Craftmade Reports Preliminary Third Quarter Sales and Profits; Explains Results and Provides Outlook for Fiscal 2001.

Business Editors

COPPELL, Texas--(BUSINESS WIRE)--April 18, 2000

Craftmade International, Inc. (Nasdaq:CRFT) today announced on a preliminary basis sales and earnings for the third quarter ended March 31, 2000. The company reported third quarter sales were approximately $20 million compared to $21.3 million in the 1999 third quarter. For the nine months, sales totaled more than $59 million compared to $62.4 million for the same period a year ago. Final results are expected to be released later this month.

Management attributed third quarter levels to lower domestic sales to the TSI division's home center customers, lower sales within Durocraft (the phase-out lamp business of Craftmade) and sales allowances given to mass retailers to clear certain categories of slow moving merchandise.

At this time, management anticipates third quarter earnings will be softer than the second quarter's level of $0.13 per share due to the above, as well as inventory write downs the company is taking in connection with the phase-out of the Durocraft business. "The inventory write-down is being taken in the third quarter for sales that will be shipped in the fourth quarter," said James Ridings, Chairman and CEO. "The Durocraft inventory will be substantially liquidated during the fourth quarter and we are optimistic about the opportunity this presents for us to re-deploy resources into more profitable areas of our business."

"Sales and earnings in the Craftmade fan division continued to show strong growth as we have expanded our customer base and increased our product line," Mr. Ridings continued. "For the company as a whole, we have made progress in reducing our SG&A expenses, and we believe we can continue to trim overhead which can have a positive impact on our bottom line going forward."

"We are optimistic about the outlook for our next fiscal year. In particular, we are pleased with the reception Design Trends, our 50 percent owned subsidiary, is receiving. This entity, which was formed in August, recently placed products with three major retailers. A larger roll-out to these customers is expected to begin in the fourth quarter. In addition, TSI recently received initial purchase orders from a new major homecenter customer for its direct import lighting program. TSI serves a different customer than that of Craftmade, and we remain enthusiastic about the potential of its mass merchandiser customer base," Mr. Ridings concluded.

Craftmade International, Inc. is engaged in the design, distribution and marketing of ceiling fans, light kits and accessories manufactured to its specifications. The Company currently markets over two dozen fan designs, nearly 80 lighting fixture models and in excess of 100 interchangeable pieces of crystal and glass under its Craftmade brand and nearly two dozen styles of bathstrip lighting and more than 40 designs of outdoor lighting under its Accolade trade name.

The company's wholly-owned subsidiary, Trade Source International, Inc., is engaged in the design, distribution and marketing of outdoor lighting fixtures to major retail home improvement chains, including Lowe's, Home Depot and Wal-Mart.

Certain statements in this news release constitute "forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance and achievements of Craftmade International, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors are discussed in more detail in the Company's Form 10-k filing with the Securities and Exchange Commission.

For additional information on Craftmade International, Inc. free of charge via the internet, please go to http://www.tirc.com/invest/craftmade/cft-profile.htm