Broyhill Realigns Manufacturing Facilities; Closes Summerville, South Carolina Supply Plant

Business Wire, Jan 25, 2001

Business Editors

LENOIR, N.C.--(BUSINESS WIRE)--Jan. 25, 2001

Dennis R. Burgette, President and Chief Executive Officer of Broyhill Furniture Industries, Inc., announced today a realignment of Broyhill's manufacturing operations, which will result in the transfer of all upholstery frame parts manufacturing to the company's Marion, North Carolina facility and the closing of the company's Summerville, South Carolina parts facility.

Mr. Burgette stated: "Broyhill has developed a new, stronger, multi-ply, interlocking frame construction for our upholstered products. This construction utilizes computerized cutting equipment located in our Marion plant. By reallocating all frame parts manufacturing to a facility closer to our upholstery facilities, we will increase manufacturing efficiencies and reduce inventory levels."

Mr. Burgette continued: "Unfortunately a thorough cost analysis revealed that it was neither logistically nor economically feasible to convert the Summerville plant to this new manufacturing system. The Summerville plant will therefore close March 31, 2001. Our Summerville employees will be offered the opportunity to transfer to other job openings in the company 's North Carolina facilities."

"It is important to understand that this decision does not indicate a weakness in our upholstery business. We have significantly expanded our upholstery manufacturing capacity in the past six months, including the opening late last year of our new 430,000 square foot upholstery facility in Rutherfordton, North Carolina, and in 2001 we anticipate a positive increase in our upholstery business. The Summerville Plant closing is simply a matter of maximizing the return on our assets by matching frame construction design and engineering to plant manufacturing capability."

Mr. Burgette concluded: "I want to thank our Summerville employees for their years of dedicated service, as well as the local governmental agencies and vendors who have historically supported Broyhill. It is a difficult decision to close a facility, and particularly one that has supplied our company with quality frame parts for so many years."

Broyhill Furniture Industries, Inc. is one of the largest full-line furniture manufacturers in the world. Broyhill is the most recognized line of furniture among consumers and provides products for living rooms, dining rooms, bedrooms, home entertainment and home office. Broyhill is headquartered in Lenoir, North Carolina and is a subsidiary of Furniture Brands International (NYSE:FBN), which is also the parent company of Lane and Thomasville.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements include the company's expected increase in manufacturing efficiencies, reduction in inventory levels, increase in upholstery business, and maximization in return on assets. The company cautions investors that any such forward-looking statements are not guarantees of future performance and that certain factors may cause actual results to differ materially from those in the forward-looking statements, which factors may include: overall business and economic conditions and growth in the furniture industry; changes in customer spending patterns and demand for home furnishings; competitive factors, such as design and marketing efforts by other furniture manufacturers; pricing pressures; success of the marketing efforts of retailers and the prospects for further customer failures; the company's success in furniture design and manufacture; the effects of manufacturing realignments and cost savings programs; and other risk factors listed from time to time in the company's public releases and SEC reports.