-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 A8lQnhQqsM702zpo9VXgo5h0xDEocAiQVpqcDw4079LJwfMEvMVCqrwOqHUG7wvf
 P+5Bnx5n4IQ287RA6YqhcA==

<SEC-DOCUMENT>0000950137-05-010244.txt : 20050815
<SEC-HEADER>0000950137-05-010244.hdr.sgml : 20050815
<ACCEPTANCE-DATETIME>20050815112749
ACCESSION NUMBER:		0000950137-05-010244
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050926
FILED AS OF DATE:		20050815
DATE AS OF CHANGE:		20050815
EFFECTIVENESS DATE:		20050815

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SKYLINE CORP
		CENTRAL INDEX KEY:			0000090896
		STANDARD INDUSTRIAL CLASSIFICATION:	MOBILE HOMES [2451]
		IRS NUMBER:				351038277
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0531

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-04714
		FILM NUMBER:		051024247

	BUSINESS ADDRESS:	
		STREET 1:		2520 BY-PASS RD
		STREET 2:		P O BOX 743
		CITY:			ELKHART
		STATE:			IN
		ZIP:			46515
		BUSINESS PHONE:		5742946521

	MAIL ADDRESS:	
		STREET 1:		P O BOX 743
		CITY:			ELKHART
		STATE:			IN
		ZIP:			46515
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>c96568ddef14a.htm
<DESCRIPTION>DEFINITIVE NOTICE AND PROXY
<TEXT>
<HTML>
<HEAD>
<TITLE>def14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="70%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="13%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="15%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3" nowrap align="center"><FONT size="2">OMB APPROVAL</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3" nowrap align="center"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
OMB Number:
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">3235-0059</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Expires:
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>

<TD nowrap align="right" valign="top"><FONT size="2">February&nbsp;28, 2006</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="2" nowrap align="left" valign="top"><FONT size="2">Estimated average burden<br>hours per

response</FONT></TD>

        <TD align="right" valign="bottom"><FONT size="2">12.75</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><font size="2"><B>UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B>
</font>

<P align="center"><FONT size="2"><B>SCHEDULE 14A</B>
</FONT>


<P align="center"><FONT size="2">Proxy Statement Pursuant to Section 14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">Filed by the Registrant
&nbsp;&nbsp;<FONT face="wingdings">&#120;</FONT></FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">Filed by a Party other than the Registrant &nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT></FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">Check the appropriate box:</FONT></TD>
</TR>
</TABLE>
<p>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Preliminary Proxy Statement</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;
<B>Confidential, for Use of the Commission Only (as permitted by
Rule&nbsp;14a-6(e)(2))</B></FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#120;</FONT>&nbsp;&nbsp; Definitive Proxy Statement</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Definitive Additional Materials</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;
Soliciting Material Pursuant to &#167;240.14a-12</FONT></TD>
</TR>
</TABLE>


<P align="center"><FONT size="2"></FONT>
<center>
<P align="center"><FONT size="2"><B>SKYLINE CORPORATION</B><HR size="1" noshade>
(Name of Registrant as Specified In Its Charter)
</FONT>
</center>
<p>
<center>
<P align="center"><FONT size="2"><HR size="1" noshade>(Name of Person(s) Filing Proxy
Statement, if other than the Registrant)
</FONT>
</center>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of Filing Fee (Check the appropriate box):
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#120;</FONT>&nbsp;&nbsp; No fee required.</FONT></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>

<TD><FONT size="2"><FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;
Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(4) and
0-11.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1)&nbsp;Title of each class of securities to which transaction applies:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2)&nbsp;Aggregate number of securities to which transaction applies:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3)&nbsp;Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule&nbsp;0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4)&nbsp;Proposed maximum aggregate value of transaction:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5)&nbsp;Total fee paid:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Fee paid previously with preliminary materials.</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp; Check box if any part of the fee is offset as provided by Exchange Act
Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1)&nbsp;Amount Previously Paid:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2)&nbsp;Form, Schedule or Registration Statement No.:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3)&nbsp;Filing Party:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="97%"></TD>
</TR>
<TR valign="top">
        <TD>&nbsp;</TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4)&nbsp;Date Filed:</FONT></TD>
</TR>
</TABLE>
<HR size="1" noshade>

<p>
<center>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="20%"></TD>
        <TD width="80%"></TD>
</TR>
<TR valign="top">
        <TD valign="bottom"><font size="2">SEC 1913 (02-02)</font></TD>
        <TD><font size="2"><b>Persons who are to respond to the collection of information
contained in this form are not required to respond unless the form displays a currently valid
OMB control number.</b></font></TD>
</TR>
</TABLE>
</center>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SKYLINE CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>2520 By-Pass Road</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>P.O. Box&nbsp;743</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>Elkhart, Indiana 46515</B>
</DIV>

<DIV align="center" style="font-size: 16pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
September&nbsp;26, 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NOTICE IS HEREBY GIVEN that the Annual Meeting of the
Shareholders of Skyline Corporation (&#147;Skyline&#148;) will
be held at the Emerald Room, in the Ramada Inn, 3011 Belvedere
Road, Elkhart, Indiana, on Monday, September&nbsp;26, 2005, at
9:00&nbsp;a.m., Eastern Standard Time, for the following
purposes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;To elect a Board of Directors for the ensuing year, or
until their successors are elected and qualify.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;To transact such other business as may properly come
before the meeting, or any adjournment thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has fixed the close of business on
July&nbsp;22, 2005, as the record date for the determination of
shareholders entitled to notice of, and to vote at, said meeting.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
By Order of the Board of Directors
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
James R. Weigand
</DIV>

<DIV align="right" style="font-size: 10pt;">
Chief Financial Officer
</DIV>

<DIV align="right" style="font-size: 10pt;">
and Secretary
</DIV>

<DIV align="left" style="font-size: 10pt;">
August&nbsp;15, 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
IF YOU DO NOT EXPECT TO ATTEND THE MEETING IN PERSON, PLEASE
SIGN, DATE AND PROMPTLY RETURN THE ENCLOSED PROXY IN THE
ACCOMPANYING ENVELOPE, WHICH REQUIRES NO POSTAGE IF MAILED IN
THE UNITED STATES.
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 16pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SKYLINE CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>2520 By-Pass Road, P.O. Box&nbsp;743</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Elkhart, Indiana 46515</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>August&nbsp;15, 2005</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROXY STATEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The enclosed proxy is solicited by the Board of Directors of
Skyline Corporation (&#147;Skyline&#148;) for use at the Annual
Meeting of Shareholders to be held September&nbsp;26, 2005. The
shares represented by properly executed proxies received prior
to the meeting will be voted. If the shareholder directs in the
proxy how the shares are to be voted, they will be voted
accordingly. When no direction has been given by the
shareholder, it is the intention of the proxies named in the
proxy to vote the same in accordance with their best judgment.
Any proxy given may be revoked by the shareholder at any time
prior to the voting of the proxy. The approximate date on which
this proxy statement and the form of proxy are first sent or
given to security holders is August&nbsp;15, 2005.
</DIV>

<!-- link1 "VOTING SECURITIES" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>VOTING SECURITIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Only shareholders of record as of the close of business on
July&nbsp;22, 2005, or their proxies are entitled to vote at the
meeting. As of that date, Skyline had outstanding
8,391,244&nbsp;shares of Common Stock having one vote per share.
</DIV>

<!-- link1 "ELECTION OF DIRECTORS" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ELECTION OF DIRECTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Each share of Common Stock is entitled to one vote, which means
that the holders of more than 50% of the shares voting for the
election of Directors can elect all of the Directors and approve
any other matter as may properly come before the meeting if they
choose to do so. While the Company does not have a policy
requiring Board members to attend the annual meeting,
traditionally all Directors have attended the annual meeting and
did so at the 2004 annual meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
It is proposed that seven Directors be elected at the meeting,
each to serve until the next Annual Meeting of Shareholders and
until his successor is elected and qualifies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
It is intended that the votes authorized by the enclosed proxy
will be cast for the election of the seven nominees for
Directors whose names are set forth below. In the event that one
or more of the nominees shall unexpectedly become unavaila-
</DIV>

<P align="center" style="font-size: 10pt;">2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
ble for election, the votes will be cast, pursuant to authority
granted by the enclosed proxy, for such person or persons as may
be designated by the present Board of Directors or the Board may
be reduced accordingly. All of the nominees for whom the proxies
intend to vote have agreed to serve as Directors if elected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information about the nominees for election as Directors and the
beneficial ownership of Skyline Common Stock by directors as a
group is as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt;">

<TR style="font-size: 1pt;">
    <TD width="63%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares of Skyline</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Stock</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Skyline</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beneficially Owned</B></TD><TD></TD>
    <TD colspan="2" align="center" nowrap><B>Percent</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="center" nowrap><B>Name, Title, Address</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Director</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>at July&nbsp;1, 2005</B></TD><TD></TD>
    <TD colspan="2" align="center" nowrap><B>of</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="center" nowrap><B>and Principal Occupation</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Age</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Since</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Directly or Indirectly</B></TD><TD></TD>
    <TD colspan="3" align="center" nowrap><B>Class(2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    ARTHUR J. DECIO, Chairman of the Board, serving in a
    non-executive officer and consulting capacity. Skyline
    Corporation 2520 By-Pass Road Elkhart, Indiana 46514
    (Mr.&nbsp;Decio was an executive officer until
    September&nbsp;24, 2001 and Chief Executive Officer of Skyline
    until December&nbsp;16, 1998.)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>1959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>1,477,784(1)</TD>
    <TD align="left" valign="top" nowrap>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>17.6%</TD>
    <TD align="left" valign="top" nowrap>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="17">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    THOMAS G. DERANEK Vice Chairman and Chief Executive Officer
    Skyline Corporation 2520 By-Pass Road Elkhart, Indiana 46514
    Mr.&nbsp;Deranek was elected Vice Chairman and Chief Executive
    Officer and a Director on September&nbsp;24, 2001. He served as
    Chief of Staff from 1991 to 2001</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top" nowrap>69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="2" align="right" valign="top" nowrap>0&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="17">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    JERRY HAMMES 2015 West Western Avenue South Bend, Indiana 46629
    President of Romy Hammes, Inc., a bank holding company and real
    estate investment company, South Bend, Indiana, and Chairman of
    Peoples Bank of Kankakee County, a bank, Bourbonnais, Illinois.
    Mr.&nbsp;Hammes is also a Director Emeritus of St. Joseph
    Capital Corporation, Mishawaka, Indiana</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top" nowrap>73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>1986</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD colspan="2" align="right" valign="top" nowrap>13,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="17">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    RONALD F. KLOSKA, 1329 East Woodside South Bend, Indiana 46614
    Mr.&nbsp;Kloska currently serves Skyline in a consulting
    capacity. Mr.&nbsp;Kloska was Vice-Chairman and Chief Executive
    Officer of Skyline Corporation until September&nbsp;24, 2001 and
    Mr.&nbsp;Kloska was Deputy Chief Executive Officer of Skyline
    until December&nbsp;16, 1998</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="center" valign="top" nowrap>71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>1965</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD colspan="2" align="right" valign="top" nowrap>28,600&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="63%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares of Skyline</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Common Stock</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Skyline</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beneficially Owned</B></TD><TD></TD>
    <TD colspan="2" align="center" nowrap><B>Percent</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="center" nowrap><B>Name, Title, Address</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Director</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>at July&nbsp;1, 2005</B></TD><TD></TD>
    <TD colspan="2" align="center" nowrap><B>of</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="center" nowrap><B>and Principal Occupation</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Age</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Since</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Directly or Indirectly</B></TD><TD></TD>
    <TD colspan="3" align="center" nowrap><B>Class(2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR>
    <TD align="left" valign="top">
    WILLIAM H. LAWSON<BR>
    One Sarasota Tower, Suite&nbsp;408<BR>
    Sarasota, Florida 34236 Retired March&nbsp;31, 2003 as Chairman
    of the Board, Chief Executive Officer and a Director of Franklin
    Electric Company, Inc., a manufacturer of electric motors,
    Bluffton, Indiana. Mr.&nbsp;Lawson is a Director of JSJ
    Corporation and Sentry Insurance, a Mutual Company</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>1975</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>3,000&nbsp;&nbsp;</TD>
    <TD align="left" valign="top" nowrap>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap></TD>
    <TD align="left" valign="top" nowrap>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="17">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    DAVID T. LINK<BR>
    Dean Emeritus Notre Dame Law School<BR>
    University of Notre Dame<BR>
    Notre Dame, Indiana 46556<BR>
    President and CEO International Centre for Healing and the
    Law<BR>
    9292&nbsp;W.&nbsp;KL Avenue<BR>
    Kalamazoo, Michigan 49009</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>1994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="17">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    ANDREW J. MCKENNA<BR>
    8338 North Austin Avenue<BR>
    Morton Grove, Illinois 60053<BR>
    Chairman of Schwarz, a national printer, converter and
    distributor of packaging and promotional materials.
    Mr.&nbsp;McKenna is also a director of Click Commerce, Aon
    Corporation and Chairman of McDonald&#146;s Corporation</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>1971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="2" align="center" valign="top" nowrap>12,300&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    ALL NOMINEES AND</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    OFFICERS AS A GROUP</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="2" align="center" valign="top" nowrap>1,572,264&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>18.7%</TD>
    <TD align="left" valign="top" nowrap>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Includes 83,500&nbsp;shares in The Arthur J. Decio Foundation, a
    charitable foundation, of which Mr.&nbsp;Decio is a trustee.
    Mr.&nbsp;Decio disclaims any beneficial interest with respect to
    these shares.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Less than one percent unless otherwise indicated.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Skyline has standing Audit, Nominating and Governance and
Compensation Committees of the Board. Information about Board
and Committee meetings is as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee consists of Messrs.&nbsp;Hammes, McKenna,
Lawson, and Link. It met seven times during the fiscal year
ended May&nbsp;31, 2005. The Committee meets with the accounting
firm which conducts the annual audit of Skyline&#146;s books,
reviews auditors&#146; recommendations, reviews the independence
of Skyline&#146;s auditors and considers the range of audit and
non-audit fees. It also meets with the internal audit staff and
Chief Financial Officer, reviews the scope and adequacy of
Skyline&#146;s internal auditing program and reports its
findings to the Board with any recommendations it considers
appropriate. Skyline&#146;s Board of Directors has adopted a
written charter for the Audit Committee. The members
</DIV>

