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<B>SECURITIES AND EXCHANGE COMMISSION</B> </FONT></P>

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<A NAME=A001></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>WASHINGTON, D.C.
20549-1004 </FONT></H1>

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<A NAME=A002></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>FORM 8-K </FONT></H1>

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<A NAME=A003></A>
<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>

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<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;June 6, 2006&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>

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<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><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MICHIGAN</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38-0751137</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
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     <TD WIDTH="41%" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(State or other jurisdiction of</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="53%" ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(I.R.S. Employer Identification Number)</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;incorporation or organization)</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></TR>
</TABLE>





<br><br>



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     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1284 North Telegraph Road, Monroe, Michigan</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48162-3390</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>

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     <TD WIDTH="41%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address of principal executive offices)</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="53%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Zip Code </FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<P ALIGN="Center">Registrant's telephone number, including area code <u> (734)
242-1444</u></P>




<P ALIGN="Center">&nbsp;</P>




<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;&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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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Item 2.02&nbsp; Results of Operations and
Financial Condition.</b></font></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
June 6, 2006, La-Z-Boy Incorporated issued a press release to report the company&#146;s
financial results for the quarter and fiscal year ended April 29, 2006. A copy of the
press release is attached to this current report on Form 8-K as Exhibit 99.1. Exhibit 99.2
contains unaudited quarterly financial data for the last eight quarters. </FONT></TD>
</TR>
</TABLE>
<BR>

<p><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 7.01&nbsp;
Regulation FD Disclosure.</font></b></p>

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<TD WIDTH="95%" height="33" valign="top">
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On June 6, 2006, La-Z-Boy Incorporated announced that its Board of Directors
nominated Nido Qubein to its Board. Qubein will run for election at the Annual
Stockholders&#146; Meeting in August to serve as a director for a term of three years.
A copy of the press release is attached to this current report on Form 8-K as
Exhibit 99.3.</FONT></TD>
</tr>
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<p>&nbsp;</p>

<p><FONT SIZE="2">
The information in this report 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>
&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>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The following exhibits are furnished as part of this report: </FONT></P>









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     <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 June 6, 2006</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 size="2">4</font></TD>
        <TD WIDTH=2% ALIGN=LEFT>&nbsp;</TD></TR>
<tr>
     <TD ALIGN=RIGHT valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  <TD ALIGN=RIGHT valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99</FONT></TD>
        <TD ALIGN=LEFT valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.2</FONT></TD>
     <TD ALIGN=LEFT valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Supplemental Financial Information</FONT></TD>
  <TD ALIGN=LEFT valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  <TD ALIGN=LEFT valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  <TD ALIGN=RIGHT valign="bottom">
     <font size="2">13</font></TD>
        <TD ALIGN=LEFT valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <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>99</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Press Release Dated June 6, 2006</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">15</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<H1 ALIGN=Left>&nbsp;</h1>


<p ALIGN=Left>&nbsp;</p>


<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>
</TR>
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<BR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: June 6, 2006 </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><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>&nbsp;</FONT></TD>
</TR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Exhibit 99.1</b>
 </FONT></P>











