"We expect these inconsistent business patterns to continue until distractions and uncertainties associated with the upcoming elections, the high price of oil, the hostilities in the Middle East, and fluctuations in the stock market are resolved"
W. G. (Mickey) Holliman, Chairman and Chief Executive Officer

Furniture Brands International (FBN) announced today its net sales for the third quarter of 2004 were $557.8 million, essentially unchanged from the $557.4 million reported for the third quarter of 2003.

W. G. (Mickey) Holliman, Chairman and Chief Executive Officer, commented: "We saw positive order trends at our upper-end companies (Thomasville, Henredon, Drexel Heritage, and Maitland-Smith) through the first half of this year, offset largely by negative trends at our middle-price companies (Broyhill and Lane). During the third quarter, and particularly in September, the strength at the upper-end companies moderated somewhat. As a result, sales for the first nine months of the year were only modestly above those of the comparable period last year. We expect these inconsistent business patterns to continue until distractions and uncertainties associated with the upcoming elections, the high price of oil, the hostilities in the Middle East, and fluctuations in the stock market are resolved. While forward visibility is still limited, we continue to believe a more stable economic and political environment will lead to an increase in consumer spending patterns.

Mr. Holliman concluded, "We have reduced our sales expectations for the fourth quarter to reflect the current weakness in incoming orders. We now expect sales to be down in the 3%-4% range in the fourth quarter compared to the same period of 2003, and diluted net earnings per common share to be in the $0.36 to $0.40 range, which includes the effect of approximately $0.02 per diluted common share in restructuring costs attributable to the closing of Henredon's Spruce Pine plant. As has been our practice, we will provide an update on our fourth quarter expectation in early December."

Furniture Brands International is America's largest home furnishings manufacturer, manufacturing and sourcing its products under six of the best-known brand names in the industry - Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith.