BELMONT HOMES ANNOUNCES GROUND BREAKING FOR NEW PLANT IN RUSSELLVILLE, ALABAMA.

BELMONT, Miss.--(BUSINESS WIRE)--Oct. 1, 1996--Belmont Homes, Inc. (Nasdaq/NM:BHIX) today announced ground-breaking ceremonies for a 100,000-square-foot plant in Russellville, Alabama. The plant will be located in the city's new industrial park.

Belmont Homes will invest approximately $2.5 million to construct the new facility. It will employ about 150 workers when production commences in the spring of 1997. The facility will be dedicated solely to the growing multi-sectional market.

Commenting on the announcement, Jerold Kennedy, Belmont's President and Chief Executive Officer, said, "We appreciate the extraordinary support and cooperation of the various governmental and business groups in Russellville, Alabama, whose combined efforts have made this expansion possible. Belmont Homes is pleased to be part of the business community here and to participate in its growth.

"This will be our first manufacturing facility in Alabama," Kennedy continued. "The new facility will support both our continued geographic expansion as well as our strategic emphasis on high quality multi-sectional housing, which continues to be one of the fastest growing segments of the industry."

Belmont Homes, Inc. markets a variety of single- and multi- section manufactured homes through approximately 320 dealers and 450 sales centers, located primarily in the southern United States.

CONTACT: Belmont Homes Inc., Belmont

William Kunkel, 601/454-9217