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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MONROE, MI. June 6,
2006&#151;La-Z-Boy Incorporated <B>(NYSE, PCX: LZB)</B> today reported its operating
results for the fourth fiscal quarter and full year ended April 29, 2006. Net sales for
the quarter were $508.4 million, down 10.1%, compared with the prior-year period. This
year&#146;s fourth quarter included 13 weeks of sales versus 14 weeks last year. The
company posted a quarterly loss from continuing operations of $0.20 per share, which
includes a write-down of intangible assets of $0.44 per share and a $0.02 per share
restructuring gain related to the sale of property. The $23 million, or $0.44 per share,
write-down relates to goodwill at Bauhaus, one of its non-branded upholstery companies,
which, primarily as a result of department-store consolidation, had a significant decrease
in sales and earnings. The company&#146;s tax rate for the quarter was adversely impacted
by the write-down, which carries no tax effect. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the full year ended April 29,
2006, net sales were $1.92 billion, down 6.4% from the prior year. Sales for this year
reflect 52 weeks versus 53 weeks last year. The company posted a loss of $0.06 per share
for the year, which includes the write-down of intangible assets of $0.44 per share and a
net restructuring charge of $0.08 per share. </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;Although our quarter had one less week of sales this year, we
are pleased that we operated within our target margin ranges in our two largest segments.
In upholstery, we achieved an 8.9% margin, and, in casegoods, our margin was 4.5%. For the
full year, our top line was impacted by two factors: supply chain challenges in the first
half of the year when the hurricanes caused an industry-wide shortage of foam and
disrupted our operations; and macroeconomic issues which caused inconsistent demand in
retail. From an operating margin perspective, although softness at retail persists, we
gained traction in the second half of the fiscal year when many of the supply chain issues
were behind us.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow added, &#147;We have made
substantial progress as we have modified our business model and our operating margins
demonstrate that, even on lower volume, the changes made to the underlying cost structure
of our business are coming to fruition. Going forward, our focus will continue to be on
our retail segment, which is not only important to the wholesale side of our business, but
is a key element of our longer term strategy, and we are working diligently to make the
changes necessary to improve our results.&#148; </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the fiscal fourth quarter, sales
in the company&#146;s upholstery segment were $361.6 million, a 12.5% decrease from the
prior year, largely reflecting the 13-week quarter. The company&#146;s branded business
continued to outperform that of its non-branded companies. Overall, the segment&#146;s
operating margin increased sequentially for the quarter to 8.9% from 7.2% in the fiscal
third quarter. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow commented, &#147;In the fourth
quarter of our year, we were able to improve our margins and operate more efficiently as
there was no disruption from foam supply and our Newton manufacturing facilities,
disrupted by the hurricanes, were operating normally. Additionally, as a result of the
Waterloo plant closure, we increased our capacity utilization and realized the full
benefit of this consolidation throughout the entire quarter.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow added, &#147;Our order rate
for the quarter was essentially flat on a 13-week basis comparable against last year.
Additionally, because our rate of incoming orders was equal to our production, we will
carry a higher than usual backlog into our first quarter, as we were in the process of
recruiting, hiring and training new upholsterers during our fourth quarter. With
additional trained upholsterers on staff, we expect to make progress in reducing the
backlog to normal levels. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;Going forward, we will continue
to evaluate and make changes to our cost structure to further strengthen our performance.
We expect to drive our margin through a variety of means, including: an increase in the
integration of global sourcing; the ongoing conversion of our production facilities to the
cellular manufacturing process; the growth of existing and new channels of distribution;
and, the continued expansion of our La-Z-Boy Furniture Galleries&reg; store system in the
New Generation format, which will provide for both top-line growth and margin
expansion.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the quarter, the company
continued to grow its La-Z-Boy Furniture Galleries&reg; store system, which includes both
company-owned and independent-licensed stores. In the fourth quarter, the system opened
five new stores, relocated and/or remodeled five and closed four, bringing the total store
count to 337, of which 154 are in the New Generation format. For the year, with 49 new
format stores added, we substantially increased the quality of the total system and,
today, approximately 50% of our stores are less than five years old. For the first quarter
of fiscal 2007, the system plans to open seven stores, including two new locations, two
relocations and three remodels. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System-wide, for the first calendar
quarter, including company-owned and independent-licensed stores, same-store written
sales, which the company tracks as an indicator of retail activity, were up 1.7% and total
sales, which includes new stores, increased 6.3%. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the fourth quarter, casegoods
sales were $113.4 million, down 8.2% from the prior-year period and essentially flat on a
13-week basis. The operating margin was 4.5%, an increase from 2.1% in last year&#146;s
fourth quarter. Commenting on the segment&#146;s performance, Darrow noted, &#147;In
December, we completed the transition to primarily an import model for our residential
business and our results for the second half of the year demonstrate our success. For the
second half of our year, we operated within our target margin range of 4% to 6% and are
confident we will continue to operate in that range or higher as volume improves. Our
hospitality business continues to improve as the travel sector rebounds and sales and
backlog are increasing with concurrent margin improvement. Looking ahead, we expect to
further increase the segment&#146;s profitability and operating margin as we introduce new
products to appeal to a broader customer base, expand our channels of distribution, focus
on SKU management, continue to further pare down our overall cost structure and increase
the effectiveness of our global sourcing.&#148; </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the quarter, retail sales were
$54.1 million, up 9.6% from the prior-year period, due to the stores the company acquired.
For the year, sales were up 23.3% to $213.4 million. On an operating basis, the segment
incurred a loss, primarily a result of the ongoing costs related to the three markets
acquired last year, but also the result of a weaker-than-expected retail environment at
the end of the quarter. Darrow commented, &#147;The dip at the end of the quarter impacted
our company-owned stores across the board this quarter and the stores we acquired last
year are not performing up to expectations. This was compounded by not only the costs
associated to build out the markets, but the current cost structure of those markets as
fixed costs continue to be concentrated among too few and older format stores.
Additionally, we closed or are in the process of closing several stores and moved
merchandise through the system at substandard margins. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;During the year, we continued
to take the steps necessary to transform these markets into profitable operations.
Although the progress is somewhat slower than we anticipated, we secured new real estate
sites in a number of markets and will make significant progress in adding new stores this
fiscal year. Increasing the number of stores in each market will enable us to garner
greater efficiencies in warehousing, advertising and distribution while at the same time,
will grow the top line. Of the 337 stores in our system, we own 63. Over the course of
this fiscal year, we plan to open seven new company-owned stores and will remodel and
relocate 11 stores, increasing substantially the number of stores in the New Generation
format from 28 to 46.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;Retail remains an important
element of our core strategy and it will play an integral and additive role in our future,
substantially impacting the earnings power of the company,&#148; Darrow concluded. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A007></A>
<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Operating Cash Flow and
Balance Sheet </FONT></u></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the quarter, cash flow generated
from operations was $37.9 million and was $89.8 million for the year. Darrow noted,
&#147;Our strong cash flow generation enabled us to reduce our total debt for the quarter
by $26 million to $184.2 million and our debt-to-capitalization ratio of 26.5% is within
our target range. With a continued emphasis on lowering working capital requirements, cash
flow generated was improved by $71.4 million compared with last year. In early May, our
Board approved a 9% increase in our dividend to $0.12 per quarter and we will pay our
140<SUP>th</SUP> consecutive dividend. We did not repurchase shares this quarter, and have
5.9 million shares remaining in our program. Going forward, we will be opportunistic with
our share repurchase program.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A008></A>
<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Business Outlook </FONT>
</u></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commenting on the business outlook,
Darrow noted: &#147;While we are pleased with our progress in our upholstery and casegoods
divisions, we are concerned about the macro economic environment as the energy markets
remain volatile and interest rates continue to increase. In particular, there has been a
change in the retail environment since the first calendar quarter with April and May being
difficult months. Due to seasonal factors, the first quarter is typically our weakest.
With that as a backdrop, we expect our first-quarter sales to be flat against last
year&#146;s $451 million and reported earnings to be in the range of $0.01 to $0.05 per
share, which will include up to a $0.02 per share charge for stock option expense. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A009></A>
<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Forward-looking
Information  </FONT></u></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: (a) changes in consumer confidence; (b) changes in
demographics; (c) changes in housing sales; (d) the impact of terrorism or war; (e)
continued energy price changes; (f) the impact of logistics on imports; (g) the impact of
interest rate changes; (h) the potential disruptions from Chinese imports; (i) inventory
supply price fluctuations; (j) the impact of imports as it relates to continued domestic
production; (k) changes in currency exchange rates; (l) competitive factors; (m) operating
factors, such as supply, labor, or distribution disruptions including changes in operating
conditions or costs; (n) effects of restructuring actions; (o) changes in the domestic or
international regulatory environment; (p) not fully realizing cost reductions through
restructurings; (q) ability to implement global sourcing organization strategies; (r) the
impact of new manufacturing technologies; (s) the future financial performance and
condition of independently operated dealers that we are required to consolidate into our
financial statements or changes requiring us to consolidate additional independently
operated dealers; (t) fair value changes to our intangible assets due to actual results
differing from projected; (u) the impact of adopting new accounting principles; (v) the
impact from severe weather such as hurricanes and tornadoes; (w) the ability to turn
around under-performing retail stores; (x) the impact of retail store relocation costs,
the success of new stores or the timing of converting stores to the New Generation format;
(y) the ability to procure fabric rolls or cut-and-sewn sets domestically or abroad; and
(z) factors relating to acquisitions and other factors identified from time to time in our
reports filed with the Securities and Exchange Commission. We undertake no obligation to
update or revise any forward-looking statements, either to reflect new developments, or
for any other reason. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A010></A>
<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
<U><font color="#0000FF">http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx</font></U>. 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></P>

