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    National R.V. Holdings Refutes Industry Rumors of Financial Woes

 

PERRIS, Calif., September 29, 2006, National R.V. Holdings, Inc. sent the following letter to its supplier according to a recent SEC 8-K filing.

TEXT of LETTER
September 29, 2006

Dear Business Partners:

Rumors  continue  to  circulate  in this small  industry of ours and include the
following:  that we are no longer  paying our  suppliers,  that we can no longer
produce,  and/or that we are on the verge of going out of business.  Although it
has been our policy not to respond to rumors and speculation, we believe that it
is in  the  best  interests  of our  business  partners,  customers,  suppliers,
employees and shareholders to respond to these.

I  emphatically  deny all of these and  encourage  you to ignore them.  They are
false and are being propagated by those who have been losing market share to our
strong-performing  products and would therefore like very much for us to go away
and by a former director in his resignation letter.

We have pulled a handful of  production  days out of both our Country  Coach and
National RV operations in order to more closely align our build rates to current
demand and avoid overbuilding.  It seems this very common and recurring practice
throughout our industry has fed concerns that our suppliers have shut us down or
that we have run out of capital.  Neither is true.  In fact,  we have  increased
market share in the Class A market  throughout  the year.  Both divisions are in
full operation and you are welcome to visit any time.

Our past losses  combined with the more recent  fiberglass  issue at National RV
have put a strain on our cash flows;  however we are working  through  this.  We
were able to obtain a temporary  increase in our working capital line of credit,
and are working on raising more permanent capital.  Several options of both debt
and equity  capital are available to us and are currently  being  evaluated.  We
hope to make a decision and close on one of these in the near future.

We have also been open regarding the challenges of being a public company of our
size and that we are  exploring a wide range of strategic  alternatives.  We are
well immersed in this process and hope to have  sufficiently  vetted all options
and reached some decision on this front prior to year-end.

I wish to express my sincerest  appreciation  to our many business  partners who
continue to show support in so many ways. Our products  continue to perform well
in the marketplace  and will for many years to come.  Thank you for your role in
that.


/s/ Brad Albrechtsen
Chief Executive Officer