FLEETWOOD LIMITED — M&A Activity 2004

Apr 5, 2004

Electwood CORPOR 1 000 100

6 April 2004

Manager Companies Australian Stock Exchange Exchange Plaza 2 The Esplanade PERTH WA 6000

Dear Sir

Acquisition: Rainbow Transportable Homes

Executive Summary

Fleetwood Corporation Limited has entered into an agreement to acquire the business of Rainbow Transportable Homes effective from the 1^st May 2004.

Rainbow is headquartered in Melbourne, and is a dominant supplier of park homes and cabins in Victoria, South Australia and southern N.S.W.

Rainbow currently generates revenue of approximately \$5 million per year.

Strategy

The acquisition of Rainbow provides

• Fleetwood with a cost effectively established manufactured accommodation facility on the east cost of Australia.
• Strong growth opportunities for Fleetwood as the Park Home Retirement Village market grows in Victoria and surrounding regions.

Investment Considerations

• The acquisition involves an investment of approximately \$1.5 million, which will $\bullet$ be met from the cash reserves of Fleetwood.
• $\bullet$ The acquisition will be immediately earnings positive.
• The existing Rainbow management team will continue with the business. $\bullet$
• The business of Rainbow is complementary to Fleetwood's existing $\bullet$ manufactured accommodation operations in Western Australia.
• Access to capital and management support through Fleetwood will allow Rainbow to realise its plans for growth.
• Access to a larger population base on the east coast of Australia will provide significant growth opportunities.

Summary

The expansion of Fleetwood's manufactured accommodation capabilities through this acquisition will see the company capitalise on the strong growth in the Park Home and Cabin industry which is being driven by the growing demand for affordable retirement and tourism accommodation.

Yours faithfully

Brad Denison Group Financial Controller