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


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
</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>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 337 stand-alone La-Z-Boy Furniture Galleries&reg; stores
and 340 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 <U><font color="#0000FF">http://www.la-z-boy.com/</font></U>. </FONT></P>

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

<P style="PAGE-BREAK-AFTER: always">&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">CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS</FONT></B><BR>&nbsp;</P>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3 height="39">&nbsp;</TH>
     <TH COLSPAN=6 height="39"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited<BR>
     For the Quarter Ended</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6 height="39"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited<BR>
     For the
     Year Ended</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3 valign="top" height="39">





<P align=left><FONT face="Times New Roman" size=1>(Amounts
in thousands, except per share data)</FONT></P>





     </TH>
     <TH COLSPAN=3 height="39">
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     4/29/06 </FONT>
     </p>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (13 weeks)</FONT></p>
     <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="39">
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     4/30/05</FONT></p>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (14 weeks)</FONT></p>
     <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="39">
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     4/29/06</FONT></p>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (52 weeks)</FONT></p>
     <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="39">
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     4/30/05</FONT></p>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (53 weeks)</FONT></p>
     <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=48% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales</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>$</FONT></TD>
     <TD WIDTH=9% ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">508,362</font></TD>
        <TD WIDTH=3% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=9% ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">565,555</font></TD>
        <TD WIDTH=2% 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>$</FONT></TD>
     <TD WIDTH=9% ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">1,916,777</font></TD>
        <TD WIDTH=3% ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=9% ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">2,048,381</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="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</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>Cost of
     sales</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">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     &nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     &nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;
     Cost of goods sold</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">380,601</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">434,941</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">1,457,965</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">1,572,844</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><font face="Times New Roman, Times, Serif" size="2">
     &nbsp;&nbsp;
     Restructuring</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">(1,768</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">(3,107</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">6,643</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">10,294</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Total cost of sales</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">378,833</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">431,834</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">1,464,608</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">1,583,138</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Gross profit</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">129,529</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">133,721</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">452,169</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">465,243</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, general and administrative</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">106,882</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">101,053</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">410,348</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">401,592</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Write-down of intangibles</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">22,695</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">22,695</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>


