Exhibit 99.1

FOR IMMEDIATE RELEASE:  February 6, 2008

CONTACT:	Craig Wanichek
	Director of Investor Relations
	Monaco Coach Corporation
	(541) 681-8029
	craig.wanichek@monacocoach.com

Monaco Coach Corporation Reports Fourth Quarter and

2007 Fiscal Year-End Profits

COBURG, OREGON—February 6, 2008—Monaco Coach Corporation (NYSE: MNC), one of the nation’s leading manufacturers of recreational vehicles, today announced results for the fourth quarter and fiscal year ended December 29, 2007.

Revenues for the fourth quarter of 2007 were $292.1 million, or 2.4% lower than the $299.2 million in revenues for the fourth quarter of 2006. Gross profit for the period was $32.1 million, up 18.6% from $27.1 million a year ago. The Company reported operating income of $4.5 million for the quarter compared to an operating loss of $512 thousand for the fourth quarter of 2006. The Company reported net income of $2.7 million, reversing a net loss of $562 thousand for the fourth quarter of 2006. Earnings were $0.09 per diluted share for the fourth quarter of 2007 versus a loss of $0.02 per diluted share for the fourth quarter of 2006.

For the fiscal year ended December 29, 2007, Monaco Coach reported revenues of $1.3 billion, level with fiscal year 2006 revenues. Gross profit for the year was $140.9 million, up 13.1% compared to $124.5 million for 2006. Operating income for the year was $23.4 million, compared to $3.8 million for 2006. Net income for 2007 was $12.3 million, compared to $1.0 million earned in 2006. Earnings per share for the fiscal year were $0.41 per diluted share compared to $0.03 per diluted share for 2006.

Kay Toolson, Chairman and Chief Executive Officer of Monaco Coach Corporation, stated, “We are very pleased with our 2007 results. The steps we have taken over the last 18 months to make the Company more efficient have significantly increased our profitability. We are committed to maintaining production levels that will produce optimal inventory levels for our dealer partners and the Company.”

“Our Motorized RV Segment continues its strong momentum both in the marketplace and profitability. Our diesel Class A market share improved by over 10% through November, and our gasoline market share is also beginning to improve. We feel the Fed’s recent interest rate cuts should help the RV market in the second half of 2008. We believe that while some RV buyers may delay their purchasing decisions when times are uncertain, they rarely leave the RV lifestyle and can be expected to return to purchase a new RV when their confidence is restored,” said Toolson.

“The changes we made throughout our manufacturing processes, including increasing efficiencies at our sub-assembly plants, and reconfiguring and consolidating production lines, have led to better gross margins,” said John Nepute, President of Monaco Coach Corporation. “Our industry-leading dealer initiative, Franchise for the Future, has aided us in increasing market share in a down market. The Company will continue to implement our proven strategy of matching our production level with wholesale and retail demand to manage the need for incentives to move products to our dealer partners.”

Fourth quarter 2007 selling, general, and administrative expenses of $27.6 million were similar to those in the fourth quarter of 2006.

At year-end the Company reported finished goods inventory of $33.2 million versus $26.1 million at the end of the third quarter of 2007, a cash balance of $6.3 million and a zero balance on its line of credit. Following the Board of Directors’ authorization in December to repurchase up to $30.0 million of its common stock, the Company, subsequent to year-end, purchased 313 thousand shares in the open market for approximately $2.8 million.

Motorized Recreational Vehicle Segment

The Motorized RV Segment reported net sales of $244.3 million for the fourth quarter of 2007, an increase of 1.4% compared to $240.9 million for the fourth quarter of 2006. Total units shipped for the quarter were 1,408, an increase of 1.1% compared to the same period in 2006.

Gross profit was $28.5 million, or 11.7% of net sales, for the fourth quarter of 2007, compared to $19.7 million, or 8.2% of net sales, for the fourth quarter of 2006. This resulted in a significant improvement in the segment’s operating income from a loss of $31 thousand in the fourth quarter of 2006 to operating income of $8.3 million in the fourth quarter of 2007.

