

| **Item                9A.** | **Controls                and Procedures** |
|-----------------------------|--------------------------------------------|

**Conclusion      Regarding the Effectiveness of Disclosure Controls and Procedures**

**Management's      Report on Internal Control Over Financial Reporting **

|   | • | Pertain                to the maintenance of records that, in reasonable detail, accurately                and                fairlyreflect 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 financial statements. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Changes      in Internal Control Over Financial Reporting **

----

Index

**Part      III.**

| **Item                10.** | **Directors                and Executive Officers of the Registrant** |
|-----------------------------|-----------------------------------------------------------------------|

|   |   | **(a)                Identification of Directors** |
|--------|--------|----------------------------------------------------|

|   |   | **(b)                Executive Officers of the Company** |
|--------|--------|----------------------------------------------------------|

Executive Officers of the Registrant

|   | **(c)                Beneficial Ownership Reporting Compliance** |
|--------|------------------------------------------------------------------|

|   | **(d)                Code of Ethics** |
|--------|---------------------------------------|

|   | **(e)                Audit Committee and Financial Expert of the Audit                Committee** |
|--------|---------------------------------------------------------------------------------------------------|

|   | **(f)                Nominations for Director** |
|--------|-------------------------------------------------|

| **Item                11.** | **Executive                Compensation** |
|-----------------------------|-------------------------------------------|

| **Item                12.** | **Security                Ownership of Certain Beneficial 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     |   |                                                                                                                                                           | 284,425 |                                                                                                                                 | $      | 12.19                                                                                                                                |   |   | 1,218,099 |   |
|                                                                  |   |                                                                                                                                                           |    |                                                                                                                                 |   |                                                                                                                                 |   |   |   |   |
| Equity                compensation plans not approved by shareholders |   |                                                                                                                                                           | -       |                                                                                                                                 |   | -                                                                                                                                    |   |   | - |   |
|                                                                  |   |                                                                                                                                                           |    |                                                                                                                                 |   |                                                                                                                                 |   |   |   |   |
| Total                                                                 |   |                                                                                                                                                           | 284,425 |                                                                                                                                 | $      | 12.19                                                                                                                                |   |   | 1,218,099 |   |

| **Item                13.** | **Certain                Relationships and Related Transactions** |
|-----------------------------|-------------------------------------------------------------------|

| **Item                14.** | **Principal                Accountant Fees and Services** |
|-----------------------------|-----------------------------------------------------------|

**Part      IV.**

| **Item                15.** | **Exhibits                  and Financial Statement                  Schedule** |
|-----------------------------|---------------------------------------------------------------------------------|

| (a) | The                following Financial Statements and Financial Statement Schedule are                included in Item 8 herein. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | Reports                of Independent Registered Public Accounting                Firm |
|--------|----------------------------------------------------------------------------------------|

|   | Consolidated                Balance Sheets at December 31, 2005 and 2004 |
|--------|--------------------------------------------------------------------------|

|   | Consolidated                Statements of Operations for the years ended December 31, 2005, 2004                and                2003 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | Consolidated                Statements of Shareholders' Equity for the years ended December 31,                2005,                2004 and 2003 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Consolidated                Statements of Cash Flows for the years ended December 31, 2005, 2004                and                2003 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | Notes                to Consolidated Financial                Statements |
|--------|--------------------------------------------------------------------------|

** **

|   | Schedule                II - Valuation and Qualifying                Accounts |
|--------|-------------------------------------------------------------------------------|

|   | See                Index to Exhibits. |
|--------|---------------------------------------|

