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Palm Harbor Homes to Receive Department of Energy's First Energy Smart Label

Nationwide Custom Homes

DALLAS (February 22, 2008) Palm Harbor Homes, Inc. (NASDAQ: PHHM) today announced that the Company has received the U.S. Department of Energy’s (DOE) first Energy Smart label. The label was placed on the electrical panel box of the Bimini at the 2008 International Builders Show (IBS) in Orlando, Florida, on February 14, 2008. The U.S. Department of Energy Secretary Samuel W. Bodman placed the Energy Smart label on the box while attending the IBS show to launch the Department’s Builders Challenge. This challenge calls for builders to construct 220,000 high performance, energy efficient homes by 2012.

The Bimini is rated at 57 HERS based on the Home Energy Rating System index developed by the Residential Energy Services Network (RESNET). This 57 rating means that the home is 43 percent more energy efficient than the typical new home built today and, at 3,644 square feet, the home has an expected average bill of less than $150 per month for electricity and gas. The home itself qualifies for National Association of Home Builders (NAHB) Green Award at the Gold Level and is expected to receive its gold certificate once the home is secured on its permanent foundation and the lot is inspected.

The Bimini was built in the company’s Plant City, Florida, building center. It was one of three homes displayed in the 2008 IBS show by Palm Harbor Homes and Nationwide Custom Homes, a division of Palm Harbor Homes, Inc. Featured as the Green Home, the Bimini is a 3,644 square foot single-family home with three bedrooms and 3.5 bathrooms demonstrating the latest in green design and products. The Glenn Cairn, featured as the comfortably affordable home, was also built by Palm Harbor in Plant City, Florida. It was specifically constructed for the design savvy first-time buyer. The well-balanced two-story home with 1,984 square feet, 3 bedrooms and 2 baths offers style at an affordable price.

Nationwide Custom Homes, based in Martinsville, Virginia, provided the Palazzo as the high tech luxury home. This beautiful three-story home provided 4,750 square feet of fine living for high-end homeowners plus 960 square feet of unfinished living space on the third floor. The four bedrooms, 3.5 baths and study also showcased a gourmet kitchen, an elevator, and the latest in lighting and media with the ultimate in luxury finishes.

“As an ENERGY STAR partner since 1997 and a 2007 Partner of the Year, Palm Harbor Homes was honored to provide the Green Home for the Professional Builder’s Show Village. As a participant in the U.S. Department of Energy’s (DOE) Builders Challenge, it meant a great deal to have U.S. Department of Energy’s Secretary Samuel W. Bodman tour our Nationwide home before launching the Builders Challenge and apply its first ever E-Scale sticker to the Bimini,” said Ron Powell, president of manufacturing for Palm Harbor Homes, Inc. “Energy efficiency has always been an important part of the value proposition we provide to our Palm Harbor customers and is consistent with our efforts to protect the environment.”

About Palm Harbor Homes Palm Harbor Homes is one of the nation's leading manufacturers and marketers of factory-built homes. The Company markets nationwide through vertically integrated operations, encompassing manufacturing, marketing, financing and insurance. For more information on the Company, please visit and

For information on the Department of Energy’s Builders Challenge for homeowners, homebuilders and prospective partners, visit:

This press release contains projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company's current views with respect to future events and financial performance. No assurance can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission.

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