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<P align=center><FONT face="Times New Roman, Times, Serif" size=3><B>UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION</B> </FONT></P><!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 align=center><FONT face="Times New Roman, Times, Serif" size=3>WASHINGTON,
D.C. 20549-1004 </FONT></H1><!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->

<H1 align=center><FONT face="Times New Roman, Times, Serif" size=3>FORM 8-K
</FONT></H1><!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Current Report
Pursuant to Section 13 or 15(d)of <BR>the Securities Exchange Act of 1934
</FONT></P><!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->

<P align=center><FONT face="Times New Roman, Times, Serif"
size=3><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;November 15,
2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>(Date
of Report (Date of Earliest Event Reported))</FONT></P><!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, Serif"
size=3><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LA-Z-BOY
INCORPORATED
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>(Exact
name of registrant as specified in its charter) </FONT></P>





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     <TH COLSPAN=3 width="295"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MICHIGAN</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 width="295"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1-9656</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 width="307"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38-0751137</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="8" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="252" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(State or other jurisdiction of</FONT></TD>
     <TD WIDTH="35" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="8" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="282" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Commission</FONT></TD>
     <TD WIDTH="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="9" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="262" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(IRS Employer</FONT></TD>
     <TD WIDTH="36" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="8" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="252" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>incorporation)</FONT></TD>
     <TD WIDTH="35" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="8" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="282" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>File Number)</FONT></TD>
     <TD WIDTH="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="9" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="262" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indentification Number)</FONT></TD>
     <TD WIDTH="36" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>





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<TABLE cellSpacing=0 cellPadding=0 width="100%" align=center>

  <TR vAlign=bottom>
    <TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=2>1284 North
      Telegraph Road, Monroe, Michigan</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=2>48162-3390</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align="center" width="41%"><FONT face="Times New Roman, Times, Serif"
      size=2>(Address of principal executive offices)</FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="3%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align="center" width="53%"><FONT face="Times New Roman, Times, Serif"
      size=2>Zip Code </FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR> </TABLE>
<P align=center><FONT FACE="Times New Roman" SIZE="2">Registrant's telephone number, including area code <U>(734)
242-1444</U></font></P>
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</p>
<P align=center><FONT face="Times New Roman, Times, Serif"
size=3><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></P><!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P align=center><FONT face="Times New Roman, Times, Serif"
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Former name or former
address, if changed since last report.)
</FONT></P>

<P><FONT FACE="Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:<br><br>

[&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br><br>

[&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br><br>

[&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br><br>

[&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>






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<A NAME=A050></A>

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<A NAME=A051></A>
<P ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.02&nbsp; Results of Operations and
Financial Condition.</font></b></p>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
November 15, 2005, La-Z-Boy Incorporated issued a press release to report the company&#146;s
financial results for the quarter  and six months ended October 29, 2005. A copy of the
press release is attached to this current report on Form 8-K as Exhibit 99.1. </FONT></TD>
</TR>
</TABLE>
<BR>

<p><FONT SIZE="2">
The information shall not be
deemed &#147;filed&#148; for purposes of Section 18 of the Securities Exchange Act of 1934
(the &#147;Exchange Act&#148;) or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference in any filing under the Securities Act of
1933 or the Exchange Act, except as expressly set forth by specific reference in such a
filing. </FONT></p>

<BR><BR><BR>
&nbsp;<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Item 9.01&nbsp; Financial
Statements and Exhibits</b> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following exhibits
     are furnished as part of this report: </FONT></P>









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<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN="3" ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Description</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Page #</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99</FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.1</FONT></TD>
     <TD WIDTH=73% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Press Release Dated November 15, 2005</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=3% ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">4</font></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>

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<H1 ALIGN=Left>&nbsp;</h1>


<H1 ALIGN=Left><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>SIGNATURE</b></font></h1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized. </FONT></P>


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<TD WIDTH=40%>&nbsp;</TD>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>LA-Z-BOY
INCORPORATED</B><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Registrant)</FONT><br></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: November 15, 2005 </FONT></P>


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<TR VALIGN=TOP>
<TD WIDTH=40%>&nbsp;</TD>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>
<BR>BY: /S/ Louis M. Riccio, Jr.<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Louis M. Riccio, Jr.<BR>Corporate Controller<br>On behalf of the registrant and as<br>Chief Accounting Officer</FONT>


</TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Exhibit 99.1</b>
 </FONT></P>











<P ALIGN="Center">
<IMG SRC="logo.jpg" WIDTH="412" HEIGHT="92">
</p>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>NEWS RELEASE</b> </FONT></P>



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<TR VALIGN="BOTTOM">
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Contact:&nbsp;&nbsp;Mark Stegeman
</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(734) 241-4418
</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2" COLOR="#0000FF"><U>mark.stegeman@la-z-boy.com</U> </FONT>
</TD></TR>
</TABLE>

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<H1 ALIGN=CENTER><u><FONT FACE="Times New Roman, Times, Serif" SIZE=4>LA-Z-BOY REPORTS
SECOND-QUARTER OPERATING RESULTS </FONT></u></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MONROE, MI. November 15,
2005&#151;La-Z-Boy Incorporated <B>(NYSE, PCX: LZB)</B> today reported its operating
results for the second fiscal quarter ended October 29, 2005. Net sales for the quarter
were $454.6 million, down $66.2 million, or 13%, compared with the prior-year period. The
company posted a per share loss of $0.12, which includes an after-tax restructuring charge
of $0.10 per share related to the closure of its Waterloo, Ontario, Canada upholstery
facility. In last year&#146;s second quarter, the company earned $0.15 per share from
continuing operations, which included after-tax restructuring charges of $0.01 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the six months ended October 29,
2005, net sales were $906.1 million, a decrease of $69.8 million, or 7%, compared with
sales of $975.9 million in the prior-year period. The company posted a per share loss of
$0.06 for the six-month period, including restructuring charges, compared with earnings of
$0.08 per share from continuing operations in last year&#146;s first half, which included
restructuring charges of $0.13 per share on an after-tax basis. Both the quarter and six
months include the results of VIEs (Variable Interest Entities). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The operating margin for the second
quarter was (1.6%) compared with 2.9% in the prior-year period. This year&#146;s fiscal
second quarter included restructuring charges amounting to 1.7% of net sales versus 0.1%
last year. The operating margin for the first half of fiscal 2006 was 0.1% compared with
1.2% for the prior-year period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>La-Z-Boy Incorporated President and
CEO Kurt Darrow said, &#147;Our results for the second quarter were impacted by a number
of factors, most notably the supply chain issues resulting from Hurricanes Katrina and
Rita, the restructuring charge and a softer-than-expected retail environment. On the
supply side, our Newton, Mississippi facilities were impacted by both storms. First, when
Katrina hit Mississippi, because of power outages, our facilities were not operational for
a few days, and then our Newton plywood facility sustained serious damage from a tornado
spawned from Rita. The hurricanes also caused an unprecedented industry-wide shortage of
polyurethane foam and, from an operating perspective, the shortage during the entire month
of October impacted our results significantly as it hampered our production and our
ability to operate efficiently while greatly increasing a key raw material cost. In order
to remain cost neutral on foam, we passed through price increases in the form of a
surcharge and, as of this week, we are able to obtain 100% of our foam requirements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;As we continue to examine and
rationalize our business, we announced the planned December 16, 2005 closure of our
Waterloo, Ontario upholstery facility and incurred associated restructuring charges. The
plant, which employed 413 people, represents approximately five percent of the La-Z-Boy
branded business total upholstery manufacturing capacity, and produces recliners and
reclining sofas. Production will shift to U.S.-based facilities in Neosho, Missouri and
Dayton, Tennessee, and those facilities, along with plants in California and Utah, will
service the entire product needs of the company&#146;s Canadian dealers. This action will
enable La-Z-Boy to be more productive in less square footage and will improve our overall
capacity utilization. We will take the remainder of the restructuring charge, equating to
approximately $500,000 pre-tax, over the next several quarters.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow continued, &#147;With respect
to the retail environment, we believe the unusual softness this quarter relates to
declining consumer confidence resulting from the continuation of interest rate increases,
escalating oil prices, and the hurricanes. From an operating standpoint, given the
significant decrease in volume this quarter, our operating results were essentially at a
break even level, which is the direct result of the significant changes we have made to
our cost structure over the past two years. Additionally, we reduced selling, general and
administrative expense by 0.6% of net sales in the quarter reflecting lower incentive plan
accruals.&#148; </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><u>Upholstery Segment
</u> </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the fiscal second quarter, sales
in the company&#146;s upholstery group decreased $60.4 million, or 15.9%, compared with
the prior-year period, and the operating margin decreased to 3.9% from 7.2% in the
prior-year quarter. The company attributes approximately 40% of the sales decline to the
foam issue. Darrow commented, &#147;With foam supply back at 100% of our needs, we will
increase our production to work off the additional backlog built up during the month of
October and into the beginning of November. Given normal conditions in the second half of
our fiscal year, we would expect to see a significant increase in operating margins,
compared to the first half, as we have worked diligently to improve our operating
efficiencies. We are continuing to re-engineer various products, import more leather and
fabric cut and sewn kits and are constantly evaluating our capacity utilization as we did
with the closure of our Waterloo facility. We are confident that our leaner manufacturing
structure and improved value proposition to our customers, combined with the power of the
La-Z-Boy&reg; brand, positions us to achieve our operating margin objective.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>La-Z-Boy continues to develop and
grow its Furniture Galleries&reg; store system, which includes both company-owned and
independent licensed stores. In the second quarter, the system opened one additional
store, remodeled and/or relocated ten stores and closed eight, bringing the total store
count to 329, of which 61 are company owned, and 127 are in the new format. Darrow
explained, &#147;Our plan is to open 25 New Generation stores in the third quarter &#150;
15 brand new with 10 relocations or remodels. Our New Generation stores have proven to
enjoy greater total sales volumes and higher average sales per square foot due to an
increase in floor traffic. We are on track to open 45 to 50 new format stores this year,
with approximately 20 of those being new stores and the remainder being relocations or
remodels.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System-wide, for the third calendar
quarter, including company-owned and independent licensee stores, same-store written
sales, which the company tracks as an indicator of retail activity, were down 3.0%, and
total sales, which includes new stores, increased 0.1%. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the quarter, the company sold
its Englander sleep products name and trademarks, a business it purchased in 2002 which
resulted in a gain that reduced selling, general and administrative expense by 0.4% of
consolidated net sales. Darrow noted, &#147;Englander is a good brand, but was a very
small part of our business and we were pleased to sell it to a group of licensees whose
sole focus is on bedding. We were satisfied over the past three years with the growth we
achieved, but bedding is not a core strategic focus.&#148; </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><u>Casegoods Segment
</u> </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the second quarter, casegoods
sales were down 9.0% compared with the prior-year period while the operating margin
improved to 2.0% versus 0.1% last year. Darrow said, &#147;We have transitioned our
casegoods model successfully to be primarily an importer and distributor and are beginning
to see improved results in most of our companies. We are still in the process of turning
around Pennsylvania House, which will take until the end of the calendar year to
completely transition its business model. We are pleased that our American of Martinsville
operation is improving its performance as the hospitality sector enjoys a rebound after
several down years. As with our upholstery operation, both our value proposition and cost
structure are more competitive today and, with additional volume, we are well positioned
to achieve our operating margin objective for this segment of 4% to 6%. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><u>Retail Segment</u> </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the quarter, retail sales were
$49.2 million, up $8.3 million, or 20.2%, versus last year&#146;s second quarter. The
increase was primarily due to the 21 stores acquired in the fourth quarter of last year,
which included two unprofitable VIEs. On an operating basis, the segment incurred a loss,
primarily due to weak retail sales and continued transition costs associated with the
acquired stores. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow noted, &#147;Proprietary
retailing is a very important part of our ongoing three-part strategy and will continue to
become more meaningful to our overall business as we build out our store program in the
larger urban markets and capitalize on greater share of voice, market penetration and
efficiencies of distribution, administration and advertising. Overall, the 329 total store
system is healthy and growing, but because it was necessary for us to acquire a number of
underperforming stores in larger metropolitan markets, our company-owned store portfolio
as a whole is not producing acceptable results. However, we have a core group of markets
that are profitable and will continue to address the issues at the stores that need to be
turned around. We will also focus on aggressively opening new stores and refurbishing or
moving others. Experience suggests that once a market achieves critical mass, our stores
will generate the kind of returns that are in keeping with our objectives. Most
importantly, the strong La-Z-Boy&reg; brand and network of stores differentiates us, and
we are confident our retail business is a strategy that will take us into the
future.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><u>Balance Sheet
</u> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the quarter, cash flow used for
operations was $1.0 million. Total debt for the quarter was $227 million. The
debt-to-capitalization ratio was 31.1% at quarter end, up slightly from last quarter.
Darrow noted, &#147;While our target for debt to total capital is in the mid twenties, we
were opportunistic during the quarter given our share price and repurchased 260,000
shares. We have 5.9 million shares remaining in our program. Going forward, we will use a
blended strategy to pay down debt and buy back stock, as appropriate.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><u>Business Outlook</u> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commenting on the third quarter,
Darrow said, &#147;Although we continue to make steady progress with our cost structure
and are confident we have a solid and relevant business model in place in each of our
three segments, we remain concerned about the macro economic environment as well as
consumer confidence and expect sales to be flat against last year&#146;s third quarter of
$507 million. Reported earnings for the fiscal 2006 third quarter are forecasted to be in
the range of $0.13 &#151; $0.17 per share, which includes up to $0.01 in restructuring
charges. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><u>Forward-looking
Information</u>  </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any forward-looking statements
contained in this news release are based on current information and assumptions and
represent management&#146;s best judgment at the present time. Actual results could differ
materially from those anticipated or projected due to a number of factors. These factors
include, but are not limited to: changes in consumer confidence, changes in demographics,
changes in housing sales, the impact of terrorism or war, energy price changes, the impact
of logistics on imports, the impact of interest rate changes, the effects of the ruling on
tariffs by the U.S. Department of Commerce and potential disruptions from Chinese imports,
the availability and cost of capital, the impact of imports as it relates to continued
domestic production, raw material price changes, changes in currency rates, competitive
factors, operating factors, such as supply, labor, or distribution disruptions including
changes in operating conditions or costs, effects of restructuring actions, changes in the
domestic or international regulatory environment, not fully realizing cost reductions
through restructurings<I>,</I> ability to implement global sourcing organization
strategies, the future financial performance and condition of independently owned dealers
that we are required to consolidate into our financial statements or changes requiring us
to consolidate additional independently owned dealers, the impact of new manufacturing
technologies, the impact of adopting new accounting principles, fair value changes to our
intangible assets due to actual results differing from projected, the impact of severe
weather, factors relating to acquisitions, the ability to turn around under-performing
stores, the impact of store relocation costs or the success of new stores; and other
factors identified from time to time in the company&#146;s reports filed with the
Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->