----

Index

**SCHEDULE      II**

**VALUATION      AND QUALIFYING ACCOUNTS**

| Description                                                                |   | Balance                AtBeginningOf                Period |       | Additions                ChargedTo                CostsAnd                Expenses |   | Payment                orUtilization |                 | Balance                At EndOf                Period |        |
|----------------------------------------------------------------------------|--------|------------------------------------------------------------|------------|------------------------------------------------------------------------------------|--------|--------------------------------------|----------------------|-------------------------------------------------------|-------------|
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |
| **Fiscal                year ended December 31, 2005:**                    |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Allowance                for doubtful accounts:                            |   | $                                                          | 919,000    |                                                                               | $      | 988,000                              |                 | $                                                     | (667,000    | )                (A) | $ | 1,240,000 |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Product                warranty reserves:                                  |   | $                                                          | 10,140,000 |                                                                               | $      | 34,771,000                           |   (D)      | $                                                     | (24,906,000 | )                (B) | $ | 20,005,000 |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Repurchase                agreement and Corporate guarantee loss reserves: |   | $                                                          | 726,000    |                                                                               | $      | 225,000                              |                 | $                                                     | (176,000    | ) | $ | 775,000 |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| **Fiscal                year ended December 31, 2004:**                    |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Allowance                for doubtful accounts:                            |   | $                                                          | 1,208,000  |                                                                               | $      | 158,000                              |                 | $                                                     | (447,000    | )                (A) | $ | 919,000 |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Product                warranty reserves:                                  |   | $                                                          | 8,658,000  |                                                                               | $      | 22,189,000                           |                 | $                                                     | (20,707,000 | )                (B) | $ | 10,140,000 |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Repurchase                agreement and Corporate guarantee loss reserves: |   | $                                                          | 350,000    |                                                                               | $      | 564,000                              |                 | $                                                     | (188,000    | ) | $ | 726,000 |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| **Fiscal                year ended December 31, 2003:**                    |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Allowance                for doubtful accounts:                            |   | $                                                          | 861,000    |                                                                               | $      | 574,000                              |                 | $                                                     | (227,000    | )                (A) | $ | 1,208,000 |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Product                warranty reserves:                                  |   | $                                                          | 8,796,000  |                                                                               | $      | 16,467,000                           |                 | $                                                     | (16,605,000 | )                (B) | $ | 8,658,000 |   |
|                                                                       |   |                                                       |       |                                                                               |   |                                 |                 |                                                  |        |   |   |   |   |
| Repurchase                agreement and Corporate guarantee loss reserves: |   | $                                                          | 403,000    |                                                                               | $      | (11,000                              | )                (C) | $                                                     | (42,000     | ) | $ | 350,000 |   |

| (A) | Write-off                of bad debts, less recoveries. |
|-----|---------------------------------------------------------|

| (B) | Claims                paid, less recoveries. |
|-----|----------------------------------------------|

| (C) | Reflects                favorable change in estimate due to improved market conditions within                the                RV industry during 2003. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D) | 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

**SIGNATURES**

|                                   |   | COACHMEN                INDUSTRIES, INC.                                                                                                                         |
|----------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |   |                                                                                                                                                             |
| Date:                February 27, 2006 |   |                                                                                                                                                             |
|                                   |   | /s/                R. M. Lavers                                                                                                                                  |
|                                   |   | R.                M. Lavers                                                                                                                                      |
|                                   |   | (Executive                Vice President, General Counsel and Secretary, Chief Financial Officer                and                Chief Administrative Officer) |
|                                   |   |                                                                                                                                                             |
|                                   |   | /s/                C. A. Zuhl                                                                                                                                    |
|                                   |   | C.                A. Zuhl                                                                                                                                        |
|                                   |   | (Chief                Accounting Officer)                                                                                                                        |

| /s/                C. C. Skinner         |   | /s/                W. P. Johnson |
|------------------------------------------|--------|----------------------------------|
| C.                C. Skinner             |   | W.                P. Johnson     |
| (Director)                               |   | (Director)                       |
| (Chief                Executive Officer) |   |                             |
|                                     |   |                             |
| /s/                E. W. Miller          |   | /s/                P. G. Lux     |
| E.                W. Miller              |   | P.                G. Lux         |
| (Director)                               |   | (Director)                       |
|                                     |   |                             |
|                                     |   |                             |
| /s/                R. J. Deputy          |   | /s/                G. B. Bloom   |
| R.                J. Deputy              |   | G.                B. Bloom       |
| (Director)                               |   | (Director)                       |
|                                     |   |                             |
|                                     |   |                             |
| /s/                D. W. Hudler          |   |                             |
| D.                W. Hudler              |   |                             |
| (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 September 9, 2005 (incorporated by reference                to the                Company's Form 8-K filed September 15, 2005).                                                                                                                                                                                                                       |
|                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                  |
| (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)                                                                                 | Amendment                No. 1 to Credit Agreement dated as of October 28, 2003 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (incorporated by reference to Exhibit 4(c) to the Company's Annual                Report                on Form 10-K for the fiscal year ended December 31,                2004). |
|                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                  |
| (4)(d)                                                                                 | Amendment                No. 2 to Credit Agreement dated as of March 11, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (incorporated by reference to Exhibit 4(d) to the Company's Annual                Report                on Form 10-K for the fiscal year ended December 31,                2004).   |
|                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                  |
| (4)(e)                                                                                 | Amendment                No. 3 to Credit Agreement dated as of June 30, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (incorporated by reference to Exhibit 4(e) to the Company's Annual                Report                on Form 10-K for the fiscal year ended December 31,                2004).    |
|                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                  |
| (4)(f)                                                                                 | Amendment                No. 4 to Credit Agreement dated as of July 30, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (incorporated by reference to Exhibit 10.1 to the Company's Quarterly                Report on Form 10-Q for the quarter ended September 30,                2004).                   |
|                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                  |
| (4)(g)                                                                                 | Amendment                No. 5 to Credit Agreement dated as of December 1, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One Indiana,                N.A.                (incorporated by reference to Exhibit 10.1 to the Company's Form                8-K filed                December 8, 2004).                                                        |

