Enjoying Success Of Six-Year Turnaround, Ethan Allen Celebrates Its 65th year.

DANBURY, Conn.--(BUSINESS WIRE)--May 14, 1997--

More Than 500 Ethan Allen Retailers From Around The World Gather To

Launch New Retailing Concept In Connecticut on May 17

Looking back only to recognize an impressive 65-year history of retailing and manufacturing in America, Ethan Allen celebrates its anniversary this year by forging ahead with innovative plans and revolutionary retailing concepts. Currently riding high on a successful six-year turnaround, Ethan Allen is experiencing a period of record growth, prominence in the financial community and over six consecutive quarters of increased sales and earnings. President Clinton recently expressed congratulations to the company in a letter stating that Ethan Allen's efforts "have contributed immeasurably to the economic well being of our country."

In addition to convening over 500 of its retailers from all over the world in Stamford, Conn., this Saturday, May 17 to launch the company's extraordinarily innovative retailing concept in a new 30,000 square-foot store, Ethan Allen has just introduced its most extensive line ever of stylish home accessories, EA Accents, and will soon announce a nationwide essay contest and a host of in-store promotions nationwide to highlight this milestone year.

The company's chairman, CEO and president, Farooq Kathwari has been implementing a variety of initiatives over the past five years as part of his strategic repositioning plan for the company, including redesigning existing product lines while simultaneously adding new ones with lower price points to appeal to younger buyers (over 80% of Ethan Allen's line is new since 1990); re-engineering manufacturing capabilities; and improving operating efficiencies. Kathwari explains,"We are proud of what the name Ethan Allen stands for, and it is the desire to uphold this strong tradition that fuels our vision for another 65 years of innovation."

Revolutionary Retailing Concept and 30,000 Square-Foot Store Unveiled

This weekend, the anniversary celebration will kick-off when Ethan Allen unveils one of the largest retail sites in the company's 65 year history. Joined by more than 500 Ethan Allen retailers, Kathwari will team up with the Stamford Mayor, Dan Malloy, to officially introduce the innovative concept and store to the community, as part of a local revitalization effort. The management and marketing techniques implemented in the Stamford store are anticipated to slowly be implemented in other company and independently owned stores. Ethan Allen plans to open additional larger stores over time.

Says CEO Kathwari, "In an age where consumer trends and shopping habits are rapidly changing, we continually need to assess how we can improve the business and do our jobs better. This retail concept is an investment in Ethan Allen's future as the total home furnishings resource for the new millennium."

The new store and concept feature an inventive three-stores-in-one design, individually highlighting the company's classic furniture, casual furniture and home accents collection. Flanked by the classic and casual showrooms, the center of each store will feature a design showhouse with "real life" rooms (e.g. bedroom, home office, living room, youth study center, entertainment center) that coordinate with the lifestyles of the stores.

Upcoming In-Store Events, Sales Promotions and A Nationwide Contest

Consumers nationwide will also be able to join in the anniversary celebration via in-store events, sales promotions and a nationwide essay contest featuring a grand prize of thousands of dollars worth of Ethan Allen products. Events will vary from store to store, so consumers are encouraged to check with their local Ethan Allen retailers, or visit the company's web site at www.ethanallen.com.

Ethan Allen (NYSE: ETH) is an international home furnishings manufacturer and retailer with three saw mills, 20 manufacturing facilities and 11 distribution facilities in the United States. More than 90% of Ethan Allen products are crafted in the company's own plants in America.

There are currently 295 Ethan Allen Home Interiors locations in the United States, Canada and abroad. For more information, or store locations please call 800/228-9229 or visit the Ethan Allen web site at www.ethanallen.com. -0-

Note to Editors: A Photo of Ethan Allen Chairman, Farooq Kathwari at the Company's newest concept store is available via Associated Press by Accessing FPS Slug "Ethan Allen"

CONTACT: Fleishman-Hillard

Elisabeth Harmon

Dawn Pollock

212/265-9150