Bush Industries Announces 2nd Quarter/6 Months Results; Declares Regular Cash Dividend.

JAMESTOWN, N.Y.--(BUSINESS WIRE)--July 20, 1999--

Bush Industries, Inc. (NYSE: BSH), the 10th largest U.S. furniture manufacturer, today reported results for the second quarter and six months ended July 3, 1999.

Second quarter net income declined approximately 41 percent to $2,301,000 from $3,893,000 for the same period last year. Diluted earnings per share were 16 cents on approximately 14,469,000 shares outstanding, compared with 26 cents on approximately 14,867,000 shares outstanding for the comparable period last year. Net sales reached $98,873,000, up from $97,089,000 for the same quarter a year ago, an increase of 2 percent.

For the six-month period, earnings from operations before restructuring costs were $3,394,000, or 24 cents per diluted share. The net loss for the first six months was $3,139,000, or 23 cents per diluted share, which included an after-tax restructuring charge of approximately $6,533,000 ($9,672,000 pre-tax), or 47 cents per diluted share. This compares to earnings in the same period a year ago of $9,357,000, or 63 cents per diluted share. Sales for the first half of l999 were $210,458,000 compared with last year's six-month sales of $205,902,000, an increase of approximately 2 percent.

"The sales increase for the quarter resulted from new product placements at several key major retail customers in the U.S., and was partially offset by the planned downsizing which occurred in our European operation, as well as inventory level adjustments made by some of our U.S. customers," stated Paul Bush, chairman and president.

He continued, "Net earnings were in line with recent Street expectations and resulted from improved operating efficiencies and favorable absorption from the increase in finished goods inventory planned to support serviceability to our customers in the second half of the year."

Bush also announced that the Board of Directors declared the regular quarterly cash dividend of five cents per share payable August 20, 1999 to stockholders of record on August 6, 1999. -0-

BUSH INDUSTRIES, INC. AND SUBSIDIARIES
Financial Highlights (Unaudited)

The following data sets forth certain unaudited condensed
consolidated statement of earnings information for the first six-month
period of 1999.
                 For the Three Months Ended   For the Six Months Ended
                     7/3/99       7/4/98       7/3/99        7/4/98

Net sales         $98,873,000  $97,089,000  $210,458,000  $205,902,000

Costs and
expenses:
  Cost of sales    68,206,000   70,365,000   149,538,000   148,686,000
 Selling, general
  and
  administrative   24,289,000   19,706,000    50,247,000    40,308,000
 Restructuring cost     --0--        --0--     9,672,000         --0--
 Interest expense   2,228,000    1,253,000     4,262,000     2,265,000

Earnings (loss)
  before income
  taxes             4,150,000    5,765,000    (3,261,000)   14,643,000

Income tax
  (benefit) expense 1,849,000    1,872,000      (122,000)    5,286,000

Net (loss)
  earnings         $2,301,000   $3,893,000   ($3,139,000)   $9,357,000

(Loss) earnings per share
   Basic                 $.17         $.28         ($.23)         $.68
   Diluted               $.16         $.26         ($.23)         $.63

Weighted average
shares outstanding
   Basic           13,877,000   13,824,000    13,877,000    13,773,000
   Diluted         14,469,000   14,867,000    13,877,000    14,841,000

Except for the historical information contained herein, the matters discussed in this release may contain forward-looking statements which involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and prices, and other factors discussed in the Company's filings with the Securities and Exchange Commission.