Exhibit 99.1

NEWS RELEASE

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

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

     ELKHART, INDIANA -— JANUARY 4, 2008

SKYLINE REPORTS RESULTS FOR SECOND QUARTER AND FIRST HALF

     Skyline Corporation reported a net loss for the second quarter of its fiscal 2008 year of $1,886,000 compared to net earnings of $625,000 for the second quarter of fiscal 2007. On a per share basis, net loss for the quarter which ended November 30, 2007 was $ .22 versus net earnings of $.07 for a year ago.

     For the first half of fiscal 2008, net loss was $1,177,000 compared to net earnings of $2,521,000 for a year ago. Net loss per share for the first half of fiscal 2008 was $ .14 versus net earnings per share of $ .30 for the first half of fiscal 2007

     Sales for Skyline’s fiscal 2008 second quarter were $77,198,000 compared to $94,786,000 for the second quarter of fiscal 2007. For the first six months of fiscal 2008, sales were $173,592,000 versus $210,592,000 for fiscal 2007.

     For Skyline’s manufactured housing group, sales for the second quarter of fiscal 2008 were $58,383,000 compared to $72,618,000 for the second quarter of fiscal 2007. For the first six months of fiscal 2008, sales by the manufactured housing group were $130,711,000 versus the $157,101,000 recorded for the first six months of fiscal 2007.

     For the recreational vehicle (RV) group, sales amounted to $18,815,000 for fiscal 2008’s second quarter compared to $22,168,000 for the second quarter of fiscal 2007. For the first six months of fiscal 2008, sales by the RV group were $42,881,000 versus $53,491,000 for the same period a year ago.

     As Skyline begins its third quarter, historically the slowest period in its fiscal year, the corporation 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 corporation meet the challenges ahead.

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Bringing America Home. Bringing America Fun.

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Dollars in thousands except share and per share data)

	Three Months Ended					Six Months Ended
	November 30,					November 30,
	(Unaudited)					(Unaudited)
	2007			2006		2007			2006
Sales	$	77,198		$	94,786	$	173,592		$	210,592
(Loss) earnings before income taxes		(2,766	)		1,006		(1,667	)		4,052
(Benefit) provision for income taxes		(880	)		381		(490	)		1,531
Net (loss) earnings	$	(1,886	)	$	625	$	(1,177	)	$	2,521
Basic (loss) earnings per share	$	(.22	)	$	.07	$	(.14	)	$	.30
Number of weighted average common shares outstanding		8,391,244			8,391,244		8,391,244			8,391,244

SKYLINE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)

	November 30, (Unaudited)
ASSETS	2007			2006
Cash and temporary investments	$	124,054		$	134,658
Accounts receivable		13,995			18,938
Inventories		10,978			11,966
Other current assets		11,783			10,281
Total Current Assets		160,810			175,843
Property, Plant and Equipment, net		35,508			35,234
Other Assets		10,365			10,268
Total Assets	$	206,683		$	221,345
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, trade	$	2,397		$	3,494
Accrued liabilities		20,716			26,678
Total Current Liabilities		23,113			30,172
Other Deferred Liabilities		9,952			10,702
Common stock		312			312
Additional paid-in capital		4,928			4,928
Retained earnings		234,122			240,975
Treasury stock, at cost		(65,744	)		(65,744	)
Total Shareholders’ Equity		173,618			180,471
Total Liabilities and Shareholders’ Equity	$	206,683		$	221,345