All American Group, Inc. Reports Improved Year to Date Revenue and Operating Results but a Bottom-Line Loss

ELKHART, Ind., Aug. 25 /PRNewswire-FirstCall/ — All American Group, Inc.
(formerly Coachmen Industries, Inc.) (OTC: COHM), today announced its results
for the year-to-date period and second quarter of 2010, ending June 30, 2010.

Net sales from continuing operations for the six-month period ended June 30,
2010 were $41.1 million compared to $29.0 million reported for the same period
in 2009, an increase of 41.7%. The Company’s operating loss for the six months
ended June 30, 2010 also improved by 41.7 % or $3.8 million to a loss of $(5.2)
million compared to a loss of $(9.0) million for the comparable six-month period
in 2009.

Net sales from continuing operations for the second quarter of 2010 were $19.6
million compared to $17.7 million reported for the same period in 2009, an
increase of 10.8%. Gross profits for the quarter were $0.8 million or 3.9% of
revenues, compared to a gross profit of $0.9 or 4.8% of revenues for the second
quarter of 2009.

Net sales for the Company’s Housing Group totaled $14.2 million for the second
quarter of 2010, compared to $14.9 million reported for the same period in 2009,
a decrease of 4.2%. Single family home sales are up 23% for the year over year
quarter. Net sales of the Company’s Specialty Vehicle Group totaled $5.4 million
for the second quarter of 2010 compared to $2.9 million for the same period in
2009, an increase of 88.4%.

“During a year when economists are predicting more foreclosures than new home
sales, the overall increase in single family home sales during the quarter is
extremely positive. However, in order to counter market trends, additional costs
were incurred by the Housing Segment to obtain the second quarter sales volume.
Housing Group customers continued to face financing constraints in both the
single family home and commercial markets,” said Richard M. Lavers, President
and Chief Executive Officer. “Financing constraints have impacted the ability of
certain customers to provide clearance to construct projects as scheduled,
despite having a signed contract in place with All American,” Lavers stated.

“On the Specialty Vehicle side, we were again profitable, with the second
quarter 2010 generating an operating profit for this segment of $0.6 million. In
2010, we have already shipped 88% of the buses we shipped in all of 2009.
Although ARBOC bus shipments were lower than projected in the second quarter,
based on the backlogs and the planned introduction of new vehicles in 2010, we
still expect revenues for this segment to double in 2010 over 2009,” Lavers
stated.

Non-operating expenses for the second quarter of 2010 included a non-cash debt
extinguishment charge of $7.3 million related to the First Amendment to the loan
agreement with H.I.G. All American, LLC (H.I.G.), partially offset by a non-cash
reduction in interest expense of $3.1 million. This non-cash, non-operating
reduction in interest is a result of the accounting treatment required for the
convertible debt and warrants contained in the H.I.G. agreement and the First
Amendment to the Loan Agreement. The non-cash, non-operating expense related to
the equity provisions of the H.I.G. debt agreement are valued quarterly.
However, these charges do not impact the operating results or the cash flow of
the Company. As a result, we believe the appropriate financial metrics to focus
on as proxies for Company performance are revenues, operating profits and cash
flow.

Unrestricted cash on hand at June 30, 2010 totaled $3.6 million compared to $6.4
million on hand at December 31, 2009, while restricted cash totaled $12.9
million at June 30, 2010 compared to $14.8 million at December 31, 2009. Net
cash used in operations during the six-month period ended June 30 totaled $6.2
million for 2010 and $16.4 million for 2009.

Operating results for the six-month period ended June 30, 2010 failed to meet
the revised debt covenants set with H.I.G. in the First Amendment to the Loan
Agreement. H.I.G. has agreed to waive the covenant defaults as detailed in the
10-Q filed today. The Board of Directors and H.I.G. are currently in discussions
to work out mutually acceptable agreements for the long-term.

All American Group, Inc.(formerlyCoachmen Industries, Inc),, is one of America’s
premier systems-built construction companies under the ALL AMERICAN BUILDING
SYSTEMS