<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Additional Information </FONT>
</u></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This news release is just one part of
La-Z-Boy&#146;s financial disclosures and should be read in conjunction with other
information filed with the Securities and Exchange Commission, which is available at<font color="#0000FF"><u> http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx</u></font>. Investors and
others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly
investor conference calls may sign up at: </FONT>

<BR><font face="Times New Roman, Times, Serif" size="2"><font color="#0000FF"><u>http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->

</u></font></font>.</p>

<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Background Information </FONT>
</u></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With annual sales of over $2 billion,
La-Z-Boy Incorporated is one of the world&#146;s leading residential furniture producers,
marketing furniture for every room of the home, as well as for the hospitality, health
care and assisted-living industries. The La-Z-Boy Upholstery Group companies are Bauhaus,
Centurion, Clayton Marcus, England, La-Z-Boy, and Sam Moore. The La-Z-Boy Casegoods Group
companies are American Drew, American of Martinsville, Hammary, Kincaid, Lea and
Pennsylvania House. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The corporation&#146;s vast
proprietary distribution network is dedicated exclusively to selling La-Z-Boy Incorporated
products and brands, and includes 329 stand-alone La-Z-Boy Furniture Galleries&reg; stores
and 338 La-Z-Boy In-Store Galleries, in addition to in-store gallery programs at the
company&#146;s Kincaid, Pennsylvania House, Clayton Marcus, England and Lea operating
units. According to industry trade publication <I>In Furniture</I>, the La-Z-Boy Furniture
Galleries retail network is North America&#146;s largest single-brand furniture retailer.
Additional information is available at<font color="#0000FF"><u> http://www.la-z-boy.com/</u></font>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Center Rule" FSL="Default" -->





<P align=center>&nbsp;</P>





<P align=center>&nbsp;</P>





<P align=center>&nbsp;</P>





<P align=center>&nbsp;</P>





<P align=center>&nbsp;</P>





<P align=center>&nbsp;</P>
<HR SIZE="2" COLOR="Black">




<P align=center><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><BR>
<b><FONT face="Times New Roman, Times, Serif" size=3>CONSOLIDATED STATEMENT OF OPERATIONS </FONT>
</b></P>





<!-- MARKER FORMAT-SHEET="Head Center Italic-TNR" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><I>(Unaudited,
amounts in thousands, except per share data) </I></FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width=651 style="border-collapse: collapse">

  <TR vAlign=bottom>
    <TH width=213 colSpan=3 height="34">&nbsp;</TH>
    <TH width=432 colSpan=15 >
    <font face="Times New Roman, Times, Serif" size="1">Second Quarter Ended</font>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TH width=213 colSpan=3 height="34">&nbsp;</TH>
    <TH width=85 colSpan=3 height="34">&nbsp;</TH>
    <TH width=85 colSpan=3 height="34">&nbsp;</TH>
    <TH width=77 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif" size=2>%
      Over</FONT></TH>
    <TH width=185 colSpan=6 height="34"><FONT face="Times New Roman, Times, Serif"
      size=2>Percent of Sales</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TH width=213 colSpan=3 height="34">&nbsp;</TH>
    <TH width=85 colSpan=3 height="34"><font face="Times New Roman, Times, Serif" size="2">
    10/29/05</font>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=85 colSpan=3 height="34"><font face="Times New Roman, Times, Serif" size="2">
    10/23/04</font>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=77 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif"
      size=2>(Under)</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=89 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif"
      size=2>10/29/05</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=96 colSpan=3 height="34"><font face="Times New Roman, Times, Serif" size="2">
    10/23/04</font>
      <HR width="95%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Sales</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=61 height="19"><font size="2">454,605</font></TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
     <TD WIDTH="65" ALIGN="right" height="19">
     <font size="2">520,760</font></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15 height="19"></TD>
    <TD align=right width=40 height="19"><font size="2">-12.7</font></TD>
    <TD align=left width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="19"><font size="2">100.0</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>100.0</FONT></TD>
    <TD align=left width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=213 colSpan=3 height="1"></TD>
    <TD width=85 colSpan=3 height="1"></TD>
    <TD width=85 colSpan=3 height="1"></TD>
    <TD width=77 colSpan=3 height="1"></TD>
    <TD width=89 colSpan=3 height="1"></TD>
    <TD width=96 colSpan=3 height="1"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD align=right width=61 height="19">&nbsp;</TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD ALIGN="right" width="65" height="19">&nbsp;</TD>
    <TD align=left width=8 height="19">&nbsp;</TD>
    <TD align=right width=15 height="19">&nbsp;</TD>
    <TD align=right width=40 height="19">&nbsp;</TD>
    <TD align=left width=22 height="19">&nbsp;</TD>
    <TD align=right width=22 height="19">&nbsp;</TD>
    <TD align=right width=39 height="19">&nbsp;</TD>
    <TD align=left width=28 height="19">&nbsp;</TD>
    <TD align=right width=28 height="19">&nbsp;</TD>
    <TD align=right width=40 height="19">&nbsp;</TD>
    <TD align=left width=28 height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19"><FONT size=2>Cost of sales</FONT></TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD align=right width=61 height="19">&nbsp;</TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD ALIGN="right" width="65" height="19">&nbsp;</TD>
    <TD align=left width=8 height="19">&nbsp;</TD>
    <TD align=right width=15 height="19">&nbsp;</TD>
    <TD align=right width=40 height="19">&nbsp;</TD>
    <TD align=left width=22 height="19">&nbsp;</TD>
    <TD align=right width=22 height="19">&nbsp;</TD>
    <TD align=right width=39 height="19">&nbsp;</TD>
    <TD align=left width=28 height="19">&nbsp;</TD>
    <TD align=right width=28 height="19">&nbsp;</TD>
    <TD align=right width=40 height="19">&nbsp;</TD>
    <TD align=left width=28 height="19">&nbsp;</TD></TR>
  <TR>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp; Cost of goods sold</FONT></TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD align=right width=61 height="19"><font size="2">354,409</font></TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD ALIGN="right" width="65" height="19">
     <font size="2">400,834</font></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15 height="19"></TD>
    <TD align=right width=40 height="19"><font size="2">-11.6</font></TD>
    <TD align=left width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="19"><font size="2">78.0</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="19">
    <font face="Times New Roman, Times, Serif" size="2">77.0</font></TD>
    <TD align=left width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp; Restructuring</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD align=right width=61 height="19"><font size="2">7,817</font></TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
     <TD ALIGN="right" width="65" height="19">
     <font size="2">749 </font></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15 height="19"></TD>
    <TD align=right width=40 height="19"><font size="2">943.7</font></TD>
    <TD align=left width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="19"><font size="2">1.7</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="19"><font size="2">0.1</font></TD>
    <TD align=left width=28 height="19"><font size="2">%</font></TD></TR>
  <TR>
    <TD width=213 colSpan=3 height="19"></TD>
    <TD align=right width=73 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="19"></TD>
    <TD align=right width=77 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=22 height="19"></TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19">&nbsp;</TD>
    <TD align=right width=68 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Total cost of sales</FONT></TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD align=right width=61 height="19"><font size="2">362,226</font></TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD ALIGN="right" width="65" height="19">
     <font size="2">401,583 </font></TD>
    <TD align=left width=8 height="19">&nbsp;</TD>
    <TD align=right width=15 height="19">&nbsp;</TD>
    <TD align=right width=40 height="19"><font size="2">-9.8</font></TD>
    <TD align=left width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="19">&nbsp;</TD>
    <TD align=right width=39 height="19"><font size="2">79.7</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19">&nbsp;</TD>
    <TD align=right width=40 height="19">
    <font face="Times New Roman, Times, Serif" size="2">77.1</font></TD>
    <TD align=left width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=213 colSpan=3 height="19"></TD>
    <TD align=right width=73 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="19"></TD>
    <TD align=right width=77 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=22 height="19"></TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19">&nbsp;</TD>
    <TD align=right width=68 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height="19"><font size="2">92,379</font></TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="19">
    <font face="Times New Roman, Times, Serif" size="2">119,177</font></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15 height="19"></TD>
    <TD align=right width=40 height="19"><font size="2">-22.5</font></TD>
    <TD align=left width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="19"><font size="2">20.3</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="19">
    <font face="Times New Roman, Times, Serif" size="2">22.9</font></TD>
    <TD align=left width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>Selling, general and administrative</FONT></TD>
    <TD align=left width=4 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="17"></TD>
    <TD align=right width=61 height="17"><font size="2">99,597</font></TD>
    <TD align=left width=12 height="17"></TD>
    <TD align=right width=12 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="17">
    <font face="Times New Roman, Times, Serif" size="2">103,874</font></TD>
    <TD align=left width=8 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15 height="17"></TD>
    <TD align=right width=40 height="17"><font size="2">-4.1</font></TD>
    <TD align=left width=22 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="17"><font size="2">21.9</font></TD>
    <TD align=left width=28 height="17"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="17">
    <font face="Times New Roman, Times, Serif" size="2">19.9</font></TD>
    <TD align=left width=28 height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=213 colSpan=3 height="19"></TD>
    <TD align=right width=73 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="19"></TD>
    <TD align=right width=77 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=22 height="19"></TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19">&nbsp;</TD>
    <TD align=right width=68 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Operating income (loss)</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height="19"><font size="2">(7,218</font></TD>
    <TD align=left width=12 height="19">
    <font face="Times New Roman, Times, Serif" size="2">)</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="19">
    <font face="Times New Roman, Times, Serif" size="2">15,303</font></TD>
    <TD align=left width=8 height="19">&nbsp;</TD>
    <TD align=right width=15 height="19"></TD>
    <TD align=right width=40 height="19"><font size="2">-147.2</font></TD>
    <TD align=left width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="19"><font size="2">-1.6</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="19">
    <font face="Times New Roman, Times, Serif" size="2">2.9</font></TD>
    <TD align=left width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Interest expense</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height="19"><font size="2">3,090</font></TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="19">
    <font face="Times New Roman, Times, Serif" size="2">2,607</font></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15 height="19"></TD>
    <TD align=right width=40 height="19"><font size="2">18.5</font></TD>
    <TD align=left width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="19"><font size="2">0.7</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="19">
    <font face="Times New Roman, Times, Serif" size="2">0.5</font></TD>
    <TD align=left width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Other income (expense), net</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height="19"><font size="2">295</font></TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="19"><font size="2">(354</font></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;)</FONT></TD>
    <TD align=right width=15 height="19"></TD>
    <TD align=right width=40 height="19"><font size="2">183.3</font></TD>
    <TD align=left width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="19"><font size="2">0.1</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="19"><font size="2">-0.1</font></TD>
    <TD align=left width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=213 colSpan=3 height="19"></TD>
    <TD align=right width=73 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="19"></TD>
    <TD align=right width=77 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=22 height="19"></TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19">&nbsp;</TD>
    <TD align=right width=68 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19"></TD></TR>
  <TR>
    <TD align=left width=205 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Income (loss) from continuing
      <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations before income taxes</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="30">&nbsp;</TD>
    <TD vAlign=bottom align=right width=61 height="30"><font size="2">(10,013</font></TD>
    <TD vAlign=bottom align=left width=12 height="30"><font size="2">)</font></TD>
    <TD vAlign=bottom align=right width=12 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=65 height="30"><font size="2">12,342</font></TD>
    <TD vAlign=bottom align=left width=8 height="30">&nbsp;</TD>
    <TD vAlign=bottom align=right width=15 height="30"></TD>
    <TD vAlign=bottom align=right width=40 height="30"><font size="2">-181.1</font></TD>
    <TD vAlign=bottom align=left width=22 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
    <TD vAlign=bottom align=right width=22 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=39 height="30"><font size="2">-2.2</font></TD>
    <TD vAlign=bottom align=left width=28 height="30"><FONT size=2>%</FONT></TD>
    <TD vAlign=bottom align=right width=28 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=40 height="30">
    <font face="Times New Roman, Times, Serif" size="2">2.4</font></TD>
    <TD vAlign=bottom align=left width=28 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width=205 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>Income tax expense (benefit)</FONT></TD>
    <TD align=left width=4 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="22">&nbsp;</TD>
    <TD align=right width=61 height="22"><font size="2">(3,566</font></TD>
    <TD align=left width=12 height="22"><font size="2">)</font></TD>
    <TD align=right width=12 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="22">
    <font face="Times New Roman, Times, Serif" size="2">4,690</font></TD>
    <TD align=left width=8 height="22">&nbsp;</TD>
    <TD align=right width=15 height="22"></TD>
    <TD align=right width=40 height="22"><font size="2">-176.0</font></TD>
    <TD align=left width=22 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=22 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="22"><font size="2">35.6</font></TD>
    <TD align=left width=28 height="22"><FONT size=2>%*</FONT></TD>
    <TD align=right width=28 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>38.0</FONT></TD>
    <TD align=left width=28 height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>%*</FONT></TD></TR>
  <TR>
    <TD width=213 colSpan=3 height="19"></TD>
    <TD align=right width=73 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="19"></TD>
    <TD align=right width=85 colSpan=3 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=15 height="19">&nbsp;</TD>
    <TD align=right width=62 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=22 height="19"></TD>
    <TD align=right width=67 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19">&nbsp;</TD>
    <TD align=right width=68 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=6 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Income (loss) from continuing
      <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="30">&nbsp;</TD>
    <TD align=right width=61 height="30"><font size="2">(6,447</font></TD>
    <TD align=left width=12 height="30"><font size="2">)</font></TD>
    <TD align=right width=12 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="30">
    <font face="Times New Roman, Times, Serif" size="2">7,652</font></TD>
    <TD align=left width=8 height="30">&nbsp;</TD>
    <TD align=right width=15 height="30"></TD>
    <TD align=right width=40 height="30"><font size="2">-184.3</font></TD>
    <TD align=left width=22 height="30"><FONT size=2>%</FONT></TD>
    <TD align=right width=22 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="30"><font size="2">-1.4</font></TD>
    <TD align=left width=28 height="30"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="30">
    <font face="Times New Roman, Times, Serif" size="2">1.5</font></TD>
    <TD align=left width=28 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <tr>
    <TD align=left width=205 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>Income from discontinued <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations
    (net of tax)</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="30">&nbsp;</TD>
    <TD align=right width=61 height="30">--</TD>
    <TD align=left width=12 height="30">&nbsp;</TD>
    <TD align=right width=12 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="30"><font size="2">506</font></TD>
    <TD align=left width=8 height="30">&nbsp;</TD>
    <TD align=right width=15 height="30"></TD>
    <TD align=right width=40 height="30"><font size="2">-100.0</font></TD>
    <TD align=left width=22 height="30"><font size="2">%</font></TD>
    <TD align=right width=22 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="30">--</TD>
    <TD align=left width=28 height="30">&nbsp;</TD>
    <TD align=right width=28 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="30">
    <font face="Times New Roman, Times, Serif" size="2">0.1</font></TD>
    <TD align=left width=28 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left width=205 height="30">
    <font face="Times New Roman, Times, Serif" size="2">Extraordinary gains (net
    of tax)</font></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="30">&nbsp;</TD>
    <TD align=right width=61 height="30">--</TD>
    <TD align=left width=12 height="30">&nbsp;</TD>
    <TD align=right width=12 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=65 height="30"><font size="2">702</font></TD>
    <TD align=left width=8 height="30">&nbsp;</TD>
    <TD align=right width=15 height="30"></TD>
    <TD align=right width=40 height="30"><font size="2">-100.0</font></TD>
    <TD align=left width=22 height="30"><font size="2">%</font></TD>
    <TD align=right width=22 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="30">--</TD>
    <TD align=left width=28 height="30">&nbsp;</TD>
    <TD align=right width=28 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="30">
    <font face="Times New Roman, Times, Serif" size="2">0.1</font></TD>
    <TD align=left width=28 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=213 colSpan=3 height="19"></TD>
    <TD align=right width=73 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="19"></TD>
    <TD align=right width=77 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=22 height="19"></TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19">&nbsp;</TD>
    <TD align=right width=68 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=28 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=205 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Net income (loss)</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=61 height="19"><font size="2">(6,447</font></TD>
    <TD align=left width=12 height="19"><font size="2">)</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=65 height="19"><font size="2">8,860</font></TD>
    <TD align=left width=8 height="19">&nbsp;</TD>
    <TD align=right width=15 height="19"></TD>
    <TD align=right width=40 height="19"><font size="2">-172.8</font></TD>
    <TD align=left width=22 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=39 height="19"><font size="2">-1.4</font></TD>
    <TD align=left width=28 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=40 height="19">
    <font face="Times New Roman, Times, Serif" size="2">1.7</font></TD>
    <TD align=left width=28 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=213 colSpan=3 height="16"></TD>
    <TD align=right width=73 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12 height="16"></TD>
    <TD align=right width=77 colSpan=2 height="16">
      <HR color=black noShade align="center">
    </TD>
    <TD width=8 height="16"></TD>
    <TD align=right width=55 colSpan=2 height="16">
    </TD>
    <TD width=22 height="16"></TD>
    <TD align=right width=61 colSpan=2 height="16">
    </TD>
    <TD width=28 height="16"></TD>
    <TD align=right width=68 colSpan=2 height="16">
    </TD>
    <TD width=28 height="16"></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=375>

