Bush Industries authorizes $8 million stock buyback; Expects lower 2nd quarter sales and earnings.

JAMESTOWN, N.Y.--(BUSINESS WIRE)--May 18, 1995--The board of directors of Bush Industries Inc. (NYSE:BSH), a leading manufacturer of ready-to-assemble (RTA) and casegoods furniture, has authorized the repurchase of up to $8 million of the company's Class A common stock, from time to time, as market conditions permit. The company has approximately 6.3 million Class A common shares outstanding.

"We have authorized this action because of our optimism regarding our fundamental long-term growth prospects, despite the current softening in the retail furniture market," Paul Bush, chairman and president, told the annual meeting of stockholders, in Jamestown today. "As a result of the present industry situation, several of our key accounts have experienced over-inventory positions. This has impacted our sales for the second quarter ending July 1, 1995, which will be approximately 10 to 15 percent below the $51.5 million sales level achieved for the same period last year, and earnings per share are expected to be approximately 25 to 35 percent below the 31 cents reported for the second quarter of 1994," he said. "We are introducing a record number of new products in the first half of 1995, and, as a result, we believe we will see an increase in sales in the second half of 1995," Bush added.

"We remain focused on the long-term growth of the company. Next month, we plan to break ground for the construction of the first phase of our new 1 million-square-foot manufacturing and distribution complex in Erie, PA. Completion of phase one, a 500,000-square-foot manufacturing and distribution center, is planned for the fourth quarter of 1995. In addition, we are expanding our Jamestown, NY, facility by 50,000 square feet in order to increase our manufacturing capacity and accommodate additional state-of-the-art technology," Bush concluded.

At the meeting, stockholders re-elected the three Class A and six Class B directors to one-year terms, adopted the company's 1995 stock plan, and ratified the appointment of Deloitte & Touche LLP as independent accountants for 1995.

CONTACT: Porter, LeVay & Rose Inc.

Hal Le Vay, 212/564-4700