<TR>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Operating income
     (loss)</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">(48</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">32,668</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">19,126</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">63,651</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest expense</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">2,744</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">2,942</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">11,540</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">10,442</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other
     income (expense), net </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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">142</font></TD>
        <TD ALIGN=LEFT height="15"></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">(122</font></TD>
        <TD ALIGN=LEFT height="15"><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">1,847</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">170</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
     (loss)
     from continuing operations before income taxes</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font size="2">(2,650</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font size="2">29,604</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">9,433</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">53,379</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Income tax expense </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 face="Times New Roman, Times, Serif" size="2">7,620</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">11,249</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">12,474</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">20,284</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="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19"><font face="Times New Roman, Times, Serif" size="2">Income
     (loss) from continuing operations</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 face="Times New Roman, Times, Serif" size="2">(10,270</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">18,355</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">(3,041</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">33,095</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">&nbsp;</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>
</tr>
<tr>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Income
     from discontinued operations&nbsp;(net of tax)</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">1,009</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">--</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">1,996</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Extraordinary gains (net of tax)</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 face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size="2">1,392</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">--</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">2,094</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(10,270</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">20,756</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(3,041</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">37,185</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN=3 height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD></TR>
<tr>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</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 VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic
     average shares outstanding</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">51,747</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">52,192</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">51,801</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">52,082</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Basic net income
     (loss) per share:</u> </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="18"><font face="Times New Roman, Times, Serif" size="2">Income
     (loss) from continuing operations</font></TD><TD ALIGN=LEFT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="18">
     <font size="2">(0.20</font></TD>
        <TD ALIGN=LEFT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="18">
     <font size="2">0.35</font></TD>
        <TD ALIGN=LEFT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="18">
     <font size="2">(0.06</font></TD>
        <TD ALIGN=LEFT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="18">
     <font face="Times New Roman, Times, Serif" size="2">0.63</font></TD>
        <TD ALIGN=LEFT height="18"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19"><font size="2">Income from discontinued operations
     (net of tax)</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">&nbsp;</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 size="2">0.02</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size="2">0.04</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><font face="Times New Roman, Times, Serif" size="2">
     Extraordinary gains (net of tax)</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">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">0.03</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" 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">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">0.04</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"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="19"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net income
     (loss) per basic share</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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(0.20</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">0.40</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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(0.06</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">0.71</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="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD></TR>
<tr>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</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 VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted
     weighted average shares outstanding</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">51,747</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">52,262</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">51,801</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">52,138</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"></TD><TD ALIGN=LEFT height="15"></TD>
     <TD ALIGN=LEFT height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted
     net income (loss) per share:</FONT></u></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">Income
     (loss) from continuing operations</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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(0.20</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">0.35</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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(0.06</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">0.63</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 size="2">Income from discontinued operations
     (net of tax)</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">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">0.02</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size="2">0.04</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">
     Extraordinary gains (net of tax)</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">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font size="2">0.03</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" 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">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">0.04</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"></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 income
     (loss) per diluted share</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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(0.20</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><font size="2">$</font></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">0.40</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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">(0.06</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">0.71</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="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19"><font face="Times New Roman, Times, Serif" size="2">
     Dividends paid per share</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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">0.11</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><font size="2">$</font></TD>
     <TD ALIGN=RIGHT height="19">
     <font size="2">0.11</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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">0.44</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">0.44</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
</TABLE>



<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><B>
<FONT size="+0">CONDENSED CONSOLIDATED BALANCE SHEET</FONT></B></P>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="75%" ALIGN="CENTER">
<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>Unaudited</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN="3" ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(Amounts in thousands)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/29/06</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/30/05</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="58%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current assets</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" 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="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH="4%" 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="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH="2%" 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;Cash and equivalents</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>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">24,089</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">37,705</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;Receivables, net</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 face="Times New Roman, Times, Serif" size="2">270,578</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">283,915</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;Inventories, net</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 face="Times New Roman, Times, Serif" size="2">238,826</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">260,556</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;Deferred income taxes</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>
     <p align="right"><font face="Times New Roman, Times, Serif" size="2">27,276</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">22,779</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;Other current assets</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 face="Times New Roman, Times, Serif" size="2">23,790</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">33,410</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black 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;Total current assets</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>
     <p align="right"><font face="Times New Roman, Times, Serif" size="2">
     584,559</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">638,365</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Property, plant and equipment, net</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 face="Times New Roman, Times, Serif" size="2">209,986</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">210,565</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>Intangibles</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 face="Times New Roman, Times, Serif" size="2">75,720</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">100,846</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>Other long-term assets,
     net</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 face="Times New Roman, Times, Serif" size="2">100,909</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">76,581</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black 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;&nbsp;Total assets</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>$</FONT></TD><TD ALIGN=RIGHT>
     <p align="right"><font face="Times New Roman, Times, Serif" size="2">
     971,174</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,026,357</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current liabilities</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></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Short-term borrowings</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>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">8,000</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">9,700</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;Current portion of long-term debt</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></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and capital leases</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>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">2,844</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">3,060</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;Accounts payable</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 face="Times New Roman, Times, Serif" size="2">85,561</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">82,792</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;Other current liabilities</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>