“The increase in gross profit and profitability was the result of better absorption of indirect costs and material savings,” Nepute noted. “Internal retail reporting, however, has indicated retail sales slowed in January 2008. Although this has tempered our outlook for this segment in the near term, we remain encouraged by our dealers’ positive acceptance of our models shown at the November 2007 Louisville RV Show, and anticipate that our motorized RV market share will continue to increase in 2008.”

Net sales for the Motorized RV Segment for 2007 were $998.4 million, a 6.0% increase over net sales of $941.7 million for 2006. Gross profit for 2007 was $110.6 million, or 11.1% of net sales, compared to $72.5 million, or 7.7% of net sales, for 2006. Operating income for 2007 was $24.7 million, compared to an operating loss of $6.2 million for 2006. There were 5,856 units sold in 2007, compared to 5,756 in 2006.

Towable Recreational Vehicle Segment

The Towable RV Segment reported net sales of $46.7 million for the fourth quarter of 2007, a 7.0% decrease compared to $50.3 million for the fourth quarter of 2006. Gross profit for the segment was $3.0 million, or 6.4% of net sales, compared to a gross profit of $2.2 million, or 4.4% of net sales, for the fourth quarter of 2006. Operating loss for the fourth quarter of 2007 was $2.5 million, compared to an operating loss of $2.9 million for the fourth quarter of 2006.

Fourth quarter 2007 towable units sold were 2,837, up 6.1% compared to 2,673 for the fourth quarter of 2006 and included 773 specialty trailers sold in the fourth quarter of 2007 and 613 in the fourth quarter of 2006.

“The Towable RV Segment’s improvement in gross margin for the fourth quarter of 2007 was the result of material and other direct cost savings,” said Nepute. “Increased selling, general, and administrative expenses relating to higher payroll costs and marketing expenses in the segment offset these savings. Depressed operating results in the fourth quarter is a typical seasonal pattern for the segment; however, the towable market remains extremely competitive.”

Net sales for the Towable RV Segment for 2007 were $261.4 million, compared to net sales of $324.3 million for 2006, which included $26.8 million of FEMA emergency living units. Gross profit for 2007 was $22.7 million, or 8.7% of net sales, compared to $31.5 million, or 9.7% of net sales, for 2006. The Company reported an operating loss of $904 thousand in 2007 versus operating income of $1.4 million for 2006. There were 16,276 units sold in 2007, which included 4,166 specialty trailers, compared to 19,307 units in 2006, which included 4,304 specialty trailers and 2,019 FEMA units.

Motorhome Resorts Segment

Net sales for the Motorhome Resorts Segment for the fourth quarter of 2007 were $1.2 million, compared to $8.0 million for the fourth quarter of 2006. Gross profit for the Motorhome Resorts Segment was $631 thousand for the fourth quarter of 2007, compared to $5.1 million for the fourth quarter of 2006. The Company reported a $1.2 million operating loss for the fourth quarter of 2007, compared to operating income of $2.4 million for the fourth quarter of 2006.

“Decreased sales traffic combined with declining inventory at the resorts have slowed sales substantially,” said Nepute. “Activity has picked up modestly in the first quarter of 2008, and we anticipate selling the remaining 62 lots at Indio, California and Las Vegas in 2008. The resort in Naples, Florida is moving forward toward completion and should have lots available for sale in the second quarter of 2008. Construction on our La Quinta, California motorhome resort has been delayed due to longer than expected timelines for certain regulatory and permitting requirements. We now expect to have lots available for sale by the end of the fourth quarter of 2008.”

Net sales for the Motorhome Resorts Segment for 2007 were $12.3 million, compared to sales of $32.0 million for 2006. Gross profit for this segment was $7.5 million for 2007, compared to $20.5 million for 2006. For 2007 the segment reported an operating loss of $405 thousand, compared to $8.6 million in operating income for 2006.

