Cavalier Gets Orders for 500 Homes

Addison, AL, June 28, 2007--Cavalier Homes Inc. said it landed three contracts worth up to $24 million to build 500 homes for people displaced by Gulf Coast hurricanes.

The Mississippi Emergency Management Agency issued the contracts for 300 two-bedroom and 200 three-bedroom homes. The contracts require delivery within 120 days of the formal orders, which Cavalier expects to occur in the next one to six weeks.

Cavalier, which reported first-quarter revenue of $42.9 million, said it negotiated a $5 million increase in its credit line to $30 million to cover expected related higher capital costs.