     <p align="right"><font face="Times New Roman, Times, Serif" size="2">
     132,005</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">133,172</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black 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;Total current liabilities</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>
     <p align="right"><font face="Times New Roman, Times, Serif" size="2">
     228,410</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">228,724</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term debt and capital leases</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 face="Times New Roman, Times, Serif" size="2">173,368</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>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">213,549</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>Deferred income taxes</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>
     <p align="right"><font face="Times New Roman, Times, Serif" size="2">14,548</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">5,389</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>Other long-term liabilities</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 face="Times New Roman, Times, Serif" size="2">44,503</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">51,409</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>Shareholders' equity</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 face="Times New Roman, Times, Serif" size="2">510,345</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">527,286</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</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></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
     liabilities and shareholders' equity</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>$</FONT></TD><TD ALIGN=RIGHT>
     <p align="right"><font face="Times New Roman, Times, Serif" size="2">
     971,174</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,026,357</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD></TR>
</TABLE>
<P style="PAGE-BREAK-AFTER: always">&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">CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS</FONT></B></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3 height="27">&nbsp;</TH>
     <TH COLSPAN=6 height="27"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited Quarter Ended</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6 height="27"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited Year Ended</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN="3" ALIGN="Left" height="27"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(Amounts in thousands)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="27"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/29/06</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="27"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/30/05</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="27"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/29/06</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 height="27"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/30/05</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=47% ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash flows from operating activities</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD WIDTH=4% ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD WIDTH=4% ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD WIDTH=4% ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD WIDTH=2% ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&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>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(10,270</font></TD>
        <TD ALIGN=LEFT height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     20,756</FONT></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(3,041</font></TD>
        <TD ALIGN=LEFT height="19"><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">37,185</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Adjustments to reconcile net income
     (loss) to</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 VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash provided by operating activities</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 VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-down of intangibles</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">22,695</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">22,695</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">--</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="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Extraordinary gains (net of tax)</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (1,392</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (2,094</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="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Gain on sale of discontinued operations (net of tax)</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
  <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
  <font face="Times New Roman, Times, Serif" size="2">(668</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
  <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
  <font face="Times New Roman, Times, Serif" size="2">(668</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="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Restructuring</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (1,768</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (3,107</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">6,643</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  10,294</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&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 FACE="Times New Roman, Times, Serif" SIZE=2>
     7,559</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>7,175</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">29,234</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>28,329</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;
     Change in allowance for doubtful accounts</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 face="Times New Roman, Times, Serif" size="2">1,361</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>
  (3,639</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">1,805</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>
  (3,189</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;
     Change in working capital</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 face="Times New Roman, Times, Serif" size="2">14,676</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">435</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">35,844</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>
     (35,524</FONT></TD>
        <TD ALIGN=LEFT height="19"><font size="2">)</font></TD>
</tr>
<TR>
     <TD COLSPAN=3 height="19">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Change
     in deferred taxes</FONT></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">3,646</font></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><font size="2">12,514</font></TD>
     <TD height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(3,403</font></TD>
     <TD height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     )</FONT></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="19"><font size="2">11,632</font></TD>
     <TD height="19">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">48,169</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">11,318</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">92,818</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">8,780</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<tr>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
     Net cash provided by operating activities</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">37,899</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">32,074</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">89,777</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">45,965</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="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>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash flows from investing activities</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; 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 face="Times New Roman, Times, Serif" size="2">2,874</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>
  5,621</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>
     11,499</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>
  11,226</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
     Proceeds from sale of discontinued operations</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 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 face="Times New Roman, Times, Serif" size="2">10,985</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">--</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>
     10,985</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Capital expenditures</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (7,512</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,759</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (27,991</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(34,771</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><font face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size="2">(3,309</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(6,037</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(25,289</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">(14,890</font></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><font face="Times New Roman, Times, Serif" 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 face="Times New Roman, Times, Serif" size="2">3,106</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">1,156</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">12,221</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19">&nbsp;</TD><TD ALIGN=RIGHT height="19">
     <font face="Times New Roman, Times, Serif" size="2">8,164</font></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Acquisitions, net of cash acquired</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 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 FACE="Times New Roman, Times, Serif" SIZE=2>(6,806</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">--</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>(6,806</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Change in other long-term assets</FONT></TD>
     <TD ALIGN=LEFT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="16">
     <font face="Times New Roman, Times, Serif" size="2">1,347</font></TD>
        <TD ALIGN=LEFT height="16"></TD>
     <TD ALIGN=RIGHT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="16">
     <font face="Times New Roman, Times, Serif" size="2">5,410</font></TD>
        <TD ALIGN=LEFT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (1,113</FONT></TD>
        <TD ALIGN=LEFT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="16">
     <font face="Times New Roman, Times, Serif" size="2">2,105</font></TD>
        <TD ALIGN=LEFT height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     </TR>
<TR>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&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 face="Times New Roman, Times, Serif" size="2">(3,494</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>
     2,570</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">(30,673</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>
     (23,987</FONT></TD>
        <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<tr>
     <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>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash flows from financing activities</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;
     Net changes in 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 face="Times New Roman, Times, Serif" size="2">(26,048</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">(17,124</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">(43,102</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">1,939</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;
     Stock transactions</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">724</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">692</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>(7,211</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>
     2,097</FONT></TD>
        <TD ALIGN=LEFT height="19">&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;
     Dividends paid</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (5,723</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,753</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">(22,923</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(22,868</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     </TR>
<TR>
     <TD COLSPAN=3 height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
     Net cash

