Ethan Allen Concludes New Revolving Credit Facility

Business Wire, May 29, 2009

DANBURY, Conn. -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:ETH) today announced it has entered into a new three year senior secured revolving credit facility. The new facility is initially set at $40 million with an accordion feature permitting increase to up to $60 million.

The Company currently has no plans to use the facility other than for its outstanding letters of credit (currently $12.5 million). The credit facility is provided by a syndicate led by JP Morgan Chase Bank, N.A. The facility is secured by the Company’s domestic assets other than real estate and related fixed assets.

Farooq Kathwari, Chairman and CEO commented, "We are pleased that we have been able to maintain a strong cash position. While we expect that to continue, it is prudent for the Company to have a modest credit facility. We continue to have good liquidity from our business operations and have significant flexibility under this new facility, including no encumbrances on the more than $300 million of value in the real estate owned by the Company.”

About Ethan Allen

Ethan Allen Interiors Inc. is a leading manufacturer and retailer of quality home furnishings. The Company sells a full range of furniture products and decorative accessories through a network as of March 31, 2009 of 290 design centers in the United States and abroad, of which 159 are Company owned. Ethan Allen operates eight manufacturing facilities in the United States, which include two sawmills, and one manufacturing facility in Mexico. For more information on Ethan Allen’s products and services, visit ethanallen.com.

This press release should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2008 and other reports filed with the Securities and Exchange Commission. This press release and related discussions contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect management’s current expectations concerning future events and results of the Company, and are subject to various assumptions, risks and uncertainties. Accordingly, actual future events or results could differ materially from those contemplated by the forward-looking statements. The Company assumes no obligation to update or provide revision to any forward-looking statement at any time for any reason.