DANBURY, Conn., Oct 27, 2010 -- Ethan Allen Interiors Inc. ("Ethan Allen" or the "Company") (NYSE:ETH) reported operating results for the three months ended September 30, 2010.

Net sales for the quarter ended September 30, 2010 were $164.8 million, up 21.0% from the prior year quarter. The Company's Retail division delivered net sales of $121.0 million, an increase of 17.3% from the prior year quarter. Total written orders booked for the Retail division decreased 2.4% while comparable design center orders were 3.5% higher than the prior year quarter.

Farooq Kathwari, Chairman, President and CEO commented, "We are pleased with the growth of sales and profitability. The 'Great Recession' has provided an opportunity to make substantial improvements in most aspects of our vertically integrated enterprise. Written business for the quarter was impacted by the timing of the end of savings events, which ended October 18 this year compared with a September 30 conclusion last year." Net income for the quarter ended September 30, 2010 was $3.8 million or $0.13 per diluted share. This compares with a net loss the prior year quarter of $13.6 million or $0.47 per diluted share.

Excluding special items from both periods, the current quarter net income was $3.2 million or $0.11 per diluted share compared to a prior year net loss of $5.7 million or $0.20 per diluted share. The Company maintained strong liquidity and ended the quarter with cash and securities totaling $90.7 million. During the quarter, the Company paid $7.7 million to repurchase a portion of its common stock and bonds. An additional $3.0 million of bonds were repurchased in early October 2010.

Mr. Kathwari stated, "While we are faced with an uncertain economic environment, we are cautiously optimistic that due to our many initiatives, we have the opportunity to gain market share and continue to show improvements compared to the prior year in both sales and earnings. During the past quarter, we increased our advertising spending and introduced our new campaign, which while maintaining the aspirational value of our brand, also gets the message across about our excellent values, stylish products, quality, and interior design services."

About Ethan Allen Ethan Allen Interiors Inc. is a leading interior design company and manufacturer and retailer of quality home furnishings. The Company offers free interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of approximately 280 Design Centers in the United States and abroad. Ethan Allen owns and operates seven manufacturing facilities in North America, including five manufacturing plants and one sawmill in the United States and one manufacturing plant in Mexico. Approximately seventy percent of its products are made in its United States plants. For more information on Ethan Allen's products and services, visit ethanallen.com.

This press release should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended June 30, 2010 and other reports filed with the Securities and Exchange Commission. This press release and related discussions contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect management's current expectations concerning future events and results of the Company, and are subject to various assumptions, risks and uncertainties. Accordingly, actual future events or results could differ materially from those contemplated by the forward-looking statements. The Company assumes no obligation to update or provide revision to any forward-looking statement at any time for any reason.

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