<P align="center" style="font-size: 10pt;">4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
of Skyline&#146;s Audit Committee are all
&#147;independent&#148; as defined in the applicable Listing
Standards. Messrs.&nbsp;Hammes, McKenna, Lawson, and Link are
all &#147;Audit Committee Financial Experts&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nominating and Governance Committee consists of
Messrs.&nbsp;McKenna, Hammes, Lawson and Link, all of whom are
independent. It met one time during the last fiscal year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nominating and Governance Committee identifies individuals
qualified to become Board Members, and recommends that the Board
nominates such individuals for election to the Board at the next
Annual Meeting of Shareholders. This Committee also develops and
reviews Skyline&#146;s corporate governance guidelines and makes
recommendations to the Board relating to the guidelines. The
Committee believes that candidates for directors should meet
certain minimum qualifications including being of the highest
ethical character and sharing the values of Skyline as reflected
in our Code of Ethics, having reputations both personal and
professional consistent with the image and reputation of
Skyline, and being highly accomplished in their respective
fields with superior credentials and recognition and having
relevant experience and expertise. In general, persons
recommended by shareholders will be considered on the same basis
as candidates from other forums. The Committee retains the right
to modify these qualifications from time to time. Shareholders
may provide the Committee information on director candidates for
consideration by the Committee by writing a letter to our
assistant secretary Linda Philippsen at our principal executive
office at 2520&nbsp;By-Pass Road, P.O. Box&nbsp;743, Elkhart,
Indiana 46515 containing the respective candidate&#146;s name,
qualifications, relevant experience, all information required
pursuant to Regulation&nbsp;14A under the Securities Exchange
Act of 1934, and such candidate&#146;s consent to serve as
director. The Committee retains absolute discretion and
independence in determining whether to recommend a candidate.
These letters must also identify the author as a shareholder of
Skyline, and clearly state that the intended recipients are all
members of the Nominating and Governance Committee. All such
communications received by the assistant secretary will be
delivered to members of the Nominating and Governance Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Compensation Committee consists of Messrs.&nbsp;Lawson,
McKenna, Hammes and Link. It met two times during the last
fiscal year. The functions of the Compensation Committee are to
discharge the Board&#146;s responsibilities relating to
compensation of Skyline executives and produce an annual report
on executive compensation for inclusion in the Skyline proxy
statement, review and approve corporate goals and objectives
relevant to the Chief Executive Officer&#146;s
</DIV>

<P align="center" style="font-size: 10pt;">5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
compensation, evaluate Chief Executive Officer performance in
light of these goals and objectives and set the Chief Executive
Officer&#146;s compensation level based on this evaluation and
to make recommendations to the Board regarding incentive
compensation plans, equity based plans and to undertake any
similar functions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Executive Committee of the Board of Directors consists of
Messrs.&nbsp;Decio, McKenna, Hammes, Lawson and Link, and met
five times during the last fiscal year. This Committee exercises
the powers of the Board of Directors in the management of the
business affairs of Skyline, subject to the approval of the full
Board of Directors at the next regular or special meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors met or took action six times during the
last fiscal year. Every Board member was present at all Board
meetings and meetings of all committees of which he was a
member, except that one Board member missed one Board meeting.
</DIV>

<!-- link1 "Report of the Audit Committee" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Report of the Audit Committee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee of Skyline&#146;s Board of Directors has
reviewed and discussed Skyline&#146;s audited financial
statements with management; has discussed with Skyline&#146;s
independent auditors PricewaterhouseCoopers LLP the matters
required to be discussed by Codification of Statements on
Auditing Standards, AU &#167;380, Statement on Auditing
Standards No.&nbsp;61; has received from the auditors
disclosures regarding the auditors&#146; independence as
required by Independence Standards Board Standard No.&nbsp;1 and
has discussed with the auditors the auditors&#146; independence;
and has, based on the review and discussions noted above,
recommended to Skyline&#146;s Board of Directors that the
audited financial statements be included in Skyline&#146;s
Annual Report on Form&nbsp;10-K for the fiscal year ended
May&nbsp;31, 2005 for filing with the Securities and Exchange
Commission. Skyline&#146;s Board of Directors has adopted a
formal charter for the Audit Committee setting forth its
responsibilities. A current copy of the Audit Committee Charter
is attached as Exhibit&nbsp;A and available on our website at
www.skylinecorp.com.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="62%"></TD>
    <TD width="38%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Jerry Hammes, Chairman</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Andrew J. McKenna</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    William H. Lawson</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    David T. Link</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<!-- link1 "Audit Fees" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Audit Fees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate fees billed for professional services rendered for
the audit of Skyline&#146;s annual financial statements for the
last two fiscal years ending May&nbsp;31, 2004 and May&nbsp;31,
2005 and the reviews of the financial statements included in
Skyline&#146;s Forms&nbsp;10-Q and all services that are
normally provided by the accountants in connection with
statutory and regulatory filings or engagements for those fiscal
years were $195,000 for the year ended May&nbsp;31, 2004 and
were $407,000 for the year ended May&nbsp;31, 2005.
</DIV>

<!-- link1 "Audit-Related Fees" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Audit-Related Fees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate fees billed for professional services during the
last two fiscal years for assurance and related services by
PricewaterhouseCoopers LLP that are reasonably related to the
performance of the audit or review of Skyline&#146;s financial
statements, other than those reported as Audit Fees, were
$15,000 for the fiscal year ended May&nbsp;31, 2004 and were
$16,000 for the fiscal year ended May&nbsp;31, 2005.
</DIV>

<!-- link1 "Tax Fees" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Tax Fees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate fees billed in each of the last two fiscal years
for professional services rendered by PricewaterhouseCoopers,
LLP for tax compliance, tax advice, and tax planning were
$11,000 for fiscal year ended May&nbsp;31, 2004 and were $11,000
for fiscal year ended May&nbsp;31, 2005. The services were the
review, assistance and preparation and signing of Skyline&#146;s
consolidated Federal tax return.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>All Other Fees</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate fees billed Skyline for services by
PricewaterhouseCoopers LLP, other than for services addressed
under the captions &#147;Audit Fees&#148;, &#147;Audit-Related
Fees&#148; and &#147;Tax Fees&#148; for each of the last two
fiscal years were $1,000 for the fiscal year ended May&nbsp;31,
2004 and were $0 for the fiscal year ended May&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee&#146;s preapproval policies and procedures
pursuant to 17&nbsp;CFR 210.2-01(c)(7)(i) require any and all
engagements must receive explicit approval by the committee
after the committee has received an adequate description of the
proposed engagement.
</DIV>

<P align="center" style="font-size: 10pt;">7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The percentage of the services addressed under the captions
&#147;Audit-Related Fees&#148;, &#147;Tax Fees&#148; and
&#147;All Other Fees&#148; that were preapproved by the Audit
Committee pursuant to 17&nbsp;CFR 210.2-01(c)(7)(i) is 100%. The
number of hours spent by persons other than full-time permanent
employees of PricewaterhouseCoopers LLP on auditing
Skyline&#146;s financial statements for the most recent fiscal
years was less than 50% of the total number of hours.
</DIV>

<!-- link1 "Code of Ethics" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Code of Ethics</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Skyline has Codes of Ethics which apply to all employees,
officers and directors. The ethics policy is posted on our
website at www.skylinecorp.com.
</DIV>

<!-- link1 "CERTAIN OTHER BENEFICIAL OWNERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CERTAIN OTHER BENEFICIAL OWNERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following persons, entities or &#147;group&#148; as
indicated are known to Skyline to own beneficially at least five
percent (5%) of Skyline&#146;s common stock or are members of
management identified in the summary compensation table but who
are not on Skyline&#146;s Board. The beneficial ownership of
Skyline common stock by the members of its Board and its
nominees for directors is shown in the table under
&#147;Election of Directors&#148; above.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="55%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares of Skyline Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" nowrap><B>&nbsp;&nbsp;Name and Address</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Beneficially Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percent of</B></TD><TD></TD>
</TR>

<TR>
    <TD align="center" nowrap><B>&nbsp;&nbsp;of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>at July&nbsp;1, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Class(1)&nbsp;&nbsp;</B></TD><TD></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="8" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Private Capital Management, Inc.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>

<TD colspan="2" align="center" valign="top" nowrap>1,351,353&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>16.1%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    8889 Pelican Bay Blvd., Suite&nbsp;500<BR>
    Naples, Florida 34108</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Gabelli Asset Management, Inc.&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>982,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>11.7%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    One Corporate Center<BR>
    Rye, NY 10580-1435</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    T. Rowe Price Associates Inc.(2)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>833,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>9.93%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    100 East Pratt Street<BR>
    Baltimore, Maryland 21202</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Terrence M. Decio</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>30,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Vice President, Marketing and Sales<BR>
    2520 Bypass Road<BR>
    Elkhart, Indiana 46514</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    William H. Murschel</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>4,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    President and Chief Operations Officer<BR>
    2520 Bypass Road<BR>
    Elkhart, Indiana 46514</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; ">

