Flexsteel Reports Record Sales:

Furniture World Magazine

For the third consecutive fiscal year Flexsteel Industries, Inc. reported record sales. Sales were also at record levels for the fourth quarter improving 11% to $69,276,386 from $62,616,321 reported In the year earlier quarter. The sales increase for the quarter was led by Increased demand for vehicle seating products, however sales improved In all product categories. For the fiscal year ended June 30, 1999, sales were $260,519,459, an Increase of 10% compared to $236,125,280 in fiscal year 1998. Sales improved for all product categories during the fiscal year. Operating income for the quarter ended June 30, 1999, Improved 56% to $5,341,439 from $3,433,901 reported in the year earlier quarter. For the fiscal year ended June 30, 1999, operating Income Improved 56% to $15,398,061 from $9,868,301 for the fiscal year ended June 30, 1998. Net earnings for the current quarter improved 48% to a record $3,495,282, or $0.52 per share (diluted), from $2,366,242 or $.34 per share (diluted) for the year earlier quarter. Fiscal year 1999 net earnings are $ 10,316,586 or $1.5 1 per share (diluted). Excluding a gain on life Insurance proceeds reported In fiscal year 1998 of approximately $720,000 or $0. 10 per share, net earnings increased 50%. The Company has repurchased 363,600 shares of Its common stock under the plan approved November 4, 1998 authorizing the repurchase of up to 700,000 shares. The Company believes Its stock is undervalued and will repurchase shares at prevailing market prices, as the Company deems appropriate.