RIVER OAKS FURNITURE REPORTS THAT THE RELATIVELY WEAK ENVIRONMENT FOR RETAIL FURNITURE SALES COULD AFFECT SECOND QUARTER FINANCIAL RESULTS.

FULTON, Miss.--(BUSINESS WIRE)--July 3, 1995--Stephen L. Simons, Chairman and Chief Executive Officer of River Oaks Furniture, Inc. (Nasdaq/NM: OAKS), today announced that a relatively weak environment for retail furniture sales could have an impact on the Company's second quarter financial results.

Mr. Simons said, "As we indicated in River Oaks' first quarter news release, we have been experiencing a relatively weak environment for retail furniture sales. Although final results of operations for the second quarter have not yet been determined, we recognize the possibility that the Company's net sales could be below the consensus analyst estimate of $35.5 million. Compared with net sales in the second quarter last year of $21.2 million, the Company believes that the most net sales would be below the current estimate would be $1.0 million to $1.5 million. Based on a strong April furniture market in High Point, North Carolina, and a recent firming in the sales environment, we believe any sales shortfall would be temporary."

Founded in August 1987, River Oaks designs and manufactures varying styles of upholstered and leather stationary furniture in five plants in the mid South and one in California. Consisting of sofas, loveseats and matching chairs, the products are targeted to different moderate retail price points, with sofas selling from $299 to $899. The Company sells its products through a broad distribution network under the brand names River Oaks(R), River Crest(TM), Roaring River(TM) and Gaines(TM).

CONTACT: River Oaks Furniture Inc.

Johnny C. Walker, 601/862-5303