The new 2009 Winnebago ERA ( see review )

WINNEBAGO PROFITABLE  "DESPITE DIFFICULT MARKET" March 2008 "Looking forward to the opportunities that new product will provide us"

FOREST CITY, Iowa-  March 20, 2008 - Winnebago Industries, Inc. (NYSE:WGO), a leading United States motor home manufacturer, today reported financial results for the Company's second quarter and first six months of fiscal year 2008 ended March 1, 2008.

Revenues for the quarter were $164.2 million, a decrease of 17.5 percent, compared to revenues of $199.0 million for the second quarter last fiscal year. Net income for the second quarter was $2.5 million, a decrease of 66.6 percent compared to net income of $7.5 million for the second quarter of fiscal 2007. On a diluted per share basis, the Company earned nine cents a share for the second quarter of fiscal 2008, compared to 24 cents per diluted share for the second quarter last fiscal year.

Revenues for the first 27 weeks of fiscal 2008 were $379.3 million, a decrease of 5.3 percent, compared to revenues of $400.8 million for the first 26 weeks of fiscal 2007. Net income for the same period was $12.5 million, a decrease of 19.3 percent compared to net income of $15.5 million for the first 26 weeks of fiscal 2007. On a diluted per share basis, the Company earned 43 cents a share for the first 27 weeks of fiscal 2008, compared to 49 cents per diluted share for the first 26 weeks last fiscal year.

"Winnebago Industries remained profitable during our seasonally slowest quarter, despite extremely difficult market conditions," said Winnebago Industries' Chairman and CEO Bruce Hertzke. "Revenue and net income were negatively impacted by fewer motor home deliveries, reduced plant efficiencies due to fewer production days, a switch in mix to more Class C motor homes delivered and increased promotional programs, while the Company benefited from an increase in the average selling price for our products in all product categories."

"Challenging market conditions have continued to negatively affect the motor home market, with retail sales of Class A and C motor homes for the industry down double digits each of the last three months as reported by Statistical Surveys, Inc. of Grand Rapids, Mich., the retail reporting service for the RV industry," said Winnebago Industries' President Bob Olson. "While the Federal Reserve's interest rate cuts should have a positive impact long-term, the reductions in interest rates have not yet reached the retail customer which may lead potential buyers to delay their purchases. Many economic factors are negatively affecting consumer confidence, resulting in a very soft retail motor home market and reduced demand from our dealers. As a result, we reduced our production levels during the second quarter to more closely match demand. Additionally, our overall employment level was reduced by approximately 300 people, or 9 percent, through layoffs and attrition. These measures were taken to help us achieve our primary objective, which is to build quality motor homes while remaining profitable." One time severance-related costs of approximately $500,000 were recorded during the quarter within general and administrative expenses.

Olson continued, "On a positive note, we were pleased to deliver our first ERA Class B motor home during the second quarter. This new product was well received when introduced at the National RV Trade Show in Louisville, Kentucky last November and we began production near the end of the second quarter. We have had a tremendous amount of interest in the new ERA from dealers wishing to include it in their product lines and currently have approximately 50 dealers signed on to carry this new product. We will continue to add dealers as we are able to increase production of this new product throughout the second half of fiscal 2008. We are looking forward to the opportunities that this incremental new product will provide us."

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