Furniture Brands to Open Cut-and-Sew Facility on Mexico's Yucatan Peninsula Location

Leverages Skilled Workforce and Easy Access to Materials and Low-Cost Transportation

ST. LOUIS, Jan. 6, 2011 -- Furniture Brands International (NYSE:FBN) today announced that the company is developing an existing facility in Merida, on Mexico's Yucatan Peninsula, to provide cut-and-sew kits for its US-based upholstery operations. The company anticipates that the operation will begin production in mid-2011 with an initial workforce of 150 to 200 people.

"Developing our own production assets in best-cost locations is a key to improving Furniture Brands' profitability and manufacturing flexibility," said Chairman and CEO Ralph Scozzafava. "The Merida facility allows us to capture the value of efficient manufacturing while improving our quality and delivery metrics. Our long-term supply chain strategy calls for increased use of facilities and suppliers that are dedicated to our business and our success."

Ray Johnson, FBN's senior vice president of global supply chain, commented, "I am very pleased with the support of the government and local businesses in helping us establish our presence in Mexico. This is a major step in our Operational Excellence journey of providing best cost and improved flexibility to our sales and operations teams. Merida provides us with good skilled labor, a proven track record in cut-and-sew operations, and a flexible logistics network. As a result, I am very excited about our opportunity in Merida."

About Furniture Brands Furniture Brands International (NYSE:FBN) is a global operating company that is one of the nation's leading designers, manufacturers, and retailers of home furnishings. It markets through a wide range of retail channels, from mass merchant stores to single-brand and independent dealers to specialized interior designers. Furniture Brands serves its customers through some of the best known and most respected brands in the furniture industry, including Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Pearson, Hickory Chair, Laneventure, and Maitland-Smith.