Krause's Furniture Inc. announces key executive appointments

BREA, Calif.--(BUSINESS WIRE)--Jan. 27, 1997--Philip M. Hawley, chairman of Krause's Furniture Inc. (NASDAQ:SOFA) Monday announced three appointments to the company's executive management team.

Robert A. Burton, 56, has been named senior vice president and chief financial officer. Prior to joining Krause's Furniture, Burton was senior vice president and chief financial officer of Breuners Home Furnishings, a full-line retailer of home furnishings and accessories, and vice president and controller of Marshall Fields, a Midwest-based department store chain.

Burton has extensive experience in business restructuring and in the implementation of cost reduction programs. A graduate of the University of Illinois, he started his career with Arthur Andersen in Chicago, where he specialized in providing audit and consulting services to a number of the firm's retail clients.

Thomas J. Beale, 46, has been appointed vice president stores. Beale, whose career has encompassed all phases of retail store operations, was most recently regional vice president of Macy's West, and formerly a regional vice president of the Broadway Stores division of Carter, Hawley, Hale, a position he assumed in 1988. Prior to joining Carter, Hawley, Hale in 1983, Beale held various positions with Robinson's Department Stores, where his responsibilities included merchandising and store operations.

Cynthia Stein, 38, who has been named vice president human resources, started her career with the Broadway Stores in 1975. Stein brings to Krause's Furniture a wide-ranging background in employee relations, training, compensation, and benefits administration. She was most recently director of human resources at Macy's West, where she directed human resources functions in support of 3,500 employees in 13 stores.

Hawley also announced that, in addition to these three appointments, the company has engaged the services of Creative Merchandising Concepts, a consulting firm specializing in retail marketing and product development. Jo Lawley, principal of Creative Merchandising Concepts, has 35 years experience in multi-store retail merchandising and marketing, including 10 years as senior vice president of marketing and sales promotion with May Department Stores. More recently Lawley held a similar position with the Broadway Stores, where she directed multi-marketing strategies for 83 stores in four department store divisions.

"Krause's skills as a manufacturer have never been in question," said Hawley, "rather, the company's opportunities lie in strengthening marketing, retail operations, and financial controls. With these appointments, we now have in place a team with the expertise that will be indispensable as we return the company to profitability and make it a truly successful enterprise."

Hawley noted that the management committee of the company now includes:

Robert A. Burton - senior vice president & chief financial officer Herbert J. Friedman - senior vice president, merchandising, product

development, marketing & stores James McTaggart - senior vice president manufacturing & operations Klaus Tabar - senior vice president real estate & store construction Thomas J. Beale - vice president stores Charles J. Harrington - vice president and executive assistant to

the chairman Judith O. Lasker - secretary & corporate counsel Edmund "Buck" McNichols - vice president & corporate controller Cynthia Stein - vice president human resources

Krause's Furniture is a leading manufacturer and retailer of custom-crafted furniture which it sells under the names KRAUSES(R) and CASTRO CONVERTIBLES(R) through 82 company-owned retail showrooms and two dealers in 12 states.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical in nature are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

Potential risks and uncertainties include such factors as demand for and acceptance of the company's products, change in the retail environment and the ability of the company to execute its operating strategies, the success of planned marketing and promotional campaigns, and other risks identified in documents filed by the company with the Securities and Exchange Commission.

CONTACT: Krause's Furniture Inc., Brea

Robert A. Burton, 714/990-3100

or

Silverman Heller Associates

Eugene G. Heller or Philip Bourdillon, 310/208-2550