Exhibit 99.1

	NEWS RELEASE
	Skyline Corporation
	2520 By-Pass Road
	P.O. Box 743
	Elkhart, Indiana 46515-0743
	(574) 294-6521
Subject: THIRD QUARTER REPORT	Approved by: JAMES R. WEIGAND

ELKHART, INDIANA — APRIL 7, 2006

SKYLINE REPORTS THIRD QUARTER AND NINE MONTHS RESULTS

     Sales for the third quarter of Skyline Corporation’s 2006 fiscal year were $117,491,000 compared to $96,219,000 last year. Net earnings for the three-month period were $2,290,000, equal to $0.27 per share, compared to a net loss of $351,000, or $0.04 per share, for the same period a year ago.

     Sales for the first nine months of fiscal 2006 were $372,324,000 compared to $334,817,000 for the first nine months of fiscal 2005. For the first nine months of fiscal 2006, net earnings were $9,139,000, or $1.09 per share, compared to $2,337,000, or $0.28 per share, for the first nine months of fiscal 2005.

     Sales of Skyline’s manufactured housing group for the third quarter of fiscal 2006 were $83,199,000, up from the $69,772,000 of a year ago. For the first nine months of fiscal 2006, sales by the manufactured housing group were $279,006,000, an increase from the $246,847,000 recorded for the first nine months of fiscal 2005.

     For the recreational vehicle (RV) group, sales for the third quarter of fiscal 2006 were $34,292,000, up from the $26,447,000 of the third quarter of fiscal 2005. For the first nine months of fiscal 2006, sales by the RV group were $93,318,000, an increase from the $87,970,000 of the same period a year ago.

     Skyline continues to maintain its traditionally strong balance sheet with no long-term debt and a healthy position in cash and temporary cash investments. This financial strength, along with a seasoned management team, should help the company meet the challenges ahead.

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Bringing America Home. Bringing America Fun.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands except per share)

	Three Months Ended					Nine Months Ended
	(Unaudited)					(Unaudited)
	February 28,		February 28,			February 28,			February 28,
	2006		2005			2006			2005
Sales	$	117,491	$	96,219		$	372,324		$	334,817
Earnings (loss) before income taxes		3,792		(607	)		14,914			3,891
Provision (benefit) for income taxes		1,502		(256	)		5,775			1,554
Net earnings (loss)	$	2,290	$	(351	)	$	9,139		$	2,337
Basic earnings (loss) per share	$	.27	$	(.04	)	$	1.09	(A)	$	.28
Number of weighted average common shares outstanding		8,391,244		8,391,244			8,391,244			8,391,244

(A) Includes an after-tax gain on sale of vacant land of $.03 per share.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	February 28, (Unaudited)
	2006			2005
ASSETS
Cash and temporary investments	$	150,519		$	149,437
Accounts receivable		28,470			24,571
Inventories		11,825			10,099
Other current assets		10,718			6,259
Total Current Assets		201,532			190,366
Property, Plant and Equipment, net		34,316			36,647
Other Assets		9,726			9,066
	$	245,574		$	236,079
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	7,207		$	7,921
Accrued liabilities		33,603			29,191
Total Current Liabilities		40,810			37,112
Other Deferred Liabilities		10,653			11,068
Common stock		312			312
Additional paid-in capital		4,928			4,928
Retained earnings		254,615			248,403
Treasury stock, at cost, 2,825,900 shares in 2006 and 2005		(65,744	)		(65,744	)
Total Shareholders’ Equity		194,111			187,899
	$	245,574		$	236,079