SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549



                                 FORM 10-Q



            Quarterly Report Pursuant to Section 13 or 15(d) of
                    the Securities Exchange Act of 1934



  For Quarter  Ended September 30, 1999    Commission file number: 0-17824


                          REXHALL INDUSTRIES, INC.
           (Exact name of Registrant as specified in its charter)


               California                         95-4135907
       (State of Incorporation)     (IRS Employer Identification No.)



           46147 7th Street West, Lancaster, California     93534
          (Address of principal executive offices)      (Zip Code)



                               (661) 726-0565
            (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes   x    No _____.

                    Applicable only to Corporate Issuers

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 3,160,880  as of November
9, 1999.

<PAGE>


                         REXHALL INDUSTRIES, INC.

                                   INDEX

PART 1 - FINANCIAL INFORMATION                            PAGE NUMBER

  Item 1.

  Financial Statements (Unaudited):

     Condensed Balance Sheets at September 30, 1999            3
     and December 31, 1998

     Condensed Statements of Earnings for the
     three and nine months ended September 30,1999
     and September 30, 1998                                  4-5

     Condensed Statements of Cash Flows  for the
     nine months ended September 30, 1999
     and September 30, 1998                                    6

     Notes to Condensed Financial Statements
     as of September 30, 1999                                7-8

  Item 2.

    Management's Discussion and Analysis of
    Financial Condition and Results of Operations
                                                            9-13
 Item 3.

   Quantitative and Qualitative Disclosure
   about Market Risks                                         13

  PART II - OTHER INFORMATION

   Legal Proceedings                                          13

   Reports on Form 8-K: NONE

   Signatures                                                 14


<PAGE>



                                            (Unaudited)        (Audited)
                                            September 30      December 31
PART I - FINANCIAL INFORMATION                 1999               1998

  Item 1. - Financial Statements

  REXHALL INDUSTRIES, INC.  CONDENSED BALANCE SHEETS

 ASSETS

  CURRENT ASSETS
    Cash                                 $    2,674,000     $    5,017,000
    Accounts Receivable                       7,312,000          4,631,000
    Inventories                              18,746,000         12,774,000
    Other Current Assets                        360,000             33,000
    Deferred Income Taxes                     1,063,000            956,000
         Total Current Assets                30,155,000         23,411,000

  Property and Equipment - Net                4,821,000          4,519,000

  Property Held for Sale                        523,000            541,000

           TOTAL ASSETS                   $  35,499,000       $ 28,471,000

  LIABILITIES AND SHAREHOLDERS' EQUITY

  CURRENT LIABILITIES
    Accounts Payable                      $  11,344,000       $  7,958,000
    Warranty Allowance                        1,013,000            966,000
    Accrued Legal Settlement                    740,000            765,000
    Accrued Legal                               760,000            829,000
    Dealer Incentives                           952,000            830,000
    Accrued Compensation and Benefits           579,000            672,000
    Other Accrued Liabilities                   436,000            557,000
    Current Portion of Long-Term Debt            29,000             29,000
          Total Current Liabilities          15,853,000         12,606,000

    Deferred Income Tax Liabilities             149,000            106,000

    Long-Term Debt                              747,000            767,000

     TOTAL LIABILITIES                       16,749,000         13,479,000

  SHAREHOLDERS' EQUITY
    Preferred Stock - no par value;
    Authorized 1,000,000 shares; No
    shares outstanding at December 31,1998
    and September 30, 1999                          ---                ---

    Common Stock - no par value;
    Authorized 10,000,000 shares; issued and
    outstanding 3,010,000 shares at
    December 31, 1998 and 3,010,000 shares at
    September 30, 1999                        6,788,000          6,788,000
    Loan receivable from exercise
    of options                                 (399,000)          (399,000)
    Retained Earnings                        12,361,000          8,603,000
     TOTAL SHAREHOLDERS' EQUITY              18,750,000         14,992,000

     TOTAL LIABILITIES
     AND SHAREHOLDERS' EQUITY               $35,499,000        $28,471,000

See accompanying notes to condensed financial statements

<PAGE>

PART I - FINANCIAL INFORMATION

  Item 1. - Condensed Financial Statements

  REXHALL INDUSTRIES, INC.
  CONDENSED STATEMENTS OF EARNINGS
  (UNAUDITED)


