"...we continue to sense caution among consumers at the middle price points (Broyhill and Lane), as high oil prices and uncertainties in the job markets are appearing to affect overall confidence"
W.G. (Mickey) Holliman, Chairman and CEO

Furniture Brands International (FBN) commented on recent business trends and operations in the third quarter of 2004.

W.G. (Mickey) Holliman, Chairman of the Board and Chief Executive Officer, said, "Company-wide, our incoming orders were modestly positive in July on a year-over-year basis and essentially flat in August. We are encouraged by the continuing strength of orders at the upper price companies (Thomasville, Drexel Heritage, Henredon and Maitland-Smith), but we continue to sense caution among consumers at the middle price points (Broyhill and Lane), as high oil prices and uncertainties in the job markets are appearing to affect overall confidence.

"The Labor Day weekend is a large promotional event at retail and is generally a good gauge of consumer attitudes as we enter the important fall selling season. The reports we have from the retailers for the Labor Day weekend were mixed. Except for the Southeast, which was negatively affected by adverse weather over the weekend, we found no consistent patterns either regionally or among retailers within a given region. Overall, the Labor Day business matched our incoming order trends - modestly positive on a year-over-year basis but with no major surprises."

Mr. Holliman concluded, "We currently estimate our third quarter earnings per share will be in the $0.36 to $0.38 range, the upper end of the range given at the end of July. We will report the actual results of the third quarter on October 27, 2004."