----

Index

| (4)(h)      | Amendment                No. 6 to Credit Agreement dated as of December 30, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (incorporated by reference to Exhibit 10.1 to the Company's Form                8-K filed                January 4, 2005).                                    |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                               |
| *(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).                                                                                                            |
|        |                                                                                                                                                                                                                                                                                                                                                                               |
| *(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)     | Credit                Agreement dated as of June 30, 2003 among Coachmen Industries, Inc.,                the                Lenders named therein, and Bank One, Indiana, N.A. (included in Exhibit                4(a)).                                                                                                                                                         |
|        |                                                                                                                                                                                                                                                                                                                                                                               |
| (10)(j)     | Amendment                No. 1 to Credit Agreement dated as of October 28, 2003 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (included in Exhibit 4(b)).                                                                                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                               |
| (10)(k)     | Amendment                No. 2 to Credit Agreement dated as of March 11, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (included in Exhibit 4(c)).                                                                                                                                      |

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Index

| (10)(l)       | Amendment                No. 3 to Credit Agreement dated as of June 30, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (included in Exhibit 4(d)).                                                                                                                                                                                                     |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (10)(m)       | Amendment                No. 4 to Credit Agreement dated as of July 30, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (incorporated by reference to Exhibit 10.1 to the Company's Quarterly                Report on Form 10-Q for the quarter ended September 30,                2004).                                                              |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (10)(n)       | Amendment                No. 5 to Credit Agreement dated as of December 1, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One Indiana,                N.A.                (incorporated by reference to Exhibit 10.1 to the Company's Form                8-K filed                December 8, 2004).                                                                                                   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (10)(o)       | Amendment                No. 6 to Credit Agreement dated as of December 30, 2004 among Coachmen                Industries, Inc., the Lenders named therein and Bank One, Indiana,                N.A.                (incorporated by reference to Exhibit 10.1 to the Company's Form                8-K filed                January 4, 2005).                                                                                                  |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (10)(p)       | 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)(q)      | Summary                of Life Insurance and Long Term Disability Benefits for                Executives.                                                                                                                                                                                                                                                                                                                                        |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| *(10)(r)      | Description                of Non-management Director Compensation.                                                                                                                                                                                                                                                                                                                                                                              |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| *(10)(s)      | Summary                of 2005 Performance Metrics under the Company's Executive Annual                Performance Incentive Plan.                                                                                                                                                                                                                                                                                                               |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (10)(t)  | Mentor                Protege 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)(u)  | Amendment                No. 7 to Credit Agreement dated as of September 30, 2005 among Coachmen                Industries, Inc., the Lendors named therein and JP Morgan Chase Bank                as successor to Bank One Indiana N.A. (incorporated by reference                to                Exhibit 10(a) to the Company's Quarterly Report on Form 10-Q for                the                quarter ended September 30, 2005). |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (11)          | No                Exhibit - See Consolidated Statements of                Operations and Note 8 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,                2004).                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (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)          | Section                1350 Certification of Chief Executive Officer and Chief Financial                Officer.                                                                                                                                                                                                                                                                                                                                 |

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