Furniture Brands International Reports Sales and Earnings for the Third Quarter of 2005.

ST. LOUIS -- Furniture Brands International (NYSE:FBN) announced today its financial results for the third quarter of 2005.

Operating Results - Third Quarter

Net sales for the third quarter of 2005 were $557.9 million, compared with $574.8 million in the third quarter of 2004,

Included in the 2005 third quarter net earnings were restructuring, asset impairment and severance charges totaling $2.4 million ($3.7 million before income tax benefits) or $0.05 per diluted common share. The 2004 third quarter net earnings were negatively impacted by restructuring and asset impairment charges totaling $1.0 million ($1.6 million before income tax benefits) or $0.02 per diluted common share.

Operating Results - Nine Months

Net sales for the first nine months of 2005 were $1,793.2 million, compared with $1,845.4 million in the first nine months of 2004, a decrease of 2.8%. Net earnings for the nine months were $44.3 million as compared to $69.2 million in the first nine months of 2004, a decrease of 36%. Diluted net earnings per common share were $0.84 for the nine months as compared to $1.24 in the first nine months of 2004.

Included in the 2005 nine months net earnings were restructuring, asset impairment and severance charges totaling $13.0 million ($20.0 million before income tax benefits) or $0.25 per diluted common share. Included in the 2004 nine months net earnings were restructuring and asset impairment charges totaling $4.4 million ($6.9 million before income tax benefits) or $0.08 per diluted common share, as well as a $0.09 charge related to the loss of collectibility of a receivable.

Management Comments

W. G. (Mickey) Holliman, Chairman and Chief Executive Officer, commented: "As has been the case for some time, we continue to see a difference in both revenues and in operating performance across our Brands. Relatively strong business at higher-end Brands like Thomasville has been offset by continuing weakness in the middle-price Brands, Broyhill and Lane. In the near-term, we are aggressively addressing raw material and other costs to bring more value to our product line and to improve the competitive position of all of our Brands.

"In the longer-term, we continue to pursue the key strategic imperatives that will drive both growth and profitability across the company. The consolidation of the back office and manufacturing functions of our high-end brands is on plan and our logistics and supply chain processes are being streamlined, so that our senior management team can remain focused on building our Brands through product development, marketing and consumer research."

Mr. Holliman continued, "We continue to generate strong cash flow from operations. During the third quarter we repurchased 1.4 million shares of our common stock at an average cost of $19.44. This represents the largest number of shares repurchased in a single quarter since we began the repurchase program in January of 2004, doubling what was repurchased in the first half of the year. We expect to remain in the market buying stock on an opportunistic basis using available free cash flow."

Outlook

Mr. Holliman concluded, "Business conditions in the middle-price points remain challenging, and we see nothing in the marketplace to indicate improvement in this segment in the near term. Additionally, we are managing around unprecedented raw material price increases, particularly with reference to polyurethane foam, a situation that will likely continue through the fourth quarter. With respect to the fourth quarter, we expect net sales to be off low single digits versus the year ago period and net earnings to be in the 19 to 23 cent range, which includes the effect of 4 cents in restructuring, asset impairment and severance charges. As is our practice, we will provide an update on our fourth quarter expectations in early December."

Furniture Brands International 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. The company markets its products across a broad spectrum of price categories and distributes its products through an extensive system of independently owned national, regional and local retailers.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the company's expected earnings per share, the prospects for the overall business environment, and other statements containing the words "expects," "anticipates," "estimates," "believes," and words of similar import. The company cautions investors that any such forward-looking statements are not guarantees of future performance and that certain factors may cause actual results to differ materially from those in the forward-looking statements. Such factors may include: overall business and economic conditions and growth in the furniture industry; changes in customer spending patterns and demand for home furnishings; competitive factors, such as design and marketing efforts by other furniture manufacturers; pricing pressures; success of the marketing efforts of retailers and the prospects for further customer failures; the company's success in furniture design and manufacture; the effects of manufacturing realignments and cost savings programs; and other risk factors listed from time to time in the company's public releases and SEC reports, including but not limited to the most recent reports on Forms 10-Q and 10-K. The company also cautions investors that our forecast for the fourth quarter of 2005 represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

A conference call will be held to discuss the first quarter results at 7:30 a.m. (Central Time) on October 27, 2005. The call can be accessed at on the company's website at www.furniturebrands.com.

