CORRECTING and REPLACING Jennifer Convertibles Reports Third Quarter Results.

Business Editors

CORRECTION...by Jennifer Convertibles, Inc.

WOODBURY, N.Y.--(BUSINESS WIRE)--July 15, 2003

In BW5711-7/15, "Comparable store sales year-to-date decrease", second bulleted item should read xxx 8.9% decrease year-to-date (sted xxx 13.2% decrease year-to-date) The corrected release reads:

Jennifer Convertibles Reports Third Quarter Results

-- Revenue decreased 17.4% for quarter and 5.4% year-to-date

-- Comparable store sales decreased by 22.3% for quarter, 8.9%

decrease year-to-date

-- Basic EPS ($0.24) versus $0.23 for quarter, ($0.30) versus

($0.01) year-to-date

-- Diluted EPS ($0.24) versus $0.18 for quarter, ($0.30) versus

($0.01) year-to-date

-- Comparative Results impacted by poor economic conditions

partially offset by change in revenue recognition

Jennifer Convertibles, Inc. (AMEX: JEN) announced today its unaudited financial results for the third fiscal quarter ended May 31, 2003. These comparative results were impacted by the overall softness in the economy and the poor weather in the Northeast during the current year. These results were partially offset by a change in the recording of fabric protection revenue. Based upon a modification to the interim operating agreement between Jara Enterprises, Inc. and Jennifer Convertibles, Inc., the revenues and the associated net income deferred during the first through third quarters 2002 were recognized in the fourth quarter of fiscal 2002 and fabric protection revenues are currently recognized upon delivery of related merchandise. Following are the results.

For the third quarter, revenue decreased by 17.4% to $30.0 million from the $36.3 million reported for the same period last year. For the nine month period, revenue decreased 5.4% to $96.4 million from the $101.9 reported in the same period last year. In the third quarter of last year, $1.9 million of fabric protection revenue was deferred, and $5.3 million was deferred for the nine month period last year. No revenue has been deferred during the current year. Comparable store sales (sales at those stores open for the current and prior year periods) decreased 22.3% for the third quarter and decreased by 8.9% for the nine month period.

For the third quarter, the Company sustained a net loss of ($1,380,000) or ($0.24) per basic and diluted share compared to net income of $1,286,000 or $0.23 per basic share and $0.18 per diluted share for the same period last year. For the nine month period, the net loss was ($1,698,000) or ($0.30) per basic and diluted share compared to a net loss of ($85,000) or ($0.01) per basic and diluted share for the same period last year.

Operating margins decreased during the current three month period to 30.6% compared to the 32.8% reported in the same period of the prior fiscal year. This reduction was due to the increase in rent associated with the opening of 16 new stores combined with the decreased level of sales. Operating margin during the current nine month period increased slightly to 32.1% compared to 31.2% last year primarily due to the change in revenue recognition offset by the increase in store rent expenses of the new stores.

For the third quarter, selling, general, and administrative expenses increased to 34.1% as a percentage of revenue compared to 27.9% for the same period last year. For the nine month period, selling, general and administrative expenses increased to 32.8% compared to 30.1% for the same period last year.

During the quarter, the Company opened seven new stores and has opened a total of 14 for the fiscal year 2003.

Commenting on the results for the quarter, Harley J. Greenfield, Chief Executive of Jennifer, said, "The results of this quarter were significantly impacted by poor weather in the Northeast, combined with a general weakness in the economy particularly in the furniture industry. On Presidents' weekend, traditionally one of our strongest sales periods of the year, a large number of our stores were closed for two days due to weather."

Mr. Greenfield added, "We have, however, continued to make substantial progress refining our operations, adding new stores, developing new merchandise, strategies, and adding to our product offering. We expect to capitalize on these initiatives as the economy strengthens and resume our profitable growth."

Jennifer Convertibles is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with 193 Jennifer Convertibles(R) stores and 17 Jennifer Leather stores. As of May 31, 2003, the Company owned 134 stores and licensed 76 (including 28 owned and operating stores by a private company on a royalty free basis.)

Statements in this press release other than the statements of historical fact are "forward-looking statements." Such statements are subject to certain risks and uncertainties, including changes in retail demand, vendor performance and other risk factors identified from time to time in the Company's filings with the Securities and Exchange Commission that could cause actual results to differ materially from any forward-looking statements. These forward-looking statements represent the Company's judgment as of the date of the release. The Company disclaims, however, any interest or obligations to update these forward-looking statements.

