"We’re constantly exploring technology and building materials that help us enhance the quality and energy efficiency of the homes we build," says Walt Young, Champion’s President, Chairman and CEO. "We felt it was our responsibility as the industry leader to participate in this demonstration project and explore how SIPs technology might be adapted into production building."

SIPs are one-piece building panels that consist of a solid core of expanded polystyrene foam sandwiched between oriented strandboard (OSB) panels. The technology has been around for more than 50 years, but has been slow to gain popularity in the building industry - an industry that has a reputation for being resistant to change.

"Manufactured housing is about 20 to 30 percent of new U.S. home sales, so there is a great potential for energy savings," said Energy Secretary Bill Richardson. "Homes built with this technology will also allow their owners to save $550 to $690 each year on their electric bills. Homeowners who heat with natural gas are expected to save $146 to $181 annually."

The 1,384 sq. ft. home, built at Champion’s Redman plant in Silverton, Ore., used SIPs in the walls, floors and ceiling. The energy efficiency of the home is being tested by Champion and by energy specialists from DOE’s Pacific Northwest National Laboratory. From an environmental perspective, the home, which has already received certification by the Oregon Department of Energy as an Energy Star and Super Good Cents home, is expected to reduce heating and cooling costs by up to 50 percent. Other environmental benefits of SIPs include:

Two SIPs manufacturers, Premier Building Systems and Precision Panel Structures, provided the panels and hardware for the home, and sent work crews to help train Champion’s production line crew.

"In addition to the environmental aspects, we’ve found the SIPs home to offer great efficiencies in the building and production processes," says Ron Sparkman, Director of Engineering, Champion Enterprises, "which in the end means it is a win-win situation -- for the consumer and the industry."

The home recently completed a 300-mile road test and exceeded all expectations. The structural integrity of the home was maintained after more than five hours on roads of varying conditions.

Structurally, the home is superior in terms of wind and seismic resistance, snow load, and soundproofing. The construction efficiencies included:

For a consumer, the possibility of purchasing a home constructed with SIPs has many benefits. It is more affordable to own in the long term - it’s more efficient, less expensive to heat and cool, and requires less ongoing maintenance. From a livability standpoint, the home is quieter and the interior design is enhanced by the lack of ceiling trusses, which allows for full cathedral ceilings.

Champion estimates that should SIPs be used in production, it would add approximately $5,000 to the cost of the home. The payback time to meet this additional cost in energy savings will be determined by further evaluation.

"We are proud to have created the very first SIPs-constructed manufactured home," says Young. "Sturdier, safer, greener and cheaper-to-own, it is worth exploring as an addition to our product offerings. Together with the DOE, Champion’s production and tests on this home may prove to make SIPs a staple of our industry."

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DOE has sponsored several program over the last decade to increase the energy efficiency of manufactured homes, including Energy Star, a joint DOE/US Environmental Production Agency program that uses rating and labeling to help consumers identify energy-efficient appliances, office equipment, home electronics, and building products. For more information on DOE’s energy-efficient building programs, please see: http://www.eren.doe.gov/buildings or call 800-DOE-3732.

This news release contains certain statements, including initiatives to implement change and marketing and expansion strategies, which could be construed to be forward looking statements within the meaning of the Securities and Exchange Act of 1934. These statements reflect the company's views with respect to future plans, events and financial performance. The company does not undertake any obligation to update the information contained herein, which speaks only as of the date of this press release. The company has identified certain risk factors which could cause actual results and plans to differ substantially from those included in the forward looking statements. These factors are discussed in the company's most recently filed Form 10-K, and this discussion regarding risk factors is incorporated herein by reference. SOURCE: Champion Enterprises, Inc.