     provided by (used for) financing activities</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (31,047</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (22,185</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (73,236</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (18,832</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<tr>
     <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>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effect of exchange rate changes on 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 face="Times New Roman, Times, Serif" size="2">223</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>
     (748</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">516</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>
     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="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Change in cash and equivalents</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">3,581</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">11,711</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (13,616</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     3,823</FONT></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>



<TR VALIGN=Bottom>
     <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 face="Times New Roman, Times, Serif" size="2">20,508</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>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     25,994</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">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="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and equivalents at end of period</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>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">24,089</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">37,705</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">24,089</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">37,705</font></TD>
        <TD ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16"></TD></TR>
</TABLE>




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


&nbsp;<p>
<br>


</p>
<P style="PAGE-BREAK-AFTER: always">&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">Segment Information</FONT></B></P>


<TABLE cellSpacing=0 cellPadding=0 width="80%" align=center border=0>
<TR vAlign=bottom>
<TH colSpan=3 height="46"><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=6 height="46"><font face="Times New Roman, Times, Serif" size="1">Unaudited<br>
For the Quarter Ended</font>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=6 height="46"><font face="Times New Roman, Times, Serif" size="1">Unaudited<br>
For the Year Ended</font>
<HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TH align=left colSpan=3 height="46"><FONT face="Times New Roman, Times, Serif" size=1>(Amounts in thousands)</FONT></TH>
<TH colSpan=3 height="46">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">
4/29/06</font>
</p>
<p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(13 weeks)</FONT></p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3 height="46">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">
4/30/05</font>
</p>
<p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(14 weeks)</FONT></p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3 height="46">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">
4/29/06</font>
</p>
<p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(52 weeks)</FONT></p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3 height="46">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">
4/30/05</font>
</p>
<p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(53 weeks)</FONT></p>
<HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TD align=left width="31%" height="19"><FONT face="Times New Roman, Times, Serif" size=2><B>Sales</B></FONT></TD>
<TD align=left width="1%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%" 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=left width="4%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%" 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=left width="4%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%" 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=left width="4%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%" 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=left width="2%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Upholstery
Group</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>$</FONT></TD>
<TD align=right height="19"><font size="2">361,595</font></TD>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="19"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="19"><font size="2">413,240</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>$</FONT></TD>
<TD align=right height="15"><font size="2">1,347,964</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="19"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="19"><font size="2">1,467,311</font></TD>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Casegoods
Group</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>
<TD align=right height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><font size="2">113,449</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><font size="2">123,542</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><font size="2">432,307</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><font size="2">455,343</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left height="15"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
Retail Group</font></TD>
<TD align=left height="15"></TD>
<TD align=left height="15"></TD>
<TD align=right height="15"></TD>
<TD align=right height="15"><font size="2">54,106</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"></TD>
<TD align=right height="15"><font size="2">49,385</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"></TD>
<TD align=right height="15"><font size="2">213,438</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"></TD>
<TD align=right height="15"><font size="2">173,099</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;VIEs/Eliminations</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">(20,788</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 size="2">(20,612</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="15"><font size="2">(76,932</font></TD>
<TD align=left height="15"><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">(47,372</font></TD>
<TD align=left height="19"><font size="2">)</font></TD></TR>
<TR>
<TD colSpan=3 height="15"></TD>
<TD align=right colSpan=2 height="15">
<HR color=black noShade SIZE=1>
</TD>
<TD height="15"></TD>
<TD align=right colSpan=2 height="15">
<HR color=black noShade SIZE=1>
</TD>
<TD height="15"></TD>
<TD align=right colSpan=2 height="15">
<HR color=black noShade SIZE=1>
</TD>
<TD height="15"></TD>
<TD align=right colSpan=2 height="15">
<HR color=black noShade SIZE=1>
</TD>
<TD height="15"></TD></TR>
<TR vAlign=bottom>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated</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>
<TD align=right height="15"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="15"><font size="2">508,362</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="15"><font size="2">565,555</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="15"><font size="2">1,916,777</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="15"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="15"><font size="2">2,048,381</font></TD>
<TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD colSpan=3 height="16"></TD>
<TD align=right colSpan=2 height="16">
<HR color=black noShade SIZE=2>
</TD>
<TD height="16"></TD>
<TD align=right colSpan=2 height="16">
<HR color=black noShade SIZE=2>
</TD>
<TD height="16"></TD>
<TD align=right colSpan=2 height="16">
<HR color=black noShade SIZE=2>
</TD>
<TD height="16"></TD>
<TD align=right colSpan=2 height="16">
<HR color=black noShade SIZE=2>
</TD>
<TD height="16"></TD></TR>
</TABLE>

<TABLE cellSpacing=0 cellPadding=0 width="80%" align=center>
<TR vAlign=bottom>
<TH colSpan=3 height="19"><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3 height="19"><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3 height="19"><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3 height="19"><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3 height="19"><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left width="31%" height="19"><FONT face="Times New Roman, Times, Serif" size=2><B>Operating income
(loss)</B></FONT></TD>
<TD align=left width="1%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%" 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=left width="4%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%" 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=left width="4%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%" 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=left width="4%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%" 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=left width="2%" height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Upholstery
Group</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>$</FONT></TD>
<TD align=right height="19"><font size="2">32,285</font></TD>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="19"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="19"><font size="2">38,930</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>$</FONT></TD>
<TD align=right height="19"><font size="2">85,253</font></TD>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="19"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="19"><font face="Times New Roman, Times, Serif" size="2">101,856</font></TD>
<TD align=left height="19">&nbsp;</TD>
</TR>
<TR vAlign=bottom>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Casegoods
Group</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">5,159</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">2,638</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">18,265</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">5,370</font></TD>
<TD align=left height="19">&nbsp;</TD>
</TR>
<TR vAlign=bottom>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp; Retail
Group</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">(8,537</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">(3,701</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">(26,006</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">(2,859</font></TD>
<TD align=left height="19"><font size="2">)</font></TD>
</TR>
<tr>
<TD align=left height="18"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Corporate and other*</FONT></TD>
<TD align=left height="18"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left height="18"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="18"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="18"><FONT size=2>(8,028</FONT></TD>
<TD align=left height="18"><FONT size=2>)</FONT></TD>
<TD align=right height="18"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="18"><FONT size=2>(8,306</FONT></TD>
<TD align=left height="18"><FONT size=2>)</FONT></TD>
<TD align=right height="18"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="18"><FONT size=2>(29,048</FONT></TD>
<TD align=left height="18"><FONT size=2>)</FONT></TD>
<TD align=right height="18"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="18"><FONT face="Times New Roman, Times, Serif" size=2>(30,422</FONT></TD>
<TD align=left height="18"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
</tr>
<TR vAlign=bottom>
<TD align=left height="19"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
Restructuring</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">1,768</font></TD>
<TD align=left height="19">&nbsp;</TD>
<TD align=right height="19">&nbsp;</TD>
<TD align=right height="19"><font size="2">3,107</font></TD>
<TD align=left height="19">&nbsp;</TD>
<TD align=right height="19">&nbsp;</TD>
<TD align=right height="19"><font size="2">(6,643</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">(10,294</font></TD>
<TD align=left height="19"><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
</TR>
<TR vAlign=bottom>
<TD align=left height="19"><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;