JENNIFER CONVERTIBLES, INC. & SUBSIDIARIES
SUMMARY CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)





                                                    05/31/03  8/31/02
                                                    --------- --------

CASH AND CASH EQUIVALENTS                            $10,767  $15,973

ACCOUNTS RECEIVABLE                                      347      475
MERCHANDISE INVENTORIES                               14,002   13,348
DUE FROM AFFILIATE COMPANY                             3,135    3,696
DEFERRED TAX ASSET                                     1,993    1,950
PREPAID EXPENSES AND OTHER CURRENT ASSETS              1,554      801
                                                    --------- --------
                                                      31,798   36,243

FIXTURES & EQUIPMENT, Net                              4,005    4,231
DEFERRED LEASE COST AND OTHER INTANGIBLES, Net           119      195
GOODWILL, Net                                          1,796    1,796
DEFERRED TAX ASSET                                       412      412
OTHER ASSETS                                             626      748
                                                    --------- --------

                                                     $38,756  $43,625
                                                    ========= ========

ACCOUNTS PAYABLE                                     $12,059  $14,037
CUSTOMER DEPOSITS                                      8,549    7,689
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES         5,009    6,955
DUE TO AFFILIATE COMPANY                                 500      500
                                                    --------- --------
      TOTAL CURRENT LIABILITIES                       26,117   29,181

DEFERRED RENT AND ALLOWANCES                           4,236    4,358

STOCKHOLDERS' EQUITY                                   8,403   10,086
                                                    --------- --------

                                                     $38,756  $43,625
                                                    ========= ========


JENNIFER CONVERTIBLES, INC. & SUBSIDIARIES
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA)




                                THREE MONTHS           NINE MONTHS

                            05/31/03   05/25/02   05/31/03   05/25/02
                           ---------- ---------- ---------- ----------

REVENUE:
    NET SALES                $27,787    $35,589    $89,904   $100,360
    REVENUE FROM SERVICE
     CONTRACTS                 2,206        715      6,526      1,540
                           ---------- ---------- ---------- ----------
                              29,993     36,304     96,430    101,900
                           ---------- ---------- ---------- ----------

COST OF SALES AND OTHER
 CHARGES                      20,811     24,385     65,511     70,076

SELLING, GENERAL &
 ADMINISTRATIVE EXPENSES      10,213     10,142     31,584     30,651

DEPRECIATION AND
 AMORTIZATION                    435        412      1,292      1,240
                           ---------- ---------- ---------- ----------
                              31,459     34,939     98,387    101,967
                           ---------- ---------- ---------- ----------

OPERATING (LOSS)
 INCOME                      (1,466)     1,365     (1,957)       (67)
                           ---------- ---------- ---------- ----------

INTEREST INCOME                   29         45        112        141
                           ---------- ---------- ---------- ----------

INTEREST EXPENSE                   4          2          4          9
                           ---------- ---------- ---------- ----------

(LOSS) INCOME BEFORE INCOME
 TAXES                        (1,441)     1,408     (1,849)        65

INCOME TAX (BENEFIT)
 EXPENSE                         (61)       122       (151)       150

                           ---------- ---------- ---------- ----------
NET (LOSS) INCOME            ($1,380)    $1,286    $(1,698)      ($85)
                           ========== ========== ========== ==========


PER SHARE DATA:

BASIC (LOSS) INCOME PER
 COMMON SHARE                 ($0.24)     $0.23     ($0.30)    ($0.01)
                           ========== ========== ========== ==========

DILUTED  (LOSS) INCOME PER
 COMMON SHARE                 ($0.24)     $0.18     ($0.30)    ($0.01)
                           ========== ========== ========== ==========

WEIGHTED AVERAGE COMMON
 SHARES
OUTSTANDING:
    BASIC INCOME (LOSS)
     PER SHARE             5,712,058  5,704,058  5,708,847  5,704,058
                           ========== ========== ========== ==========
    DILUTED INCOME
     (LOSS) PER SHARE      5,712,058  7,296,140  5,708,847  5,704,058
                           ========== ========== ========== ==========