  <TR vAlign=bottom>
    <TH width=217 colSpan=3>&nbsp;</TH>
    <TH width=87 colSpan=3>&nbsp;</TH>
    <TH width=65 colSpan=3>&nbsp;</TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic average shares</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=23><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=35><font size="2">51,655</font></TD>
    <TD align=left width=40>&nbsp;</TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=33><font size="2">52,040</font></TD>
    <TD align=left width=35><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=217 colSpan=3></TD>
    <TD align=right width=47 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=40></TD>
    <TD align=right width=41 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=35></TD></TR>
  <TR>
    <TD width=194></TD></TR>
  <TR>
    <TD width=217 colSpan=3></TD>
    <TD align=right width=47 colSpan=2>&nbsp;</TD>
    <TD width=40></TD>
    <TD align=right width=41 colSpan=2>&nbsp;</TD>
    <TD width=35></TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic income (loss) from <BR>&nbsp;&nbsp;&nbsp; continuing
      operations per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=23><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=12><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width=35><font size="2">(0.12</font></TD>
    <TD vAlign=bottom align=left width=40><font size="2">)</font></TD>
    <TD vAlign=bottom align=right width=11><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width=33><font size="2">0.15</font></TD>
    <TD vAlign=bottom align=left width=35>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic net income (loss) per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=23><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=35><font size="2">(0.12</font></TD>
    <TD align=left width=40><font size="2">)</font></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=33><font size="2">0.17</font></TD>
    <TD align=left width=35>&nbsp;</TD></TR>
  <TR>
    <TD width=217 colSpan=3></TD>
    <TD align=right width=47 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=40></TD>
    <TD align=right width=41 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=35>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted average shares</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=23><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=35><font size="2">51,655</font></TD>
    <TD align=left width=40><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11>&nbsp;</TD>
    <TD align=right width=33><font size="2">52,101</font></TD>
    <TD align=left width=35>&nbsp;</TD></TR>
  <TR>
    <TD width=217 colSpan=3></TD>
    <TD align=right width=47 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=40></TD>
    <TD align=right width=41 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=35>&nbsp;</TD></TR>
  <TR>
    <TD width=217 colSpan=3></TD>
    <TD align=right width=47 colSpan=2>&nbsp;</TD>
    <TD width=40></TD>
    <TD align=right width=41 colSpan=2>&nbsp;</TD>
    <TD width=35>&nbsp;</TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted income (loss) from <BR>&nbsp;&nbsp;&nbsp; continuing
      operations per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=23><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=35><font size="2">(0.12</font></TD>
    <TD align=left width=40><font size="2">)</font></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=33><font size="2">0.15</font></TD>
    <TD align=left width=35>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted net income (loss) <BR>&nbsp;&nbsp;&nbsp;&nbsp; per
      share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=23><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=35><font size="2">(0.12</font></TD>
    <TD align=left width=40><font size="2">)</font></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=33><font size="2">0.17</font></TD>
    <TD align=left width=35>&nbsp;</TD></TR>
  <TR>
    <TD width=217 colSpan=3></TD>
    <TD align=right width=47 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=40></TD>
    <TD align=right width=41 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=35></TD></TR>
  <TR>
    <TD width=217 colSpan=3></TD>
    <TD width=87 colSpan=3></TD>
    <TD width=76 colSpan=3></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Dividends paid per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=23><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=35><font size="2">0.11</font></TD>
    <TD align=left width=40></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=33><font size="2">0.11</font></TD>
    <TD align=left width=35></TD></TR></TABLE>



<P align=left><FONT face="Times New Roman, Times, Serif" size=2>*As a percent of
pretax income, not sales.</FONT></P>



<P align=left>&nbsp;</P>



<P align=left>&nbsp;</P>



<H1 align=center><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><FONT face="Times New Roman, Times, Serif" size=3><BR>CONSOLIDATED STATEMENT OF OPERATIONS </FONT></H1><!-- MARKER FORMAT-SHEET="Head Center Italic-TNR" FSL="Default" -->

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><I>(Unaudited,
amounts in thousands, except per share data) </I></FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="673" style="border-collapse: collapse">