                                              Three Months Ended
                                 September 30, 1999      September 30, 1998

Sales                               $20,590,000              $18,755,000

Cost of Sales                        16,574,000               15,079,000

Gross Profit                          4,016,000                3,676,000

Selling, General,
Administrative Expenses
and Other Expenses                    1,956,000                2,068,000

Earnings Before Income Taxes          2,060,000                1,608,000

Income Taxes                            809,000                  643,000

Net Earnings                        $ 1,251,000               $  965,000

Basic Earnings Per Share            $       .42               $      .33

Diluted Earnings Per Share          $       .42               $      .32

Weighted Average
Shares Outstanding - Basic            3,010,000                2,953,000

Weighted Average
Shares Outstanding - Diluted          3,010,000                2,980,000


See accompanying notes to condensed financial statements.

<PAGE>

PART I - FINANCIAL INFORMATION

  Item 1. - Financial Statements

  REXHALL INDUSTRIES, INC.
  CONDENSED STATEMENTS OF EARNINGS
  (UNAUDITED)


                                               Nine Months Ended
                                  September 30, 1999     September 30, 1998

Sales                                $ 63,760,000           $ 51,709,000

Cost of Sales                          51,939,000             42,542,000

Gross Profit                           11,821,000              9,167,000

Selling, General, Administrative
Expenses and Other Expenses             5,572,000              5,063,000

Earnings Before Income Taxes            6,249,000              4,104,000

Income Taxes                            2,491,000              1,640,000

Net Earnings                         $  3,758,000           $  2,464,000

Basic Earnings Per Share             $       1.25           $        .83

Diluted Earnings Per Share           $       1.25           $        .83

Weighted Average
Shares Outstanding - Basic              3,010,000              2,953,000

Weighted Average
Shares Outstanding - Diluted            3,010,000              2,980,000


See accompanying notes to condensed financial statements.

<PAGE>

PART I - FINANCIAL INFORMATION

  Item 1. - Financial Statements

REXHALL INDUSTRIES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                                                   Nine Months Ended
                                         Sept. 30, 1999      Sept. 30, 1998
CASH FLOWS FROM OPERATING ACTIVITIES:

Net Earnings                               $ 3,758,000        $  2,464,000
Adjustments to reconcile net income
to net cash (used in)provided by
Operating Activities:
Depreciation and Amortization                  234,000             253,000
Loss on sale of fixed assets                     5,000                 ---
Net change in deferred tax assets
and liabilities                                (64,000)                ---
(INCREASE) DECREASE IN:
Accounts Receivable                         (2,681,000)          1,545,000
Inventories                                 (5,972,000)         (1,593,000)
Other Assets                                  (327,000)            246,000
INCREASE (DECREASE) IN:
Accounts Payable                             3,386,000           1,868,000
Other Accrued and Current Liabilities         (261,000)          1,368,000
Dealer Incentives                              122,000             222,000

Net cash (used in) provided by
operating activities                        (1,800,000)          6,373,000

CASH FLOWS FROM INVESTING ACTIVITIES:

Additions to property and equipment           (581,000)           (366,000)
Proceeds from the sale of fixed assets          59,000                 ---
Net cash used in provided by in
investing activities                          (522,000)           (366,000)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of long-term debt                    (21,000)            (20,000)
Issuance of common stock                           ---             187,000

Net cash(used)provided by
in financing activities                        (21,000)            167,000

NET INCREASE (DECREASE) IN CASH             (2,343,000)          6,174,000

BEGINNING CASH BALANCE                       5,017,000             811,000

ENDING CASH BALANCE                        $ 2,674,000         $ 6,985,000

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
 CASH PAID DURING THE YEAR FOR

   Interest                                $    84,000         $    89,000
   Income Taxes                              2,900,000             106,000

SUPPLEMENTAL SCHEDULE OF NON CASH INVESTING
AND FINANCING ACTIVITIES:

   Issuance of Common Shares
   For Notes Receivable                    $       ---         $   385,000

<PAGE>

PART I - FINANCIAL INFORMATION

  Item 1.

                         REXHALL INDUSTRIES, INC.
                Notes to the Condensed Financial Statements

                             September 30, 1999

1.  Basis of Presentation:

The accompanying unaudited condensed Financial Statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q.  Accordingly,
they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.
However, in the opinion of management, they include all adjustments,
consisting of normal accruals, necessary to present fairly the information
set forth herein in accordance with generally accepted accounting principles
for interim reporting.

