American Woodmark Corporation Announces Second Quarter Earnings Expectations.

Business Editors

WINCHESTER, Va.--(BUSINESS WIRE)--Nov. 7, 2000

American Woodmark Corporation (Nasdaq/NM:AMWD) announced today that earnings per share for the second fiscal quarter are expected to miss the current First Call estimate of $0.60 per share.

Commenting on the announcement, Jake Gosa, President and Chief Executive Officer, stated, "Volume during the early part of the fall selling season is proving to be disappointing. While demand for the Company's products in new construction markets remains solid, the retail-remodeling sector has not experienced the normal fall increase in activity. While we continue to gain share with our major retail partners, the overall level of sales has fallen short of expectations."

In addressing remodeling demand, Gosa added, "The lower level of overall remodeling activity was amplified by a more pronounced shortfall at The Home Depot. The Home Depot launched a national appliance effort this summer, which reduced focus on the special order cabinet business. In addition, the delay in the roll-out of the new Thomasville line, caused largely by factors out of our control, eliminated incremental volume that could have been generated during the season."

Continuing, Gosa explained, "The softening in demand comes at an inopportune time for the Company. In the fall of 1999, we broke ground on a new manufacturing facility in Tennessee. This state-of-the-art plant came on-line at the end of August in preparation for the fall season. As a result of the demand shortfall, short-term margins are being unfavorably impacted by the combination of lower than anticipated demand and higher fixed costs from this underutilized capacity."

Specifically relating to the second fiscal quarter, Gosa noted, "The Company continues to make progress in improving operating efficiencies in individual plants. During the second quarter, however, demand was not sufficient to operate our existing network of facilities at anywhere near optimal levels. We anticipate that the lower utilization of capacity will result in gross margins for the second quarter of approximately 25% and earnings of $0.38 to $0.42 per share."

Looking forward, Gosa closed, "The Company continues to aggressively expand sales opportunities with our strategic partners. All indications are that the recent softness experienced in the remodeling sector is temporary and that our manufacturing capacity will be required to meet incoming demand during the Spring 2001 selling season. At these expected higher operating rates, the Company should benefit from favorable leverage on our fixed costs and report significantly improved financial performance."

American Woodmark Corporation will discuss this release in a conference call today at 11:00 AM Eastern time. The conference call will be simulcast on the Internet at www.streetevents.com, under our stock symbol AMWD and will be available for replay on the Internet for approximately 30 days.

American Woodmark Corporation is one of the leading manufacturers of 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.

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission and the Annual Report to Shareholders. The Company does not undertake to publicly update or revise its forward looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.