<TR style="font-size: 1pt;">
    <TD width="55%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares of Skyline Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" nowrap><B>&nbsp;&nbsp;Name and Address</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Beneficially Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percent of</B></TD><TD></TD>
</TR>

<TR>
    <TD align="center" nowrap><B>&nbsp;&nbsp;of Beneficial Owner</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>at July&nbsp;1, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Class(1)&nbsp;&nbsp;</B></TD><TD></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="8" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Christopher R. Leader</TD>
    <TD>&nbsp;</TD>

<TD colspan="2" align="center" valign="top" nowrap>1,000&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Vice President, Operations<BR>
    2420 Bypass Road<BR>
    Elkhart, Indiana 46514</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="9">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    James R. Weigand</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" valign="top" nowrap>800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Chief Financial Officer and Secretary<BR>
    2520 Bypass Road<BR>
    Elkhart, Indiana 46514</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;
(1)&nbsp;Less than one percent (1%) if not specified.
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 2pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;
 (2)&nbsp;T. Rowe Price Associates, Inc. (Price Associates) has
informed Skyline that these securities are owned by various
individual and institutional investors which Price Associates
serves as investment adviser with power to direct investment
and/or sole power to vote the securities and that for purposes
of the reporting requirements of the Securities Exchange Act of
1934, Price Associates is deemed to be a beneficial owner of
such securities; however, Price Associates expressly disclaims
that it is, in fact, the beneficial owner of such securities.
</DIV>

<!-- link1 "SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>SECTION&nbsp;16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE</U></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based solely on a review of forms provided to Skyline and on
certain written representations, Skyline is unaware of any
failure to file on a timely basis reports required by
Section&nbsp;16(a) of the Exchange Act by any director, officer
or beneficial owner of more than ten percent of Skyline&#146;s
common stock.
</DIV>

<!-- link1 "EXECUTIVE COMPENSATION" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXECUTIVE COMPENSATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth all cash compensation paid during
the fiscal year ended May&nbsp;31, 2005 for each of the highest
paid executive officers or significant employees of Skyline,
including the Chief Executive Officer and for a significant
employee. The table also shows for each such officer or employee,
</DIV>

<P align="center" style="font-size: 10pt;">9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV align="left" style="font-size: 10pt;">
the amounts set aside during the last fiscal year under
Skyline&#146;s Profit Sharing Plan.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="47%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 9pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="5" align="center" nowrap><B>All Other</B></TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Annual Compensation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" align="center" nowrap><B>Compensation</B></TD><TD></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 9pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>(Vested</B></TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD align="center" nowrap><B>Name and</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Profit</B></TD><TD></TD>
</TR>

<TR style="font-size: 9pt;">
    <TD align="center" nowrap><B>Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>Salary($)</B></TD><TD></TD>
    <TD colspan="3" align="center" nowrap><B>Bonus($)</B></TD><TD></TD>
    <TD align="center" nowrap><B>Sharing)</B></TD><TD></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD colspan="16" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Thomas G. Deranek</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>300,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>50,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Vice Chairman and Chief Executive Officer;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>300,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>70,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Chief of Staff until September&nbsp;24, 2001</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>298,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>70,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    William H. Murschel</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>360,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>50,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    President and Chief Operations Officer</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>360,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>70,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>360,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>70,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Terrence M. Decio*</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>290,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>45,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Vice-President, Marketing and Sales</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>290,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>60,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>288,800</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>60,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    James R. Weigand</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>230,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>40,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Chief Financial Officer and Secretary</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>210,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>50,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>209,200</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>50,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Christopher R. Leader</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>210,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>40,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Vice-President, Operations</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>210,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>50,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>200,000</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>50,000</TD>
    <TD colspan="3" align="center" valign="bottom" nowrap>9,000</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;
 *&nbsp;Terrence M. Decio is considered a significant employee,
rather than an executive officer of Skyline.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<!-- link1 "Compensation of Directors" -->

<DIV align="center" style="font-size: 12pt;">
<B>Compensation of Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Directors who are not employees of Skyline receive an annual fee
of $16,000 payable in quarterly installments and receive $500
for each Board or Committee meeting attended. Chairmen of Board
Committees who are not employees of Skyline receive an
additional $2,000 annually and Committee members who are not
employees of Skyline receive an additional $1,500 annually
payable in quarterly installments.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<!-- link1 "Transactions with Management" -->

<DIV align="center" style="font-size: 12pt;">
<B>Transactions with Management</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The son-in-law of Thomas G. Deranek, the Chief Executive Officer
of Skyline, is employed as a network administrator by Skyline.
He was hired by and reports to James R. Weigand, Chief Financial
Officer, and he received total compensation as an employee of
$61,000.
</DIV>

<P align="center" style="font-size: 10pt;">10

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<!-- link1 "Termination of Employment Arrangements" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Termination of Employment Arrangements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Skyline Corporation and Affiliates Employees&#146; Profit
Sharing Plan provides benefits on death, disability or
retirement for substantially all employees. Employees become
eligible as of the June&nbsp;1 or December&nbsp;1 immediately
following completion of six months of employment. The amount of
contribution under the Plan is at the discretion of Skyline each
year. The maximum contribution for any participant shall not
exceed 12% of a participant&#146;s basic compensation. Upon
retirement, death or permanent total disability, a participant
is entitled to all of the funds credited to his account. In case
of termination of employment by resignation or discharge, the
participant is entitled to a percentage of the amount credited
to his account, ranging from 0% after one year of employment to
100% after seven years. Forfeitures resulting from any
employee&#146;s termination of employment prior to full vesting
will be used to reduce employer contributions. Net investment
earnings or net losses for each fiscal year are allocated to the
account of each participant in the same ratio as the
participant&#146;s account balance bears to the total account
balances of all participants. Skyline reserves the right to
modify, amend or terminate the Plan. In the event of termination
of the plan, the entire amount theretofore contributed under the
Plan must be paid to participants or their beneficiaries and
under no circumstances reverts to Skyline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under an insurance plan, payments would be made to the below
named executive officers and three former executive officers,
and current and former executive officers as a group, for a
period of 10&nbsp;years upon retirement from Skyline at
age&nbsp;60, 62 or later, in the following annual amounts:
Thomas G. Deranek, $75,000; William H. Murschel, $75,000;
Terrence M. Decio, $75,000; James R. Weigand, $60,000;
Christopher R. Leader, $60,000; Arthur J. Decio, $100,000; and
Ronald F. Kloska, $100,000; and all current and former executive
officers as a group, consisting of 9 individuals, $645,000.
Under the same insurance plan, in the event of the death of any
of these individuals while employed by Skyline, payments would
be made for a period of 10&nbsp;years in the annual amounts
hereinafter specified to the beneficiaries of the following
individuals and group: Thomas G. Deranek, $75,000; William H.
Murschel, $75,000; Terrence M. Decio, $75,000; James R. Weigand,
$40,000; Christopher R. Leader, $40,000; Arthur J. Decio,
$100,000; and Ronald F. Kloska, $100,000 and 2 other executive
officers, totaling 9 individuals, $575,000. Skyline is the owner
and beneficiary of policies insuring the lives of all these
individuals in the total amount of $4,942,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, in the event of the death of Arthur J. Decio,
whether before or after his retirement from Skyline, Skyline has
agreed to pay his survivor(s) the
</DIV>

<P align="center" style="font-size: 10pt;">11

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
sum of $2,700,000, which at the present income tax rates, would
result in after tax cost to Skyline of approximately $1,620,000.
Skyline is the owner and beneficiary of policies insuring Arthur
J. Decio&#146;s life in the amount of $1,600,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The appreciation in cash surrender value of all of the
above-described insurance policies is such that there is no
current cost to Skyline for their maintenance.
</DIV>

<!-- link1 "Compensation Committee Interlocks and Insider Participation" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Compensation Committee Interlocks and Insider
Participation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following persons served as members of the Compensation
Committee of Skyline&#146;s Board of Directors during the fiscal
year ended May&nbsp;31, 2005: William H. Lawson, Andrew J.
McKenna, Jerry Hammes and David T. Link. Arthur J. Decio is the
Chairman of the Board of Skyline, and is a member of the Board
of Directors of Schwarz. Andrew J. McKenna is Chairman of
Schwarz.
</DIV>

<!-- link1 "Report of the Compensation Committee on Executive Compensation" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Report of the Compensation Committee</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>on Executive Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The compensation of Skyline&#146;s executive officers is
determined by the Compensation Committee of the Board of
Directors. Each member of the Compensation Committee is a
director who is not an employee of Skyline or any of its
affiliates. The following report with respect to compensation
paid to Skyline&#146;s executive officers for the fiscal year
ended May&nbsp;31, 2005 is furnished by the Compensation
Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>General Policies.</U> Skyline&#146;s compensation programs
are intended to enable Skyline to attract, motivate, reward and
retain the executive management talent required to achieve
corporate objectives. It is Skyline&#146;s policy to reward
exceptional performance and contributions to the development of
Skyline&#146;s business. To attain these objectives,
Skyline&#146;s executive compensation program includes a
competitive base salary coupled with the opportunity to
participate in a bonus pool which is created based on the
performance of Skyline&#146;s business. The Compensation
Committee establishes the base salaries and discretionary
bonuses which will be paid to Skyline&#146;s executive officers
for each fiscal year. In setting salaries and bonuses, the
Compensation Committee takes into account several factors,
including compensation paid by competitors and other
industries&#146; compensation data as well as qualitative
factors bearing on an individual&#146;s experience,
responsibilities, management and job performance. The
Compensation Committee evaluates the contributions to
Skyline&#146;s overall performance
</DIV>

<P align="center" style="font-size: 10pt;">12

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
during the last fiscal year, leadership, effectiveness and
commitment of all executive officers, including the Chief
Executive Officer. For the fiscal year ended May&nbsp;31, 2005,
each of the executive officers received a bonus, in the amounts
set forth above in the executive compensation table.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Salaries.</U> Salary levels for executive officer positions
are set so as to reflect the duties and level of
responsibilities inherent in the position and current economic
conditions relating to Skyline&#146;s business. Comparative
salaries paid by other companies in the industries in which
Skyline does business are considered in establishing the salary
level for a given position. The Compensation Committee does not,
however, target a specific percentile range within the
comparative group in setting salaries of Skyline&#146;s
executive officers. The particular qualifications and level of
experience of the individual holding the position are also
considered in establishing a salary level when the individual is
first appointed to a given position.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Bonus.</U> Skyline provides executive officers the
opportunity to earn an annual incentive bonus based on an
evaluation of the executive&#146;s individual performance and
Skyline&#146;s performance. No executive officer is
automatically entitled to a bonus or a bonus in any particular
amount. In considering bonuses for executives, the Compensation
Committee consults with the Chairman of the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Other.</U> In addition, the executive officers participate in
a profit sharing program and insurance and other plans described
above providing payments on death or retirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Compensation of Chief Executive Officer
(&#147;CEO&#148;).</U> In setting the base salary and bonus for
Skyline&#146;s CEO for the fiscal year ended May&nbsp;31, 2005
the Compensation Committee considered the same factors as with
other executive officers of Skyline. The Compensation Committee
believes the CEO&#146;s compensation was fully supported by
those standards.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>



   <TD width="57"></TD>
    <TD width="43%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    William H. Lawson, Chairman</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Andrew J. McKenna</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Jerry Hammes</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    David T. Link</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Being all the members of Skyline&#146;s</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Compensation Committee</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">13

