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Rowe Announces Key Management Changes

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The Rowe Companies, a leading furniture manufacturer and retailer, today announced that effective January 9, 2006, Gene S. Morphis, its Chief Financial Officer, Secretary-Treasurer has left the Company. Garry W. Angle was promoted to Vice President- Treasurer and will serve as the Company's principal financial and accounting officer. Deborah C. Jacks was promoted to Secretary. "We want to thank Gene for his dedication and wish him the best in his future endeavors," said Gerald M. Birnbach, Chairman of the Board and President. Additional organizational changes include the following: Bruce M. Birnbach, who was serving as President of Rowe Furniture, Inc., has been named President of a newly-formed division, Rowe Sourcing, which will focus on the acquisition of vital raw materials and imported products. Gerald M. Birnbach, the Company's Chairman and President, will serve as President of Rowe Furniture, Inc. Timothy J. Fortune has been named Senior Vice President of Operations for Rowe Furniture, Inc. and will oversee human resources, information technology, finance, process improvement and manufacturing. Additionally, three consultants from The Carl Marks Advisory Group, LLC, which recently completed an organizational review of the Company, will assume full-time interim responsibilities with Rowe Furniture, Inc.: Edward Spinelli will serve as Interim Vice President of Manufacturing, Melvin Henson will serve as Interim Vice President of Finance and Tyler Montague will serve as Interim Process Improvement Manager. These interim officers will report to Mr. Fortune. The Rowe Companies operates two subsidiaries in the home furnishings industry: Rowe Furniture, Inc., a major manufacturer of quality upholstered furniture serving the middle and upper middle market throughout the U.S.; and Storehouse, Inc., a multi-channel, lifestyle home furnishings business including 69 retail home furnishings stores. Storehouse makes good designaccessible by selling an edited assortment of casual, contemporary home furnishings through its stores located in the Southeast, Southwest and Mid- Atlantic markets, its catalog and over the internet.

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