DMI Furniture announced today that the Company's revenue and net income increased significantly during the second quarter of fiscal 2003 but expects a difficult operating environment for the third quarter of the fiscal year.

For the three months ended March 1, 2003, DMI Furniture, Inc. reported record net sales of $30 million and record net income of $748,000 or $0.17 per diluted share. For the three months ended March 2, 2002, the Company reported net sales of $22.2 million and net income of $22,000 or $0.02 per diluted share. An expanded distribution base and increased penetration with existing accounts resulted in significant growth for both the Wynwood and HomeStyles divisions. The Company's commercial office division also experienced an increase in revenue helped by the successful introduction of several new higher end office furniture groups.

Donald D. Dreher
President and Chief Executive
"We are gratified by our success in the first and second fiscal quarters, however, we believe the third fiscal quarter will be difficult due to the decline in consumer confidence over the last couple of months, the general softness throughout the economy and the war in the Middle East. Accordingly we expect a decline in both revenue and operating results for the third fiscal quarter as compared to the third fiscal quarter of fiscal 2002."

As previously announced, DMI will hold an investor conference call on April 9, 2003 at 11 am Eastern Time. Dialing 1-973-582-2706 and referencing call 3856716 or Phil Keller can access the call. The Company anticipates filing its 2nd quarter 10Q on April 8, 2003.