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The graph below compares the cumulative, five-year shareholder
returns on Skyline Common Stock to the cumulative, five-year
shareholder returns for (a)&nbsp;the S&#38;P 500 Stock Index,
(b)&nbsp;an index of peer companies selected by Skyline and
(c)&nbsp;the peer group used by Skyline in last year&#146;s
Proxy Statement. The New Peer Group is composed of four
publicly-held companies which were selected based on
similarities in their products and their competitive position in
the industry. The companies comprising the New Peer Group are
Cavalier Homes, Inc., Champion Enterprises, Inc., Coachmen
Industries, Inc and Fleetwood Enterprises, Inc. For this
year&#146;s Proxy Statement Skyline modified the previous
year&#146;s peer group as follows: removed Liberty Homes, Inc.
because it is no longer listed on a national exchange; removed
Thor Industries because it is solely a recreational vehicle
manufacturer whose weighted market capitalization had grown to
represent more than 50% of the old group&#146;s total weighted
average return; and added Cavalier Homes because of the
similarities in their manufactured housing products and their
competitive position in the industry.
</DIV>

<!-- link1 "PERFORMANCE GRAPH" -->

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PERFORMANCE GRAPH</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;
    COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN* AMONG SKYLINE
    CORPORATION, S&nbsp;&#38; P 500 INDEX, AN OLD PEER GROUP AND A
    NEW PEER GROUP</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="c96568dc9656813.gif" alt="(Performance Graph)">
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Cumulative Total Return</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2000</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Skyline Corp.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>177.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>150.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>215.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>219.70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    S&#38;P 5000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>89.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83.83</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>90.74</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    New Peer Group</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>118.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>136.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>117.07</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Old Peer Group</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>114.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>131.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>212.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>210.92</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Notes:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    $100 invested on 5/31/00 in stock or index, including
    reinvestment of dividends although Skyline has no dividend
    reinvestment plan. Fiscal year ending May&nbsp;31.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Total return is based on market capitalization.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">14

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<!-- link1 "DIRECTOR INDEPENDENCE AND EXECUTIVE SESSIONS" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DIRECTOR INDEPENDENCE AND EXECUTIVE SESSIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has affirmatively determined that each of
the four non-management Directors, Andrew J. McKenna, Jerry
Hammes, William H. Lawson, and David T. Link, is an independent
Director and therefore, that a majority of Skyline&#146;s seven
person Board of Directors is currently independent as so
defined. For this purpose, Skyline&#146;s Board adopted the
following categorical standards based in part on the New York
Stock Exchange Corporate Governance Listing Standards approved
by the SEC on November&nbsp;4, 2003, and additional categories
considered appropriate by the Board:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>1.&nbsp;</TD>
    <TD align="left">
    No Director qualifies as &#147;independent&#148; unless the
    Board affirmatively determines that the Director has no material
    relationship with Skyline or any of its subsidiaries (either
    directly or as a partner, shareholder or officer of an
    organization that has a relationship with Skyline or its
    subsidiaries);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>2.&nbsp;</TD>
    <TD align="left">
    A Director who is an employee, or whose immediately family
    member is an executive officer of Skyline or any of its
    subsidiaries, is not independent until three (3)&nbsp;years
    after the end of such employment relationship;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>3.&nbsp;</TD>
    <TD align="left">
    A Director who receives or his immediately family member
    receives more than $100,000&nbsp;per year in direct compensation
    from Skyline or any of its subsidiaries, other than Director and
    committee fees and pension or other forms of deferred
    compensation for prior service (provided such compensation is
    not contingent in any way on continued service), is not
    independent until three (3)&nbsp;years after he or she ceases to
    receive more than $100,000&nbsp;per year in such compensation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>4.&nbsp;</TD>
    <TD align="left">
    A Director who is affiliated with or employed by, or whose
    immediate family member is affiliated with or employed in a
    professional capacity by a present or former internal or
    external auditor of our company or any of its subsidiaries, is
    not &#147;independent&#148; until three (3)&nbsp;years after the
    end of the affiliation or the employment or auditing
    relationship;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>5.&nbsp;</TD>
    <TD align="left">
    A Director who is employed, or whose immediate family member is
    employed, as an executive officer of another company when any of
    Skyline or any of its subsidiaries&#146; present executives
    serve on that other company&#146;s compensation committee is not
    &#147;independent&#148; until three (3)&nbsp;years after the end
    of such service or the employment relationship;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>6.&nbsp;</TD>
    <TD align="left">
    A Director who is an executive officer or an employee, or whose
    immediate family member is an executive officer, of a company
    that makes</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">15

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    payments to, or receives payment from, Skyline or any of its
    subsidiaries for property or services in an amount which, in any
    single fiscal year, exceeds the greater of $1,000,000 or 2% of
    such other company&#146;s consolidated gross revenues, is not
    &#147;independent&#148; until three (3)&nbsp;years after falling
    below such threshold;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>7.&nbsp;</TD>
    <TD align="left">
    The Board has determined that there are no relationships between
    Skyline and the Directors classified as independent other than
    service on Skyline&#146;s Board of Directors and compensation
    paid to such Directors.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing independence determination of the Board of
Directors also included the conclusions of the Board that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>1.&nbsp;</TD>
    <TD align="left">
    Each of the members of the Audit Committee, Nominating and
    Governance Committee, and Compensation Committee listed above is
    respectively independent under the standards listed above for
    purposes of membership on each of these committees; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>2.&nbsp;</TD>
    <TD align="left">
    Each of the members of the Audit Committee also meets the
    additional independence requirements under Sec.
    Rule&nbsp;10A-3(b).</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;McKenna is currently serving as the &#147;lead&#148;
independent Director for purposes of scheduling and setting the
agenda for executive sessions of the independent Directors. It
is presently contemplated that there will be regular executive
sessions during the fiscal year ending May&nbsp;31, 2006 in
conjunction with regularly scheduled Board meetings, in addition
to the separate meetings of the key standing committees of the
Board of Directors. There were two executive sessions in the
fiscal year ending May&nbsp;31, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Board of Directors has adopted a statement of governance
principles that is available on our Company&#146;s website at
www.skylinecorp.com.
</DIV>

<!-- link1 "INDEPENDENT PUBLIC AUDITORS" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INDEPENDENT PUBLIC AUDITORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Skyline&#146;s independent public accounting firm is
PricewaterhouseCoopers LLP. It is expected that representatives
of PricewaterhouseCoopers LLP will be present at the meeting of
shareholders, will have the opportunity to make a statement if
they so desire and will be available to respond to appropriate
questions.
</DIV>

<P align="center" style="font-size: 10pt;">16

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<!-- link1 "SHAREHOLDER COMMUNICATIONS WITH DIRECTORS" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SHAREHOLDER COMMUNICATIONS WITH DIRECTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Skyline provides for a procedure for shareholders to communicate
with the Board. Shareholders may send communications to the
attention of the Board Members or Committees in care of
board@skylinecorp.com.
</DIV>

<!-- link1 "SHAREHOLDER PROPOSALS" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SHAREHOLDER PROPOSALS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To be considered for inclusion in next year&#146;s proxy
statement, shareholder proposals must be received at
Skyline&#146;s principal executive offices not later than the
close of business on April&nbsp;4, 2006. For any proposal that
is not submitted for inclusion in next year&#146;s proxy
statement (as described in the preceding sentence) but instead
is sought to be presented directly at next year&#146;s annual
meeting, Securities and Exchange Commission Rules permit
management to vote proxies in its discretion if (a)&nbsp;Skyline
received notice of the proposal before the close of business on
June&nbsp;19, 2006 and advises shareholders in next year&#146;s
proxy statement about the nature of the matter and how
management intends to vote on such matters, or (b)&nbsp;does not
receive notice of the proposal prior to the close of business on
June&nbsp;19, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notice of intention to present proposals at the 2006 Annual
Meeting should be addressed to:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
James R. Weigand
</DIV>

<DIV align="center" style="font-size: 10pt;">
Chief Financial Officer
</DIV>

<DIV align="center" style="font-size: 10pt;">
and Secretary
</DIV>

<DIV align="center" style="font-size: 10pt;">
Skyline Corporation
</DIV>

<DIV align="center" style="font-size: 10pt;">
2520 By-Pass Road
</DIV>

<DIV align="center" style="font-size: 10pt;">
Elkhart, Indiana 46514
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company reserves the right to reject, rule out of order, or
take other appropriate action with respect to any proposal that
does not comply with these and other applicable requirements.
</DIV>

<P align="center" style="font-size: 10pt;">17

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<!-- link1 "MISCELLANEOUS" -->

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>MISCELLANEOUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of the date of this Proxy Statement, the Board of Directors
knows of no other business which will be presented for
consideration at the annual meeting. However, if other proper
matters are presented at the meeting, it is the intention of the
proxies named in the enclosed proxy to take such action as shall
be in accordance with their best judgment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The expense of this solicitation, including the cost of
preparing and mailing this Proxy Statement and accompanying
material, will be paid by Skyline. Skyline expects to pay
approximately $6,500 to Georgeson Shareholder Communications,
Inc. as compensation for the solicitation of proxies, and may
reimburse brokers and others for their expense for sending proxy
material to principals for the purpose of obtaining signed
proxies. In addition, solicitation may be by mail, telephone,
telefax and personal interview by regularly engaged officers of
Skyline who will not be additionally compensated therefor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholders are respectfully requested to date, sign and return
promptly the enclosed proxy in the enclosed envelope. No postage
is required if mailed in the United States.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
By Order of the
</DIV>

<DIV align="right" style="font-size: 10pt;">
Board of Directors
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
James R. Weigand
</DIV>

<DIV align="right" style="font-size: 10pt;">
Chief Financial Officer
</DIV>

<DIV align="right" style="font-size: 10pt;">
and Secretary
</DIV>

<P align="center" style="font-size: 10pt;">18

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="right" style="font-size: 12pt;">
<B>Exhibit&nbsp;A</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CHARTER OF THE AUDIT COMMITTEE</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>OF</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>THE BOARD OF DIRECTORS</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>OF</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>SKYLINE CORPORATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee shall consist of at least three
(3)&nbsp;directors, all of whom are independent (as defined in
Section&nbsp;17 of the Code of Federal Regulations) of
management of the Corporation and any of its subsidiaries and
free from any relationship that, in the judgment of the Board of
Directors, would interfere with the exercise of independent
judgment respecting the matters over which the Committee is
given authority. The Board shall also determine that each member
is financially literate and that one member of the Audit
Committee has accounting or related financial management
expertise as such qualifications are interpreted by the Board of
Directors in its business judgment and whether any member of the
Audit Committee is an Audit Committee financial expert as
defined by the rules of the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No Director shall serve as a member of the Audit Committee if
such Director serves on the Audit Committees of more than two
other public companies unless the Board of Directors determines
that such simultaneous service would not impair the ability of
such Director to effectively serve on the Audit Committee, and
discloses this determination in the Corporation&#146;s annual
proxy statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The members of the Audit Committee shall be elected annually by
the Board of Directors in connection with the annual meeting of
the board. Members shall be elected by the Board of Directors
with due regard to such member&#146;s training in, or experience
with, accounting and financial reporting issues. Members of the
Committee may be removed, and vacancies on the Committee may be
filled by the Board of Directors in accordance with the Code of
By-laws of the Corporation. The Chairman of the Audit Committee
may be designated by the Board of Directors and, in the absence
of such designation, may be elected by the Audit Committee from
among their members.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee shall assist the Board of Directors to
oversee the Corporation&#146;s financial reporting processes,
its internal financial control structures and its internal and
external financial audit processes. The Committee&#146;s purpose
includes assisting the Board&#146;s oversight of integrity of
the financial
</DIV>