2008 Business Outlook

Marty Daley, Monaco Coach Corporation Vice President and Chief Financial Officer, stated, “We are still comfortable that if the RV market is flat in 2008, which would likely require a rebound in consumer confidence, we would be able to achieve previously stated guidance. The soft retail environment that we are seeing so far in the first quarter could lead to a declining overall market. However, given our internal improvements and anticipated gains in market share, we believe the Company’s results would be similar to 2007 if RV markets were down

approximately 10%. We are committed to implementing additional cost saving initiatives and modifying production run rates in 2008, as we have done over the past 18 months.”

Conference Call to be Held

Monaco Coach Corporation will conduct a conference call in conjunction with this news release at 2:00 p.m. Eastern Time on Wednesday, February 6, 2008. Members of the news media, investors, and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the Company’s website at www.monaco-online.com. The conference call will be archived and available for replay for the next 90 days.

About Monaco Coach Corporation

Monaco Coach Corporation, a leading national manufacturer of motorized and towable recreational vehicles, is ranked as the number one producer of diesel-powered motorhomes. Dedicated to quality and service, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests and offers products that appeal to RVers across generations.

Headquartered in Coburg, Oregon, with substantial manufacturing facilities in Indiana, Monaco Coach employs approximately 5,000 people. The Company offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie, R-Vision and Dodge brand names. The Company maintains RV service centers in Harrisburg, Oregon, Elkhart, Indiana and Wildwood, Florida and operates motorhome-only resorts in California, Florida and Nevada.

Monaco Coach Corporation trades on the New York Stock Exchange under the symbol “MNC,” and the Company is included in the S&P Small-Cap 600 stock index. For additional information about Monaco Coach Corporation, please visit www.monaco-online.com or www.trail-lite.com.

The statements above regarding the Company’s expectation for increased motorized RV market share in 2008, gains in towable market share, RV markets’ reaction to interest rate cuts by the Federal Reserve Board, anticipated sales of lots at existing resort locations and availability for sale of lots at our new locations and the statements made under the 2008 Business Outlook are forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from these statements, including unforeseen declines in the wholesale and retail markets for recreational vehicles, consumers’ preference for certain models and resort lots, unforeseen regulatory impediments in resort lot development, failure to realize RV market improvement as a result of interest rate cuts, a decline in consumer confidence, an increase in interest rates affecting retail and wholesale financing, an increase in price or availability of fuel, and a downturn in the equity markets. Please refer to the Company’s SEC reports for additional risks and uncertainties, including but not limited to the most recent Form 10-Q, the annual report on Form 10-K for 2006, and the 2006 Annual Report to Shareholders for additional factors. These filings can be accessed over the Internet at http://www.sec.gov.

(Tables to follow)

MONACO COACH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited: dollars in thousands)

		December 30,			December 29,
		2006			2007
ASSETS
Current assets:
Cash		$	4,984		$	6,282
Trade receivables, net		81,588			88,170
Inventories, net		155,871			158,236
Resort lot inventory		7,997			8,838
Prepaid expenses		5,624			5,142
Income taxes receivable		6,901			0
Deferred income taxes		38,038			37,608
Total current assets		301,003			304,276
Property, plant, and equipment, net		153,895			144,291
Land held for development		16,300			24,321
Investment in joint venture		0			4,059
Debt issuance costs net of accumulated amortization of $912 and $1,098, respectively		540			498
Goodwill		86,412			86,323
Total assets		$	558,150		$	563,768
LIABILITIES
Current liabilities:
Book overdraft		$	16,626		$	1,601
Current portion of long-term debt		5,714			5,714
Line of credit		2,036			0
Income taxes payable		0			3,413
Accounts payable		72,591			82,833
Product liability reserve		15,764			14,625
Product warranty reserve		33,804			35,171
Accrued expenses and other liabilities		44,364			48,609
Discontinued operations		298			0
Total current liabilities		191,197			191,966
Long-term debt, less current portion		29,071			23,357
Deferred income taxes		21,678			21,506
Deferred revenue		883			683
Total liabilities		242,829			237,512
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value; 1,934,783 shares authorized, no shares outstanding
Common stock, $.01 par value; 50,000,000 shares authorized, 29,769,356 and 29,989,534 issued and outstanding, respectively		298			300
Additional paid-in capital		63,722			69,514
Retained earnings		251,301			256,442
Total stockholders’ equity		315,321			326,256
Total liabilities and stockholders’ equity		$	558,150		$	563,768

