Coachmen Industries Chairman and CEO Receives Golden Parachute

October 26, 2006 - According to SEC filings, Coachmen Industries, Inc. (NYSE: COA) announced that Chairman of the Board and Chief Executive Officer Claire C. Skinner has entered into a Severance and Early Retirement Agreement subsequent to her early retirement and resignation from the Board of Directors.

Following is the text of the company's 8-K filing with the SEC.

Effective October 24, 2006, the Registrant entered into a Severance and Early Retirement Agreement and General Release of Claims with Claire C. Skinner, the Registrant’s former Chairman and Chief Executive Officer.  Pursuant to the Agreement, the Registrant will pay to Ms. Skinner an amount equal to twenty-three months of her previous base salary, or an aggregate of $672,750.  Of that total, $175,500 will be paid on March 15, 2007, and the balance of $497,250, will be paid in increments of $14,625 on the 15th day and last day of each month, starting on March 15, 2007, and ending on July 31, 2008.  In addition, the Registrant will pay Ms. Skinner's health insurance premiums for up to 18 months in the approximate amount of $550 per month. 

In addition, because of her termination of employment, Ms. Skinner is entitled to distribution of her accounts in the Registrant’s Executive Benefit and Estate Accumulation Plan in the amount of $965,929 to be distributed on October 27, 2006, the Registrant’s Supplemental Deferred Compensation Plan in the approximate amount of $691,410 to be distributed in 2006 and 2007, and in the Registrant’s Retirement Plan and Trust (401(k) Plan).