FURNITURE BRANDS INTERNATIONAL
                    CONSOLIDATED OPERATING RESULTS
                (Dollars in thousands except per share)

                         Three Months Ended       Nine Months Ended
                       ----------------------- -----------------------
                         Sept. 30,   Sept. 30,   Sept. 30,   Sept. 30,
                           2005        2004        2005        2004
                       ----------- ----------- ----------- -----------

Net sales                $557,927    $574,800  $1,793,245  $1,845,449
Cost of sales             427,076     429,182   1,353,819   1,370,075
                       ----------- ----------- ----------- -----------
Gross Profit              130,851     145,618     439,426     475,374
Selling, general and
 administrative
 expenses                 114,042     112,685     367,470     356,952
                       ----------- ----------- ----------- -----------
Earnings from
 operations                16,809      32,933      71,956     118,422
Interest expense            3,146       3,472       9,094      12,332
Other income, net             903         616       3,437       1,790
                       ----------- ----------- ----------- -----------
Earnings before income
 tax expense               14,566      30,077      66,299     107,880
Income tax expense          4,647      10,654      22,005      38,646
                       ----------- ----------- ----------- -----------
Net earnings               $9,919     $19,423     $44,294     $69,234
                       =========== =========== =========== ===========

Net earnings per
 common share
 (diluted)                  $0.19       $0.36       $0.84       $1.24

Average diluted common
 shares outstanding
 (in thousands)            51,708      54,339      52,654      55,784


Included in the above Consolidated Statements of Operating Results are
charges for restructuring, severance and the loss of collectibility of
an accounts receivable from a major customer. The following
reconciliation of net earnings shows the breakdown of these charges
and their impact on operations. The Company believes the exclusion of
these charges provides a meaningful depiction of its ongoing
operations.

                         Three Months Ended       Nine Months Ended
                       ----------------------- -----------------------
                         Sept. 30,   Sept. 30,   Sept. 30,  Sept. 30,
                           2005        2004        2005        2004
                       ----------- ----------- ----------- -----------

Net earnings               $9,919     $19,423     $44,294     $69,234

Adjustments:
  Restructuring
   charges (1):
    Cost of sales           2,526         114       5,817       4,959
    Selling, general
     and administrative
     expenses                 248       1,500      11,062       1,914
  Severance
   (executive)                961           -       3,072           -
  BHFC accounts
   receivable write-off         -           -           -       8,285
                       ----------- ----------- ----------- -----------
                            3,735       1,614      19,951      15,158
  Income tax expense        1,307         589       6,983       5,533
                       ----------- ----------- ----------- -----------
  Net earnings -
   adjustments              2,428       1,025      12,968       9,625
                       ----------- ----------- ----------- -----------

Adjusted - Net
 earnings                 $12,347     $20,448     $57,262     $78,859
                       =========== =========== =========== ===========

Adjusted - earnings
 per share - diluted        $0.24       $0.38       $1.09       $1.41


(1) Restructuring charges include asset impairment charges, severance
    and other closing costs associated with the previously announced
    plant shutdowns.