MONACO COACH CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited: dollars in thousands, except share and per share data)

		Quarter Ended						Year Ended
		December 30,			December 29,			December 30,			December 29,
		2006			2007			2006			2007
Net sales		$	299,163		$	292,146		$	1,297,986		$	1,272,130
Cost of sales		272,092			260,051			1,173,443			1,131,262
Gross profit		27,071			32,095			124,543			140,868
Selling, general, and administrative expenses		27,583			27,574			120,465			117,459
Plant relocation costs		0			0			269			0
Operating income (loss)		(512		)	4,521			3,809			23,409
Other income, net		108			68			615			851
Interest expense		(932		)	(753		)	(4,430		)	(3,496		)
Gain (loss) from investment in joint venture		0			653			0			(614		)
Income (loss) before income taxes, continuing operations		(1,336		)	4,489			(6		)	20,150
Provision for (benefit from) income taxes, continuing operations		(649		)	1,807			(992		)	7,824
Income (loss) from continuing operations		(687		)	2,682			986			12,326
Income from discontinued operations, net of tax provision		125			0			18			0
Net income (loss)		$	(562	)	$	2,682		$	1,004		$	12,326
Earnings (loss) per common share:
Basic from continuing operations		$	(0.02	)	$	0.09		$	0.03		$	0.41
Basic from discontinued operations		0.00			0.00			0.00			0.00
Basic		$	(0.02	)	$	0.09		$	0.03		$	0.41
Diluted from continuing operations		$	(0.02	)	$	0.09		$	0.03		$	0.41
Diluted from discontinued operations		0.00			0.00			0.00			0.00
Diluted		$	(0.02	)	$	0.09		$	0.03		$	0.41
Weighted-average common shares outstanding:
Basic		29,760,969			29,987,563			29,712,957			29,931,730
Diluted		30,018,115			30,246,248			29,902,830			30,346,917

MONACO COACH CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited: dollars in thousands)

		Year Ended
		December 30,			December 29,
		2006			2007
Increase (Decrease) in Cash:
Cash flows from operating activities:
Net income		$	1,004		$	12,326
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Loss on sale of assets		14			58
Depreciation and amortization		14,177			14,132
Deferred income taxes		(1,900		)	347
Stock-based compensation expense		2,759			4,011
Net losses in equity investment		0			614
Changes in working capital accounts:
Trade receivables, net		21,078			(6,582		)
Inventories		27,421			(6,425		)
Resort lot inventory		1,138			(841		)
Prepaid expenses		(1,270		)	479
Land held for development		(16,300		)	(8,022		)
Accounts payable		(5,708		)	10,242
Product liability reserve		(3,762		)	(1,139		)
Product warranty reserve		902			1,093
Income taxes payable		(6,664		)	10,314
Accrued expenses and other liabilities		7,224			4,374
Deferred revenue		883			(200		)
Discontinued operations		4,271			(18		)
Net cash provided by operating activities		45,267			34,763
Cash flows from investing activities:
Additions to property, plant, and equipment		(9,324		)	(5,279		)
Investment in joint venture		0			(366		)
Proceeds from sale of assets		215			644
Net cash used in investing activities		(9,109		)	(5,001		)
Cash flows from financing activities:
Book overdraft		2,076			(15,025		)
Payments on lines of credit, net		(22,964		)	(2,036		)
Payments on long-term notes payable		(5,715		)	(5,714		)
Debt issuance costs		(79		)	(278		)
Dividends paid		(7,134		)	(7,194		)
Issuance of common stock		1,799			1,508
Tax benefit of stock-based award activity		161			275
Discontinued operations		96			0
Net cash used in financing activities		(31,760		)	(28,464		)
Net change in cash		4,398			1,298
Cash at beginning of period		586			4,984
Cash at end of period		$	4,984		$	6,282