For further information refer to the Financial Statements and footnotes
included in the Registrant's Annual Report on Form 10-K for year ended
December 31, 1998.

The Results of Operations for any interim period are not necessarily
indicative of the results to be expected for the full year.

2.  Summary of Significant Accounting Polices:

Income Taxes

Income tax expense is based upon the estimated effective tax rate for the
entire fiscal year.  The effective tax rate is subject to ongoing evaluation
by management.

Earnings Per Share

Basic earnings per share represents net earnings divided by the weighted-
average number of common shares outstanding for the period.  Diluted earnings
per share represents net earnings divided by the weighted-average number of
shares outstanding, inclusive of the dilutive impact of common stock options.

Reclassifications

Certain reclassifications have been made to prior year to conform to current
period financial statement presentation.


3. Detail of Inventory               September 30, 1999    December 31, 1998

    Raw Material                         $12,058,000         $ 7,593,000
    Work in Process                        2,253,000           1,522,000
    Finished Motorhomes                    4,435,000           3,659,000
     TOTAL                               $18,746,000         $12,774,000

Ford Motor Company has advised Rexhall that they are changing their chassis
allocation program for the Year 2000.  This could lower our monthly
allocation of Ford chassis.  In anticipation of the revised allocation
program,  the Company has increased the chassis inventory.  For the Year
2000, the Company will also pursue alternative sources of chassis to augment
any possible reduction in allocation.

<PAGE>

4.  Income Per Share

The following is a reconciliation of the basic and diluted earnings per share
computation for the three and nine month periods ended September 30, 1999 and
1998.

                       Three Months                       Nine Months
               Sept. 30, 1999 Sept. 30, 1998  Sept. 30, 1999  Sept. 30, 1998
Net income
used for basic
and diluted earnings
per share        $ 1,251,000    $  965,000       $ 3,758,000    $ 2,464,000
Weighted average
shares used In
basic computation  3,010,000     2,953,000         3,010,000      2,953,000
Dilutive effect
of stock option          ---        27,000               ---         27,000
Weighted average
shares used in dilutive
computation        3,010,000     2,980,000         3,010,000      2,980,000

Earnings per share:
Basic            $      0.42   $      0.33       $      1.25    $      0.83
Diluted          $      0.42   $      0.32       $      1.25    $      0.83


5.  Long-Term Debt

The Company negotiated a renewal of the $3,500,000 line of credit with a bank
through July 1, 2001.  Under this line, the Company has set aside $220,000
for an irrevocable standby letter of credit issued to the Department of
Industrial Relations for worker's compensation.  At September 30, 1999, no
amounts were outstanding.  The line contains various covenants, for which the
Company was in compliance.

The Company has a line of credit with Ford Motor Credit Corp. (FMCC)
permitting the borrowings up to $4,000,000.  Borrowings under the line bear
interest at 9.25% at September 30, 1999.  The outstanding balance at
September 30, 1999 was $8,700,000.  The $4,700,000 over advance is currently
being negotiated with FMCC.  The Company is confident that this temporary
over advance will be approved or the line expanded.  The Company has adequate
resources to pay down this amount to the borrowing limit if approval is not
obtained.

6. Subsequent Event

On August 30, 1999, the Company's Board of Directors approved a 5% stock
dividend for stockholders of record on September 15, 1999.  The stock
dividend was made on October 15, 1999.

<PAGE>

PART I - FINANCIAL INFORMATION

Item 2. - Management's Discussion and Analysis of Financial Condition and
Results of Operations.  All statements in this discussion and analysis which
relate to future sales, costs, capital expenditures or earnings are
"Forwarding Looking Statements" and should be read subject to the assumptions
contained in the "Forward Looking Statements".

Results of Operations

For the Three Months ended September 30, 1999 and for the Three Months ended
September 30, 1998.

Sales - 1999 Compared with 1998

Sales were $20,590,000 for the third quarter ended September 30, 1999
compared to $18,755,000 for the same quarter in the prior year.  The third
quarter sales in 1999 represented a 9.8% increase over the comparable quarter
of 1998.  Units sold for the third quarter 1999 were 307 as compared to 293
for the same period of 1998.  The increase in sales is attributable to the
increase in units sold along with a higher dollar amount per coach associated
with double slides and diesel units.