  <TR vAlign=bottom>
    <TH width=234 colSpan=3 height="34">&nbsp;</TH>
    <TH width=439 colSpan=15 >
    <font face="Times New Roman, Times, Serif" size="1">Six Months Ended</font>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TH width=234 colSpan=3 height="34">&nbsp;</TH>
    <TH width=95 colSpan=3 height="34">&nbsp;</TH>
    <TH width=80 colSpan=3 height="34">&nbsp;</TH>
    <TH width=85 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif" size=2>%
      Over</FONT></TH>
    <TH width=179 colSpan=6 height="34"><FONT face="Times New Roman, Times, Serif"
      size=2>Percent of Sales</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TH width=234 colSpan=3 height="34">&nbsp;</TH>
    <TH width=95 colSpan=3 height="34"><font face="Times New Roman, Times, Serif" size="2">
    10/29/05</font>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=80 colSpan=3 height="34"><font face="Times New Roman, Times, Serif" size="2">
    10/23/04</font>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=85 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif"
      size=2>(Under)</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=86 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif"
      size=2>10/29/05</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=93 colSpan=3 height="34"><font face="Times New Roman, Times, Serif" size="2">
    10/23/04</font>
      <HR width="95%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Sales</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=58 height="19"><font size="2">906,092</font></TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=52 height="19">
    <font face="Times New Roman, Times, Serif" size="2">975,867</font></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">-7.2</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">100.0</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>100.0</FONT></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=234 colSpan=3 height="1"></TD>
    <TD width=95 colSpan=3 height="1"></TD>
    <TD width=80 colSpan=3 height="1"></TD>
    <TD width=85 colSpan=3 height="1"></TD>
    <TD width=86 colSpan=3 height="1"></TD>
    <TD width=93 colSpan=3 height="1"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=58 height="19">&nbsp;</TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=52 height="19">&nbsp;</TD>
    <TD align=left width=14 height="19">&nbsp;</TD>
    <TD align=right width=17 height="19">&nbsp;</TD>
    <TD align=right width=44 height="19">&nbsp;</TD>
    <TD align=left width=24 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD align=right width=43 height="19">&nbsp;</TD>
    <TD align=left width=31 height="19">&nbsp;</TD>
    <TD align=right width=18 height="19">&nbsp;</TD>
    <TD align=right width=44 height="19">&nbsp;</TD>
    <TD align=left width=31 height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT size=2>Cost of sales</FONT></TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=58 height="19">&nbsp;</TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=52 height="19">&nbsp;</TD>
    <TD align=left width=14 height="19">&nbsp;</TD>
    <TD align=right width=17 height="19">&nbsp;</TD>
    <TD align=right width=44 height="19">&nbsp;</TD>
    <TD align=left width=24 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD align=right width=43 height="19">&nbsp;</TD>
    <TD align=left width=31 height="19">&nbsp;</TD>
    <TD align=right width=18 height="19">&nbsp;</TD>
    <TD align=right width=44 height="19">&nbsp;</TD>
    <TD align=left width=31 height="19">&nbsp;</TD></TR>
  <TR>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp; Cost of goods sold</FONT></TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=58 height="19"><font size="2">699,427</font></TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=52 height="19">
    <font face="Times New Roman, Times, Serif" size="2">752,550</font></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">-7.1</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">77.2</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19">
    <font face="Times New Roman, Times, Serif" size="2">77.1</font></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp; Restructuring</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=58 height="19"><font size="2">7,817</font></TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="19">
    <font face="Times New Roman, Times, Serif" size="2">11,149</font></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">-29.9</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">0.9</font></TD>
    <TD align=left width=31 height="19"><font size="2">%</font></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19"><font size="2">1.1</font></TD>
    <TD align=left width=31 height="19">%</TD></TR>
  <TR>
    <TD width=234 colSpan=3 height="19"></TD>
    <TD align=right width=72 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=23 height="19"></TD>
    <TD align=right width=66 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=14 height="19"></TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=24 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19">&nbsp;</TD>
    <TD align=right width=62 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Total cost of sales</FONT></TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=left width=4 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=58 height="19"><font size="2">707,244</font></TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=52 height="19">
    <font face="Times New Roman, Times, Serif" size="2">763,699</font></TD>
    <TD align=left width=14 height="19">&nbsp;</TD>
    <TD align=right width=17 height="19">&nbsp;</TD>
    <TD align=right width=44 height="19"><font size="2">-7.4</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19">&nbsp;</TD>
    <TD align=right width=43 height="19"><font size="2">78.1</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=18 height="19">&nbsp;</TD>
    <TD align=right width=44 height="19">
    <font face="Times New Roman, Times, Serif" size="2">78.3</font></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=234 colSpan=3 height="17"></TD>
    <TD align=right width=72 colSpan=2 height="17">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=23 height="17"></TD>
    <TD align=right width=66 colSpan=2 height="17">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=14 height="17"></TD>
    <TD align=right width=61 colSpan=2 height="17">
    </TD>
    <TD width=24 height="17"></TD>
    <TD align=right width=55 colSpan=2 height="17">
    </TD>
    <TD width=31 height="17"></TD>
    <TD align=right width=62 colSpan=2 height="17">
    </TD>
    <TD width=31 height="17"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=58 height="19"><font size="2">198,848</font></TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="19">
    <font face="Times New Roman, Times, Serif" size="2">212,168</font></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">-6.3</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">21.9</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19">
    <font face="Times New Roman, Times, Serif" size="2">21.7</font></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Selling, general and administrative</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=58 height="19"><font size="2">198,165</font></TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="19">
    <font face="Times New Roman, Times, Serif" size="2">200,919</font></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">-1.4</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">21.9</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19">
    <font face="Times New Roman, Times, Serif" size="2">20.6</font></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=234 colSpan=3 height="19"></TD>
    <TD align=right width=72 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=23 height="19"></TD>
    <TD align=right width=66 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=14 height="19"></TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=24 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19">&nbsp;</TD>
    <TD align=right width=62 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Operating income </FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=58 height="19"><font size="2">683</font></TD>
    <TD align=left width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="19"><font size="2">11,249</font></TD>
    <TD align=left width=14 height="19">&nbsp;</TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">-93.9</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">0.1</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19">
    <font face="Times New Roman, Times, Serif" size="2">1.2</font></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Interest expense</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=58 height="19"><font size="2">5,831</font></TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="19"><font size="2">4,816</font></TD>
    <TD align=left width=14 height="19">&nbsp;</TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">21.1</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">0.6</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19">
    <font face="Times New Roman, Times, Serif" size="2">0.5</font></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Other income, net</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=58 height="19"><font size="2">310</font></TD>
    <TD align=left width=23 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="19">
     <font size="2">19</font></TD>
    <TD align=left width=14 height="19">&nbsp;</TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">N/M</font></TD>
    <TD align=left width=24 height="19">&nbsp;</TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">--</font></TD>
    <TD align=left width=31 height="19">&nbsp;</TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19">
    <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
    <TD align=left width=31 height="19">&nbsp;</TD></TR>
  <TR>
    <TD width=234 colSpan=3 height="19"></TD>
    <TD align=right width=72 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=23 height="19"></TD>
    <TD align=right width=66 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=14 height="19">&nbsp;</TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=24 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19">&nbsp;</TD>
    <TD align=right width=62 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19"></TD></TR>
  <TR>
    <TD align=left width=226 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Income (loss) from continuing
      <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations before income taxes</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="30">&nbsp;</TD>
    <TD vAlign=bottom align=right width=58 height="30"><font size="2">(4,838</font></TD>
    <TD vAlign=bottom align=left width=23 height="30"><font size="2">)</font></TD>
    <TD vAlign=bottom align=right width=14 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=52 height="30">
     <font size="2">6,452</font></TD>
    <TD vAlign=bottom align=left width=14 height="30">&nbsp;</TD>
    <TD vAlign=bottom align=right width=17 height="30"></TD>
    <TD vAlign=bottom align=right width=44 height="30"><font size="2">-175.0</font></TD>
    <TD vAlign=bottom align=left width=24 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
    <TD vAlign=bottom align=right width=12 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=43 height="30"><font size="2">-0.5</font></TD>
    <TD vAlign=bottom align=left width=31 height="30"><FONT size=2>%</FONT></TD>
    <TD vAlign=bottom align=right width=18 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=44 height="30">
    <font face="Times New Roman, Times, Serif" size="2">0.7</font></TD>
    <TD vAlign=bottom align=left width=31 height="30"><FONT
      face="Times New Roman, Times, Serif" size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Income tax expense (benefit)</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=58 height="19"><font size="2">(1,599</font></TD>
    <TD align=left width=23 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="19">
     <font size="2">2,452</font></TD>
    <TD align=left width=14 height="19">&nbsp;</TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">-165.2</font></TD>
    <TD align=left width=24 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">33.1</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%*</FONT></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>38.0</FONT></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%*</FONT></TD></TR>
  <TR>
    <TD width=234 colSpan=3 height="19"></TD>
    <TD align=right width=72 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=23 height="19"></TD>
    <TD align=right width=66 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=14 height="19">&nbsp;</TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=24 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19">&nbsp;</TD>
    <TD align=right width=62 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19"></TD></TR>
  <tr>
    <TD align=left width=226 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>Income (loss)&nbsp;from  continuing <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations </FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="30">&nbsp;</TD>
    <TD align=right width=58 height="30"><font size="2">(3,239</font></TD>
    <TD align=left width=23 height="30"><font size="2">)</font></TD>
    <TD align=right width=14 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="30"><font size="2">4,000</font></TD>
    <TD align=left width=14 height="30">&nbsp;</TD>
    <TD align=right width=17 height="30"></TD>
    <TD align=right width=44 height="30"><font size="2">-181.0</font></TD>
    <TD align=left width=24 height="30"><FONT size=2>%</FONT></TD>
    <TD align=right width=12 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="30"><font size="2">-0.4</font></TD>
    <TD align=left width=31 height="30"><font size="2">%</font></TD>
    <TD align=right width=18 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="30">
    <font face="Times New Roman, Times, Serif" size="2">0.4</font></TD>
    <TD align=left width=31 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left width=226 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Income from discontinued <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations
      (net of tax)</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="30">&nbsp;</TD>
    <TD align=right width=58 height="30"><font size="2">--</font></TD>
    <TD align=left width=23 height="30">&nbsp;</TD>
    <TD align=right width=14 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="30">
     <font size="2">635</font></TD>
    <TD align=left width=14 height="30">&nbsp;</TD>
    <TD align=right width=17 height="30"></TD>
    <TD align=right width=44 height="30"><font size="2">-100.0</font></TD>
    <TD align=left width=24 height="30"><FONT size=2>%</FONT></TD>
    <TD align=right width=12 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="30"><font size="2">--</font></TD>
    <TD align=left width=31 height="30">&nbsp;</TD>
    <TD align=right width=18 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="30">
    <font face="Times New Roman, Times, Serif" size="2">0.1</font></TD>
    <TD align=left width=31 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="30">
    <font face="Times New Roman, Times, Serif" size="2">Extraordinary gains (net
    of tax)</font></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="30">&nbsp;</TD>
    <TD align=right width=58 height="30"><font size="2">--</font></TD>
    <TD align=left width=23 height="30">&nbsp;</TD>
    <TD align=right width=14 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=52 height="30"><font size="2">702</font></TD>
    <TD align=left width=14 height="30">&nbsp;</TD>
    <TD align=right width=17 height="30"></TD>
    <TD align=right width=44 height="30"><font size="2">-100.0</font></TD>
    <TD align=left width=24 height="30"><FONT size=2>%</FONT></TD>
    <TD align=right width=12 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="30"><font size="2">--</font></TD>
    <TD align=left width=31 height="30">&nbsp;</TD>
    <TD align=right width=18 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="30">
    <font face="Times New Roman, Times, Serif" size="2">0.1</font></TD>
    <TD align=left width=31 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=234 colSpan=3 height="19"></TD>
    <TD align=right width=72 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=23 height="19"></TD>
    <TD align=right width=66 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=14 height="19">&nbsp;</TD>
    <TD align=right width=61 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=24 height="19"></TD>
    <TD align=right width=55 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19">&nbsp;</TD>
    <TD align=right width=62 colSpan=2 height="19">
      &nbsp;</TD>
    <TD width=31 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=226 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Net income (loss)</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=58 height="19"><font size="2">(3,239</font></TD>
    <TD align=left width=23 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=52 height="19"><font size="2">5,337</font></TD>
    <TD align=left width=14 height="19">&nbsp;</TD>
    <TD align=right width=17 height="19"></TD>
    <TD align=right width=44 height="19"><font size="2">-160.7</font></TD>
    <TD align=left width=24 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=43 height="19"><font size="2">-0.4</font></TD>
    <TD align=left width=31 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=18 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=44 height="19">
    <font face="Times New Roman, Times, Serif" size="2">0.5</font></TD>
    <TD align=left width=31 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=234 colSpan=3 height="16"></TD>
    <TD align=right width=72 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=23 height="16"></TD>
    <TD align=right width=66 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=14 height="16"></TD>
    <TD align=right width=61 colSpan=2 height="16">
    </TD>
    <TD width=24 height="16"></TD>
    <TD align=right width=55 colSpan=2 height="16">
    </TD>
    <TD width=31 height="16"></TD>
    <TD align=right width=62 colSpan=2 height="16">
    </TD>
    <TD width=31 height="16"></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=401>

  <TR vAlign=bottom>
    <TH width=238 colSpan=3>&nbsp;</TH>
    <TH width=99 colSpan=3>&nbsp;</TH>
    <TH width=61 colSpan=3>&nbsp;</TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic average shares</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=44><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=16>&nbsp;</TD>
    <TD align=right width=59><font size="2">51,892</font></TD>
    <TD align=left width=24>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=48><font size="2">52,003</font></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=238 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=24></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD></TR>
  <TR>
    <TD width=194></TD></TR>
  <TR>
    <TD width=238 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>&nbsp;</TD>
    <TD width=24></TD>
    <TD align=right width=60 colSpan=2>&nbsp;</TD>
    <TD width=12></TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic income (loss) from <BR>&nbsp;&nbsp;&nbsp; continuing
      operations per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=44><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=16><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width=59><font size="2">(0.06</font></TD>
    <TD vAlign=bottom align=left width=24><font size="2">)</font></TD>
    <TD vAlign=bottom align=right width=12><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width=48><font size="2">0.08</font></TD>
    <TD vAlign=bottom align=left width=12>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic net income (loss) per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=44><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=16><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=59><font size="2">(0.06</font></TD>
    <TD align=left width=24><font size="2">)</font></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=48><font size="2">0.10</font></TD>
    <TD align=left width=12>&nbsp;</TD></TR>
  <TR>
    <TD width=238 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=24></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted average shares</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=44><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=16><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=59><font size="2">51,892</font></TD>
    <TD align=left width=24><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=48><font size="2">52,062</font></TD>
    <TD align=left width=12>&nbsp;</TD></TR>
  <TR>
    <TD width=238 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=24></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12>&nbsp;</TD></TR>
  <TR>
    <TD width=238 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>&nbsp;</TD>
    <TD width=24></TD>
    <TD align=right width=60 colSpan=2>&nbsp;</TD>
    <TD width=12>&nbsp;</TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted income (loss) from <BR>&nbsp;&nbsp;&nbsp; continuing
      operations per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=44><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=16><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=59><font size="2">(0.06</font></TD>
    <TD align=left width=24><font size="2">)</font></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=48><font size="2">0.08</font></TD>
    <TD align=left width=12>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted net income (loss) <BR>&nbsp;&nbsp;&nbsp;&nbsp; per
      share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=44><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=16><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=59><font size="2">(0.06</font></TD>
    <TD align=left width=24><font size="2">)</font></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=48><font size="2">0.10</font></TD>
    <TD align=left width=12>&nbsp;</TD></TR>
  <TR>
    <TD width=238 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=24></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12>&nbsp;</TD></TR>
  <TR>
    <TD width=238 colSpan=3></TD>
    <TD width=99 colSpan=3></TD>
    <TD width=72 colSpan=3></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Dividends paid per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=44><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=16><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=59><font size="2">0.22</font></TD>
    <TD align=left width=24></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=48><font size="2">0.22</font></TD>
    <TD align=left width=12>&nbsp;</TD></TR></TABLE><!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT face="Times New Roman, Times, Serif" size=2>*As a percent of pretax
income, not
sales.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></P>



<P align=left>&nbsp;</P>



<P align=center>&nbsp;</P>



<P align=center><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><BR>
<font face="Times New Roman, Times, Serif" size="3"><b>CONSOLIDATED BALANCE SHEET</b>
</font></P>



<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" --><A
name=A011></A>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><I>(Unaudited,
amounts in thousands)</I> </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width=672>

