"We have made good progress on several initiatives so far in 2007," said Kay Toolson, Chairman and Chief Executive Officer of Monaco Coach Corporation. "Most noticeably, our extensive realignment of production and consolidation of sub-assembly plants have improved our operations and margins. We expect to continue to improve our plant efficiencies during the fourth quarter and into next year with the consolidation of the Elkhart towable operations into our existing facilities in Wakarusa and Warsaw, Indiana."

"We are pleased to report a rise in our motorhome market share, and 17% growth for the third quarter in our core motorized segment. Our Company has remained aggressive in 2007 with new product developments, introducing new floor plans and features that meet consumers' changing desires," noted Toolson.

"The recreational vehicle industry faces challenges such as declining consumer confidence, higher fuel prices and volatile equity markets. Nevertheless, we are convinced that the long-term positive prospects for our Company and the RV industry are compelling, as millions of baby boomers retire and are drawn to the appeal of the RV lifestyle."

Motorized Recreational Vehicle Segment

Motorized sales of $258.0 million in the third quarter of 2007 increased 17.2% compared to $220.2 million in the third quarter of 2006. Total Class A wholesale shipments for the first three quarters were 3,955, compared to 3,981 for the same period in 2006. As reported by Statistical Surveys, Inc., Monaco Coach Corporation had a 0.4% decrease in domestic motorhome retail registrations sold year-to-date through August 2007, while industry-wide there was a decline of 4.9%, resulting in a 4.8% rise in the Company's market share for the same period.

Towable Recreational Vehicle Segment

The Company reported towable sales of $64.2 million for the third quarter of 2007, compared to sales of $70.5 million for the third quarter of 2006. Total towable shipments for the first three quarters were 13,439, compared to 16,811 for the same period last year, which included 2,019 FEMA units. Travel trailer and fifth-wheel retail registrations for the overall domestic market, according to Statistical Surveys, reported a year-to-date increase of 2.8% through August 2007, and for the Company they reported a 1.9% decline in retail sales for the same period.

Business Outlook

"Based upon our current backlog, rates of production and production days available in the fourth quarter, our revenue will be between $290 million and $300 million," said Marty Daley, Chief Financial Officer of Monaco Coach Corporation. "This level of revenue along with our consolidation of towable operations will lead to lower margins and earnings per share for the fourth quarter of $0.02 to $0.04."

"Based on the Recreational Vehicle Industry Association's flat 2008 class A shipment forecast, our fiscal 2008 sales are expected to be approximately even with 2007, or $1.27 billion to $1.28 billion," continued Daley. "Gross profit will benefit from a full-year of the towable consolidation, continued plant efficiency gains, including better material usage and should fall between 11.4% and 11.5%. Selling, general and administrative expenses are expected to be in the range of 9.37% to 9.47%."