* Sales from continuing operations totaled $357 million, down 25%    from prior year due to continued weak consumer market conditions   * Reported net loss from continuing operations of $4.2 million   * Net debt of $97 million at March 31, 2009 and approximately $68    million at May 6, 2009, which is the lowest net debt level in more    than 20 years 

ST. LOUIS, May 6, 2009 (GLOBE NEWSWIRE) -- Furniture Brands International (NYSE:FBN) announced today its financial results for the first quarter ended March 31, 2009.

Net sales from continuing operations for the 2009 first quarter were $356.9 million, compared with $477.2 million in the first quarter of 2008. Results from continuing operations were a loss of $0.09 per diluted share in the 2009 quarter compared to net income of $0.08 per diluted share for the first quarter of 2008. A table detailing selected items in the company's reported first quarter 2009 and 2008 financial results is attached to this press release.

Ralph P. Scozzafava, Chairman of the Board and Chief Executive Officer, commented: "The commercial interventions that are the building blocks of our strategic plan have helped Furniture Brands moderate the effects of the severe downturn in consumer spending. Furniture Brands is leveraging our brand portfolio and diverse channel strategy by gaining new placements in our traditional retail customers as well as in adjacent markets such as international and contract. Since early 2008 we have been exercising increased discipline in our selling processes, in cost controls, and in managing our capital base. The results of that discipline are evident as we are continuing to reduce inventories, generate cash flow and manage one of the strongest balance sheets in the industry."

Gross margin for the 2009 quarter was 22.5% compared to 23.3% in the first quarter of 2008. Selling, general, and administrative costs for the 2009 quarter totaled $83.2 million, which has improved from the $102.0 million of selling, general, and administrative costs in the 2008 first quarter. The decline in operating profit from $9.0 million in the first quarter of 2008 to an operating loss of $2.9 million in the first quarter of 2009 resulted primarily from the deleveraging effect of the 25% reduction in net sales.

"Our more streamlined cost structure reflects the aggressive actions taken in 2008 to reduce manufacturing overhead and scale down administrative expenses with our new shared services organization. These activities will enable the company to be even more efficient in the future as we continue to make improvements and maintain a strong cash position," Mr. Scozzafava said.

At March 31, 2009 the company reported cash and cash equivalents of $48 million and debt of $145 million resulting in net debt of $97 million. During April, the company received income tax refunds of approximately $27 million, and at May 6, 2009, the company held cash and cash equivalents of approximately $75 million and debt of $143 million, resulting in a net debt position of approximately $68 million. The company expects to generate positive cash flow for the year, exclusive of changes in debt balances and without the impact of tax refunds.

Mr. Scozzafava concluded, "Furniture Brands is now better positioned to deliver outstanding value to our retail partners in this current economic environment. For example, most of the new products introduced by Lane and Broyhill at the recent High Point Market had been tested with consumers to help ensure better consumer acceptance and sales performance at retail. We are also continuing to make significant marketing investments that will help drive traffic to our dealers and educate consumers about the advantages of our brands. These programs include:

    * New, more powerful websites that provide lifestyle-driven product    groupings and utilize state-of-the-art dealer locator functionality    and room planning software to provide a better on-line shopping    experience,  * The launch of The Thomasville Promise, the furniture industry's    first program to help protect consumers against the effects of an    unexpected job loss.  This program will support our stores and    enable us to give our retail customers another good reason to    decorate their homes with beautifully designed and well-crafted    Thomasville furniture, and  * Broyhill's new product warranty program is among the best in the    industry and illustrates the commitment to quality of the Broyhill    brand and builds consumer confidence at retail. 

"We believe that these new programs will deliver the same benefits to our dealers as the Lane Family Home Entertainment Tour, which was recently named the nation's #1 mobile marketing campaign by Event Marketer magazine. The Lane tour has generated strong consumer traffic at every one of its stops and dealer support for this innovative program has been tremendous. All of these programs illustrate Furniture Brands' commitment to being the preferred partner of our dealers and the consumer's preferred family of brands."

Upcoming Investor Event

A conference call will be held to discuss first quarter results at 7:30 a.m. (Central Time) on May 7, 2009. The call can be accessed in Upcoming Investor Events on the company's website at furniturebrands.com under "Investor Info". Access to the call and the release will be archived for one year.

About Furniture Brands

Furniture Brands International (NYSE:FBN) is a global operating company that is one of the nation's leading designers, manufacturers, and retailers of home furnishings. It markets through a wide range of retail channels, from mass merchant stores to single-brand and independent dealers to specialized interior designers. Furniture Brands serves its customers through some of the best known and most respected brands in the furniture industry, including Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Pearson, Hickory Chair, Laneventure, and Maitland-Smith.

The Furniture Brands International logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2757

Non-GAAP Reconciliation

We have reconciled the non-GAAP measures included in our earnings press release in accordance with Regulation G.