                    FURNITURE BRANDS INTERNATIONAL
                 CONSOLIDATED CONDENSED BALANCE SHEETS
                        (Dollars in thousands)

                                           September 30,  December 31,
                                                   2005          2004
                                            ------------  ------------
Assets

Current assets:
  Cash and cash equivalents                $    118,489  $     51,248
  Receivables, net                              343,502       374,733
  Inventories                                   434,814       444,828
  Prepaid expenses and other current
   assets                                        38,047        37,316
                                            ------------  ------------
    Total current assets                        934,852       908,125
Property, plant and equipment, net              257,014       284,973
Intangible assets                               352,768       352,768
Other assets                                     55,083        41,893
                                            ------------  ------------
                                           $  1,599,717  $  1,587,759
                                            ============  ============

Liabilities and Shareholders' Equity

Current liabilities:
  Accrued interest expense                 $        500  $        538
  Accounts payable and other accrued
   expenses                                     215,764       196,472
                                            ------------  ------------
    Total current liabilities                   216,264       197,010
Long-term debt                                  301,600       302,400
Other long-term liabilities                     145,013       130,866

Shareholders' equity                            936,840       957,483
                                            ------------  ------------
                                           $  1,599,717  $  1,587,759
                                            ============  ============


                    FURNITURE BRANDS INTERNATIONAL
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                        (Dollars in thousands)
                              (Unaudited)

                               Three Months Ended   Nine Months Ended
                               ------------------- -------------------
                               Sept. 30, Sept. 30, Sept. 30, Sept. 30,
                                 2005      2004      2005      2004
                               --------- --------- --------- ---------
 Cash flows from operating
  activities:
   Net earnings                  $9,919   $19,423   $44,294   $69,234
   Adjustments to reconcile
    net earnings to net cash
    provided by operating
    activities:
       Depreciation and
        amortization             11,179    11,707    34,755    36,930
       Other, net                    41     1,639    11,181       801
       (Increase) decrease in
        receivables              13,487     4,139    31,231    (1,871)
       (Increase)decease in
        inventories               5,333   (28,637)   10,014   (44,330)
       Increase in prepaid
        expenses and other
        assets                   (1,611)   (2,649)  (13,433)   (8,211)
       (Increase) decrease in
        accounts payable,
        accrued interest
        expense and other
        accrued expenses         26,897    33,581    24,878    38,447
       (Increase) decrease in
        net deferred tax
        liabilities              (1,802)     (869)   (4,528)    3,778
        Increase in other
         long-term liabilities    5,476     2,689    14,800    (5,542)
                               --------- --------- --------- ---------
   Net cash provided by
    operating activities         68,919    41,023   153,192    89,236
                               --------- --------- --------- ---------

 Cash flows from investing
  activities:
   Proceeds from the disposal
    of assets                       949     1,869     4,261     6,514
   Additions to property,
    plant and equipment          (5,679)   (6,054)  (21,186)  (20,456)
                               --------- --------- --------- ---------
   Net cash used by investing
    activities                   (4,730)   (4,185)  (16,925)  (13,942)
                               --------- --------- --------- ---------

 Cash flows from financing
  activities:
   Payments of long-term debt         -         -      (800)     (800)
   Proceeds from the issuance
    of common stock                   -         -         -     4,230
   Payments of cash dividends    (7,757)   (6,698)  (23,649)  (20,681)
   Proceeds from the issuance
    of treasury stock             3,703         -     7,445     7,478
   Payments for the purchase
    of treasury stock           (27,089)  (26,254)  (52,022)  (76,753)
                               --------- --------- --------- ---------
   Net cash used by financing
    activities                  (31,143)  (32,952)  (69,026)  (86,526)
                               --------- --------- --------- ---------

 Net increase (decrease) in
  cash and cash equivalents      33,046     3,886    67,241   (11,232)
 Cash and cash equivalents at
  beginning of period            85,443    56,550    51,248    71,668
                               --------- --------- --------- ---------
 Cash and cash equivalents at
  end of period                $118,489   $60,436  $118,489   $60,436
                               ========= ========= ========= =========

 Supplemental Disclosure:
   Cash payments for income
    taxes, net                     $365    $2,357   $32,815   $26,007
                               ========= ========= ========= =========

   Cash payments for interest
    expense                      $3,192    $3,635    $9,232   $13,177
                               ========= ========= ========= =========