"Doubling the amount of the cash dividend further demonstrates the Board's confidence in the Company's strategy, growth opportunities and financial strength"
Albert L. Prillaman, chairman

Stanley Furniture Company reported higher sales and earnings for the fourth quarter and year ended December 31, 2003. The Company also announced today that its Board of Directors doubled the amount of its quarterly cash dividend to stockholders.

Net sales of $72.7 million increased 14.9% from the fourth quarter of last year setting a new sales record from any previous quarter in the Company's history. This was also the seventh consecutive quarter of sales growth over the comparable prior year quarter. Earnings per share grew 18.6% to $.70 compared to $.59 in the fourth quarter of 2002.

Sales and operating income slightly exceeded the high end of management's previous guidance for the quarter. Earnings per share exceeded the guidance range due to the higher operating income and a lower effective tax rate.

Net sales of $260.6 million for total year 2003 increased 8.8% from the prior year. Earnings per share improved 26.5% to $2.34 in 2003 compared to $1.85 in 2002. Earnings in 2002 included restructuring and related charges of $.34 per share.

Operating income for 2003 improved to $26.2 million, or 10.1% of net sales, from $22.4 million, or 9.3% of net sales, for the prior year. Prior year operating income included restructuring and related charges of $3.5 million. In 2003 increased sales, savings from the Company's offshore sourcing initiatives and downsizing of domestic operations offset the transition and start up costs from increased global sourcing including lower production levels at the Company's domestic factories, increases in certain marketing and product development costs and other inflationary costs.

Cash on hand combined with strong cash flow from operations for 2003 were used to repurchase $14.8 million of the Company's common stock, reduce debt $6.9 million and pay cash dividends of $1.3 million. Approximately $10.2 million remains authorized by the Company's Board of Directors to repurchase shares of the Company's common stock. Total debt outstanding was $22.7 million and cash on hand was $2.5 million at December 31, 2003.

Increase in Cash Dividend
The Company announced that its Board of Directors approved a 100% increase in its quarterly dividend to ten cents per share payable on March 1, 2004, to shareholders of record on February 13, 2004. "Doubling the amount of the cash dividend further demonstrates the Board's confidence in the Company's strategy, growth opportunities and financial strength," noted Albert L. Prillaman, chairman.

Business Outlook
"We are pleased to report our seventh consecutive quarter of year-over- year sales growth," commented Jeffrey R. Scheffer, president and chief executive officer. "Business conditions continued to improve in the fourth quarter; however, we believe our sales growth continues to come primarily from market share gains. We enter 2004 with significant sales momentum as evidenced by the 15% increase in fourth quarter sales compared to the year-ago quarter.