Cost of Sales - 1999 compared with 1998

Cost of Sales as a percentage of sales was similar when comparing third
quarter 1999 to third quarter 1998.  The percentages were 80.5% and 80.4%
respectively.  Although the company continues to strive towards additional
production efficiencies, direct labor costs increased in the third quarter
due to the introduction of the new millennium edition motor homes.

Gross Profit as a percentage of sales was 19.5% for the quarter ended
September 30, 1999 as compared to 19.6% for the same period in the prior
year.  As previously stated in the Cost of Sales section, costs rose due to
the introduction of the millennium edition motorhomes, thereby impacting
Gross Profit for the quarter ended September 30, 1999.  The Company will
continue to try and improve the Gross Profit, however, there can be no
assurance due to the unknown nature of competitors within the industry.

Selling, General Administrative and Other Expenses-1999 compared with 1998

Selling, General Administrative and Other Expenses decreased by approximately
$112,000 between the third quarter ended September 30, 1999 and 1998
respectively.  This decline is primarily due to a reduction in the
legal costs, partially offset by increased warranty costs and advertising.

Income Taxes

The Company is providing income taxes at an effective tax rate of 40%.  The
effective tax rate is subject to ongoing review and evaluation by Management.

Results of Operations

For the Nine Months ended September 30, 1999 and for the Nine  Months ended
September 30, 1998

Sales - 1999 Compared with 1998

For the nine months ended September 30, 1999, Sales were $63,760,000 compared
to $51,709,000 for the same period in the prior year.  This represents a
23.3% increase over the prior year.  Units sold for these periods were 952
and 814 respectively.  On a percentage basis, units sold increased by 17.0%
over the prior year.  The Company anticipates continued growth but does not
anticipate future quarters to reflect as significant increase when compared
to the same quarters in 1998.

<PAGE>


Costs of Sales - 1999 compared with 1998

Cost of Sales as a percentage of sales dropped to 81.5% for the nine months
ended September 30, 1999 compared to 82.3% for the same period in 1998.
Although there was a drop in year-to-date costs compared to the same period
in the prior year, the third quarter incurred additional direct labor costs
related to the introduction of the millennium edition motorhomes.

Gross Profit rose to 18.5% for the nine months ended September 30, 1999
compared to 17.7% for the same period in the prior year.  Although year-to-
date gross profit for the nine months reflects a sizable improvement over the
prior year, this improvement was partially eroded by the increase in direct
labor costs incurred in the third quarter of 1999.  It is not anticipated
that the company will continue to incur direct labor costs to the extent
incurred in the third quarter.  The Company continues to explore avenues to
improve gross profit, however, there can be no assurance that gross profit
will improve due to the unknown nature of competitors within the industry.

Selling, General Administrative and Other Expenses - 1999 compared to 1998

Selling, General Administrative and Other Expenses were $5,572,000 compared
to $5,063,000 for the nine months ended September 30, 1999 and 1998
respectively.  As a percent of sales, the nine months ended September 30,
1999 represented 8.7% compared to 9.8% for the same period in 1998.  The
dollar increase is made up by administrative bonuses, warranty costs,
advertising and sales allowances offset by a reduction in legal costs.

Income before taxes 1999 compared with 1998

Income before taxes for the nine months ended September 30, 1999 were
$6,249,000 as compared to $4,104,000 for the same period in the prior year.
This represented an increase of $2,145,000 or 52.3%. Income taxes are
provided based upon the estimated effective rate for the entire fiscal year
applied to the pre-tax income for the period.  The effective tax rate is
subject to ongoing evaluation by management.

Financial Condition, Capital Resources and Liquidity

The company has relied on internally generated funds, trade credit and debt
to finance its operations and expansion.  As of September 30, 1999, the
company had working capital of $14,302,000 compared to $10,805,000 at
December 31, 1998.  The $3,497,000 increase in working capital is primarily
due to a $5,972,000 increase in inventories and a $2,680,000 increase in
receivables, partially offset by a $3,386,000 increase in accounts payable.
The cash position decreased by $2,343,000 primarily due to the purchase of
the chassis inventory.  The increase in inventory relates to increased
chassis and finished inventory at September 30, 1999 to meet production
demands related to model year changes, product expansion and chassis
allocation changes.