  <TR vAlign=bottom>
    <TH width=243 colSpan=3 height="34">&nbsp;</TH>
    <TH width=101 colSpan=3 >&nbsp;</TH>
    <TH width=99 colSpan=3 height="34">&nbsp;</TH>
    <TH width=160 colSpan=6 height="34"><FONT face="Times New Roman, Times, Serif"
      size=1>Increase/(Decrease)</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH width=69 colSpan=3 height="34">&nbsp;</TH></TR>
  <TR vAlign=bottom>
    <TH width=243 colSpan=3 height="34">&nbsp;</TH>
    <TH width=101 colSpan=3 height="34">
    <font face="Times New Roman, Times, Serif" size="1">10/29/05</font>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=99 colSpan=3 height="34"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>10/23/04</FONT><HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=76 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif"
      size=1>Dollars</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=84 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif"
      size=1>Percent</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=69 colSpan=3 height="34"><FONT face="Times New Roman, Times, Serif"
      size=1>4/30/05</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Current assets</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19">&nbsp;</TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64 height="19">&nbsp;</TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19">&nbsp;</TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19">&nbsp;</TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19">&nbsp;</TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Cash and equivalents</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">15,037</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">28,677</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(13,640</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-47.6</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>37,705</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Receivables, net</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">258,518</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">306,386</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(47,868</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-15.6</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>283,915</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">267,320</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">282,470</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(15,150</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-5.4</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>260,556</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">27,247</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">38,108</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(10,861</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-28.5</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>22,779</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Other current assets</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">30,676</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">21,088</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">9,588</font></TD>
    <TD align=left width=16 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">45.5</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>33,410</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=243 colSpan=3 height="19"></TD>
    <TD align=right width=89 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="19"></TD>
    <TD align=right width=86 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13 height="19"></TD>
    <TD align=right width=60 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="19">&nbsp;</TD>
    <TD align=right width=68 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="19">&nbsp;</TD>
    <TD align=right width=61 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current
      assets</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">598,798</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">676,729</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(77,931</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-11.5</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>638,365</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Property, plant and equipment, net</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">214,552</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">207,447</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">7,105</font></TD>
    <TD align=left width=16 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">3.4</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>210,565</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Goodwill</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">79,770</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">68,544</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">11,226</font></TD>
    <TD align=left width=16 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">16.4</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>79,362</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Trade names</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">18,794</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">27,889</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(9,095</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-32.6</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>21,484</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Other long-term assets</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">84,214</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">81,348</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">2,866</font></TD>
    <TD align=left width=16 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">3.5</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>76,581</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=243 colSpan=3 height="19"></TD>
    <TD align=right width=89 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="19"></TD>
    <TD align=right width=86 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13 height="19"></TD>
    <TD align=right width=60 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="19">&nbsp;</TD>
    <TD align=right width=68 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="19">&nbsp;</TD>
    <TD align=right width=61 colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="19"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      assets</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">996,128</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=64 height="19">
     <font size="2">1,061,957</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(65,829</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-6.2</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>1,026,357</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=243 colSpan=3 height="16"></TD>
    <TD align=right width=89 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12 height="16"></TD>
    <TD align=right width=86 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=13 height="16"></TD>
    <TD align=right width=60 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16 height="16"></TD>
    <TD align=right width=68 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16 height="16"></TD>
    <TD align=right width=61 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=8 height="16"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>Current liabilities</FONT></TD>
    <TD align=left width=14 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">30,835</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=64 height="19">
     <font size="2">33,686</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(2,851</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=54 height="19"><font size="2">-8.5</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%&nbsp;</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>9,700</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term</FONT></TD>
    <TD align=left width=14 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;debt </FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">1,965</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64 height="19">
     <font size="2">3,018</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(1,053</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=54 height="19"><font size="2">-34.9</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>3,060</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">73,397</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64 height="19">
     <font size="2">86,716</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(13,319</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=54 height="19"><font size="2">-15.4</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>82,792</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other</FONT></TD>
    <TD align=left width=14 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;current
      liabilities</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">130,154</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64 height="19">
     <font size="2">126,992</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">3,162</font></TD>
    <TD align=left width=16 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19">&nbsp;</TD>
    <TD align=right width=54 height="19"><font size="2">2.5</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>133,172</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=243 colSpan=3 height="15"></TD>
    <TD align=right width=89 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="15"></TD>
    <TD align=right width=86 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13 height="15"></TD>
    <TD align=right width=60 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="15"></TD>
    <TD align=right width=68 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="15"></TD>
    <TD align=right width=61 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="15"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current
      liabilities</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">236,351</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">250,412</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(14,061</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-5.6</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>228,724</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Long-term debt</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">194,533</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">231,652</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(37,119</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-16.0</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>213,549</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Deferred income taxes</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">4,599</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">20,143</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(15,544</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-77.2</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>5,389</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>Other long-term liabilities</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">56,361</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT width="64" height="19">
     <font size="2">41,462</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">14,899</font></TD>
    <TD align=left width=16 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">35.9</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>51,409</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>Contingencies and commitments</FONT></TD>
    <TD align=left width=14 height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>Shareholders' equity</FONT></TD>
    <TD align=left width=14 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Common shares, $1 par value</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">51,637</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>
     <font size="2">52,088</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(451</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-0.9</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>52,225</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">211,838</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>
     <font size="2">214,962</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(3,124</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-1.5</font></TD>
    <TD align=left width=16 height="19"><FONT size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>214,087</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">254,855</font></TD>
    <TD align=left width=12 height="19">&nbsp;</TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>
     <font size="2">250,434</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">4,421</font></TD>
    <TD align=left width=16 height="19">&nbsp;</TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">1.8</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>273,143</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Unearned compensation</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">(3,534</font></TD>
    <TD align=left width=12 height="19"><font size="2">)</font></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>
     <font size="2">(1,938</font></TD>
    <TD align=left width=13 height="19"><font size="2">)</font></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(1,596</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-82.4</font></TD>
    <TD align=left width=16 height="19"><font size="2">%</font></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>(1,536</FONT></TD>
    <TD align=left width=8 height="19"><FONT size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive
      <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income
    (loss)</FONT></TD>
    <TD align=left width=14 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="30"><font size="2">(10,512</font></TD>
    <TD align=left width=12 height="30"><font size="2">)</font></TD>
    <TD align=right width=22 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>
     <font size="2">2,742</font></TD>
    <TD align=left width=13 height="30">&nbsp;</TD>
    <TD align=right width=11 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="30"><font size="2">(13,254</font></TD>
    <TD align=left width=16 height="30"><font size="2">)</font></TD>
    <TD align=right width=14 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="30"><font size="2">-483.4</font></TD>
    <TD align=left width=16 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="30"><FONT face="Times New Roman, Times, Serif"
      size=2>(10,633</FONT></TD>
    <TD align=left width=8 height="30"><FONT size=2>)</FONT></TD></TR>
  <TR>
    <TD width=243 colSpan=3 height="15"></TD>
    <TD align=right width=89 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="15"></TD>
    <TD align=right width=86 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13 height="15"></TD>
    <TD align=right width=60 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="15"></TD>
    <TD align=right width=68 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="15"></TD>
    <TD align=right width=61 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="15"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders'
      equity</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">504,284</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64 height="19"><font size="2">518,288</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(14,004</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-2.7</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>527,286</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=243 colSpan=3 height="15"></TD>
    <TD align=right width=89 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12 height="15"></TD>
    <TD align=right width=86 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13 height="15"></TD>
    <TD align=right width=60 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="15"></TD>
    <TD align=right width=68 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height="15"></TD>
    <TD align=right width=61 colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8 height="15"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities
      and</FONT></TD>
    <TD align=left width=14 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders'
      equity</FONT></TD>
    <TD align=left width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=10 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=23 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=66 height="19"><font size="2">996,128</font></TD>
    <TD align=left width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=64 height="19">
     <font size="2">1,061,957</font></TD>
    <TD align=left width=13 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49 height="19"><font size="2">(65,829</font></TD>
    <TD align=left width=16 height="19"><font size="2">)</font></TD>
    <TD align=right width=14 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54 height="19"><font size="2">-6.2</font></TD>
    <TD align=left width=16 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>1,026,357</FONT></TD>
    <TD align=left width=8 height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=243 colSpan=3 height="16"></TD>
    <TD align=right width=89 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12 height="16"></TD>
    <TD align=right width=86 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=13 height="16"></TD>
    <TD align=right width=60 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16 height="16"></TD>
    <TD align=right width=68 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16 height="16"></TD>
    <TD align=right width=61 colSpan=2 height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=8 height="16"></TD></TR></TABLE>
<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<hr>
<p>&nbsp;</p>
<P align=center><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>
LA-Z-BOY INCORPORATED</B></FONT><BR><B>
<FONT size="+0">CONSOLIDATED STATEMENT OF CASH FLOWS</FONT></B></P>




<P align=center><FONT face="Times New Roman, Times, Serif" size=2><I>(Unaudited,
amounts in thousands)</I> </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<tr>
     <TH COLSPAN=3 height="19">&nbsp;</TH>
     <TH COLSPAN=6 height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Second
     Quarter Ended</FONT></TH>
     <TH COLSPAN=6 height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Six Months
     Ended</FONT></TH>
</tr>
<tr>
     <TH COLSPAN=3 height="34">&nbsp;</TH>
     <TH COLSPAN=3 height="34"><font size="1">10/29/05</font><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="34"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>10/23/04</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="34"><font size="1">10/29/05</font><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="34"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>10/23/04</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
</tr>
<tr>
     <TD WIDTH=59% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Cash flows from operating activities</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD WIDTH=6% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD WIDTH=6% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD WIDTH=6% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD WIDTH=6% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Net
     income (loss)</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(6,447</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">8,860</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(3,239</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">5,337</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss)&nbsp; to</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;cash
     provided by (used for) operating activities</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extraordinary gain</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(702</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(702</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restructuring</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">7,817</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">749</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">7,817</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">11,149</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">7,178</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     7,092</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">14,176</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     14,000</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in receivables</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(6,292</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (55,811</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">28,550</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(4,371</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in inventories</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(2,581</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (6,618</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(3,362</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(33,902</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in payables</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">4,055</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">1,530</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(9,904</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(6,582</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other assets and liabilities</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(2,683</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">21,040</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(9,984</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (8,803</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deferred taxes</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(2,020</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">4,712</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(5,258</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(215</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=3 height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="17"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments</FONT></TD>
     <TD ALIGN=LEFT height="17"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="17"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="17"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="17">
     <font size="2">5,474</font></TD>
        <TD ALIGN=LEFT height="17"></TD>
     <TD ALIGN=RIGHT height="17"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="17">
     <font face="Times New Roman, Times, Serif" size="2">(28,008</font></TD>
        <TD ALIGN=LEFT height="17"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="17"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="17">
     <font size="2">22,035</font></TD>
        <TD ALIGN=LEFT height="17"></TD>
     <TD ALIGN=RIGHT height="17"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="17">
     <font face="Times New Roman, Times, Serif" size="2">(29,426</font></TD>
        <TD ALIGN=LEFT height="17"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=3 height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by
     (used for) operating activities</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(973</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (19,148</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">18,796</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(24,089</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash flows
     from investing activities</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Proceeds from disposals of assets</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">7,718</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">5,329</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">7,720</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">5,597</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Capital
     expenditures</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(7,570</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (7,705</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(14,283</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (17,179</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><font size="2">&nbsp;&nbsp; Purchases of
     investments</font></TD><TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">(3,622</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">(3,856</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">(15,560</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">(5,362</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><font size="2">&nbsp;&nbsp; Proceeds from sale
     of investments</font></TD><TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">1,925</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">274</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">4,068</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">2,813</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Change
     in other long-term assets</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(1,236</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">527</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(3,301</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (1,301</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=3 height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used for investing activities</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(2,785</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (5,431</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(21,356</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (15,432</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash flows
     from financing activities</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Proceeds from debt</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">26,058</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">32,499</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">72,137</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">102,242</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Payments on debt</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(18,214</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (4,841</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(72,119</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (58,257</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Stock
     issued for stock option and employee benefits plans</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">1,045</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     1,275</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">2,045</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">2,757</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Repurchase of common stock</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(3,642</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(10,889</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (2,476</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Dividends paid</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(5,714</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (5,723</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(11,472</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (11,372</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=3 height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used for) financing</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;activities</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(467</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">23,210</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(20,298</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     32,894</FONT></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effect of
     exchange rate changes on cash and</FONT></TD><TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;equivalents</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">251</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     1,081</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">190</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     1,422</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=3 height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net
     decrease in cash and equivalents</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(3,974</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (288</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">(22,668</font></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (5,205</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and
     equivalents at beginning of period</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">19,011</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     28,965</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">37,705</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">33,882</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=3 height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD>
     </tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and
     equivalents at end of period</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">15,037</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     28,677</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">15,037</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">28,677</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </tr>
<tr>
     <TD COLSPAN=3 height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="19"></TD>
</tr>
<tr>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash paid
     (net of refunds) during period&nbsp; - income taxes</FONT></TD>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">7,224</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(1,016</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">1,591</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">6,398</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">&nbsp;</TD><TD height="19"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19"><font face="Times New Roman, Times, Serif" size="2">Cash
     paid during period&nbsp; - interest</font></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">2,088</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">1,508</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">5,310</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">4,060</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" --></FONT></TD>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD><TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;</FONT></TD>
</tr>
</TABLE>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR>
     <TD></TD></TR>
</TABLE>


<HR SIZE="2" COLOR="Black">
&nbsp;<p>
&nbsp;</p>


<p>
&nbsp;</p>


<p>
&nbsp;</p>


<p>
&nbsp;</p>


<p>
&nbsp;</p>


<p>
<br>


</p>


<P align=center><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><BR><B>
<FONT size="+0">Segment Information</FONT></B></P>


<TABLE cellSpacing=0 cellPadding=0 width="80%" align=center border=0>
<TR vAlign=bottom>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=6><font face="Times New Roman, Times, Serif" size="1">For the Quarter Ended</font>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=6><font face="Times New Roman, Times, Serif" size="1">For the Six Months Ended</font>
<HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TH align=left colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>(Unaudited,
amounts in thousands)</FONT></TH>
<TH colSpan=3>
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">
10/29/05</font>
</p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">
10/23/04</font>
</p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">
10/29/05</font>
</p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">
10/23/04</font>
</p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
</TR>
<TR vAlign=bottom>
<TD align=left width="31%"><FONT face="Times New Roman, Times, Serif" size=2><B>Sales</B></FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%">&nbsp;</TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Upholstery
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">320,368</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">380,726</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">634,849</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">697,564</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Casegoods
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">103,940</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">114,169</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">208,937</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">219,883</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<tr>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Retail
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">49,245</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT size=2>40,960</FONT></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">101,900</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT size=2>79,416</FONT></TD>
<TD align=left>&nbsp;</TD>
</tr>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;VIEs/Eliminations</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">(18,948</font></TD>
<TD align=left><font size="2">)</font></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT size=2>(15,095</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">(39,594</font></TD>
<TD align=left><font size="2">)</font></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT size=2>(20,996</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR>
<TD colSpan=3></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">454,605</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">520,760</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">906,092</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">975,867</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD colSpan=3></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD></TR>
</TABLE>

<TABLE cellSpacing=0 cellPadding=0 width="80%" align=center>
<TR vAlign=bottom>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left width="31%"><FONT face="Times New Roman, Times, Serif" size=2><B>Operating income
(loss)</B></FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Upholstery
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">12,464</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">27,475</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">27,718</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">40,673</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Casegoods
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">2,113</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">80</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">6,457</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">580</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<tr>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
Retail Group</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font size="2">(6,074</font></TD>
<TD align=left><font size="2">)</font></TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">510</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font size="2">(11,482</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">1,025</font></TD>
<TD align=left>&nbsp;</TD>
</tr>
<tr>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Corporate and other*</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT size=2>(7,904</FONT></TD>
<TD align=left><FONT size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(12,013</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(14,193</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(19,880</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
</tr>
<TR vAlign=bottom>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
Restructuring</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font size="2">(7,817</font></TD>
<TD align=left><font size="2">)</font></TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">(749</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font size="2">(7,817</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">(11,149</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD></TR>
<TR>
<TD colSpan=3></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">(7,218</font></TD>
<TD align=left><font size="2">)</font></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">15,303</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">683</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">11,249</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD colSpan=3></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD></TR>
</TABLE>




<p style="margin-bottom: 0">




<font size="2">*Variable interest entities are included in corporate and other.</font></p>




<p style="margin-bottom: 0">




<br>&nbsp;</p>



<p>
<br><br><br>
<br><br><br><br>



<!-- MARKER PAGE="sheet: 8; page: 8" -->
</p>
<HR SIZE="2" COLOR="Black">



<br><br>&nbsp;<P align=center><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><BR>
<font size="+0"><b>Impact of FIN 46 on Consolidation</b></font></P>


