"Business appears to be improving slightly"
Robert H. Spilman Jr.
Bassett CEO

Bassett Furniture Industries announced the financial results for its third fiscal quarter ended August 30, 2003 and year-to-date results.

Sales for the third quarter of 2003 were $74.4 million, down 5.0% from third quarter 2002 levels. While industry wide soft retail conditions in June and July were a factor, the previously disclosed sales decrease with JCPenney amounted to the majority of the year-over-year shortfall.

"Business appears to be improving slightly," said Robert H. Spilman Jr., president and chief executive officer. "We were pleased with the Labor Day performance of our retail network. We were also again pleased with the operating cash flow we generated during the quarter and our investment results. Our focus continues to be on opening new stores, introducing exciting products, and improving the earnings in our wood division. We are encouraged by the number of prospects we have who want to own and operate Bassett stores. We remain committed to our goal of 150 BFDs by the end of 2005."

The Bassett Furniture Direct retail store program continues to grow with 96 stores currently in operation. Licensees opened five additional stores in the third quarter making a total of 14 stores opened in fiscal 2003. The Company expects licensees to open four to six stores in the fourth quarter for a total of 18 - 20 new stores in fiscal 2003. Sales to BFD stores were 45% of total Company sales in 2002 and are planned to be approximately 55% of total Bassett sales in 2003.  www.bassettfurniture.com.