BELMONT HOMES, INC. ANNOUNCES FIRST QUARTER RESULTS; Sales Increase 104%, Net Income Increases 109%.

BELMONT, Miss.--(BUSINESS WIRE)--April 25, 1996--Belmont Homes, Inc. (Nasdaq/NM: BHIX) today announced results for the first quarter ended March 31, 1996. For the first quarter, net sales increased 104% to $51.4 million from $25.3 million for the quarter ended March 31, 1995. Net income rose to $2.6 million, a 109% increase over the $1.3 million posted for the first quarter of 1995. Earnings per share were $0.43 for the quarter ended March 31, 1996, and $0.36 per share for the year earlier period. Weighted average shares outstanding increased 74% from 3,500,000 to 6,074,000.

The increase in weighted average shares outstanding for the quarter is due primarily to the Company's initial public offering of 1,955,000 shares of common stock in June 1995 and the offering of 1,630,000 additional shares in January 1996, 800,000 of which were issued by the Company.

Jerold Kennedy, president and chief executive officer of Belmont Homes, Inc. stated, "We are extremely pleased with our first quarter results. Sales of homes increased 87% on a quarter-to-quarter basis due to growing consumer demand for our practical home models. The addition last year of a new plant in Belmont and the acquisition of facilities in Clarksdale, Mississippi and Conway, Arkansas are allowing us to meet this demand.

"We are pleased with the progress being made in integrating Spirit Homes into Belmont. We are already seeing improved operating results at the existing units and the construction of two new plants in Conway is nearing completion. The first of these plants is scheduled to begin production in mid to late May. Our strategy is to increase sales through selective acquisitions and by developing home models targeted to a growing customer segment. Our expansion activities in 1995 allowed us to meet demand in an expanded geographic market. Our clustered manufacturing strategy has allowed us to achieve above-industry margins," Kennedy concluded.

Belmont Homes, Inc. markets a variety of single- and double- section manufactured homes through approximately 290 dealers and 400 sales centers, located primarily in the southern United States. The Company manufactures its homes in seven production facilities, five of which are located in Mississippi and two in Arkansas. -0-

                       BELMONT HOMES, INC.
       Selected Consolidated Financial Results - Unaudited
            (In thousands, except per share amounts)

                                              Three Months Ended
                                                   March 31,
                                                1996       1995
Net sales                                   $  51,445  $  25,275
Cost of sales                                  43,430     21,453
Gross profit                                    8,015      3,822
Selling, general and administrative expense     3,808      1,669
Income from operations                          4,207      2,153
Interest income (expense), net                     63       (223)
Income before income taxes                      4,270      1,930
Income tax expense                              1,628        664
Net income                                      2,642      1,266
Preferred stock dividends                          -          20
Net income applicable to common stock       $   2,642  $   1,246
Net income per share                        $    0.43  $    0.36
Weighted average common shares outstanding  6,074,000  3,500,000

CONTACT: Belmont Homes, Inc., Belmont

William Kunkel, 601/454-9217