As of September 30, 1999 the Company has a $3,500,000 line of credit with
Bank of America which can be used for working capital purposes.  The line
expires on July 1, 2001.  Under this line of credit, $220,000 has been set
aside as an irrevocable standby letter of credit for the Company to meet the
requirements for self-insurance established by the Department of Industrial
Relations which regulates worker's compensation insurance in California.  At
September 30, 1999, no amounts were outstanding under the line of credit
agreement.  The line of credit contains various covenants.  The Company was
in compliance with such covenants as of September 30, 1999.

The Company has a line of credit with a chassis vendor, Ford Motor Credit
Company ("FMCC"), with a $4,000,000 limit.  Borrowings under the line bear
interest at an annual rate of prime plus 1% (9.25% at September 30, 1999).
All borrowings are secured by the Company's assets.  The outstanding balance
included in accounts payable at September 30, 1999 was $8,700,000.  The
temporary over-advance is currently being negotiated and the Company believes
that the over-advance will be approved or the line expanded.  The Company has
adequate resources to pay down this amount to the borrowing limit if approval
is not obtained.

<PAGE>

Capital expenditures during the first nine months of 1999 were $581,000.
Management anticipates capital expenditures for the remainder of the 1999 to
be $100,000 for refurbishment and expansion of certain production facilities,
production equipment and the enhancement of management information systems.

The Company anticipates that it will be able to satisfy its ongoing cash
requirements through 1999, including payments related to the legal settlement
and expansion plans at the California facility, primarily with cash flows
from operations, supplemented, if necessary, by borrowings under its
revolving credit agreement.

Seasonality

The Company's business is subject to seasonal and quarterly fluctuations.
Historically, the Company has realized a higher portion of its sales in the
second quarter and third quarter, consistent with the summer vacation season.
This is consistent with industry trends.

Year 2000

The Year 2000 issue is primarily the result of computer programs using a
two-digit format, as opposed to four digits, to indicate the year.  Computer
programs that are date dependent are found in the software that operate many
IT systems as well as in the computer based devices which control many types
of electronic equipment.  Computer programs that are not Year 2000 compliant
will be unable to interpret dates beyond the year 1999, which could cause a
system failure or other computer errors, leading to a disruption in the
operation of the related IT systems or electronic equipment.

The Company has established and is implementing a program to address the Year
2000 issue.  The Year 2000 program included the implementation of previously
planned systems as well as specific Year 2000 programs.  All programs are on
track for completion before the year 2000 with various applications being
upgraded or replaced as needed.  The failure to correct a material Year 2000
problem may result in an interruption in, or a failure of, certain normal
business operations or activities.  Such failures could materially and
adversely affect the Company's results of operations, liquidity and financial
condition.  Additionally, the Year 2000 program has not deferred any other
company projects that will have a material impact on its results of
operation, liquidity or financial condition.

IT Systems

The Company began undertaking changes to bring non-compliant systems and
accompanying methodology to Year 2000 compliant standards.  In  furtherance
of the Year 2000 program, the Company acquired a new Year 2000 compliant
client server enterprise system and hired a full time IS professional to
oversee the implementation of the program.

The IT systems have been inventoried and the necessary Year 2000 upgrades,
replacements and retrofits identified.  These projects are presently in
various stages of analysis, development and implementation.  The Year 2000
program is currently scheduled to be completed by the fourth quarter of 1999.

Non-IT Systems

Non-IT Systems may contain date sensitive embedded technology requiring the
Year 2000 upgrades.  Examples of this technology include security equipment
such as access and alarm systems, as well as facilities equipment such as
heating and air conditioning units.

The Company is a product manufacturer; therefore, the "embedded chip" issue
relates to production line components as well as to the equipment used by the
Company.  Production line components and  facilities and equipment are being
inventoried and assessments are in progress.

<PAGE>

The Company is also addressing the readiness of its critical suppliers and
customers.  The Company has inventoried its critical suppliers, and is
sending letters to suppliers, and where appropriate, contacting certain
suppliers requesting Year 2000 certification.  The Company is also contacting
certain key customers where potential Year 2000 problems may exist.  In
certain areas where the Company relies on products supplied by manufacturers
for the systems provided to its customers, the Company is seeking standard
Year 2000 warranties that, to the extent assignable, may be transferred to
customers.

