Jennifer Convertibles to Open Three Ashley Furniture HomeStores in New York

Furniture World Magazine

Harley J. Greenfield, Chief Executive Officer of Jennifer said, "We believe this is an extraordinary opportunity for Jennifer. We should be able to capitalize on our back office infrastructure and our advertising expertise in our core market. Opening of these licensed HomeStores, which are approximately ten times the size of a typical Jennifer Convertibles store, will allow us to significantly grow our top line and add to profitability in a relatively short time." Mr. Greenfield added, "We have been a customer of Ashley Furniture for more than 15 years. Ashley Furniture is the parent of the licensed Ashley Furniture HomeStores and is the World's largest furniture manufacturer with wholesale sales approaching $3 billion. We feel this relationship is an excellent fit for Jennifer, allowing us to leverage much of our Jennifer experience in the successful Ashley Furniture HomeStores environment, without having a negative impact on our current operations". Jennifer Convertibles is the owner and licensor of the largest group of sofabed specialty retail stores in the United States, with 174 Jennifer Convertibles(R) stores and is the largest specialty retailer of leather furniture with 16 Jennifer Leather stores. As of October 30, 2006, the Company owned 166 stores and licensed 24 stores. Of the 24 stores, 23 are owned and operated by a related private company and one is managed by the private company.