<P align="center" style="font-size: 10pt;">A-1

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
statements, the Corporation&#146;s compliance with legal and
regulatory requirements, the independent auditors&#146;
qualifications and independence and the performance of the
Corporation&#146;s internal audit functions and independent
auditors. The Committee shall conduct an annual self-evaluation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has oversight authority over the following
matters (collectively referred to herein as &#147;Financial
Matters&#148;):
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The quality, accuracy and integrity of the Corporation&#146;s
    annual financial statements, including footnotes and related
    disclosures.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The quality, scope, independence, and procedures of the
    independent auditors&#146; and their audits of the
    Corporation&#146;s financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The quality, appropriateness and implementation of the
    Corporation&#146;s significant accounting policies.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Audit conclusions respecting significant estimates and
    adjustments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The disclosure, treatment or resolution of any material weakness
    in financial reporting or controls or reportable conditions
    identified by management, the internal audit department or the
    independent auditors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The quality, adequacy and appropriateness of the
    Corporation&#146;s internal financial control structures,
    including any circumstances in which such controls may be
    overridden or compromised.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The quality, adequacy and appropriateness of the
    Corporation&#146;s internal auditing processes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Disagreements among management, the internal audit department or
    the independent auditors.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The assessment of material risks or contingencies that may
    affect the Corporation&#146;s financial reporting including the
    risk of liability associated with litigation or noncompliance
    with law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Corporation&#146;s compliance with legal and regulatory
    requirements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The preparation of such reports as may be required by SEC rules.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The policies with respect to risk assessment and risk management
    shall be discussed and reviewed periodically by the Audit
    Committee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To set clear hiring policies for employees or former employees
    of the independent auditors.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">A-2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Such other matters affecting the quality, integrity or accuracy
    of the Corporation&#146;s financial reporting as the Committee
    deems relevant to any of the forgoing matters.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Committee Duties and Responsibilities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To carry out its purposes, the Audit Committee shall have the
following duties and responsibilities:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;With respect to independent auditors:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(i)</TD>
    <TD align="left">
    To be directly responsible for the appointment, compensation,
    retention and oversight of the work of the independent auditors
    (including the resolution of the disagreements between
    management and the independent auditors regarding financial
    reporting), who shall report directly to the Audit Committee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(ii)</TD>
    <TD align="left">
    To be directly responsible for the appointment, compensation,
    retention and oversight of the work of any other registered
    public accounting firm engaged for the purpose of preparing or
    issuing an audit report or to perform audit, review or
    attestation services, which firm shall also report directly to
    the Audit Committee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(iii)</TD>
    <TD align="left">
    To pre-approve, or to adopt appropriate procedures to
    pre-approve, all audit and non-audit services to be provided by
    the independent auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(iv)</TD>
    <TD align="left">
    To ensure that the independent auditors prepare and deliver
    annually an Auditors&#146; Statement (it being understood that
    the independent auditors are responsible for the accuracy and
    completeness of this Statement), and to discuss with the
    independent auditors any relationships or services disclosed in
    this Statement that may impact the quality of audit services or
    the objectivity and independence of the Corporation&#146;s
    independent auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(v)</TD>
    <TD align="left">
    To obtain from the independent auditors in connection with any
    audit a timely report relating to the Corporation&#146;s annual
    audited financial statements describing all critical accounting
    policies and practices used, all alternative treatments within
    generally accepted accounting principles for policies and
    practices related to material items that have been discussed
    with management, ramifications of the use of such alternative
    disclosures and treatments preferred by the independent
    auditors, and any mate-</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">A-3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    rial written communications between the independent auditors and
    management, such as &#147;management&#148; letter or schedule of
    unadjusted differences;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(vi)</TD>
    <TD align="left">
    To review and evaluate the qualifications, performance and
    independence of the lead partner of the independent auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(vii)</TD>
    <TD align="left">
    To discuss with management the timing and process for
    implementing the rotation of the lead audit partner, the
    concurring partner and any other active audit engagement team
    partner and consider whether there should be a regular rotation
    of the audit firm itself;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(viii)</TD>
    <TD align="left">
    To review and approve all related party transactions of the
    Corporation;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(ix)</TD>
    <TD align="left">
    To take into account the opinions of management and the
    Corporation&#146;s internal auditors in assessing the
    independent auditors&#146; qualifications, performance and
    independence.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to the internal
auditing department:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(i)</TD>
    <TD align="left">
    To review the appointment and replacement of the director of the
    internal auditing department;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(ii)</TD>
    <TD align="left">
    To advise the director of the internal auditing department that
    he or she is expect to provide to the Audit Committee summaries
    of and, as appropriate, the significant reports to management
    prepared by the internal auditing department and
    management&#146;s responses thereto.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>3.&nbsp;</TD>
    <TD align="left">
    With respect to accounting principles and policies, financial
    reporting and internal control over financial reporting:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(i)</TD>
    <TD align="left">
    To advise management, the internal auditing department and the
    independent auditors that they are expected to provide to the
    Audit Committee a timely analysis of significant issues and
    practices relating to accounting principles and policies,
    financial reporting and internal control over financial
    reporting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(ii)</TD>
    <TD align="left">
    To consider any reports or communications (and management&#146;s
    and/or the internal audit department&#146;s responses thereto)
    submitted to the Audit Committee by the independent auditors
    required by or referred to in SAS 61 (as codified by AU
    Section&nbsp;380), as it may be modified or supplemented or other</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">A-4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    professional standards, including reports and communications
    related to:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="11%"></TD>
    <TD width="1%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Deficiencies, including significant deficiencies or material
    weaknesses, in internal control identified during the audit or
    other matters relating to internal control over financial
    reporting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Consideration of fraud in a financial audit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Detection of illegal acts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The independent auditors&#146; responsibility under generally
    accepted auditing standards;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Any restriction on audit scope;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Significant accounting policies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Significant issues discussed with the national office respecting
    auditing or accounting issues presented by the engagement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Management judgments and accounting estimates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Any accounting adjustments arising from the audit that were
    noted or proposed by the auditors but were passed (as immaterial
    or otherwise);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The responsibility of the independent auditors for other
    information in documents containing audited financial statements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Disagreements with management;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Consultation by management with other accountants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Major issues discussed with management prior to retention of the
    independent auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Difficulties encountered with management in performing the audit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The independent auditors&#146; judgments about the quality of
    the entity&#146;s accounting principles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Reviews of interim financial information conducted by the
    independent auditors;&nbsp;and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">A-5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="11%"></TD>
    <TD width="1%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The responsibilities, budget and staffing of the
    Corporation&#146;s internal audit function.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(iii)</TD>
    <TD align="left">
    To meet with management, the independent auditors and, if
    appropriate, the director of the internal auditing department:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="11%"></TD>
    <TD width="1%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To discuss the scope of the annual audit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To review and discuss the annual audited financial statements
    and quarterly financial statements, including the
    Corporation&#146;s specific disclosures under
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations;&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To discuss any significant matters arising from any audit,
    including any audit problems or difficulties, whether raised by
    management, the internal auditing department or the independent
    auditors, relating to the Corporation&#146;s financial
    statements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To discuss any difficulties the independent auditors encountered
    in the course of the audit, including any restrictions on their
    activities or access to requested information and any
    significant disagreements with management;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To discuss any &#147;management&#148; or &#147;internal
    control&#148; letter issued, or proposed to be issued, by the
    independent auditors to the Corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To review the form of opinion the independent auditors propose
    to render to the Board of Directors and shareholders;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    To discuss, as appropriate (a)&nbsp;any major issues regarding
    accounting principles and financial statement presentations,
    including any significant changes in the Corporation&#146;s
    selection or application of accounting principles, and major
    issues as to the adequacy of the Corporation&#146;s internal
    controls and any special audit steps adopted in light of
    material control deficiencies; (b)&nbsp;analyses prepared by
    management and/or the independent auditors setting forth
    significant financial reporting issues and judgment made in
    connection with the preparation of the financial statements,
    including analyses of the effects of alternative GAAP methods on
    the financial statements; and (c)&nbsp;the effect of regulatory
    and accounting initiatives, as well</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">A-6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="11%"></TD>
    <TD width="1%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    as off-balance sheet structures, on the financial statements of
    the Corporation;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(iv)</TD>
    <TD align="left">
    To inquire of the Corporation&#146;s Chief Executive Officer and
    Chief Financial Officer as to the existence of any significant
    deficiencies or material weaknesses in the design or operation
    of internal control over financial reporting which are
    reasonably likely to adversely affect the Corporation&#146;s
    ability to record, process, summarize and report financial
    information, and as to the existence of any fraud, whether or
    not material, that involves management or other employees who
    have a significant role in the Corporation&#146;s internal
    control over financial reporting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(v)</TD>
    <TD align="left">
    To discuss guidelines and policies governing the process by
    which senior management of the Corporation and the relevant
    departments of the Corporation assess and manage the
    Corporation&#146;s exposure to risk, and to discuss the
    Corporation&#146;s major financial risk exposures and the steps
    management has taken to monitor and control such exposures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(vi)</TD>
    <TD align="left">
    To obtain from the independent auditors assurance that the audit
    was conducted in a manner consistent with Section&nbsp;10A of
    the Securities Exchanges Act of 1934, as amended, which sets
    forth certain procedures to be followed in any audit of
    financial statements required under the Securities Exchange Act
    of 1934;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(vii)</TD>
    <TD align="left">
    To discuss with the Corporation&#146;s General Counsel any
    significant legal, compliance or regulatory matters that have a
    material effect on the financial statements or the
    Corporation&#146;s business, financial statements or the
    Corporation&#146;s business, financial statements or compliance
    policies, including material notices to or inquiries received
    from governmental agencies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(viii)</TD>
    <TD align="left">
    To discuss and review the type and presentation of information
    to be included in earning press releases;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(ix)</TD>
    <TD align="left">
    To discuss the types of financial information and earning
    guidance provided, and types of presentations made, to analysts
    and ratings agencies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(x)</TD>
    <TD align="left">
    To establish procedures for the receipt, retention and treatment
    of complaints receive by the Corporation regarding accounting,
    internal accounting control or auditing matters, and for the
    confi-</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">A-7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    dential, anonymous submission by Corporation employees of
    concerns regarding questionable accounting or auditing matters;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(xi)</TD>
    <TD align="left">
    To review and discuss any reports concerning material violations
    submitted to it by Corporation attorneys or outside counsel
    pursuant to the SEC attorney professional responsibility rules
    or otherwise;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(xii)</TD>
    <TD align="left">
    To establish hiring policies for employees or former employees
    of the independent auditors.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>4.&nbsp;</TD>
    <TD align="left">
    With respect to reporting and recommendations:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(i)</TD>
    <TD align="left">
    To prepare any report or other disclosures, including any
    recommendations of the Audit Committee, required by the rules of
    the SEC to be included in the Corporation&#146;s annual proxy
    statement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(ii)</TD>
    <TD align="left">
    To review and reassess the adequacy of this Charter at least
    annually and recommend any changes to the full Board of
    Directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(iii)</TD>
    <TD align="left">
    To report its activities to the full Board of Directors on a
    regular basis and to make such recommendations with respect to
    the above and other matters as the Audit Committee may deem
    necessary or appropriate;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(iv)</TD>
    <TD align="left">
    To prepare and review with the Board and annual performance
    evaluation of the Audit Committee, which evaluation of the Audit
    Committee must compare the performance of the Audit Committee
    with the requirements of this Charter. The performance
    evaluation by the Audit Committee shall be conducted in such
    manner as the Audit Committee deems appropriate. The report to
    the Board may take the form of an oral report by the chairperson
    of the Audit Committee or any other member of the Audit
    Committee to make this report.</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Resources and Authority of the Audit Committee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee shall have the resources and authority
appropriate to discharge its duties and responsibilities,
including the authority to select, retain, terminate, and
approve the fees and other retention terms of special or
independent counsel, accountants or other experts and advisors,
as it deems necessary or appropriate, without seeking approval
of the Board or management.
</DIV>

