LifeStyle Furnishings to Sell Lexington Home Brands in Management Led Buyout

Business Wire, Feb 4, 2002

Business Editors

HIGH POINT, N.C.--(BUSINESS WIRE)--Feb. 4, 2002

LifeStyle Furnishings International Ltd. (LFI) of High Point, N.C., announces today that it has reached an agreement to sell Lexington Home Brands (LHB) to a group of the business unit's senior executives.

The acquiring group is led by Bob Stec, President and CEO of LHB, and their investment advisors, Harris Williams & Company of Richmond, Virginia. LHB is a leading marketer and manufacturer of upscale, branded case goods and upholstery. Terms of the transaction, expected to close in 60 days, are not being disclosed.

LFI President and CEO, Alan Cole, commented, "The Lexington Home Brands team has pursued this transaction in order to accelerate its strategy of building a loyal branded consumer base through committed retail relationships with top retailers nationwide. "

LHB President and CEO, Bob Stec, added, "We are extremely excited to have reached this agreement. We believe that this purchase gives us the ability and financial flexibility to continue to build the momentum that is growing at Lexington. The fact that this is a management acquisition will insure a seamless transition for our brands, our retail partners, our suppliers and our associates. With a new capital structure, LHB will be able to more aggressively roll-out its growth initiatives and marketing plans.

LHB's current focus on innovative, branded products and marketing programs will continue, including the upcoming market introductions for Bob Timberlake and Tommy Bahama and the launch of its newest brand, Susan Sargent. LHB will also continue to produce its products through a blended sourcing strategy that includes US and overseas production facilities and partnerships.

We are looking forward to continuing our long term relationships with our supply base and our retail partners. We are most excited about the opportunity for our 3500 associates to continue the 100 year old legacy of this company. We are grateful to LFI for giving us the opportunity to continue pursuit of our vision of becoming 'the most consumer friendly furniture company.'"

Cole added, "The dramatic changes in the furniture industry require business models that are focused and responsive to the new world order in the home furnishings business. This ownership structure will position LHB to even more effectively compete in this environment. We are pleased to have been able to reach this agreement with the executive-led team at Lexington Home Brands, and are excited about their energy and enthusiasm in this exciting new venture."

LifeStyle Furnishings International Ltd. is a leading manufacturer and marketer of branded home furnishings.

Lexington Home Brands is a major manufacturer of branded home furnishings under the licensed brands The World of Bob Timberlake, Nautica, Tommy Bahama and others.