<P style="MARGIN-TOP: 0px"><FONT face="Times New Roman, Times, Serif"
size=2>La-Z-Boy Furniture Galleries&reg; stores that are not operated by us are
operated by 115 independent dealers. These stores sell La-Z-Boy manufactured product
as well as various accessories purchased from approved La-Z-Boy vendors.&nbsp;
In some cases we have extended credit beyond normal trade terms to the
independent dealers, made direct loans and/or guaranteed certain loans or
leases.&nbsp; Most of these independent dealers have sufficient equity to carry
out their principal operating activities without subordinated financial
support; however, there are certain independent dealers that we have
determined may not have sufficient equity.&nbsp; </FONT>
<font face="Times New Roman, Times, Serif" size="2">In accordance with Financial
Accounting Standards Board Interpretation No. 46R, we began to consolidate
variable interest entities of which we were deemed the primary beneficiary as of
April 24, 2004. The tables below show the impact on our consolidated balance
sheet at October 29, 2005 and April 30, 2005 and statement of operations for the
second quarters and six months ended October 29, 2005 and October 23, 2004.&nbsp; The amounts reflected in
the table include the elimination of related payables, receivables, sales, cost
of sales, and interest as well as profit in inventory.</font></P>






<p>&nbsp;</p>






<p>&nbsp;</p>






<p>&nbsp;</p>






<HR SIZE="2" COLOR="Black">






<P align=center><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><BR>
<font size="+0"><b>Impact of FIN 46 on  Consolidated Balance Sheet</b></font></P>






<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center width="424">
<TR VALIGN=Bottom>
     <TH COLSPAN="3" ALIGN="Left" height="27" width="208">&nbsp;</TH>
     <TH COLSPAN=7 height="27" width="216">
     <font face="Times New Roman, Times, Serif">VIEs</font></TH>
     </TR>
<TR VALIGN=Bottom>
     <TH COLSPAN="3" ALIGN="Left" height="25" width="208">
     <p><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(Unaudited, amounts in thousands)</FONT></TH>
     <TH COLSPAN=4 width="96" height="25" >
     <p align="center">
     <font face="Times New Roman, Times, Serif" size="1">10/29/05</font></p>
     </TH>
     <TH COLSPAN="3" WIDTH="120" height="25">
     <p align="center">
     <font face="Times New Roman, Times, Serif" size="1">4/30/05</font></p>
     </TH>

     </TR>
<tr>
     <TD COLSPAN=3 height="15" width="208"></TD>
     <TD COLSPAN=4 ALIGN=RIGHT height="15" width="96" ><HR NOSHADE COLOR=Black SIZE=1 width="100%"></TD>
     <TD COLSPAN=3 ALIGN=RIGHT height="15" width="120" ><HR NOSHADE COLOR=Black SIZE=1 width="100%"></TD>
     </tr>
<TR VALIGN=Bottom>
     <TD WIDTH=195 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Assets</FONT></TD>
     <TD WIDTH=4 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=9 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=8 ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=58 ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD WIDTH=10 ALIGN=LEFT height="19">&nbsp;</TD>
        <TD WIDTH=20 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=21 ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=75 ALIGN=RIGHT height="19">&nbsp;</TD>
     <TD WIDTH=24 ALIGN=RIGHT height="19">&nbsp;</TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">1,903</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">1,699</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Accounts receivable,
     net</FONT></TD><TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">(14,451</font></TD>
        <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
        <TD ALIGN=LEFT height="19" width="20"><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)&nbsp;</FONT></i></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">(9,131</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">
     <p align="left"><font size="2">)&nbsp; </font><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (1)</FONT></i></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Inventories, net</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">10,473</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">7,211</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">8,700</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">7,199</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Other
     current assets</FONT></TD><TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">1,590</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">1,226</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     </TR>
<tr>
     <TD COLSPAN=3 height="15" width="208"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="66"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="10"></TD>
     <TD height="15" width="20"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="96"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT height="15" width="24"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="195">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
     current assets</font></TD><TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">8,215</font></TD>
        <TD ALIGN=LEFT height="19" width="10">
        &nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">8,204</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Property, plant and equipment, net</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">11,177</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">8,431</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Intangibles</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">8,122</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">7,714</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="195" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Other long-term assets</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58" valign="bottom">
  <font size="2">(18,301</font></TD>
        <TD ALIGN=LEFT height="19" width="10" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )</FONT></TD>
        <TD ALIGN=LEFT height="19" width="20" valign="bottom"><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)</FONT></i></TD>
     <TD ALIGN=RIGHT height="19" width="21" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75" valign="bottom">
     <font face="Times New Roman, Times, Serif" size="2">(14,169</font></TD>
     <TD ALIGN=RIGHT height="19" width="24" valign="bottom">
     <p align="left"><font size="2">) </font><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;(1)</FONT></i></TD>
</tr>
<TR>
     <TD COLSPAN=3 height="15" width="208"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="66"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="10"></TD>
     <TD height="15" width="20"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="96"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT height="15" width="24"></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">9,213</font></TD>
        <TD ALIGN=LEFT height="19" width="10">
        &nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="75" height="19">
     <font face="Times New Roman, Times, Serif" size="2">10,180</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     </TR>
<TR>
     <TD COLSPAN=3 height="16" width="208"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="66"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16" width="10"></TD>
     <TD height="16" width="20"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="96"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD ALIGN=RIGHT height="16" width="24"></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Liabilities and shareholders' equity</FONT></TD>
     <TD ALIGN=LEFT height="15" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="15" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Short-term borrowings</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">501</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font size="2">--</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     </TR>
<tr>
     <TD ALIGN=LEFT height="19" width="195" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Current portion of long-term debt</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8" valign="bottom"></TD>
     <TD ALIGN=RIGHT height="19" width="58" valign="bottom">
     <font size="2">851</font></TD>
        <TD ALIGN=LEFT height="19" width="10" valign="bottom"></TD>
        <TD ALIGN=LEFT height="19" width="20" valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21" valign="bottom"></TD>
     <TD ALIGN=RIGHT height="19" width="75" valign="bottom">
     <font face="Times New Roman, Times, Serif" size="2">1,934</font></TD>
     <TD ALIGN=RIGHT height="19" width="24" valign="bottom"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">1,060</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">329</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Other
     current liabilities</FONT></TD><TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">3,881</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">3,523</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     </TR>
<TR>
     <TD COLSPAN=3 height="15" width="208"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="66"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="10"></TD>
     <TD height="15" width="20"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="96"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT height="15" width="24"></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
     current liabilities</FONT></TD><TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">6,293</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">5,786</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     </TR>
<tr>
     <TD ALIGN=LEFT height="19" width="195">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Long-term
     debt</font></TD>
     <TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">7,306</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">6,256</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="195">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Deferred
     income taxes</font></TD><TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="195">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Other
     long-term liabilities</font></TD><TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">(1,300</font></TD>
        <TD ALIGN=LEFT height="19" width="10"><font size="2">)</font></TD>
        <TD ALIGN=LEFT height="19" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="21">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">(1,300</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">
     <p align="left"><font size="2">)</font></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="195">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Shareholders' equity
     (deficit)</font></TD><TD ALIGN=LEFT height="19" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="8">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">(3,086</font></TD>
        <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19" width="20">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="21">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="75">
     <font face="Times New Roman, Times, Serif" size="2">(562</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">
     <p align="left"><font size="2">)</font></TD>
     </TR>
<TR>
     <TD COLSPAN=3 height="15" width="208"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="66"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="10"></TD>
     <TD height="15" width="20"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="96"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT height="15" width="24"></TD>
     </TR>
<tr>
     <TD ALIGN=LEFT height="15" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and </FONT></TD>
     <TD ALIGN=LEFT height="15" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="15" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="16" width="195"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     shareholders' equity</FONT></TD><TD ALIGN=LEFT height="16" width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="16" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="16" width="8"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="16" width="58">
     <font size="2">9,213</font></TD>
        <TD ALIGN=LEFT height="16" width="10">
        </TD>
        <TD ALIGN=LEFT height="16" width="20"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="16" width="21"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="16" width="75">
     <font face="Times New Roman, Times, Serif" size="2">10,180</font></TD>
     <TD ALIGN=RIGHT height="16" width="24"></TD>
     </TR>
<TR>
     <TD COLSPAN=3 height="16" width="208"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="66"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16" width="10"></TD>
     <TD height="16" width="20"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="96"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD ALIGN=RIGHT height="16" width="24"></TD>
     </TR>
</TABLE>











<!-- MARKER PAGE="sheet: 6; page: 6" -->
<p><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)&nbsp;</font></i><FONT FACE="Times New Roman" SIZE=1>Reflects the elimination of intercompany accounts and notes
receivable.</font></P>








<p>&nbsp;</P>








<p>&nbsp;</P>








<HR SIZE="2" COLOR="Black">



<p>&nbsp;</P>








<p align="center"><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><BR>
<font size="+0"><b>Impact of FIN 46 on  Consolidated </b></font>
<font size="+0"><b>Statement of Operations</b></font></P>








<p>&nbsp;</P>








<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=679 >
<TR VALIGN=Bottom>
     <TH COLSPAN=3 width="250" height="39">&nbsp;</TH>
     <TH COLSPAN=6 width="214" height="39"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>For the
     Quarter Ended</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6 width="215" height="39"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>
     For the
     Six Months Ended</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3 valign="top" width="250" height="27">
     <p align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(Unaudited<i>, </i>
     amounts in thousands)</FONT></TH>
     <TH COLSPAN=3 width="114" height="27">
     <font face="Times New Roman, Times, Serif" size="1">10/29/05</font><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 width="100" height="27">
     <font face="Times New Roman, Times, Serif" size="1">10/23/04</font><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 width="106" height="27">
     <font face="Times New Roman, Times, Serif" size="1">10/29/05</font><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 width="109" height="27">
     <font face="Times New Roman, Times, Serif" size="1">10/23/04</font><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=230 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales</FONT></TD>
     <TD WIDTH=8 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=12 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=24 ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=60 ALIGN=RIGHT height="15">
     <font size="2">7,848</font></TD>
        <TD WIDTH=30 ALIGN=LEFT height="15"><font size="2">&nbsp; </font><font size="1">&nbsp;(2)</font></TD>
     <TD WIDTH=17 ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=57 ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">9,654</font></TD>
        <TD WIDTH=26 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT><font size="1">
        (2)</font></TD>
     <TD WIDTH=13 ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=68 ALIGN=RIGHT height="15">
     <font size="2">16,434</font></TD>
        <TD WIDTH=25 ALIGN=LEFT height="15">
        <FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT><font size="1">
        (2)</font></TD>
     <TD WIDTH=25 ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=63 ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">23,295</font></TD>
        <TD WIDTH=21 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT><font size="1">
        (2)</font></TD></TR>
<tr>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT width="230" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Cost of sales</FONT></TD><TD ALIGN=LEFT width="8" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="16">
     <font size="2">442</font></TD>
        <TD ALIGN=LEFT width="30" height="16"></TD>
     <TD ALIGN=RIGHT width="17" height="16"></TD>
     <TD ALIGN=RIGHT width="57" height="16">
     <font size="2">(266</font></TD>
        <TD ALIGN=LEFT width="26" height="16"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="13" height="16"></TD>
     <TD ALIGN=RIGHT width="68" height="16">
     <font size="2">2,908</font></TD>
        <TD ALIGN=LEFT width="25" height="16"></TD>
     <TD ALIGN=RIGHT width="25" height="16"></TD>
     <TD ALIGN=RIGHT width="63" height="16">
     <font size="2">676</font></TD>
        <TD ALIGN=LEFT width="21" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="26" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="81" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="25" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Gross profit</FONT></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">7,406</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font face="Times New Roman, Times, Serif" size="2">9,920</font></TD>
        <TD ALIGN=LEFT width="26" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="13" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="68" height="19">
     <font size="2">13,526</font></TD>
        <TD ALIGN=LEFT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">22,619</font></TD>
        <TD ALIGN=LEFT width="21" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, general and administrative</FONT></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">9,660</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font face="Times New Roman, Times, Serif" size="2">12,712</font></TD>
        <TD ALIGN=LEFT width="26" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="13" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="68" height="19">
     <font size="2">16,461</font></TD>
        <TD ALIGN=LEFT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">27,388</font></TD>
        <TD ALIGN=LEFT width="21" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>


<TR>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="26" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="81" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="25" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Operating
     loss</FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(2,254</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(2,792</font></TD>
        <TD ALIGN=LEFT width="26" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="13" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="68" height="15">
     <font size="2">(2,935</font></TD>
        <TD ALIGN=LEFT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(4,769</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest expense</FONT></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">106</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font face="Times New Roman, Times, Serif" size="2">69</font></TD>
        <TD ALIGN=LEFT width="26" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="13" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="68" height="19">
     <font size="2">216</font></TD>
        <TD ALIGN=LEFT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">236</font></TD>
        <TD ALIGN=LEFT width="21" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other

     expense, net </FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(321</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font><font size="1"> (3)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(1,093</font></TD>
        <TD ALIGN=LEFT width="26" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        ) </FONT><font size="1"> (3)</font></TD>
     <TD ALIGN=RIGHT width="13" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="68" height="15">
     <font size="2">(799</font></TD>
        <TD ALIGN=LEFT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT><font size="1">
        (3)</font></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(2,387</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT><font size="1">(3)</font></TD></TR>
<TR>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="26" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="81" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="25" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;
     Pre-tax loss</font></TD>
     <TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(2,681</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font size="2">(3,954</font></TD>
        <TD ALIGN=LEFT width="26" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="13" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="68" height="15">
     <font size="2">(3,950</font></TD>
        <TD ALIGN=LEFT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(7,392</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income tax
     benefit</FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(1,019</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(1,503</font></TD>
        <TD ALIGN=LEFT width="26" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="13" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="68" height="15">
     <font size="2">(1,501</font></TD>
        <TD ALIGN=LEFT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(2,809</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD></TR>
<tr>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="26" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="81" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="25" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
     loss from continuing operations</FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(1,662</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(2,451</font></TD>
        <TD ALIGN=LEFT width="26" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="13" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="68" height="15">
     <font size="2">(2,449</font></TD>
        <TD ALIGN=LEFT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(4,583</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 width="250" height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD width="30" height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD width="26" height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="81" height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD width="25" height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD width="21" height="16"></TD></TR>
</TABLE>








