Ethan Allen and Markor Sign Agreement to Develop Retail Stores in China.

Business Editors

DANBURY, Conn.--(BUSINESS WIRE)--May 29, 2001

Ethan Allen Interiors Inc. (NYSE:ETH) announced today that they have reached an agreement with Markor Furniture International Ltd. Of Urumqi, China, to develop a chain of retail stores in the People's Republic of China. The agreement calls for the two companies to collaborate on the development of a retail format that will market two retail concepts: the Ethan Allen retail program and the Markor retail program. The objective is to open the first store by summer of 2002 and to follow-up with additional stores thereafter.

Farooq Kathwari, Chairman and CEO of Ethan Allen, stated, "we are pleased with our association with Markor and we look forward to working with them to develop the Ethan Allen brand and the Markor brand of stores in China.

Richard Feng, Chairman and CEO of Markor, commented, "we are very happy to have reached an agreement with Ethan Allen, a leader in retailing and brand building, and we look forward to an active and productive association in developing a retail network in China."

Markor International Furniture Ltd. Is one of the leading furniture manufacturers in China and exports to the U.S., Canada, Europe, and other markets. Markor has five manufacturing facilities in China producing a full range of furniture products. The main manufacturing facilities are located in Tianjin and Xinjiang in China. For more information, please visit www.markorfuniture.com.

Ethan Allen Interiors Inc., a leading manufacturer and retailer of quality home furnishings, sells a full range of products through an exclusive network of more than 300 stores. Stores are located in the United States, Canada, and Mexico, and there are more than 20 overseas. The company has 21 manufacturing facilities and three sawmills throughout the United States. For more information, visit www.ethanallen.com or call 800.228.9229.