Turning Wheel RV Takes Bold Steps

RV Dealership not patiently waiting around for President Obama's Stimulus Plan to take effect and for the economy to rebound

OCALA, Fla., April 17 /PRNewswire/ -- Turning Wheel RV Center ("Turning Wheel RV" or the "Company") (http://www.turningwheelrv.com/), a multi-location recreational vehicle ("RV") dealership in the Southeast, isn't patiently waiting around and hoping for things to get better for the economy and the RV industry. Today, the Company announced that "After a comprehensive review, we have taken what we believe are bold steps to restructure the Company's balance sheet and reformulate its business strategy," stated Marco Martinez, Turning Wheel RV's President.

One such bold step is that on April 9th, 2009, the Company voluntarily entered into an agreement with its Floor Plan financing lender, which allows for the Company to completely reduce its inventory and avoid the cash drain related to operating its business using Floor Plan financing. Floor Plan financing is a loan under which RV dealerships typically borrow money from lenders to purchase inventory from manufacturers for sale to RV buyers. Floor Plan financing can create significant cash shortages for RV dealers due to the requirement to pay down the loan on certain aged units in their inventories despite dwindling sales. As a result of the agreement with its lender, Turning Wheel RV is now positioned to rebuild its inventory without the use of Floor Plan financing. "We believe the agreement with our lender significantly strengthens our balance sheet," Martinez added.

Like most other RV dealerships in the U.S., Turning Wheel's business operations have been significantly affected by the severe economic climate. However, unlike some RV dealerships that have simply given up or others that are bleeding financially while waiting around for the benefits of President Obama's stimulus package and the economy to rebound, Turning Wheel RV decided it had to take bold action to secure its position in the current challenging environment. Earlier this year, the Company engaged the New York-based investment banking firm The Reid Group LLC as advisors to assist the Company with a restructuring and to reformulate its business strategy.

"We are taking steps to rebuild our inventory without floor plan financing and are developing an exciting incentive program for both customers and our sales force," Martinez further stated.

The Company's restructuring of its balance sheet, development and execution of its floor plan financing-free business strategy, and expense reductions, should help Turning Wheel RV weather the current economic storm and reposition the Company for future growth.

About The Turning Wheel RV Center

The Turning Wheel RV Center ("the Company") is a multi-location recreational vehicle dealership with three locations in the Southeast owned by Turning Wheel Holdings, Inc.. In addition to the sale of recreational vehicles, the Company offers its customers RV-related finance and insurance products and quality parts and repair services.

For more information, visit http://www.turningwheelrv.com/

Forward-Looking Statements

Some of the statements contained in this news release that are not historical facts are forward-looking statements. These forward-looking statements include the company's plans, strategies, intentions, and beliefs concerning its business and markets in which it operates. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends" and similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to the company and it assumes no obligation to update the forward statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from the forward-looking statements. These risks include, but are not limited to, the company's ability to predict its financial performance, the level of market demand for its services, the highly-competitive market for the types of services offered by the company, the impact of competitive factors on profit margins, market conditions that could cause the company's customers to reduce their spending for its services, the company's ability to create, acquire and build new businesses and to grow its existing business, attract and retain qualified personnel and general market conditions.

Contact:
Mr. Marco Martinez
President
The Turning Wheel RV Center
mmartinez@turningwheelrv.com
Phone: (352) 368-6645

Source: Turning Wheel RV Center

CONTACT: Mr. Marco Martinez, President of The Turning Wheel RV Center,
+1-352-368-6645, mmartinez@turningwheelrv.com

Web Site: http://www.turningwheelrv.com/

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