Cavalier to Build 2,000 Homes for FEMA Disaster

Addison, AL, September 19, 2005 -- Cavalier Homes, Inc. announced that it has entered into an agreement, effective today, with Georgia-based Circle B Enterprises, Inc. to build homes for delivery to the Federal Emergency Management Agency (FEMA) as part of that agency's disaster relief for the Gulf Coast states recently hit by Hurricane Katrina. Under the agreement, Cavalier will build approximately 2,000 single-section homes, which will generate revenue estimated in the range of $58 million to $63 million, depending on delivery locations. The Company will supply these homes from its plants in Georgia, Alabama and North Carolina, with deliveries expected to begin within two weeks and being fully completed by December 2005. Commenting on the announcement, David Roberson, president and chief executive officer, said, "Following our participation in a similar FEMA program last year, undertaken in response to Hurricane Charley, we are humbled and honored to lend our expertise to this important rebuilding effort. In the aftermath of a hurricane, especially one of this magnitude -i which caused staggering devastation in Louisiana, Mississippi and our home state of Alabama -- there aren't many things more essential than housing. Shelter for the victims is needed on a vast scale and urgent basis as a prerequisite to restoring a sense of normalcy to these hard-hit areas. We believe our Company and our industry are ideally suited to meet this challenge, and we will work tirelessly over the next few months to provide assistance to FEMA and the victims of this terrible storm."

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