Exhibit 99.1

NEWS RELEASE

Skyline Corporation
2520 By-Pass Road
P.O. Box 743
Elkhart, Indiana 46515-0743
(574) 294-6521

Subject: FOURTH QUARTER AND YEAR END Approved by: JAMES R. WEIGAND

ELKHART, INDIANA ––– JULY 31, 2006

SKYLINE REPORTS YEAR-END, FOURTH QUARTER RESULTS

          Net earnings for Skyline Corporation’s 2006 fiscal year were $14,292,000 compared to $5,452,000 in fiscal 2005. On a per share basis, fiscal 2006 net earnings were $1.70 versus $0.65 in the 2005 fiscal year.

          For the fourth quarter which ended May 31, 2006, net earnings were $5,153,000 compared to $3,115,000 of the fourth quarter of fiscal 2005. Net earnings per share for fiscal 2006’s fourth quarter were $0.61 versus $0.37 of the fourth quarter of fiscal 2005.

          Sales for fiscal 2006 were $508,543,000 compared to $454,324,000 of a year earlier. Sales for the fourth quarter of fiscal 2006 were $136,219,000 compared to $119,507,000 of fiscal 2005’s fourth quarter.

          Sales for Skyline’s manufactured housing group for fiscal 2006 were $376,405,000 compared to $335,394,000 of fiscal 2005. The group’s sales for the fiscal 2006 fourth quarter totaled $97,399,000 compared to $88,547,000 of the comparable period of fiscal 2005.

          For Skyline’s RV group, sales for fiscal 2006 were $132,138,000 compared to $118,930,000 of fiscal 2005. The RV group’s sales for fiscal 2006’s fourth quarter were $38,820,000 compared to $30,960,000 of the fourth quarter of fiscal 2005.

          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.

**************

Bringing America Home. Bringing America Fun.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands except per share)

	Three Months Ended				Year Ended
	May 31,				May 31,
	2006		2005		2006			2005
	(Unaudited)		(Unaudited)		(Unaudited)
Sales	$	136,219	$	119,507	$	508,543		$	454,324
Earnings before income taxes		8,401		4,771		23,315			8,662
Provision for income taxes		3,248		1,656		9,023			3,210
Net earnings	$	5,153	$	3,115	$	14,292		$	5,452
Basic earnings per share	$	.61	$	.37	$	1.70	(A)	$	.65
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)

	May 31,
	2006			2005
	(Unaudited)
Cash and temporary cash investments	$	152,771		$	149,525
Accounts receivable		31,759			26,466
Inventories		11,308			9,838
Other current assets		8,537			6,233
Total Current Assets		204,375			192,062
Property, Plant and Equipment, net		34,069			35,838
Other Assets		9,959			9,537
	$	248,403		$	237,437
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	8,784		$	9,521
Accrued liabilities		29,950			27,149
Income taxes payable		1,416			729
Total Current Liabilities		40,150			37,399
Other Deferred Liabilities		10,499			10,535
Common stock		312			312
Additional paid-in capital		4,928			4,928
Retained earnings		258,258			250,007
Treasury stock, at cost, 2,825,900 shares in 2006 and 2005		(65,744	)		(65,744	)
Total Shareholders’ Equity		197,754			189,503
	$	248,403		$	237,437