Palm Harbor Homes Named Manufacturer of the Year by Manufactured Housing Institute

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National leader of manufactured and modular homes receives manufacturer of the year and three design awards.

Palm Harbor Homes, Inc. (Nasdaq/NM: PHHM), leader in manufactured homes, modular homes, and factory built homes, announced that it has received the 2005 Manufactured Housing Institute's (MHI) National Industry Award for "Manufacturer of the Year."

MHI is the national trade organization representing all segments of the manufactured and modular housing industries, including manufacturers, retailers, community owners, suppliers, financial institutions, state associations and developers. Nominations for the manufactured and modular home award were made by members of the MHI Manufacturers Division. All MHI members were eligible to vote in the selection process, making this award one of the most prestigious honors bestowed in the manufactured home industry. The award was presented today during the 2006 National Congress & Expo for Manufactured and Modular Housing in Las Vegas, Nevada.

Larry Keener, chairman and chief executive officer of Palm Harbor Homes, commented on the announcement, "We are very honored to be recognized by the MHI and our industry peers. This award reflects Palm Harbor's commitment to industry leadership through innovation, quality and high customer satisfaction. We believe that housing choices are based on value and consumers are looking for a homebuilder that will keep its promises. Through our focused efforts, Palm Harbor has enjoyed a longstanding reputation for delivering value with exceptional customer service and superior products. In turn, we have been rewarded by having a very loyal customer base who continues to support our business and products. Above all, we have a very dedicated and enthusiastic Palm Harbor team of associates who earned this award for their commitment to our customers and to creating a fully-integrated factory built housing company that is well positioned for the future."

During the 2006 National Congress and Expo, the MHI presented Tony Lucas, Vice President of Design and Product Development, with three awards for excellence in design. All three homes have been specifically designed to blend in with the surrounding architecture.

Palm Harbor Homes is one of the nation's leading manufacturers and marketers of multi-section manufactured, modular and factory built homes. The Company markets nationwide through vertically integrated operations, encompassing manufacturing, marketing, financing and insurance. For more information on the company, please visit http://www.palmharbor.com.

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