Bush Industries Announces Restructuring Initiative.

JAMESTOWN, N.Y.--(BUSINESS WIRE)--April 8, 1999--Bush Industries, Inc. (NYSE: BSH), the 11th largest U.S. furniture manufacturer and leader in surface technologies, today confirmed a restructuring initiative to improve its profitability by consolidating product lines at Rohr-Bush, subcontracting the delivery and assembly service portion of TASC (The Assembly & Service Co.), and implementing cost reduction projects in North American operations.

The restructuring is expected to save approximately $9.0 million on an annualized pretax basis. This one-time restructure charge should have an impact on pretax earnings of approximately $9.7 million, which translates to approximately 46 cents per diluted share. Exclusive of this restructuring charge in the first quarter of 1999, the company anticipates meeting current analysts' estimates for sales and operating earnings. "Looking forward, we anticipate improved earnings resulting from this effort," stated Paul Bush, chairman and president.

Bush also said, "The restructuring will downsize the European operation to focus on our core competencies of office and home entertainment sooner than originally planned. The subcontracting of delivery and assembly service, which remains a critical strategic requirement for RTA products, will be accomplished more efficiently and provide nationwide coverage sooner. Finally, the restructuring will expedite other cost reduction projects in North America that have resulted from our continuous improvement program."

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.