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Oct 20,2006

Patrick Industries Reports Increased Third Quarter Results

by RVing Online News Sources

Difficult Industry Conditions, Company Nearly Triples Quarterly Earnings
Patrick Industries, Inc. (NASDAQ:PATK) , today announced that its net earnings for the quarter ended September 30, 2006 nearly tripled compared to last year's third quarter, on a 12% increase in net sales.

Patrick, a leading manufacturer and distributor of building and component products for the Recreational Vehicle (RV), Manufactured Housing (MH) and Industrial markets, reported net earnings of $0.4 million, or $0.08 per share, on net sales of $90.8 million for the third quarter of 2006, compared with net earnings of $0.1 million, or $0.03 per share, on net sales of $81.1 million for the same period in 2005.

"While market conditions in the RV and MH industry began to soften in the second and third quarters, we were able to maintain momentum in executing our strategic plan and improve our results compared to the prior year," said Paul E. Hassler, President and CEO of Patrick Industries. "Our increased sales led to increased profitability, as we continued to keep fixed costs comparable from period to period, and remain focused on investing in new product development. Though we expect the RV and MH markets to remain soft as we head into 2007, we are pleased with our progress year-to-date and believe we have established a solid foundation for future growth."

For the nine months ended September 30, 2006, Patrick reported net earnings of $2.4 million, or $0.50 per share, on net sales of $274.8 million, compared to net earnings of $0.2 million, or $0.05 per share, on net sales of $239.5 million for the same period of last year.

The combined MH and RV market sectors represent 73% of the Company's sales for the nine months ended September 30, 2006. Industrial and other sales, which include sales to the kitchen cabinet, office furniture, store fixtures and other industries, represent approximately 27% of the Company's sales for the same period.

Operating income increased 66% to $1.1 million for the third quarter of 2006 compared to operating income of $0.7 million in the third quarter of 2005. For the nine-month period ending September 30, 2006, Patrick reported operating income of $5.2 million, or more than triple the $1.5 million of operating income reported for the same period in 2005. The third quarter of 2006 includes approximately $0.5 million of incremental acquisition costs related to the Company's investigation of strategic growth opportunities.

"Our new product introductions are starting to take hold and gain market share, which we expect will add to our growth over the next six to twelve months," said Mr. Hassler. "Year-to-date, we have seen almost $2 million in top-line growth from new products. During the quarter, we also were able to leverage our strong balance sheet and relationships with key raw material suppliers to tactically drive our inventory position and make us more competitive. We also continue to explore strategic, accretive acquisition opportunities to further drive growth and shareholder value."

About Patrick Industries

Patrick Industries, Inc. ( ) is a major manufacturer of component products and a distributor of building products serving the Manufactured Housing, Recreational Vehicle, kitchen cabinet, home and office furniture, fixture and commercial furnishings, marine, and other Industrial markets and operates coast-to-coast through locations in 13 states. Patrick's major manufactured products include cabinet and wall components, countertops, adhesives, and aluminum extrusions. The Company also distributes drywall and drywall finishing products, interior passage doors, flooring, vinyl and cement siding, ceramic tile, high pressure laminates, and other miscellaneous products.

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