Bassett Expects to Report Somewhat Softer Sales for Second Quarter.

Business Editors

BASSETT, Va.--(BUSINESS WIRE)--June 2, 2000

Bassett Furniture Industries, Inc., a leading manufacturer and marketer of branded home furnishings, announced today that it expects to report second quarter sales to be approximately 5% lower than the prior year (excluding divested businesses).

This is due in part to its transition to a new company-wide computer software system, the consolidation of a closed upholstery plant, and some recent weakening of overall demand. The company believes this could reduce earnings per share for the second quarter by $.02 to $.03 below last year.

Robert H. Spilman, Jr., president and chief executive officer said, "The computer conversion caused temporary disruptions in shipments and required some overtime; however, the process has improved steadily since the March 1, 2000, implementation date. The consolidation of the recently closed Dumas, Ark., upholstery plant into the North Carolina operations is now substantially complete. Also, noticeably, there has been some slowing of incoming orders over the last thirty days."

Mr. Spilman concluded, "Our outlook for operations is positive as we continue to expand the Bassett Furniture Direct stores, the At Home with Bassett program, and focus on product offerings for these as well as our traditional retail distribution."

Bassett Furniture Industries, Inc., based in Bassett, Va., is one of the world's largest manufacturers and marketers of home furnishings. The products, designed to provide quality, style and value, are sold through Bassett Furniture Direct stores, At Home with Bassett merchandising systems, and other furniture and department stores. The company's common stock is traded on the NASDAQ market under the symbol BSET. More information about Bassett is available on the company's Internet site at www.bassettfurniture.com .

Certain of the statements in the immediately preceding paragraphs, particularly those preceded by, followed by or including the words "believes," "expects," "anticipates," "intends," "estimates," or similar expressions, or those relating to or anticipating financial results for the second quarter of fiscal year 2000 constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, Bassett claims the protection of the safe harbor for forward looking statements contained in the Private Securities Litigation Reform Act of 1995. In many cases, Bassett cannot predict what factors would cause actual results to differ materially from those indicated in the forward looking statements. Expectations included in the forward looking statements are based on preliminary information as well as certain assumptions which management believes to be reasonable at this time. Many important factors affect Bassett and could cause results to differ materially from those expressed in the forward looking statements including without limitation the economic, competitive, governmental, technological and other factors identified in Bassett's filings with the Securities and Exchange Commission.