Exhibit 99.1

NEWS RELEASE

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

Subject: FIRST QUARTER REPORT Approved by: JON S. PILARSKI

ELKHART, INDIANA -— OCTOBER 5, 2007

SKYLINE REPORTS FISCAL 2008 FIRST QUARTER RESULTS

     Net earnings for the first quarter of Skyline Corporation’s 2008 fiscal year were $709,000 compared to $1,896,000 of the first quarter of fiscal 2007. On a per share basis, net earnings for the first quarter of fiscal 2008 were $0.08 versus $0.23 for the first quarter a year ago.

     Sales for the quarter which ended August 31, 2007 were $96,394,000 compared to $115,806,000 for the first quarter of fiscal 2007.

     For Skyline’s manufactured housing group, sales for the first quarter of fiscal 2008 were $72,328,000 compared to $84,483,000 for the first quarter a year ago.

     Skyline’s RV group recorded sales of $24,066,000 for the first three months of fiscal 2008 compared to $31,323,000 recorded for the first quarter of fiscal 2007.

     Skyline continues to maintain its traditionally strong balance sheet with no long-term debt and a healthy position in cash and temporary cash investments.

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Bringing America Home. Bringing America Fun.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Dollars in thousands except per share)

	Three Months Ended
	August 31, (Unaudited)
	2007		2006
Sales	$	96,394	$	115,806
Earnings before income taxes		1,099		3,046
Provision for income taxes		390		1,150
Net earnings	$	709	$	1,896
Basic earnings per share	$	.08	$	.23
Number of weighted average common shares outstanding		8,391,244		8,391,244

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	August 31, (Unaudited)
ASSETS	2007			2006
Cash and temporary cash investments	$	121,376		$	131,587
Accounts receivable		24,252			26,252
Inventories		10,618			12,723
Other current assets		11,240			10,410
Total Current Assets		167,486			180,972
Property, Plant and Equipment, net		35,686			34,974
Other Assets		10,280			10,013
	$	213,452		$	225,959
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	5,395		$	6,016
Accrued liabilities		21,054			28,106
Total Current Liabilities		26,449			34,122
Other Deferred Liabilities		9,989			10,481
Common stock		312			312
Additional paid-in capital		4,928			4,928
Retained earnings		237,518			241,860
Treasury stock, at cost		(65,744	)		(65,744	)
Total Shareholders’ Equity		177,014			181,356
	$	213,452		$	225,959