Monaco Coach Corporation

Segment Reporting

(Unaudited:  dollars in thousands)

Results of Consolidated Operations

		Quarter					Quarter					Year					Year
		Ended					Ended					Ended					Ended
		December 30,			% of		December 29,			% of		December 30,			% of		December 29,			% of
		2006			Sales		2007			Sales		2006			Sales		2007			Sales
Net sales		$	299,163		100.00	%	$	292,146		100.00	%	$	1,297,986		100.00	%	$	1,272,130		100.00	%
Cost of sales		272,092			90.95	%	260,051			89.01	%	1,173,443			90.40	%	1,131,262			88.93	%
Gross profit		27,071			9.05	%	32,095			10.99	%	124,543			9.60	%	140,868			11.07	%
Selling, general, and administrative expenses		27,583			9.22	%	27,574			9.44	%	120,465			9.28	%	117,459			9.23	%
Plant relocation costs		—			0.00	%	—			0.00	%	269			0.02	%	—			0.00	%
Operating income (loss)		(512		)	-0.17	%	4,521			1.55	%	3,809			0.29	%	23,409			1.84	%
Other income and interest expense		824			0.28	%	32			0.01	%	3,815			0.29	%	3,259			0.26	%
Income (loss) before income taxes		(1,336		)	-0.45	%	4,489			1.54	%	(6		)	0.00	%	20,150			1.58	%
Income taxes		(649		)	-0.22	%	1,807			0.62	%	(992		)	-0.08	%	7,824			0.62	%
Income (loss) from continuing operations		(687		)	-0.23	%	2,682			0.92	%	986			0.08	%	12,326			0.97	%
Income from discontinued operations, net of tax provision		125			0.04	%	—			0.00	%	18			0.00	%	—			0.00	%
Net income (loss)		$	(562	)	-0.19	%	$	2,682		0.92	%	$	1,004		0.08	%	$	12,326		0.97	%
Depreciation and amortization		$	3,596				$	3,519				$	14,177				$	14,132
Capital expenditures		1,865					1,085					9,324					5,279
Raw materials inventory												73,624					70,235
WIP inventory												55,474					54,760
Finished goods inventory												26,773					33,241

Motorized Recreational Vehicle Segment

		Quarter					Quarter					Year					Year
		Ended					Ended					Ended					Ended
		December 30,			% of		December 29,			% of		December 30,			% of		December 29,			% of
		2006			Sales		2007			Sales		2006			Sales		2007			Sales
Net sales		$	240,929		100.00	%	$	244,256		100.00	%	$	941,657		100.00	%	$	998,448		100.00	%
Cost of sales		221,200			91.81	%	215,801			88.35	%	869,110			92.30	%	887,830			88.92	%
Gross profit		19,729			8.19	%	28,455			11.65	%	72,547			7.70	%	110,618			11.08	%
Selling, general, and administrative expenses and corporate overhead		19,760			8.20	%	20,140			8.25	%	78,478			8.33	%	85,900			8.60	%
Plant relocation costs		—			0.00	%	—			0.00	%	269			0.03	%	—			0.00	%
Operating income (loss)		$	(31	)	-0.01	%	$	8,315		3.40	%	$	(6,200	)	-0.66	%	$	24,718		2.48	%
Units Sold
Class A Diesel		1,086					1,007					4,297					4,295
Class A Gas		155					261					925					928
Class C		151					140					534					633
Total		1,392					1,408					5,756					5,856
Average Gross Wholesale Price
Class A Diesel		$	203				$	212				$	196				$	205
Class A Gas		81					82					84					80
Class C		53					56					52					54
Internal Retail Registrations
Class A Diesel		1,038					888					4,164					4,388
Class A Gas		243					210					1,154					977
Class C		113					124					367					476
Total		1,394					1,222					5,685					5,841
Additional Information*
Backlog units																	674
Backlog value																	91,571
Dealer inventory (units)																	3,436
Number of production lines																	5
Capacity utilization																	66		%
Number of independent distribution points																	286

