COBURG, OR -- (Marketwire) -- 11/05/08 -- Monaco Coach Corporation (NYSE: MNC), one of the nation's leading manufacturers of recreational vehicles, today announced that it has entered into two new definitive financing arrangements, the first of which is a three-year $90 million revolving working capital loan and security agreement with several financial institutions and Bank of America, N.A., as agent for the lenders. The Company also executed a secured financing agreement with Ableco Finance, LLC for a $39.3 million 3.5-year secured term loan. The funding of these loan facilities is scheduled to occur today and will pay off and retire our existing credit agreement.

"We are extremely pleased to have signed these two financing arrangements, which we believe give us the liquidity and flexibility to continue executing on our operational restructuring plan to size the Company for today's market," said Kay Toolson, Chairman and CEO of Monaco Coach Corporation. "Despite these difficult times for our industry, today's announcement of our new financing agreements reinforces to our dealer partners, vendors and retail customers that Monaco Coach Corporation is on solid financial footing and will remain a strong partner."

"We remain committed to product innovation and quality and look forward to displaying some exciting new models this December at the National RV Trade Show in Louisville, Kentucky," added Toolson. "We continue to introduce new towable and motorized products to help increase retail traffic at our dealer partner locations, continue our market share gains in the Class A segment, as well as grow our towable market share."

About Monaco Coach Corporation

Monaco Coach Corporation, a leading national manufacturer of motorized and towable recreational vehicles, is ranked as the number one producer of diesel-powered motorhomes. Dedicated to quality and service, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests and offers products that appeal to RVers across generations.

Headquartered in Coburg, Oregon, with manufacturing facilities in Indiana, the Company offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie, and RVision brand names. The Company maintains RV service centers in Harrisburg, Oregon and Wildwood, Florida and operates motorhome-only resorts in California, Florida, Nevada and Michigan.

Monaco Coach Corporation trades on the New York Stock Exchange under the symbol "MNC," and the Company is included in the S&P Small-Cap 600 stock index. For additional information about Monaco Coach Corporation, please visit www.monaco-online.com or www.trail-lite.com.

The statements above regarding the anticipated funding of the loans and concurrent retirement of our existing credit agreement and our belief that the new financing gives the Company the liquidity and flexibility to continue executing on our operational restructuring plan are forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from these statements. These risks and uncertainties include (i) our ability to meet certain standard funding conditions, (ii) in the absence of funding, our ability to obtain a further waiver from our existing lenders, (iii) the risks of continued deterioration in the economy and the market for our products and (iv) our ability to remain in compliance with the covenants under the new financing arrangements. Please refer to the Company's SEC reports for additional risks and uncertainties, including but not limited to the most recent Form 10-Q, the annual report on Form 10-K for 2007, and the 2007 Annual Report to Shareholders for additional factors. These filings can be accessed over the Internet at http://www.sec.gov or http://www.monaco-online.com.