<p style="margin-bottom: 0"><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2)&nbsp;</FONT></i><font size="1">Includes the elimination of intercompany sales and cost of
sales.</font><br><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(3)&nbsp;</FONT></i><font size="1">Includes
the elimination of intercompany interest income and interest expense.</font></p>








<p>&nbsp;</p>









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{"company-data": {"conformed-name": "LA-Z-BOY INC", "cik": "0000057131", "assigned-sic": "2510", "irs-number": "380751137", "state-of-incorporation": "MI", "fiscal-year-end": "0430"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09656", "film-number": "051206947"}, "business-address": {"street1": "1284 N TELEGRAPH RD", "city": "MONROE", "state": "MI", "zip": "48162", "phone": "7342414414"}, "mail-address": {"street1": "1284 N TELEGRAPH RD", "city": "MONROE", "state": "MI", "zip": "48162"}, "former-company": {"former-conformed-name": "LA Z BOY CHAIR CO", "date-changed": "19920703"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549-1004
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)of
the Securities Exchange Act of 1934
November 15,
2005
(Date
of Report (Date of Earliest Event Reported))
LA-Z-BOY
INCORPORATED
(Exact
name of registrant as specified in its charter)
MICHIGAN
1-9656
38-0751137
(State or other jurisdiction of
(Commission
(IRS Employer
incorporation)
File Number)
Indentification Number)
1284 North
      Telegraph Road, Monroe, Michigan
48162-3390
(Address of principal executive offices)
Zip Code
Registrant's telephone number, including area code
(734)
242-1444
None
(Former name or former
address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
[ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02  Results of Operations and
Financial Condition.
On
November 15, 2005, La-Z-Boy Incorporated issued a press release to report the company's
financial results for the quarter  and six months ended October 29, 2005. A copy of the
press release is attached to this current report on Form 8-K as Exhibit 99.1.
The information shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934
(the "Exchange Act") or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference in any filing under the Securities Act of
1933 or the Exchange Act, except as expressly set forth by specific reference in such a
filing.
Item 9.01  Financial
Statements and Exhibits
The following exhibits
     are furnished as part of this report:
Description
Page #
99
.1
Press Release Dated November 15, 2005
4
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
LA-Z-BOY
INCORPORATED
——————————————
(Registrant)
Date: November 15, 2005
BY: /S/ Louis M. Riccio, Jr.
——————————————
Louis M. Riccio, Jr.
Corporate Controller
On behalf of the registrant and as
Chief Accounting Officer
Exhibit 99.1
NEWS RELEASE
Contact:  Mark Stegeman
(734) 241-4418
mark.stegeman@la-z-boy.com
LA-Z-BOY REPORTS
SECOND-QUARTER OPERATING RESULTS
MONROE, MI. November 15,
2005—La-Z-Boy Incorporated
(NYSE, PCX: LZB)
today reported its operating
results for the second fiscal quarter ended October 29, 2005. Net sales for the quarter
were $454.6 million, down $66.2 million, or 13%, compared with the prior-year period. The
company posted a per share loss of $0.12, which includes an after-tax restructuring charge
of $0.10 per share related to the closure of its Waterloo, Ontario, Canada upholstery
facility. In last year's second quarter, the company earned $0.15 per share from
continuing operations, which included after-tax restructuring charges of $0.01 per share.
For the six months ended October 29,
2005, net sales were $906.1 million, a decrease of $69.8 million, or 7%, compared with
sales of $975.9 million in the prior-year period. The company posted a per share loss of
$0.06 for the six-month period, including restructuring charges, compared with earnings of
$0.08 per share from continuing operations in last year's first half, which included
restructuring charges of $0.13 per share on an after-tax basis. Both the quarter and six
months include the results of VIEs (Variable Interest Entities).
The operating margin for the second
quarter was (1.6%) compared with 2.9% in the prior-year period. This year's fiscal
second quarter included restructuring charges amounting to 1.7% of net sales versus 0.1%
last year. The operating margin for the first half of fiscal 2006 was 0.1% compared with
1.2% for the prior-year period.
La-Z-Boy Incorporated President and
CEO Kurt Darrow said, "Our results for the second quarter were impacted by a number
of factors, most notably the supply chain issues resulting from Hurricanes Katrina and
Rita, the restructuring charge and a softer-than-expected retail environment. On the
supply side, our Newton, Mississippi facilities were impacted by both storms. First, when
Katrina hit Mississippi, because of power outages, our facilities were not operational for
a few days, and then our Newton plywood facility sustained serious damage from a tornado
spawned from Rita. The hurricanes also caused an unprecedented industry-wide shortage of
polyurethane foam and, from an operating perspective, the shortage during the entire month
of October impacted our results significantly as it hampered our production and our
ability to operate efficiently while greatly increasing a key raw material cost. In order
to remain cost neutral on foam, we passed through price increases in the form of a
surcharge and, as of this week, we are able to obtain 100% of our foam requirements.
"As we continue to examine and
rationalize our business, we announced the planned December 16, 2005 closure of our
Waterloo, Ontario upholstery facility and incurred associated restructuring charges. The
plant, which employed 413 people, represents approximately five percent of the La-Z-Boy
branded business total upholstery manufacturing capacity, and produces recliners and
reclining sofas. Production will shift to U.S.-based facilities in Neosho, Missouri and
Dayton, Tennessee, and those facilities, along with plants in California and Utah, will
service the entire product needs of the company's Canadian dealers. This action will
enable La-Z-Boy to be more productive in less square footage and will improve our overall
capacity utilization. We will take the remainder of the restructuring charge, equating to
approximately $500,000 pre-tax, over the next several quarters."
Darrow continued, "With respect
to the retail environment, we believe the unusual softness this quarter relates to
declining consumer confidence resulting from the continuation of interest rate increases,
escalating oil prices, and the hurricanes. From an operating standpoint, given the
significant decrease in volume this quarter, our operating results were essentially at a
break even level, which is the direct result of the significant changes we have made to
our cost structure over the past two years. Additionally, we reduced selling, general and
administrative expense by 0.6% of net sales in the quarter reflecting lower incentive plan
accruals."
Upholstery Segment
For the fiscal second quarter, sales
in the company's upholstery group decreased $60.4 million, or 15.9%, compared with
the prior-year period, and the operating margin decreased to 3.9% from 7.2% in the
prior-year quarter. The company attributes approximately 40% of the sales decline to the
foam issue. Darrow commented, "With foam supply back at 100% of our needs, we will
increase our production to work off the additional backlog built up during the month of
October and into the beginning of November. Given normal conditions in the second half of
our fiscal year, we would expect to see a significant increase in operating margins,
compared to the first half, as we have worked diligently to improve our operating
efficiencies. We are continuing to re-engineer various products, import more leather and
fabric cut and sewn kits and are constantly evaluating our capacity utilization as we did
with the closure of our Waterloo facility. We are confident that our leaner manufacturing
structure and improved value proposition to our customers, combined with the power of the
La-Z-Boy® brand, positions us to achieve our operating margin objective."
La-Z-Boy continues to develop and
grow its Furniture Galleries® store system, which includes both company-owned and
independent licensed stores. In the second quarter, the system opened one additional
store, remodeled and/or relocated ten stores and closed eight, bringing the total store
count to 329, of which 61 are company owned, and 127 are in the new format. Darrow
explained, "Our plan is to open 25 New Generation stores in the third quarter –
15 brand new with 10 relocations or remodels. Our New Generation stores have proven to
enjoy greater total sales volumes and higher average sales per square foot due to an
increase in floor traffic. We are on track to open 45 to 50 new format stores this year,
with approximately 20 of those being new stores and the remainder being relocations or
remodels."
System-wide, for the third calendar
quarter, including company-owned and independent licensee stores, same-store written
sales, which the company tracks as an indicator of retail activity, were down 3.0%, and
total sales, which includes new stores, increased 0.1%.
During the quarter, the company sold
its Englander sleep products name and trademarks, a business it purchased in 2002 which
resulted in a gain that reduced selling, general and administrative expense by 0.4% of
consolidated net sales. Darrow noted, "Englander is a good brand, but was a very
small part of our business and we were pleased to sell it to a group of licensees whose
sole focus is on bedding. We were satisfied over the past three years with the growth we
achieved, but bedding is not a core strategic focus."
Casegoods Segment
In the second quarter, casegoods
sales were down 9.0% compared with the prior-year period while the operating margin
improved to 2.0% versus 0.1% last year. Darrow said, "We have transitioned our
casegoods model successfully to be primarily an importer and distributor and are beginning
to see improved results in most of our companies. We are still in the process of turning
around Pennsylvania House, which will take until the end of the calendar year to
completely transition its business model. We are pleased that our American of Martinsville
operation is improving its performance as the hospitality sector enjoys a rebound after
several down years. As with our upholstery operation, both our value proposition and cost
structure are more competitive today and, with additional volume, we are well positioned
to achieve our operating margin objective for this segment of 4% to 6%.
Retail Segment
For the quarter, retail sales were
$49.2 million, up $8.3 million, or 20.2%, versus last year's second quarter. The
increase was primarily due to the 21 stores acquired in the fourth quarter of last year,
which included two unprofitable VIEs. On an operating basis, the segment incurred a loss,
primarily due to weak retail sales and continued transition costs associated with the
acquired stores.
Darrow noted, "Proprietary
retailing is a very important part of our ongoing three-part strategy and will continue to
become more meaningful to our overall business as we build out our store program in the
larger urban markets and capitalize on greater share of voice, market penetration and
efficiencies of distribution, administration and advertising. Overall, the 329 total store
system is healthy and growing, but because it was necessary for us to acquire a number of
underperforming stores in larger metropolitan markets, our company-owned store portfolio
as a whole is not producing acceptable results. However, we have a core group of markets
that are profitable and will continue to address the issues at the stores that need to be
turned around. We will also focus on aggressively opening new stores and refurbishing or
moving others. Experience suggests that once a market achieves critical mass, our stores
will generate the kind of returns that are in keeping with our objectives. Most
importantly, the strong La-Z-Boy® brand and network of stores differentiates us, and
we are confident our retail business is a strategy that will take us into the
future."
Balance Sheet
For the quarter, cash flow used for
operations was $1.0 million. Total debt for the quarter was $227 million. The
debt-to-capitalization ratio was 31.1% at quarter end, up slightly from last quarter.
Darrow noted, "While our target for debt to total capital is in the mid twenties, we
were opportunistic during the quarter given our share price and repurchased 260,000
shares. We have 5.9 million shares remaining in our program. Going forward, we will use a
blended strategy to pay down debt and buy back stock, as appropriate."
Business Outlook
Commenting on the third quarter,
Darrow said, "Although we continue to make steady progress with our cost structure
and are confident we have a solid and relevant business model in place in each of our
three segments, we remain concerned about the macro economic environment as well as
consumer confidence and expect sales to be flat against last year's third quarter of
$507 million. Reported earnings for the fiscal 2006 third quarter are forecasted to be in
the range of $0.13 — $0.17 per share, which includes up to $0.01 in restructuring
charges.
Forward-looking
Information
Any forward-looking statements
contained in this news release are based on current information and assumptions and
represent management's best judgment at the present time. Actual results could differ
materially from those anticipated or projected due to a number of factors. These factors
include, but are not limited to: changes in consumer confidence, changes in demographics,
changes in housing sales, the impact of terrorism or war, energy price changes, the impact
of logistics on imports, the impact of interest rate changes, the effects of the ruling on
tariffs by the U.S. Department of Commerce and potential disruptions from Chinese imports,
