American Woodmark Corporation Announces Record First Quarter.

WINCHESTER, Va.--(BUSINESS WIRE)--Aug. 20, 1998--American Woodmark Corporation (Nasdaq/NM:AMWD) today announced its tenth consecutive quarter of record net income. Net income for the first quarter ended July 31, 1998, increased 62% to $4,241,000, or $0.53 diluted earnings per share, compared with net income of $2,621,000, or $0.33 diluted earnings per share, in the same period of the prior year.

First quarter net sales increased 30% over the prior year to a record $72,673,000. Higher sales were the result of continued growth with leading national home center chains and increased shipments to national and regional home builders. New product lines and a shift in mix to higher-end products continue to add to the Company's growth.

Gross margins improved to 30.1% from 29.2% in the first quarter of the previous year due to favorable leverage from higher volume, a shift toward higher-end products and increased labor productivity. These improvements were partially offset by higher delivery costs and inefficiencies related to specific capacity limitations. Selling, general and administrative costs increased as a result of performance-based marketing programs, increased staffing and employee compensation plans.

The Company began an aggressive capital expenditure program during the fourth quarter of the prior year to increase production capacity in line with continuing sales growth. The primary focus during the current fiscal year is the expansion of component production, including the construction of a new processing plant in Kentucky. The Company expects to begin to benefit from the increased capacity during the second fiscal quarter, with the full benefit being achieved by the end of the current fiscal year.

American Woodmark Corporation manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, major builders and home manufacturers, and through a network of independent distributors. The Company presently operates seven manufacturing facilities and four service centers across the country. -0-

                     AMERICAN WOODMARK CORPORATION
                    Unaudited Financial Highlights
                   (in thousands, except share data)

                                                  Three Months Ended
                                                       July 31,
                                                   1998        1997
                                                ----------  ----------
Net sales                                       $   72,673  $   55,970
Cost of sales and distribution                      50,767      39,639
                                                ----------  ----------
 Gross Profit                                       21,906      16,331
Selling, general and
 administrative expenses                            14,957      12,062
                                                ----------  ----------
 Operating Income                                    6,949       4,269
Interest and other income/expense                      (80)         14
Income tax expense                                   2,788       1,634
                                                ----------  ----------
 Net Income                                     $    4,241  $    2,621
                                                ==========  ==========
Share Information:

 Weighted average shares
  outstanding - diluted                          7,993,091   7,857,623

 Diluted earnings per share                     $     0.53  $     0.33
                                                ==========  ==========


                             Balance Sheet
                                                 July 31,    April 30,
                                                   1998        1998
                                                ----------  ----------
Cash and cash equivalents                         $ 23,741    $ 23,925
Customer receivables                                29,683      27,365
Inventories                                         11,993      11,884
Other current assets                                 2,623       2,400
                                                ----------  ----------
 Total Current Assets                               68,040      65,574
Property, plant and equipment                       39,592      34,522
Other assets                                         7,835       6,385
                                                ----------  ----------
 Total Assets                                     $115,467    $106,481
                                                ==========  ==========
Current maturities of long-term debt              $  2,001    $  2,001
Accounts payable and accrued expenses               36,377      32,206
                                                ----------  ----------
 Total Current Liabilities                          38,378      34,207
Long-term debt                                       8,836       8,717
Other liabilities                                    4,823       4,420
                                                ----------  ----------
 Total Liabilities                                  52,037      47,344
Stockholders Equity                                 63,430      59,137
                                                ----------  ----------
 Total Liabilities and Stockholders Equity        $115,467    $106,481
                                                ==========  ==========

CONTACT: American Woodmark Corporation, Winchester

Glenn Eanes, 540/665-9100