Write-down of intangibles</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">(22,695</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">--</font></TD>
<TD align=left height="19">&nbsp;</TD>
<TD align=right height="19">&nbsp;</TD>
<TD align=right height="19"><font size="2">(22,695</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 face="Times New Roman, Times, Serif" size="2">--</font></TD>
<TD align=left height="19">&nbsp;</TD>
</TR>
<TR>
<TD colSpan=3 height="15"></TD>
<TD align=right colSpan=2 height="15">
<HR color=black noShade SIZE=1>
</TD>
<TD height="15"></TD>
<TD align=right colSpan=2 height="15">
<HR color=black noShade SIZE=1>
</TD>
<TD height="15"></TD>
<TD align=right colSpan=2 height="15">
<HR color=black noShade SIZE=1>
</TD>
<TD height="15"></TD>
<TD align=right colSpan=2 height="15">
<HR color=black noShade SIZE=1>
</TD>
<TD height="15"></TD></TR>
<TR vAlign=bottom>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated</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>$</FONT></TD>
<TD align=right height="19"><font size="2">(48</font></TD>
<TD align=left height="19"><font size="2">)</font></TD>
<TD align=right height="19"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="19"><font size="2">32,668</font></TD>
<TD align=left height="19">&nbsp;</TD>
<TD align=right height="19"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="19"><font face="Times New Roman, Times, Serif" size="2">19,126</font></TD>
<TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right height="19"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right height="19"><font face="Times New Roman, Times, Serif" size="2">63,651</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="16"></TD>
<TD align=right colSpan=2 height="16">
<HR color=black noShade SIZE=2>
</TD>
<TD height="16"></TD>
<TD align=right colSpan=2 height="16">
<HR color=black noShade SIZE=2>
</TD>
<TD height="16"></TD>
<TD align=right colSpan=2 height="16">
<HR color=black noShade SIZE=2>
</TD>
<TD height="16"></TD>
<TD align=right colSpan=2 height="16">
<HR color=black noShade SIZE=2>
</TD>
<TD height="16"></TD></TR>
</TABLE>




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




&nbsp;</p>




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




<font size="1">* Variable Interest Entities (&quot;VIEs&quot;) are included in corporate
and other.</font><br>&nbsp;</p>



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



<!-- MARKER PAGE="sheet: 8; page: 8" -->
</p>
<HR SIZE="2" COLOR="Black"><P style="PAGE-BREAK-AFTER: always">&nbsp;</P>

 <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><br></p>
<p><font size="2">La-Z-Boy Furniture Galleries&reg; stores that are
not operated by us are operated by 112<i> </i>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. 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 April 29, 2006 and April 30, 2005 and statement of operations for the
fourth quarter and year ended April 29, 2006 and April 30, 2005.&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>






<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 Condensed Consolidated Balance Sheet</b></font></P>






<p>&nbsp;</p>






<TABLE cellSpacing=0 cellPadding=0 width="577" align=center>

  <tr>
    <TH align=left colSpan=3 width="414" height="13">
    </TH>
    <TH colSpan=6 width="163"><font size="2">VIEs</font></TH>
    </tr>

