Furniture Brands International Announces Operations to Cease at Highland House

Business Wire, Oct 31, 2003

Business Editors

ST. LOUIS--(BUSINESS WIRE)--Oct. 31, 2003

Furniture Brands International, Inc. (NYSE:FBN) today announced that Highland House, a division of Thomasville Furniture Industries, Inc., will cease operations at the end of 2003.

"Highland House has been a well known brand name in our industry for many years," said W.G. (Mickey) Holliman, Chairman, President and Chief Executive Officer of Furniture Brands. "The reality is, however, that this division of our company has not generated the financial returns our shareholders expect and deserve."

Mr. Holliman added, "This change will not have any significant impact on Furniture Brands' revenues. Certain costs and asset write-downs attributable to this action were included in the year-end earnings guidance provided at the time of our most recent earnings release."

Orders will be taken for Highland House product through the end of this year. The Highland House plant, which also produces Thomasville products, will remain open. Available capacity at this plant will be used to absorb the growing demand for Thomasville brand upholstery.

"This plant is playing an important role in satisfying the demand for our Thomasville brand upholstery," said Tom Tilley, President and Chief Executive Officer of Thomasville Furniture Industries. "As our Thomasville Home Furnishings Stores program grows, it will play an even more important role."

Furniture Brands International, Inc. is America's largest home furnishings manufacturer, manufacturing and sourcing its products under six of the best-known brand names in the industry - Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith.

Founded in 1904, Thomasville Furniture Industries, Inc. is a leading manufacturer of fine quality wood and upholstered furniture and is headquartered in Thomasville, North Carolina.