Stanley Furniture Company, Inc. (Nasdaq-NNM: STLY) today announced plans to reduce the workforce at its Stanleytown, Va., facility by approximately 100 production positions.

The Company currently employs approximately 1,500 people. This action impacts only the Company’s Stanleytown, Va. facility.

“The recession in the U.S. economy has continued to lead to lower sales, requiring us to balance production and staffing levels,” says Albert L. Prillaman, chairman and chief executive officer. “We have a proven business strategy and are focused on improving our product offerings, quality and service as we prepare for the eventual upturn in business. We are preserving as many jobs as possible so we retain the flexibility to quickly respond to improving demand with our mostly domestic manufacturing model. We sincerely regret the impact of this decision on our Virginia associates and their families who are affected.”

To ease the transition, Stanley Furniture will work closely with the Virginia Employment Commission and the West Piedmont Workforce Investment Network to provide career counseling, job placement, skills assessment, and job referrals. Because Stanley Furniture is already certified for federal Trade Adjustment Assistance (TAA) under the Trade Act, associates may be eligible to receive extended income support through Trade Readjustment Allowances, training programs, job search allowances and/or relocation allowances.

One of the largest domestic manufacturers of wood residential furniture in the United States, Stanley Furniture Company is widely recognized as an industry leader for design, quality and quick delivery across a wide variety of styles. Stanley Furniture adult furniture collections represent lifestyles for every room of the home including bedroom, dining, home entertainment, home office and accents. Young America is the company's industry leader in infant-to-teen furniture. Production facilities are located in Stanleytown, Va. and Robbinsville, N.C., making products which comprise approximately two-thirds of total company revenues. The company's common stock is publicly traded on the Nasdaq Stock market under the symbol STLY. To learn more visit stanleyfurniture.com or youngamerica.com.

Forward-Looking Statements

Certain statements made in this report are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “may,” “will,” “should,” or “anticipates,” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. These statements reflect our reasonable judgment with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include the cyclical nature of the furniture industry, business failures or loss of large customers, competition in the furniture industry including competition from lower-cost foreign manufacturers, manufacturing realignment, the inability to obtain sufficient quantities of quality raw materials in a timely manner, the inability to raise prices in response to inflation and increasing costs, failure to anticipate or respond to changes in consumer tastes and fashions in a timely manner. Any forward-looking statement speaks only as of the date of this press release, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

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