Palm Harbor Homes Receives Gold EnergyValue Housing Award.

DALLAS -- Palm Harbor Homes, Inc. (Nasdaq/NM:PHHM) today announced that the Company has been recognized by the National Association of Home Builders (NAHB) Research Center as a leader in energy-efficient construction. Palm Harbor Homes was recently named a winner of the 2006 Gold EnergyValue Housing Award (EVHA) in the factory-built home / hot climate category.

The NAHB Research Center, located in Upper Marlboro, Maryland, promotes innovation in housing technology to improve the durability, affordability, and environmental performance of homes and home building products. The NAHB Research Center was created over 40 years ago and has established itself as the source for reliable, objective information and research on housing construction and development issues. Through its various testing and certification services, the Research Center seal is internationally recognized as a mark of product quality and an assurance of product performance.

The EVHA is managed by the NAHB Research Center and operated in partnership with the U.S. Department of Energy through the National Renewable Energy Laboratory. Award sponsors include Broan-NuTone, LLC, BuildingGreen, Inc., Honeywell, OG&E, U.S. GreenFiber, and The Vinyl Institute. The EVHA honors builders that voluntarily integrate energy efficiency into the design, construction and marketing of new homes, and also serves to educate both the home building industry and the public about successful approaches to energy-efficient and environmentally conscious construction practices.

Commenting on the announcement, Michael Luzier, president of the NAHB Research Center, remarked, "The EVHA presents exciting new opportunities to share the best practices of innovative companies that are leading the industry's efforts to incorporate energy-efficiency and resource conservation into home building. We are proud to name Palm Harbor Homes as a 2006 EVHA Gold Award winner and recognize the Company's commitment to building energy-efficient homes."

"For nearly 30 years, constructing energy-efficient, healthy and comfortable homes has been an integral part of Palm Harbor's overall commitment to deliver value to our homeowners in the affordable housing sector," said Bert Kessler, vice president of engineering of Palm Harbor Homes. Inc. "We believe there is a direct correlation between building energy-efficient homes and building high-quality, durable homes. It is gratifying to be recognized as an innovator and industry leader by the NAHB."

For more information on Palm Harbor Homes, contact Bert Kessler at [phone]. Or visit online at www.nationwide-homes.com, www.discoverycustomhomes.com and www.palmharbor.com. For more information on the EVHA program, contact Dr. Kevin Mo, EVHA program manager, at [e-mail] or [phone], ext. 6210.

Palm Harbor Homes is one of the nation's leading manufacturers and marketers of multi-section manufactured and modular homes. The Company markets nationwide through vertically integrated operations, encompassing manufacturing, marketing, financing and insurance.