<P align="center" style="font-size: 10pt;">A-8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation shall provide for appropriate funding, as
determined by the Audit Committee, in its capacity as a
committee of the Board, for payment of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>1.&nbsp;</TD>
    <TD align="left">
    Compensation to the independent auditors and any other public
    accounting firm engaged for the purpose of preparing or issuing
    an audit report or performing other audit, review or attest
    services for the Corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>2.&nbsp;</TD>
    <TD align="left">
    Compensation of any advisers employed by the Audit
    Committee;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>3.&nbsp;</TD>
    <TD align="left">
    Ordinary administrative expenses of the Audit Committee that are
    necessary or appropriate in carrying out its duties.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Investigations Procedure for Handling Complaints And
Obtaining Advice</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has authority to require investigations and
to obtain advice respecting the Corporation&#146;s Financial
Matters and the Committee&#146;s exercise of its authority, as
the Committee deems necessary or appropriate. Without limiting
the forgoing, the Committee has authority to direct management,
including the Corporation&#146;s counsel, the independent
auditors and the director of internal audit to investigate any
Financial Matters and related issues and to provide reports to
the Committee respecting such investigation. The Committee has
authority to meet with the Corporation&#146;s counsel, to obtain
advice respecting the exercise of the Committee&#146;s authority
and to direct such counsel to investigate such legal issues
relating to Financial Matters and to report to the Committee
regarding same, as the Committee deems necessary or appropriate.
The Committee has authority to engage independent advisors whom
the Committee may designate to provide advice and guidance to
the Committee respecting the exercise of its authority and
issues relating to Financial Matters as the Committee deems
necessary or appropriate, including, without limitation,
independent legal counsel, and independent financial advisors
which may include investment banking firms or accounting firms,
other than the independent auditors. The Committee has authority
to meet separately with, and to receive private and, where
appropriate, privileged, written or oral communications from any
of such advisors. The Committee shall establish procedures for
receiving and handling complaints received by the Corporation
regarding internal accounting controls or audit matters and
procedures for anonymous submission of complaints by employees
regarding questionable accounting or audit matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Procedural Matters</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee shall meet from time to time at the call of
its Chairman or at the direction of the Board of Directors. The
Committee shall meet at least
</DIV>

<P align="center" style="font-size: 10pt;">A-9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 10pt;">
four (4)&nbsp;times per year. The Chairman of the Audit
Committee shall call a meeting of the Committee upon the request
of any member of the Committee or the Chairman of the Board of
Directors. The provisions of the Code of By-laws of the
Corporation respecting notice of meetings and for action to be
taken by the Board of Directors shall apply to meetings and
actions of the Audit Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At least annually, the Audit Committee shall obtain and review a
report by the independent auditor describing: the firm&#146;s
internal quality-control procedures; any material issues raised
by the most recent internal quality-control review or purview of
the firm, or by any inquiry or investigation by governmental or
professional authorities, within the preceding five
(5)&nbsp;years, respecting one or more independent audits
carried out by the firm, and any steps taken to deal with any
such issues; and (to assess the auditor&#146;s independence, all
relationships between the independent auditor and the
Corporation). The Committee shall also obtain from the auditors
all items required for the proxy statement relating to the
auditors&#146; compensation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Chairman of the Audit Committee shall report on the
activities of the Committee to the Board of Directors from time
to time upon request of the Chairman of the Board of Directors
or of the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee shall meet separately, periodically, with
management, with internal auditors, and with the independent
auditors, and shall further report regularly to the Board of
Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ADOPTED BY THE BOARD OF DIRECTORS this 16th day of June, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">A-10

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left" style="font-size: 9pt;">
<FONT style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B>IMPORTANT:</B>
Please mark, sign, date and promptly return this proxy using the
enclosed envelope.
</DIV>

<DIV align="center" style="font-size: 9pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>PROXY</I></B>
</DIV>

<DIV align="center" style="font-size: 11pt;">
<B>SKYLINE CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>This Proxy Solicited on Behalf of the Board of Directors</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<FONT style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
undersigned hereby appoints James R. Weigand and Linda R.
Philippsen as proxies, each with the power to appoint a
substitute, and hereby authorizes them, or either of them, to
appear and to vote as designated below, all the shares of common
stock held of record by the undersigned on July&nbsp;22, 2005,
at the Annual Meeting of Shareholders of Skyline Corporation, to
be held at the Emerald Room, in the Ramada Inn, 3011 Belvedere
Road, Elkhart, Indiana, on Monday, September&nbsp;26, 2005, at
9:00&nbsp;a.m., Eastern Standard Time, and at any adjournments
thereof.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
1.&nbsp;ELECTION OF DIRECTORS
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    NOMINEES: Arthur J. Decio, Thomas G. Deranek, Jerry Hammes,
    Ronald F. Kloska, William H. Lawson, David T. Link, and Andrew
    J. McKenna</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 9pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Mark Only One Box:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="51%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;FOR all
    nominees listed above; except vote<BR>
    withheld with respect to nominee/s listed below (if any)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <FONT face="wingdings">&#111;</FONT>&nbsp;WITHHOLD AUTHORITY to
    vote for ALL nominees listed above.</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 9pt;">
2.&nbsp;In their discretion, the proxies are authorized to vote
upon such other business as may properly come before the meeting.
</DIV>

<DIV align="center" style="font-size: 8pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>(Continued and to be signed on other side)</I>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="center" style="font-size: 8pt;">
<I>(Continued from other side)</I>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE
MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER. IF NO
DIRECTION IS MADE, THE PROXY WILL BE VOTED FOR THE ABOVE
PROPOSALS.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby acknowledges
receipt of the Notice of Annual Meeting of Shareholders and the
Proxy Statement furnished therewith, both of which are dated
August&nbsp;15, 2005.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Dated:&nbsp;August&nbsp;15, 2005</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Please Print:</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Signature</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="center" valign="top">
    Name</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">
    &nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>