* As of 12/29/2007

Towable Recreational Vehicle Segment

		Quarter					Quarter					Year					Year
		Ended					Ended					Ended					Ended
		December 30,			% of		December 29,			% of		December 30,			% of		December 29,			% of
		2006			Sales		2007			Sales		2006			Sales		2007			Sales
Net sales		$	50,250		100.00	%	$	46,723		100.00	%	$	324,342		100.00	%	$	261,391		100.00	%
Cost of sales		48,037			95.60	%	43,714			93.56	%	292,876			90.30	%	238,684			91.31	%
Gross profit		2,213			4.40	%	3,009			6.44	%	31,466			9.70	%	22,707			8.69	%
Selling, general, and administrative expenses and corporate overhead		5,107			10.16	%	5,558			11.90	%	30,060			9.27	%	23,611			9.03	%
Operating income (loss)		$	(2,894	)	-5.76	%	$	(2,549	)	-5.46	%	$	1,406		0.43	%	$	(904	)	-0.35	%
Units Sold
Travel trailer and fifth wheel		2,060					2,064					15,003					12,110
Specialty trailer		613					773					4,304					4,166
Total		2,673					2,837					19,307					16,276
Average Gross Wholesale Price
Travel trailer and fifth wheel		24					21					20					20
Specialty trailer		10					11					9					10
Internal Retail Registrations
Travel trailer and fifth wheel		1,870					1,671					11,759					11,999
Additional Information: Travel Trailer and Fifth-Wheel*
Backlog units																	1,290
Backlog value																	27,288
Number of production lines																	7
Capacity utilization																	57		%
Number of independent brand distribution points																	668

* As of 12/29/2007

Motorhome Resorts Segment

		Quarter					Quarter					Year					Year
		Ended					Ended					Ended					Ended
		December 30,			% of		December 29,			% of		December 30,			% of		December 29,			% of
		2006			Sales		2007			Sales		2006			Sales		2007			Sales
Net sales		$	7,984		100.00	%	$	1,167		100.00	%	$	31,987		100.00	%	$	12,291		100.00	%
Cost of sales		2,855			35.76	%	536			45.93	%	11,457			35.82	%	4,748			38.63	%
Gross profit		5,129			64.24	%	631			54.07	%	20,530			64.18	%	7,543			61.37	%
Selling, general, and administrative expenses and corporate overhead		2,716			34.02	%	1,876			160.75	%	11,927			37.29	%	7,948			64.67	%
Operating income (loss)		$	2,413		30.22	%	$	(1,245	)	-106.68	%	$	8,603		26.90	%	$	(405	)	-3.30	%
Lots sold in period		36					6					153					56
Unsold developed lots												118					62
Project-to-date lots sold												689					745
Lots with deposits												27					11

Resort Locations:

Las Vegas, NV

Total lots in resort are 407, all of which have been developed.

Indio, CA

Total lots in resort are 400, all of which have been developed.

La Quinta, CA

Total expected lots in resort are 400, some of which will be available to sell fourth quarter of 2008.

Naples, FL

Total expected lots in resort are 198, some of which will be available to sell second quarter of 2008.

###