Costs

The total cost associated with required modifications to become Year 2000
compliant is not expected to be material to the Company's results of
operations, liquidity and financial condition.  The estimated total cost
of the Year 2000 effort is expected to be under $100,000.  This estimate does
not include the cost of the Company's previously planned business critical
systems upgrades, which have not been accelerated due to the Year 2000
problem.

Risks and Contingency Planning

The Company has identified and assessed the areas that may be at risk related
to the Year 2000 problem.  The failure to correct a material Year 2000
problem may result in an interruption in, or a failure of, certain normal
business operations or activities.  Such failures could materially and
adversely affect the Company's results of operations, liquidity and financial
condition.  Due to the general uncertainty inherent in the Year 2000 problem,
resulting in part from the uncertainty of the Year 2000 readiness of
third-party suppliers, the Company is unable to determine at this time
whether the consequences of the Year 2000 failures will have a material
impact on the Company's results of operations, liquidity or financial
condition.  The Company has initiated contingency planning for possible Year
2000 issues, including such factors as supply chain and banking operations.
Where needed, the Company will establish contingency plans based on the
Company's actual testing experience and assessment of outside risks.  The
Company anticipates final contingency plans to be in place by December 1999.
The Year 2000 program is expected to significantly reduce the Company's
level of uncertainty about the Year 2000 problem.  The Company believes that
through its Year 2000 program, the possibility of significant interruptions
of normal business operations should be reduced.

Readers are cautioned that forward looking statements contained in the Year
2000 Update should be read in conjunction with the Company's disclosures
under the heading "Forward Looking Statements".

Forward-Looking Statements

Our statements of our intentions or expectations are "forward-looking
statements" based on assumptions and on facts known to us today.  Those
assumptions will become less valid over time, but we do not intend to
update this report.  Rexhall's business is seasonal, and we are approaching
the period when sales have usually declined.  The risks associated with Year
2000 problems which may be encountered by the Company and its suppliers and
customers have not been identified, but may occur. Low interest rates, low
unemployment, and ready availability of motor fuel have in the past been
associated with favorable recreational vehicle sales.  Recently, rates have
risen, and recent reports of decreased consumer confidence may reduce sales,
but the seriousness of a potential decline cannot be predicted.  Many of
Rexhall's competitors are substantially larger, and many of its suppliers and
dealer's also have greater economic power so that the volume and prices of
both supplies and sales may be adversely affected.  Management intends to
remain aware of these factors and react to them, but cannot predict their
timing or significance.

<PAGE>

Item 3.  Quantitative and Qualitative Disclosure About Market Risk

In the ordinary course of its business, the Company is exposed to certain
market risks, primarily changes in interest rates.  After an assessment of
these risks to the Company's operations, the Company believes that its
primary market risk exposures (within the meaning of Regulation S-K Item 305)
are not material and are not expected to have any material adverse effect on
the Company's financial condition, results of operations or cash flows for
the next fiscal year.  The Company's line of credit permits a combination of
fixed and variable rates at the Company's option, which Management believes
reduces the risk of interest rate fluctuation.

Other Information

Item 1 - Legal Proceedings

Legal Settlement -Bruce Elworthy and Anne B. Marshall (Elworthy and Marshall)
sued the Company in June 1995 in the Superior Court of the County of Los
Angeles.  The suit alleged that a leveling system on a motorhome, purchased
from Rexhall was defective and caused damages to Elworthy and Marshall of
$1,000,000 for medical expenses, loss of earnings and pain and suffering.
Rexhall prevailed in its defense with zero dollars being awarded to the
plaintiffs.  The verdict is currently under appeal.


Item 2. - Reports on Form 8-K

 a)  Reports on Form 8-K:     None


<PAGE>


                         REXHALL INDUSTRIES, INC.


                                SIGNATURES




Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.





   REXHALL INDUSTRIES, INC. by
   (Registrant)





Date:                              /s/William J. Rex
                                   William J. Rex
                                   Chairman, President and
                                   Chief Executive Officer

Date:                              /s/Thomas M. Zirnite
                                   Thomas M. Zirnite
                                   Chief Financial Officer