ELKHART, INDIANA — JULY 27, 2007

SKYLINE REPORTS YEAR-END, FOURTH QUARTER RESULTS

     Net earnings for Skyline Corporation’s 2007 fiscal year were $2,593,000 compared to $14,292,000 in fiscal 2006. On a per share basis, fiscal 2007 net earnings were $0.31 versus $1.70 in the 2006 fiscal year.

     For the fourth quarter which ended May 31, 2007, net earnings were $2,247,000 compared to $5,153,000 of the fourth quarter of fiscal 2006. Net earnings per share for fiscal 2007’s fourth quarter were $0.27 versus $0.61 of the fourth quarter of fiscal 2006

     Sales for fiscal 2007 were $365,473,000 compared to $508,543,000 of a year earlier. Sales for the fourth quarter of fiscal 2007 were $88,536,000 compared to $136,219,000 of fiscal 2006’s fourth quarter.

     Sales for Skyline’s manufactured housing group for fiscal 2007 were $272,383,000 compared to $376,405,000 of fiscal 2006. The group’s sales for the fiscal 2007 fourth quarter totaled $64,035,000 compared to $97,399,000 of the comparable period of fiscal 2006.

     For Skyline’s RV group, sales for fiscal 2007 were $93,090,000 compared to $132,138,000 of fiscal 2006. The RV group’s sales for fiscal 2007’s fourth quarter were $24,501,000 compared to $38,820,000 of the fourth quarter of fiscal 2006.

     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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SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Dollars in thousands except per share)

	Three Months Ended				Year Ended
	May 31,				May 31,
	2007		2006		2007		2006
	(Unaudited)		(Unaudited)
Sales	$	88,536	$	136,219	$	365,473	$	508,543
Earnings before income taxes		2,866		8,401		3,399		23,315
Provision for income taxes		619		3,248		806		9,023
Net earnings	$	2,247	$	5,153	$	2,593	$	14,292
Basic earnings per share	$	.27	$	.61	$	.31	$	1.70	(A)
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 CONDENSED BALANCE SHEETS

(Dollars in thousands)

	May 31,
	2007			2006
ASSETS
Cash and temporary cash investments	$	124,240		$	152,771
Accounts receivable		22,760			31,759
Inventories		10,561			11,308
Other current assets		11,381			8,537
Total Current Assets		168,942			204,375
Property, Plant and Equipment, net		35,806			34,069
Other Assets		10,192			9,959
	$	214,940		$	248,403
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	5,162		$	8,784
Accrued liabilities		21,952			31,366
Total Current Liabilities		27,114			40,150
Other Deferred Liabilities		10,011			10,499
Common stock		312			312
Additional paid-in capital		4,928			4,928
Retained earnings		238,319			258,258
Treasury stock, at cost		(65,744	)		(65,744	)
Total Shareholders’ Equity		177,815			197,754
	$	214,940		$	248,403