Bush Industries announces record 2nd quarter/6 months results; Declares 110% increase in cash dividend.

JAMESTOWN, N.Y.--(BUSINESS WIRE)--July 16, 1996--Bush Industries Inc. (NYSE:BSH), a leading manufacturer of ready-to-assemble (RTA) furniture, today reported record sales and earnings for the second quarter and six months ended June 29, 1996.

Second quarter net income climbed to $4,276,000 from $1,848,000 for the same period last year. Earnings per share, fully diluted, rose to 30 cents per share versus 14 cents per share for 1995's comparable quarter. Sales for the second quarter were $55,199,000 versus sales of $45,008,000 for the same period a year ago, an increase of 22.6 percent.

For the six-month period, net income was $9,077,000 versus $4,481,000 for the first half of 1995. Earnings per share, on a fully diluted basis, grew to 64 cents per share, as compared with 34 cents per share for the similar period a year ago. Sales for the first half of 1996 were $120,232,000 compared with last year's first half sales of $95,181,000, an increase of 26.3 percent.

Earnings per share and average shares outstanding for the prior year's periods were adjusted for the three-for-two stock split effectuated in the form of a 50 percent stock dividend paid on June 28, 1996.

"The record sales level in the second quarter, coupled with outstanding manufacturing performance, contributed to better than anticipated earnings for the period. The increased sales performance resulted from stronger product acceptance by many of our customers. Profitability was favorably impacted by improved manufacturing performance and greater production levels required to meet higher sales and to support customer needs and service requirements for the third and fourth quarters," stated Paul Bush, chairman and president.

"During the second quarter we completed our move into our new distribution center in Erie, Pennsylvania from Saybrook, Ohio. The transfer was accomplished without any interruption in service to our customers. We began the construction of phase two of our Erie facility which will add approximately 500,000 square feet of manufacturing capacity and incorporate advanced production technologies. We anticipate one-half of phase two to be complete late in the third quarter, with the balance to be finished by approximately year end. Also, in late May we completed the acquisition of a majority interest in The ColorWorks Inc.," he added.

He further stated, "We feel that the advanced manufacturing technologies developed for Erie, in combination with the enhanced product design capabilities provided by The ColorWorks' decorating process, will represent the basis for the development of the next generation of innovative, high quality furniture products."

Bush also announced that the board of directors has increased the quarterly cash dividend 110 percent, after taking into account the recent stock split, from 1.7 cents per share to 3.5 cents per share, payable Aug. 23, 1996 to stockholders of record on Aug. 9, 1996.

He concluded, "This action was taken as part of our continuing program to enhance stockholder value and to share some of the significant gains we have achieved."

                          Bush Industries Inc.
                       Financial Highlights (Unaudited)

                       For the 13 weeks ended   For the 26 weeks ended
                        6/29/96      7/1/95      6/29/96       7/1/95

Net sales           $55,199,000   $45,008,000  $120,232,000  $95,181,000
Income before taxes   6,855,000     3,056,000    14,661,000    7,410,000
Net income            4,276,000     1,848,000     9,077,000    4,481,000
Earnings per share:
Primary                    $.30         $.14(a)        $.65        $.34(a)
Fully diluted              $.30         $.14(a)        $.64        $.34(a)
Average shares outstanding:
Primary              14,168,000   13,270,000(a)  13,938,000  13,280,000
Fully diluted        14,231,000   13,270,000(a)  14,176,000  13,280,000(a)(a) Adjusted for the three-for-two stock split effectuated in the form of a 50 percent stock dividend paid on June 28, 1996.

CONTACT: Porter LeVay & Rose Inc.

Jeffrey T. O'Keefe, 212/564-4700