</TR>

<TR>
    <TD align="center" valign="top">
    Name</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Signature</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="center" valign="top">
    Address</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Date:&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="center" valign="top">
    Address</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="center" valign="top">
    City, State, Zip Code</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Please sign exactly as name appears hereon. Where shares are
held by joint tenants, both should sign. When signing as
attorney, executor, administrator, trustee or guardian, please
give full title as such. If a corporation, please sign in full
corporate name by President or other authorized officer. If a
partnership, please sign in partnership name by authorized
person.
</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>c96568dc9656813.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 c96568dc9656813.gif
M1TE&.#EAX0$A`<0``$!`0,#`P("`@-#0T*"@H/#P\#`P,.#@X&!@8'!P<!`0
M$"`@(+"PL%!04)"0D._O[R\O+U]?7[^_OW]_?S\_/T]/3Y^?GP\/#]_?WX^/
MCZ^OKV]O;Q\?'\_/SP```/___R'Y!```````+`````#A`2$!``7_X">.9&F>
M:*JN;.N^<"S/=&W?>*[O?.__P*!P2"P:C\BD<LEL.I_0J'1*K5JOV*QVR^UF
M&0#/0B`*`,Z`A&A@\!@8WKA\3J_;2P$/0-#PD`4*:&H%"@8";0-WBHN,C8X^
M"`H%(@8`'PF6)`X>!Q^$"(^AHJ.DC@EJE)8`"`("!"(`"R,`!J6VM[BY5`4(
M?A\+;L"@9R,"'B0%`<K+S,W.S]#1TM/4U=;7V-G:V]S=WM_@X>+CY.$Y#,"H
M#:\?O0/$(L8D!P((>ZWX^?K[_/W^_P`#"AQ(L*#!@P@3*ES(L*'#AQ`C*I1U
MHQ>``"?R.*`UBR*)`&1TB1Q)LE2F&@0\_[!;`R#1!P8>0'+RI*"!"9`E<^K<
M.><D#0-C\!$X4(@!`P62#K@)T`<CGI`\HTJ=^L3G##2"7@+3XY*``@\*5GZ$
M2K6LV;,^K#K!B;:MV[<PU#9A"[>N7;MRF="]R[<OU;Q+]OH=3'@D8"6""RM>
M+.IPDL2,(TNNXQ@)Y,F8,V>I?.2RYL^@JT[Q'+JTZ2*<C9`^S;KUCM1%5KN>
M33L&;"*R:^O>?>+VD-R\@^_V+02X\..NB0<QCKQY:>5`F#N?GAGZ#^G4LS.V
M[@.[]N^AWDT"PKV'=_#H%0WX:F!\VM%DT\LOM=Z#_?8_RO,X/Y_Z`?=QU&??
M?0#JH-\._/77W/]Z^`7XU8`#-O@:?`I66(*`$NK%3#Z8H%%)&Q!""`</!^J0
MH(6["4B@#@<PXT`^#6"U`%8)Y,,`,R?T$J)*[TEQ(HJTJ1AA@<DLPP"'6%6"
M1@/Y$,!,)SKH.*!8$_H8'Y#@$;6C?3,J>88^S3RQR9#Y48BE?`-L:5^)1"`0
MP0,1>&"!!@M`2:*99Z+GP`00[!@!FT(04,$($H@@`:"PX)GG=P)(\$"?`T;P
M02!G>(G5&4SZ<R,T=MX```8G4-!I#HC:\..BI2&PP0>/VB<I!IRU&,T_,5[J
MH:U8L9(/!"A,X%2549R*JF8%-(#``@^P"H&D'TQ`I10#-,/K";[V4&K_#<(.
M.QD;KP@`0;(C6%!+%Y^>4,&H.%Q+0[;:,H9.(@.,L<`&$F1`00,%9B&H"8?V
M&.R5[>IVR"0%+)!(`4<Z@.X6;H+[`9T+>YI#M+]ZH@R`T;IT$\`!NU8L*)ZT
MU(@#!E00`00(Y$MJNF0*J(!+4H+\5,>['6``.P6(_,@!&I=IPR8.?)#',"_;
M+,O0'QCS++LTVQ6`P2(48$#/?)77@$=G%.`!*BD%D(`'X\VX<=.SD0REU,_>
M5=X`+A'20!Y.*;7120TH,#;9I_&2<M0W*U8B.C'!/8(?\"1]S`CO`*5&&A\P
M[C@![T`.@.241V[YY)=7COGFFG>>^>><@^YY_^BDCVZZZ.\,0$!+JZO.^NNN
MQ][Z[+#3+GOMN-^NN^V\Y][[[KX'/P`FEUA"_/'&)U_\\L@7;T`@SHO=_/3*
M4\]\]=A?K[WUW%>_^/>-@^^X^.1/BL,!84PM=$Q1$W[2UW?C#5J\OZ*]W0U$
MA36"W&7$5/<L:F&:_*9"``/8R7[WLT$D"B2V#_2A`%W[0)I0,98!:@8!^!H!
M`A-8@ZT,R!(P64`;0M(&`"`E7P*T8$ZD1I8-<I`&^V`'`S"XD@(((`T+2Z$*
M1Q*O$?$M;851UPQTN,-<%+!G+HR,$&5`Q"+:`H,`2J(2%>5$N^0L/E*<HI6J
MR!=NF0`!0'SA$YK(Q?]&'/&+813C6CA61JI@(E]@?`X5VTB5G%&0!`B0&6B6
M&`,RTG$.D<N1'O<XQS_NY%V"9`T?8>#'XT`.+@-+I"(+&;"4O*PM'T-!'I-#
M26VEQ#Z7-(L7)=F:1;Z@D;OYY(!".15$DK*4G5R4*B'$2IZ03&7M&.0DMT@S
MI:C);CS16PHV61M3N@"5M9DEA'0Y$IL%39/,W.6_R'8`#P[(`0DP``)\*)*G
M5:P$Q-2-,5N`S-F@@P&S7,GPM,E-6Y@M!0Z()BQYV:YB9?`#8TK;.K?YQ+VA
M@`#RG.<TVQ4``SQS!`E(HP2SR<]'2.V@)P#H<<;)@G*:)IL1<\$^VUD'^JG_
MH(#(H>@*+#H_0^Q@HW8X8PH*B$O:B%0%)-6,`Z#F`Y3&`8H?S5!P7IJ"F$X&
M?0EHJ0YFN("&9H&%*V"I<WB*`I]&YIQ((*I1J=##I.I4.$S-"!O18T^A"D&J
M'&U"ZZSJU6+&\CL%A6@39FB`!%!-"6\D:W;D(H`%2`TL"C715K6#T2JPU:U*
ML",+E#K7F]A'E<#\S5ZGPX;%.N&O;P7"*'-:UN&8P!A\\$,?(FL>QR)GIIRU
M`F0#I3ZY?D<MQBA83+[VS>MX-CA`K:Q?$=#6T-;@AF4E[&DOZP;[!.`KL7GM
M;J`Z1'L`P`&R_<%H<5"L._;TJM11BY:V9HR`(DBX_[3AQ3UE@(`*=(!5%J#I
M6FD+6!I,5@7BD8]T"9#0#Q!``,DU%79=D]8:)"`#)7A`G:*PW!04`**N7$%Z
MU<M;[+)W?TV*&B80D,/YLN80&67!`:95`@LX]PD,N%IY2W!7D$62!6R([TY-
M$,+D5O,DQOB@)YYG0@6@RZEH:>P-&#`!%&35OP30L,;N:A\,6A=QXB5P";RR
M)C2H0,4B(!X)(CC!^'VVM#80@`90X!$K0%##!0U1:N)EV\*6(,4A@FE!3Y(&
M94#I:@!T<G#L*.*FKLH$#U"``[K\A/^JZ<=<MI!TG\&"PH'HL(U[W^$J>!SB
M,C<!''#8"":0T&.!L<U%Z/^#FM1ZH2#W1RZR6L:/_9PRFW&B</)`'"T64+['
MH:YTISX=JE>MZE:G^M6L_IP!9BV\W]G.&$4%0`44'=[7L9<6B+!UK8<-O-T]
M*$0S`AX!DMV][66OV=!^MK2=3>UH5WO:IPB?ML>W[5*#+['[._:`^BR7/*R.
M;E4N@X,G4]_S'6LE!<R`!#3P)Y4A+`$+:,"<HR`D-[0TST!"K1C`TH9QJ0`>
M](!2'ACPM;#99&:[@;"[%_`L"+:"SA\X0([9">F3'ANZ:[!TA01NAEJ@>04(
M]T"GGY<,E=N01Q`/DDGQ1]N\RF``AS!$:XU0'Y!+4.0C+[`Q#O"U+H-ZE>SX
M6H__M5H;DF%<!0>PQ\YY@##:KB/"/QC`=DT`\#.IY9-2F@D,9`6@%G$6QB-A
MLPVB?I$D',`!&F9`QWG0=2M/O2QR28`"&`"B'^<`[;HP]!#/<'?59',/3Z\I
MT$?C@<3GQ#$!<+Q\6:/=N9NA[5.`(&W!B'6JZ\S*_8M;6WR"*R/C9MU\:??@
M,8^%`6RDK6'UO.2/0(A7""XEL\>%3]1DG^":1N*#1T#NUYI-?0]?!3D[?A%2
MXJ28I,3O)?')/WQ?TG6;@<%WT'@#M$F`N2.C;UMXOLI5[I8;QSPS3I]!`;'O
M")S3(@&%7T$6KZ!*Z#^>!+P?='%0C\DTM'G9[#<*]V8`__H687Q'`12@339C
M<U/0"V'1>3JQ>[Q'?9,A>"X`@!#8"&^W?=M4(-WE,!9P`92F!:I$@/FV;WCW
M$=%`@8Q1>3%00`F0@:,`$I4@`(D0`(-2`OWB!2G1!KWP"AIG=0(0?[F0%W"W
M"D2H5Y*A>A=H"-[G4``%%*!B`A6@?$?P?%H3`,PW#^Q5@TDX"G+Q9_81>YT5
M&<#7`A#DA&YA<"50+5OP-2##/BD15@,(>T\8!U\'%C42!ND6'?P7%3+F`C8T
M!G=H"VQ(`FZ(!1]S4.SS$G0&$K3`>;<@<"N!"*>G&.F'AG4%7W@QA240`58H
M!$G4B$S$!]P7BE8@<#YDB8I%&/]JQP*#R(EWL2\ET`'FAUX+\(4W!W<GB(I1
MD(<*X`I]`&[+\8>W\%\E8($H8$/@YQ<-0RB+!P5\YXLK$(1>J`AJP6-3PH)G
MT6%1@U/R=P@,V!9U%0%\T@`RF`2WI`0:=WA#6(A((!<VA"ED6(:8]&<(P(0H
M$'7-R!C1`H\_D$<`20-UF`!R1RXFH'&M$``#.5+&*`H%P`8[4H\9]VY%=$56
M`(G<EXXEL`I"8!5*MTH/24XC^0AA!R%]N#\6643G=04@P8&/%!=+)'T1XD$C
MV!TEZ0B2MB64QG8423-UQP6N=S7&EP+9-`GP@$'^\@$^.!X'T`<IB9-GD6%J
MDB%LIXO_;I>35%%`'$D%UK@'W\0@.6,)D4"-LX!_8(,,O7>)4N%^;15YXN9O
M(Q``4J<%@I,9N.4(!\!P7C@)#%()9>DS(K"6:,F-S;1QCS8"!70!`\(!E;"'
M?F!FHC4)=XE<+1A.$,EP[P=FM70G@Q,XS$"8^T<2]]:+B,.+'"`!C&D?]5(W
M`&`4^%`KM(`&^.``R]"0_E4(+8<1O?"3;_%0W71#OA4$$J@FADD*;@E_40.)
M104Y"#`!%P`!$,`!$'`!'4`!-E<D`?`BK7`KF((/FX*5*<`@,$&7,%<8;.";
MH:`C/B<QGVF<;$D*VL=]D["7AV>0`&(`T?D`$T`!CW(!%:">_RZ0:?C0(;-Y
M!C6RD,K09>O!'N=)&`$F$I&P``N@FX()!8#7`U5'@`HC0?%$@$.XC![P+<U"
M`<KB"XBA#$?2"L85"[39"K8Y)@\Z&+HEH2^#"6*YE&.DE7.1<R&JD6`465IX
M0S.R`%/8GR+P*.*)!-KY7H`@!DM*%0)9$H%Y0Q)4"#JZ1HJP@>PT`'P)>Z.R
MEZ:X"K8Y'GLB`A;P9OHE!V$7@'?17#H1DU:Z4%G:HW2PH?K&`!\*ELBPG9@`
MH@R0409@`23P*`(*!;WP-0[P%<&(FZ.P@%,QI^1Q5E1`@X;0G=J$@A+T7K/I
M"KI8+!1@`1*P`0MPJ$_P@Q\0$PQ25_\W618>-14\\Y$ZH&0ALR9=P:@CF*'H
M!7?:E$?O%Z@9]Y*`^8XVX'H"<)!>8&Z#B1'K`5]U%:5&]'D"A2U?<Q*]X`!>
M80E*80!,08ISR:.BUI6>$(4STJD8X:>TP"0,8);9-SBB)P)LQZZ+\&&SH1](
MEJH@LPDX)W8UH6;[X:T5E4U<PJ$$<"2SF5#0:AAGMPKB.@J86:\&D@D+MP8J
MP1&PT(<"5"-Z=Q\WQ%E#&2'&DD>SQ@H,^1D%)(LZ@52612H22XKN4PSZIVX:
M:DT04C&:YT$B1&O'*J_D2'$Z$4B\42+P<)>I>D,H%K-"PZ-AL"5PP)>TE`:V
