WINNIPEG, MB -- Palliser Furniture Ltd. announced plans to complete a major shift in its identity, ownership and management style over the coming months.

Art DeFehr, president of Palliser Furniture, said, "The world around us is changing, our family is reaching a transition point and we need to make important decisions to reflect the changing world in which we live and to fully engage the energy and abilities of the next generation of family members."

DeFehr said the company will continue the process of creating more focused furniture companies in line with the successful sale of the DeFehr furniture plant to several members of the third generation of DeFehrs in 2004. The proposal is to create four separate, but related and cooperative, residential furniture companies, plus one in the contract furniture field. Palliser will continue as five different companies in the furniture field. The operating companies will be:

* Palliser Furniture: The Palliser name is continued by the upholstered furniture division, which is known for its leather products. Art DeFehr will continue as president with Carsten Diercks, currently the senior vice president, serving as senior manager.

* DeFehr Furniture Ltd.: This new company is the result of the sale of Palliser?s solid wood division in 2004. It is led by Andrew DeFehr, son of Art DeFehr.

* Blend Furniture Co.: This company will be led by Roger Friesen as president and will handle imported casegoods.

* EQ3: This is the concept retail business established by Palliser in 2001. It will be led by Peter Tielmann.

* Acronas: This is a specialty contract furniture company that specializes in "public seating." Dan Nussbaum, son-in-law of Art DeFehr, has purchased the company.

Palliser or its shareholders will continue to own and manage its showroom in High Point, NC, plus other investments. DeFehr said he believes a company needs to renew itself from time to time and the changes in the global marketplace were the stimulus for a more dramatic shift from one generation to the other.

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