the availability and cost of capital, the impact of imports as it relates to continued
domestic production, raw material price changes, changes in currency rates, competitive
factors, operating factors, such as supply, labor, or distribution disruptions including
changes in operating conditions or costs, effects of restructuring actions, changes in the
domestic or international regulatory environment, not fully realizing cost reductions
through restructurings
,
ability to implement global sourcing organization
strategies, the future financial performance and condition of independently owned dealers
that we are required to consolidate into our financial statements or changes requiring us
to consolidate additional independently owned dealers, the impact of new manufacturing
technologies, the impact of adopting new accounting principles, fair value changes to our
intangible assets due to actual results differing from projected, the impact of severe
weather, factors relating to acquisitions, the ability to turn around under-performing
stores, the impact of store relocation costs or the success of new stores; and other
factors identified from time to time in the company's reports filed with the
Securities and Exchange Commission.
Additional Information
This news release is just one part of
La-Z-Boy's financial disclosures and should be read in conjunction with other
information filed with the Securities and Exchange Commission, which is available at
http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx
. Investors and
others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly
investor conference calls may sign up at:
http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx
.
Background Information
With annual sales of over $2 billion,
La-Z-Boy Incorporated is one of the world's leading residential furniture producers,
marketing furniture for every room of the home, as well as for the hospitality, health
care and assisted-living industries. The La-Z-Boy Upholstery Group companies are Bauhaus,
Centurion, Clayton Marcus, England, La-Z-Boy, and Sam Moore. The La-Z-Boy Casegoods Group
companies are American Drew, American of Martinsville, Hammary, Kincaid, Lea and
Pennsylvania House.
The corporation's vast
proprietary distribution network is dedicated exclusively to selling La-Z-Boy Incorporated
products and brands, and includes 329 stand-alone La-Z-Boy Furniture Galleries® stores
and 338 La-Z-Boy In-Store Galleries, in addition to in-store gallery programs at the
company's Kincaid, Pennsylvania House, Clayton Marcus, England and Lea operating
units. According to industry trade publication
In Furniture
, the La-Z-Boy Furniture
Galleries retail network is North America's largest single-brand furniture retailer.
Additional information is available at
http://www.la-z-boy.com/
.
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited,
amounts in thousands, except per share data)
Second Quarter Ended
%
      Over
Percent of Sales
10/29/05
10/23/04
(Under)
10/29/05
10/23/04
Sales
$
454,605
$
520,760
-12.7
%
100.0
%
100.0
%
Cost of sales
Cost of goods sold
354,409
400,834
-11.6
%
78.0
%
77.0
%
Restructuring
7,817
749
943.7
%
1.7
%
0.1
%
Total cost of sales
362,226
401,583
-9.8
%
79.7
%
77.1
%
Gross profit
92,379
119,177
-22.5
%
20.3
%
22.9
%
Selling, general and administrative
99,597
103,874
-4.1
%
21.9
%
19.9
%
Operating income (loss)
(7,218
)
15,303
-147.2
%
-1.6
%
2.9
%
Interest expense
3,090
2,607
18.5
%
0.7
%
0.5
%
Other income (expense), net
295
(354
)
183.3
%
0.1
%
-0.1
%
Income (loss) from continuing
operations before income taxes
(10,013
)
12,342
-181.1
%
-2.2
%
2.4
%
Income tax expense (benefit)
(3,566
)
4,690
-176.0
%
35.6
%*
38.0
%*
Income (loss) from continuing
operations
(6,447
)
7,652
-184.3
%
-1.4
%
1.5
%
Income from discontinued
operations
    (net of tax)
--
506
-100.0
%
--
0.1
%
Extraordinary gains (net
    of tax)
--
702
-100.0
%
--
0.1
%
Net income (loss)
$
(6,447
)
$
8,860
-172.8
%
-1.4
%
1.7
%
Basic average shares
51,655
52,040
Basic income (loss) from
continuing
      operations per share
$
(0.12
)
$
0.15
Basic net income (loss) per share
$
(0.12
)
$
0.17
Diluted average shares
51,655
52,101
Diluted income (loss) from
continuing
      operations per share
$
(0.12
)
$
0.15
Diluted net income (loss)
per
      share
$
(0.12
)
$
0.17
Dividends paid per share
$
0.11
$
0.11
*As a percent of
pretax income, not sales.
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited,
amounts in thousands, except per share data)
Six Months Ended
%
      Over
Percent of Sales
10/29/05
10/23/04
(Under)
10/29/05
10/23/04
Sales
$
906,092
$
975,867
-7.2
%
100.0
%
100.0
%
Cost of sales
Cost of goods sold
699,427
752,550
-7.1
%
77.2
%
77.1
%
Restructuring
7,817
11,149
-29.9
%
0.9
%
1.1
%
Total cost of sales
707,244
763,699
-7.4
%
78.1
%
78.3
%
Gross profit
198,848
212,168
-6.3
%
21.9
%
21.7
%
Selling, general and administrative
198,165
200,919
-1.4
%
21.9
%
20.6
%
Operating income
683
11,249
-93.9
%
0.1
%
1.2
%
Interest expense
5,831
4,816
21.1
%
0.6
%
0.5
%
Other income, net
310
19
N/M
--
--
Income (loss) from continuing
operations before income taxes
(4,838
)
6,452
-175.0
%
-0.5
%
0.7
%
Income tax expense (benefit)
(1,599
)
2,452
-165.2
%
33.1
%*
38.0
%*
Income (loss) from  continuing
operations
(3,239
)
4,000
-181.0
%
-0.4
%
0.4
%
Income from discontinued
operations
      (net of tax)
--
635
-100.0
%
--
0.1
%
Extraordinary gains (net
    of tax)
--
702
-100.0
%
--
0.1
%
Net income (loss)
$
(3,239
)
$
5,337
-160.7
%
-0.4
%
0.5
%
Basic average shares
51,892
52,003
Basic income (loss) from
continuing
      operations per share
$
(0.06
)
$
0.08
Basic net income (loss) per share
$
(0.06
)
$
0.10
Diluted average shares
51,892
52,062
Diluted income (loss) from
continuing
      operations per share
$
(0.06
)
$
0.08
Diluted net income (loss)
per
      share
$
(0.06
)
$
0.10
Dividends paid per share
$
0.22
$
0.22
*As a percent of pretax
income, not
sales.
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
(Unaudited,
amounts in thousands)
Increase/(Decrease)
10/29/05
10/23/04
Dollars
Percent
4/30/05
Current assets
Cash and equivalents
$
15,037
$
28,677
$
(13,640
)
-47.6
%
$
37,705
Receivables, net
258,518
306,386
(47,868
)
-15.6
%
283,915
Inventories, net
267,320
282,470
(15,150
)
-5.4
%
260,556
Deferred income taxes
27,247
38,108
(10,861
)
-28.5
%
22,779
Other current assets
30,676
21,088
9,588
45.5
%
33,410
Total current
      assets
598,798
676,729
(77,931
)
-11.5
%
638,365
Property, plant and equipment, net
214,552
207,447
7,105
3.4
%
210,565
Goodwill
79,770
68,544
11,226
16.4
%
79,362
Trade names
18,794
27,889
(9,095
)
-32.6
%
21,484
Other long-term assets
84,214
81,348
2,866
3.5
%
76,581
Total
      assets
$
996,128
$
1,061,957
$
(65,829
)
-6.2
%
$
1,026,357
Current liabilities
Short-term borrowings
$
30,835
$
33,686
$
(2,851
)
-8.5
%
$
9,700
Current portion of long-term
debt
1,965
3,018
(1,053
)
-34.9
%
3,060
Accounts payable
73,397
86,716
(13,319
)
-15.4
%
82,792
Accrued expenses and other
current
      liabilities
130,154
126,992
3,162
2.5
%
133,172
Total current
      liabilities
236,351
250,412
(14,061
)
-5.6
%
228,724
Long-term debt
194,533
231,652
(37,119
)
-16.0
%
213,549
Deferred income taxes
4,599
20,143
(15,544
)
-77.2
%
5,389
Other long-term liabilities
56,361
41,462
14,899
35.9
%
51,409
Contingencies and commitments
Shareholders' equity
Common shares, $1 par value
51,637
52,088
(451
)
-0.9
%
52,225
Capital in excess of par value
211,838
214,962
(3,124
)
-1.5
%
214,087
Retained earnings
254,855
250,434
4,421
1.8
%
273,143
Unearned compensation
(3,534
)
(1,938
)
(1,596
)
-82.4
%
(1,536
)
Accumulated other comprehensive
income
    (loss)
(10,512
)
2,742
(13,254
)
-483.4
%
(10,633
)
Total shareholders'
      equity
504,284
518,288
(14,004
)
-2.7
%
527,286
Total liabilities
      and
shareholders'
      equity
$
996,128
$
1,061,957
$
(65,829
)
-6.2
%
$
1,026,357
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited,
amounts in thousands)
Second
     Quarter Ended
Six Months
     Ended
10/29/05
10/23/04
10/29/05
10/23/04
Cash flows from operating activities
Net
     income (loss)
$
(6,447
)
$
8,860
$
(3,239
)
$
5,337
Adjustments to reconcile net income (loss)  to
cash
     provided by (used for) operating activities
Extraordinary gain
--
(702
)
--
(702
)
Restructuring
7,817
749
7,817
11,149
Depreciation and amortization
7,178
7,092
14,176
14,000
Change in receivables
(6,292
)
(55,811
)
28,550
(4,371
)
Change in inventories
(2,581
)
(6,618
)
(3,362
)
(33,902
)
Change in payables
4,055
1,530
(9,904
)
(6,582
)
Change in other assets and liabilities
(2,683
)
21,040
(9,984
)
(8,803
)
Change in deferred taxes
(2,020
)
4,712
(5,258
)
(215
)
Total adjustments
5,474
(28,008
)
22,035
(29,426
)
Net cash provided by
     (used for) operating activities
(973
)
(19,148
)
18,796
(24,089
)
Cash flows
     from investing activities
Proceeds from disposals of assets
7,718
5,329
7,720
5,597
Capital
     expenditures
(7,570
)
(7,705
)
(14,283
)
(17,179
)
Purchases of
     investments
(3,622
)
(3,856
)
(15,560
)
(5,362
)
Proceeds from sale
     of investments
1,925
274
4,068
2,813
Change
     in other long-term assets
(1,236
)
527
(3,301
)
(1,301
)
Net cash used for investing activities
(2,785
)
(5,431
)
(21,356
)
(15,432
)
Cash flows
     from financing activities
Proceeds from debt
26,058
32,499
72,137
102,242
Payments on debt
(18,214
)
(4,841
)
(72,119
)
(58,257
)
Stock
     issued for stock option and employee benefits plans
1,045
1,275
2,045
2,757
Repurchase of common stock
(3,642
)
--
(10,889
)
(2,476
)
Dividends paid
(5,714
)
(5,723
)
(11,472
)
(11,372
)
Net cash provided by (used for) financing
activities
(467
)
23,210
(20,298
)
32,894
Effect of
     exchange rate changes on cash and
equivalents
251
1,081
190
1,422
Net
     decrease in cash and equivalents
(3,974
)
(288
)
(22,668
)
(5,205
)
Cash and
     equivalents at beginning of period
19,011
28,965
37,705
33,882
Cash and
     equivalents at end of period
$
15,037
$
28,677
$
15,037
$
28,677
Cash paid
     (net of refunds) during period  - income taxes
$
7,224
$
(1,016
)
$
1,591
$
6,398
Cash
     paid during period  - interest
$
2,088
$
1,508
$
5,310
$
4,060
LA-Z-BOY INCORPORATED
Segment Information
For the Quarter Ended
For the Six Months Ended
(Unaudited,
amounts in thousands)
10/29/05
10/23/04
10/29/05
10/23/04
Sales
Upholstery
Group
$
320,368
$
380,726
$
634,849
$
697,564
Casegoods
Group
103,940
114,169
208,937
219,883
Retail
Group
49,245
40,960
101,900
79,416
VIEs/Eliminations
(18,948
)
(15,095
)
(39,594
)
(20,996
)
Consolidated
$
454,605
$
520,760
$
906,092
$
975,867
Operating income
(loss)
Upholstery
Group
$
12,464
$
27,475
$
27,718
$
40,673
Casegoods
Group
2,113
80
6,457
580
Retail Group
(6,074
)
510
(11,482
)
1,025
Corporate and other*
(7,904
)
(12,013
)
(14,193
)
(19,880
)
Restructuring
(7,817
)
(749
)
(7,817
)
(11,149
)
Consolidated
$
(7,218
)
$
15,303
$
683
$
11,249
*Variable interest entities are included in corporate and other.
LA-Z-BOY INCORPORATED
Impact of FIN 46 on Consolidation
La-Z-Boy Furniture Galleries® stores that are not operated by us are
operated by 115 independent dealers. These stores sell La-Z-Boy manufactured product
as well as various accessories purchased from approved La-Z-Boy vendors. 
In some cases we have extended credit beyond normal trade terms to the
independent dealers, made direct loans and/or guaranteed certain loans or
leases.  Most of these independent dealers have sufficient equity to carry
out their principal operating activities without subordinated financial
support; however, there are certain independent dealers that we have
determined may not have sufficient equity.
In accordance with Financial
Accounting Standards Board Interpretation No. 46R, we began to consolidate
variable interest entities of which we were deemed the primary beneficiary as of
April 24, 2004. The tables below show the impact on our consolidated balance
sheet at October 29, 2005 and April 30, 2005 and statement of operations for the
second quarters and six months ended October 29, 2005 and October 23, 2004.  The amounts reflected in
the table include the elimination of related payables, receivables, sales, cost
of sales, and interest as well as profit in inventory.
LA-Z-BOY INCORPORATED
Impact of FIN 46 on  Consolidated Balance Sheet
VIEs
(Unaudited, amounts in thousands)
10/29/05
4/30/05
Assets
Cash and cash equivalents
$
1,903
$
1,699
Accounts receivable,
     net
(14,451
)
(1)
(9,131
)
(1)
Inventories, net
10,473
7,211
Deferred income taxes
8,700
7,199
Other
     current assets
1,590
1,226
Total
     current assets
8,215
8,204
Property, plant and equipment, net
11,177
8,431
Intangibles
8,122
7,714
Other long-term assets
(18,301
)
(1)
(14,169
)
(1)
Total assets
$
9,213
$
10,180
Liabilities and shareholders' equity
Short-term borrowings
$
501
$
--
Current portion of long-term debt
851
1,934
Accounts payable
1,060
329
Other
     current liabilities
3,881
3,523
Total
     current liabilities
6,293
5,786
Long-term
     debt
7,306
6,256
Deferred
     income taxes
--
--
Other
     long-term liabilities
(1,300
)
(1,300
)
Shareholders' equity
     (deficit)
(3,086
)
(562
)
Total liabilities and
shareholders' equity
$
9,213
$
10,180
(1)
Reflects the elimination of intercompany accounts and notes
receivable.
LA-Z-BOY INCORPORATED
Impact of FIN 46 on  Consolidated
Statement of Operations
For the
     Quarter Ended
For the
     Six Months Ended
(Unaudited
,
amounts in thousands)
10/29/05
10/23/04
10/29/05
10/23/04
Sales
$
7,848
(2)
$
9,654
(2)
$
16,434
(2)
$
23,295
(2)
Cost of sales
442
(266
)
2,908
676
Gross profit
7,406
9,920
13,526
22,619
Selling, general and administrative
9,660
12,712
16,461
27,388
Operating
     loss
(2,254
)
(2,792
)
(2,935
)
(4,769
)
Interest expense
106
69
216
236
Other

     expense, net
(321
)
(3)
(1,093
)
(3)
(799
)
(3)
(2,387
)
(3)
Pre-tax loss
(2,681
)
(3,954
)
(3,950
)
(7,392
)
Income tax
     benefit
(1,019
)
(1,503
)
(1,501
)
(2,809
)
Net
     loss from continuing operations
$
(1,662
)
$
(2,451
)
$
(2,449
)
$
(4,583
)
(2)
Includes the elimination of intercompany sales and cost of
sales.
(3)
Includes
the elimination of intercompany interest income and interest expense.