MN6;9E+!U\#3_/%LU$4NQ[+!PL3`+AYBT&LI['J1-0]BPH?&4`&"V<L"5$Y6U
M(M"OAO-VC4<3@U0/DY,TW9*W21,`],"W9?NW?LNW)TE+?!"X?7NX@(NXAINX
MC+NXCJNXD-NXD?NXDBL`+6*Y('&YFINYG(NYGKNYG]NYH#NZU74DHRNZJ!NZ
MJGNZJYNZK*N0[D4&[Q6[L?LU:C"[N"N[NDN[N<N[N]N[P/N[PNN[Q!N\Q3N\
MQHN[>NL*>-N\S/N\RZNW42D#1X<`7V,3A#`&K#B7\72#WBLT-_@??)L,XEN^
MY&MGO(>MYCN^[+N^[GN^[0N_[QN_]#N_]BN_^$N_!=`B^\N0_/N___X;P/T[
MP`!,P`)<P`BLA3-BP`R<P`U\P!#\P!)<P-$B0<QZP4)35!6\P1C,P1;\P1X<
MPAT\PB!,PB)<PBA\PBILPM\;>>#[PBX<PRW\O5]+`]E6#!3J3UJG!V'%-%IS
M9V.ZL^G!C./8!?.WL@-%(FI2/\*:!C&9';S`>NI1JM%%J3&@6DS;4WN*`%'+
M6`"`CHHPC58$#?)ZB]_:`^\@`/AF'TS2CS"%39'8Q<?Q-$%5!^OH-&I2*F8L
MLT$`L#?W:_E&K+RQ;*V*!5-Z%WFP)7ILQ=@RD&*:KF5;&\QHJDR`D7V1R#NR
MR/1$!X]<@\#:&E>I!2V)QXI<IWH!KDN0#/]!_,2A<7UJ&P1!&6/*P)W;E\>F
M'!BH7&<@05M.C''TP`]%/!+H@+)1H%+!I*(L6BEGH"M.PK>8K&6WC!BY7*D?
MFJE3]\P0LL=7,%/!'`1YN01+NR-4VU/*@`_*_"4*^HBV;"V,'!Z_9LWC@<WW
MZA8%@&_C?`/"U`3A'")1*BM.6BM*HBN;\H3RO";1_!C3W`6J\Z?&LLYU@;97
M*W\&515+W%0!L*(=HB298IM\.P3O@"L7EB[MK`MR6\JIMPJ..IYO``7[O$S=
M><X)N@R&,=*Z4-!@`=,"P-&O/`HGF])X$(U'()%;,H0E^Q<TG0LV[1-%\L_G
M#*.2J1/B.`0U&M3_1[)]JT"S`W+/C7'4N)#4+[#4K1`C&MT*S=R0+9W5J4Q;
M6ITC6U<<G#HC)&LG9SV<9Z'-NLIX)GT^L_S28^VI43K7?GP$Z).V5-<`(:T#
MR?`B!UNF*0#8:_T(=IW0=TK&12`K+Y+1R]P*FV)C%;T6;56(D+H#B?VG>\#8
M+F"@EQ+1=A#9*$(QK8#9J]`*8EBSQ3QS-?"J-7"Y]C`CG@JQFSPLT0(X6Z(K
MMUG)4:U^TJI11V(/@*K:<,':30/8MKFB1GN@F4+41?T#H3P/_<`.=RQ@53VL
MZSH=T$TSCEV-R/S2UNW4RG`#[Q"`7OVP'_'6L=W1X%'>'7/>^*,,3FJ@_P'-
MWD3X-)QHT[,&%8E]0X]IVI?&U?.AWQ[-WZ_MG;K"T8DP4R_">UQ,VCF=W0''
MX(8T,7MMM[0`%K_4VP&#WQ\^!3"1U_GMX2F^'`[=XK_]XA@:XR?NXC3>'3;>
M+BB>XT[PE!ZP??GF!MV\X#/NXTRP'J!@I:@:W3B.Y`;B89D0"633XU`>6,5P
M$CN]6T=^Y4QP8`-DY5X^YNZ9Q&1^YF6.H9*-YA\NYFS^YGWV`]KIPB)P)-W'
M='">YR]P+3*J!R+0"\!P57>MYS?N`X>P#(D`$T&CZ/Y*Z(Y.`M?BD7B46)70
MZ(_^Z)'^(%!3.%1^?I?^Z=?B!D91H6,)LQVI./_=MFVN%FNLONJN#FNOWNJP
M5FS"1NO$5NNX?NNZ;NN\;FV^CFW`?FW"_NO#'NS9QFW([FVI3HP^`!-@8*W,
M/NB?GB>ED@SQK!*=SI0!M.;3;D&EDB;/U`L:YP%!HQ&6WNUP?BU]`!1;`PN]
M)>C<CNYXHRXKVC/O=>?G+N]H[N;Z?N;\WN]C_N\`?^4"/_!(7O`&G^,(G_`O
MOO`,W^9/_O`[Y/`23T<47_%E=/$87T4:O_%%U/$>KT(@'_)A'O$D;]XF?_*%
M;N8JG^(CW_(HW^4PG_$I/_.+\O(VKRTXG_.HLO,\3^TU__,HXO-"W^$R7_0E
M?_1(/^]!O_0-WO1.GQ[_1!_U3Z_T5+_R1*!UA(?G5^_M1D`(P=@&+Q;O73]B
M1;`)&*$UNB3M9?\9QG1RC?.U;-_VU6$$A0,_GD[W,DX$1Y?O>G_S=F]P<'_&
M?^_D19!:;_MPRQE/Y=#XCO_XD!_YDC_YE%_YEG_YU6!_^*,'YEDQ]!#;$A'Z
M_Q`4HE_Z^@#ZII_ZFZCZJ8_ZK!_Z]O#ZIC^]/D!D*/IECPW.BA"B=Z#-,\#[
M54OV!XT$P$\9NY_[2N#[,E#\<S#W>SX%S-\3QX^-TV\'SN\"VAS]<J#\,:#]
M>%C]P4_]/K+E8J4(]IU2YD_^2]`BXE_X[O_^\!__(<\49^!#1@L56M\`&G/_
M_Y4,`@D`(,7W#0W0#.<GC()[.LE\X[F^XXP*,%PP@.R46K4^!<2HQ'M">041
MR812L80Q%V,$C(+#I^XH>!H6K\B;`R!^/Y=-ZS%[WIZ\HR2\[_^#!7@0&7@$
M"7@@('C8'"@L""PH''PD)"[:`/H!*"18&GPX0DI26BHRGA0P*+AI^@D2&E9>
MHHI&3GX8=%JVNKYQ>GJ`VDJ:F"[*,`P*%`;XOBG'.A][R!`K6*%X>#S#Z28L
MNMDJ8,\B-%0K"7OQ=;N_YR"4%RPT?"@@G"P6.'A0'J!*I,]#-G@Z!GAP<,;#
M`$3_&!40^&'?AVV##$9IL""5@@81\TTD:.FA`(0$%O^VPWC#),J1H1)^/-%`
MP0>-J=*IU&%3";Z8-6FZ1*A0B21N.0]Z.#GK0%"8$F=^$%3P*%5-GEP8`"#(
MC*```$#ET2KK@S)G55T,`)"$@`>O8'.)-5,V:H"L9W%</;$@[IBV(["J57N"
MK=F[:=?Z[96U:]\`!)0*O>LB[X>]C,DF!BQS@27):`5_Z)>VE^6V@]L24$!`
M@%+/KL-8$G!9$(&_>1;,'OMZ`+D/MGT;R%WX]^N!#N9&;;O7!?$`CXH;Z;T\
MK.@3EVM[6#!5\I*D_2@E%P32MQNV#8U"=[Y1(GE$5KHBRBYL._3T"P1>1CB$
MN8+<9CQ/D5T+OP&`FVGA,=?_RVL!W&<#8=:UQ4J"J2RR0$IW=6=A1?:$Y1"$
M9@4``TZN,=#@"P1]B$I8CLB`"'09MC!B#.C!Y]$';&52GX[A@'A@5P2*U6-A
MAI$C@!5`"C=A<3Q^^"&0*!1)7U6\*6!D6`D*%P!X<+W&)(+AV=7A(`4.<B%5
M5%K)95C(7::9CO4A,M1-F3A$40'X`$2G/P`J8,"6(9EP)P(`%>'AE:\ATMI+
M18PD3Z")W&F`E%5%6I"CZB1`Z`F6"*JD9(G.`-!0G$*%:8@"B"C`GY3V65"I
M$240V2P%`-!:/6_6MP`DJ++FFP(,K.*&>`$LX@PGP$KH&5L(\*KJL,7ZBJR"
MQ$FF_VNS)QT;;'(($(M:(LVN2M6RX#YKVK&IN;$(`2&.>)>UO&+[:VKV#(O.
MGRZZU@^SO!Y0[Y[GXA-MMXKBZIE%%KE10"'"@,?6-D,IO(VDKL5WL#,.)Y7*
MPA-[:O#!%T4\'PT6G52Q14-69?(VSO2SC5('+`Q`H`!8Y(3'![LQ0,Q6Q*?:
M#?AZIK)IEGC@,PKW#6*"SMM46;#3H8:+<BCAXBKU`50_[<+5.$B=]0Q6KUJ`
MF6]N?4/77EN'0]DNB(VVVV_#';?<<]-=M]UWXYVWWGOSW;???P,>N."#$UZX
MX8<CGKCBBS/>N../0QZYY)-37KGEEV.>N>:;<]ZYYY^#'O^ZZ*.37KKIIZ.>
MNNKN,*.'ZZ_#'KOLL]->N^VWXYZ[[KOSWKOOOP,?O/##$U^\\<>[3E,4LJW>
MO/.D*\@#\\]37[WFT>\PO?7;<P\Y]CIHW[WXXQO^?0[ADY^^^GR;CP/ZZS->
M&_R@M__SV3L4,&D.!&"A5(A/_,\Q?R#6"@B6DV8A\`D^**`.5O.?4"'P?C<H
M0``"4)`*8@T*/$-/!E>3C<?\X0`('-L;^#&"!$C0;6V(@15`",$;K`9<OB`@
M`#*EDOK-X'U2,`#'H/`)!!3"!D`#'S=@X(<*?4489_G8P:0G#""J:`:?R)C9
MUL&)=H7$(C+@#=-:$#(JBH$W)3/_BCRP1K,T4$L,@L@*S73CAXB-X#X&]$Q#
M!.``_2FA$`80T<2H)8@;<,(+1<L@&-C"&7DH@(2:P*$04CB#D/60!P&3"4V&
M>#[TS&``4[$@U]C#EM9H$@=\6-L;F&@1'MQ*)I@\02=RP:&O'<A7@.06!GVS
M@*M)"!$6U`4<(K8:;BQB/#AH(WB:H\8#T>,M4@OE(_]$,[,4`!T%`4_;H$#*
M-R2``AJ00`8,,$<A@'%9Y'%!``;PQQG\1C]&0%F_IL+,4+2*(PH:`'@JJ$$M
MY8"19W"DQ@X621U$L2$GRF-'4%29!KC(B`5"6J$LDJ.!%(1YJ=F&C5;`"EAL
M0V9P,.4V_WC@@5>*<%4\Y(V<R!E+2QKM)D-Q42J1(X:(%2*8//A*LFQ#--4@
MY!"F$8#RFI0'H)!L,`K8!DB$D:R7/#2DOIF)S-KXJX&>H"WBR2@>SQ>!&3P`
M`B0\ZD#&R45AK)(XU1@`TA*IA#9F;*J%J0XY9;#&L0Y50.,<Z"V(.DPPZ!`'
M7[3(/X>9'000`#SNT<4`6&*2A+J!9BA$Q[;8-:0TOJ0$./(-(\PI#,>P)PP<
M7>4-*@18JBDC:9UT0`57L9$9R`=2PAD1%L'P16'FLU89^TN<NN4(&YQQJ;`D
MK6,ZPA;2+N(`".%6/TZRC9*8%$05Q.<9!R`/+7%"A.B1ZF57`?_;*+S%!1*X
M[DW2,#*ON&$!?CK`?0`9G`JBHS86@ME&+,&`[O1+&.]U`6.5L%QGK)$!O)$4
M>1/;BH0FY$0HT^<+K(9`9G!TCPE\9!OB*D2P)N%6_2@`8FWY(02<MC(/A>R$
M]4&3K_@4PSP0X8$W>V`VS,2NF8RKJM($H8.9U:0-8!>W?-06UGH7!S$\L`!N
MRF/M_843M$HLAR+B`"!69#E@3,[!++0"%R2$I\RQ1V:_=#`9D("5F1`5T*AK
M!A'OX+[+=<!5<7#>Y8)'G3,HRP@`HI1^`/)CF6)$!1U2C](FI4VW>7%'MY*<
M)'S'-@G-<-/0B5=^+L*4?65;85+`D(K_F6&P]JBP;7[TL6EE-S2_!*=O,G%.
MJ(IAL_CCY!7<*-[NT*R*O%7D1/IC8T&DH;5@2/228QO9OS"1-89(RHW_)(A5
ML_)C`D`'SBJ28S_3!=:^*0*.NUQ!]%C2;&)V3)EO<.9:1A6V(QE!;@`9/4%\
M#-Q7UG-(8,@-Q@#M1_\M8B^(`,A#SYJ)BS;IEN!#$%V9@%"RH'0K?O06>DJ1
M(5JKAGLV]>$B"`(\2"XE1\.LFXAX-\"YJ#*YOR:G!$Q"XNY)9<6CL(BA%N*;
MAT*$A!8P'BU%A(<1`3$L!_Q*+24@PX4U]@0_NN9TN+LBF3`RO@#R;(5G.`P&
M>,`-MKN#F6PI_U+DB8A2V.+ME8R%@G?*D9;(_<D9,)8QEPGTNE_P%BP2.*_Q
M\"<>`>*G4"SB/,G)A"Z4Q^\/]2,(OPY5G^2NBZL)A#?YR+EXH/10,(A:!Y'R
M8MIGT)'\+2*2'?\NE.Q1H`+T=Q::G$E5<1#,P=8:G8JYB#Q:\*`@3OS8L?2P
MYPUQ==[8H+6Q,8%S<%Z$SH?D``\JEGC$-DDQ"*#:'\AJ!@6Q``8<@`&%"$*0
M;TG>L&)/O`>@%4V>&Q++2DT7!(`\T1`4J:LM1R/"'>J)%&*)E(2=GRY(]+QA
M&%>7015:DZ6K?YN$5NQ]M6AFP%@?$5XTB57>V[#CP2H.]G>,J<9%)/\7_BQ,
M=E#"5YG5%XG<#IC"0$7,`VF>225,`8)$W$E>%:',:PT$_M$<7AQ,`^S1LO43
M^MV)Q%!77)4?#V23!7#3[RD0TA2-4OP%69G@TZU$7"5@`9Y$Q=&*12@`G.4'
M"E)"ZPU"$9U?COD&O(D!$.6??560_B@#(>6`.9'0<MU`OW2-5-@3AJ!9#F!A
M$W+-%J;"$WX-/L'!`.@)A8`A.973#+4A6HCAB&&;#LPA!16&%HJ?#AR``[!&
M_IG3_;QA&,0A"I#:$_PA`+4#!6T)#"AB/BFACK3.FWQ:\T1;Y4SB\QC1#H0?
MKO0)JTT)@<V/X*3%]A#`W[W;\N1A**KB*GHWQB:RXBO"8GVX8BS28BU2Q2S:
G8B[JXC/@XB[ZXB^*`8'5!O(08S$:XS$B8S(JXS(R8S,Z(_&$```[
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
