MNC Monaco Coach Cp

Monaco Coach Corporation (NYSE: MNC), one of the nation's leading manufacturers of recreational vehicles, today announced that its Board of Directors has decided to suspend the Company's quarterly cash dividend payment that would otherwise be payable on September 15, 2008.

"In an effort to bolster our balance sheet and improve liquidity, we have decided to suspend our cash dividend and believe that this action is in the best interest of both our stockholders and the Company," said Kay Toolson, Chairman and CEO of Monaco Coach Corporation. "We are looking forward to stronger recreational vehicle markets and improved cash flow that would enable us to resume our dividend in the future."

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, R-Vision and Dodge 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 statement above regarding stronger cash flows and the possible resumption of dividends in the future is a forward-looking statement and is subject to various risks and uncertainties that could cause actual results to differ materially from this statement. These risks and uncertainties include our ability to conclude a definitive new credit agreement that will permit us to resume dividends, unforeseen further declines in the wholesale and retail markets for recreational vehicles, the failure to generate the anticipated cash flow and improved operating results from our production realignment, continued decline in consumer confidence, an increase in interest rates and credit standards affecting retail and wholesale financing and an increase in the price or availability of fuel. 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.

CONTACT: Craig Wanichek Director of Investor Relations Monaco Coach Corporation (541) 681-8029 Email Contact