Company and Industry in great state of change.

Manufacturing realignment• FBN has closed 33 of 59 plants (26 case good, 7 upholstery)• Industry wide over 50% imports

Retail realignment• FBN has shifted retail strategy – more control at retail• Hundreds of undercapitalized or small retailers out of business

Competitor realignment• Discounters expanding the market • Lifestyle retailers fastest growing segment

Despite changes, industry continues to grow.

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Company and Industry OverviewCompany and Industry Overview (NYSE:FBN)

Furniture Brands is leading this change and has developed a new mission:

The Company's mission isto fulfill the consumer’s highest expectations

in the home furnishings experiencethrough the promise of our Brands

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Strategic DirectionStrategic Direction (NYSE:FBN)

We must differentiate our brands and make them more relevant to the furniture consumer.

Broyhill • Massive product development cycle to bring values in line• Most powerful brand within competitive segment

Lane• World’s leader in motion upholstery due to innovative design

Thomasville• Accessory program designed to generate transactional events

Drexel Heritage• Lifestyle presentation and customization/design services

Henredon• Powerful licensing partners

Maitland-Smith• Extraordinary design • Service initiatives and in-stock position

Brand DifferentiationBrand Differentiation

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(NYSE:FBN)

We ensure proper distribution of our branded products through an intelligent focus on both dedicated and traditional distribution.

Single Brand Stores primary method of distribution for Thomasville and Drexel Heritage

• New Thomasville prototype appeals to more customers - Offers full design as well as transactional accessories

Lane and Broyhill focus on galleries and other traditional distribution

Percentage of our product sold through dedicated channels is 44%

Set to open 29 stores and 165 galleries in 2006

In our stores, sales per square foot 50 - 70% advantage over traditional distribution

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Distribution StrategyDistribution Strategy (NYSE:FBN)

We continue to shift the sourcing of our products to lower cost options, and optimize distribution and warehousing.

Create competitive advantage by implementing a world class sourcing supply chain

• Enhanced service to consumer• Leverage size• Speed to market• Inventory control

Centralized supply chain solution• Single freight forwarder and customs broker• Single forecasting and replenishment system• Best practice and central leadership• West Coast distribution center in second half 2006

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Sourcing and LogisticsSourcing and Logistics (NYSE:FBN)

We must leverage our size to minimize costs by consolidating back-office functions and maximize our purchasing power.

Consolidate back-office operations of our high-end brands, HDM. • $10 - $12 million in annual savings

We have implemented best practice and cost savings• Medical benefits• Retirement benefits• Purchasing• Retail development

We are pursuing best practice and cost savings initiatives

• Information technology• Risk management• Payroll

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Cost StructureCost Structure (NYSE:FBN)

We are developing the quality of our management team to create an organization that drives results.

New managers introducing new management systems and processes

New managers are from world class companies in varied industries and reflect and understand our consumer base

Combination of industry talent and new managers from varied industries makes for a more productive leadership team

We are developing a comprehensive development and succession program to ensure the future leaders of Furniture Brands come from within

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Management StructureManagement Structure (NYSE:FBN)

We issued our mid-quarter update on Wednesday, June 7, 2006.

Seasonally challenging period, nevertheless sales and earnings are tracking ahead of last year

Improving gross margins with higher utilization and imported product

Improving EBIT margins – plan for 7.5% – 8% EBIT in 2008

Strong cash flow• Dividend – increased 7% in January 2006• Share repurchase – 4.1 million shares in 2005• 1 million (+) shares repurchased YTD in 2006

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Financial OverviewFinancial Overview (NYSE:FBN)

With the proper execution of our sound strategic plan, we are in a strong position to grow this company.

We have:

a strategic plan that is substantive and imaginative

a stable of exceptional brands

a growing system of dedicated retail space that is serving the consumer and building our brands

strong offshore manufacturing relationships

the leverage of size in a highly fragmented industry

strong cash flow generation

a strong and cohesive management team10

SummarySummary (NYSE:FBN)