  <TR vAlign=bottom>
    <TH align=left colSpan=3 width="414" height="13"><FONT face="Times New Roman, Times, Serif"
      size=1>(<I>Unaudited, amounts in thousands)&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;</I></FONT><HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 width="84"><font size="1">4/29/06</font><HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 width="79" height="13"><FONT face="Times New Roman, Times, Serif"
      size=1>4/30/05</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="19">
    <font face="Times New Roman, Times, Serif" size="2">Current assets</font></TD>
    <TD align=left width="7" height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" 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="60" height="19">&nbsp;</TD>
    <TD align=left width="10" 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="55" height="19">&nbsp;</TD>
    <TD align=left width="10" height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and equivalents</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">2,554</font></TD>
    <TD align=left width="10" height="15"></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>1,699</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="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables, net <i>(1)</i></FONT></TD>
    <TD align=left width="7" height="15"></TD>
    <TD align=left width="5" height="15"></TD>
    <TD align=right width="14" height="15"></TD>
    <TD align=right width="60" height="19"><font size="2">(20,507</font></TD>
    <TD align=left width="10" height="19"><font size="2">)</font></TD>
    <TD align=right width="14" height="15"></TD>
    <TD align=right width="55" height="15"><font size="2">(9,131</font></TD>
    <TD align=left width="10" height="15"><font size="2">)</font></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">12,795</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>7,211</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="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">10,194</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>7,199</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="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">1,487</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>1,226</FONT></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
  <TR>
    <TD colSpan=3 width="414" height="15"></TD>
    <TD align=right colSpan=2 width="74" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="10" height="15"></TD>
    <TD align=right colSpan=2 width="69" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="10" height="15"></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      current assets</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">6,523</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>8,204</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="402" height="15"><FONT face="Times New Roman, Times, Serif" size=2>Property,
      plant and equipment, net</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">12,965</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>8,431</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="402" height="15">
    <font face="Times New Roman, Times, Serif" size="2">Intangibles</font></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">8,122</font></TD>
    <TD align=left width="10" height="15"></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>7,714</FONT></TD>
    <TD align=left width="10" height="15"></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15">
    <font face="Times New Roman, Times, Serif" size="2">Other long-term assets
    <i>(1)</i></font></TD>
    <TD align=left width="7" height="15"></TD>
    <TD align=left width="5" height="15"></TD>
    <TD align=right width="14" height="15"></TD>
    <TD align=right width="60" height="19"><font size="2">(19,000</font></TD>
    <TD align=left width="10" height="19"><font size="2">)</font></TD>
    <TD align=right width="14" height="15"></TD>
    <TD align=right width="55" height="15"><font size="2">(14,169</font></TD>
    <TD align=left width="10" height="15"><font size="2">)</font></TD>
    </TR>
  <TR>
    <TD colSpan=3 width="414" height="15"></TD>
    <TD align=right colSpan=2 width="74" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="10" height="15"></TD>
    <TD align=right colSpan=2 width="69" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="10" height="15"></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      assets</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">8,610</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>10,180</FONT></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
  <TR>
    <TD colSpan=3 width="414" height="16"></TD>
    <TD align=right colSpan=2 width="74" height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width="10" height="16"></TD>
    <TD align=right colSpan=2 width="69" height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width="10" height="16"></TD>
    </TR>
  <TR>
    <TD colSpan=3 width="414" height="1"></TD>
    <TD colSpan=3 width="84" height="1"></TD>
    <TD colSpan=3 width="79" height="1"></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15">
    <font face="Times New Roman, Times, Serif" size="2">Current liabilities</font></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term debt</FONT></TD>
    <TD align=left width="7" height="19">&nbsp;</TD>
    <TD align=left width="5" height="19">&nbsp;</TD>
    <TD align=right width="14" height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="60" height="19"><font size="2">1,587</font></TD>
    <TD align=left width="10" height="19">&nbsp;</TD>
    <TD align=right width="14" height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="55" height="19">
    <font face="Times New Roman, Times, Serif" size="2">1,934</font></TD>
    <TD align=left width="10" height="19">&nbsp;</TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">1,390</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15">
    <font face="Times New Roman, Times, Serif" size="2">329</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="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
      current liabilities</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">6,146</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>3,523</FONT></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
  <TR>
    <TD colSpan=3 width="414" height="15"></TD>
    <TD align=right colSpan=2 width="74" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="10" height="15"></TD>
    <TD align=right colSpan=2 width="69" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="10" height="15"></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      current liabilities</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">9,123</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>5,786</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="402" height="15"><FONT face="Times New Roman, Times, Serif" size=2>
    Long-term debt</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">6,764</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>6,256</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="402" height="15"><FONT face="Times New Roman, Times, Serif" size=2>Other
      long-term liabilities</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">(1,632</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(1,300</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="402" height="19">
    <font face="Times New Roman, Times, Serif" size="2">Shareholders' deficit</font></TD>
    <TD align=left width="7" height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" 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="60" height="19"><font size="2">(5,645</font></TD>
    <TD align=left width="10" height="19"><font size="2">)</font></TD>
    <TD align=right width="14" height="19">&nbsp;</TD>
    <TD align=right width="55" height="19"><font size="2">(562</font></TD>
    <TD align=left width="10" height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    </TR>
  <TR>
    <TD colSpan=3 width="414" height="15"></TD>
    <TD align=right colSpan=2 width="74" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="10" height="15"></TD>
    <TD align=right colSpan=2 width="69" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="10" height="15"></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
      liabilities and shareholders' equity</FONT></TD>
    <TD align=left width="7" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="5" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">8,610</font></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="55" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>10,180</FONT></TD>
    <TD align=left width="10" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    </TR>
  <TR>
    <TD colSpan=3 width="414" height="16"></TD>
    <TD align=right colSpan=2 width="74" height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width="10" height="16"></TD>
    <TD align=right colSpan=2 width="69" height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width="10" height="16"></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">Includes 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 Condensed Consolidated </b></font>
<font size="+0"><b>Statement of Operations</b></font></P>








<TABLE cellSpacing=0 cellPadding=0 width="597" align=center border=0>
<TR vAlign=bottom>
<TH colSpan=3 width="231">&nbsp;</TH>
<TH colSpan=6 width="194"><font face="Times New Roman, Times, Serif" size="1">Quarter Ended</font>
<HR width="95%" color=black noShade>
</TH>
<TH colSpan=6 width="170"><font face="Times New Roman, Times, Serif" size="1">
For Year Ended</font>
<HR width="95%" color=black noShade>
</TH>
</TR>
<TR vAlign=bottom>
<TH align=left colSpan=3 width="231">
<FONT face="Times New Roman, Times, Serif" size=1>(Unaudited,
amounts in thousands)</FONT></TH>
<TH colSpan=3 width="98">
<p style="margin-top: 0; margin-bottom: 0">
<font face="Times New Roman, Times, Serif" size="1">4/29/06</font>
</p>
<HR width="95%" color=black noShade>
</TH>
<TH colSpan=3 width="96">
<p style="margin-top: 0; margin-bottom: 0">
<font face="Times New Roman, Times, Serif" size="1">4/30/05</font>
</p>
<HR width="95%" color=black noShade>
</TH>
<TH colSpan=3 width="84">
<p style="margin-top: 0; margin-bottom: 0">
<font face="Times New Roman, Times, Serif" size="1">4/29/06</font>
</p>
<HR width="100%" color=black noShade>
</TH>
<TH colSpan=3 width="86">
<p style="margin-top: 0; margin-bottom: 0">
<font face="Times New Roman, Times, Serif" size="1">4/30/05</font>
</p>
<HR width="95%" color=black noShade>
</TH>
</TR>
<TR vAlign=bottom>
<TD align=left width="211">&nbsp;</TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="81">&nbsp;</TD>
<TD align=left width="9"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="75">&nbsp;</TD>
<TD align=left width="11"><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="65">&nbsp;</TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="14"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="61">&nbsp;</TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="211"><font size="2">Sales </font><FONT face="Times New Roman, Times, Serif" size=2> <i>(2)</i></FONT></TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="81"><font size="2">9,534</font></TD>
<TD align=left width="9">&nbsp;</TD>
<TD align=right width="10"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="75"><font size="2">7,877</font></TD>
<TD align=left width="11"><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>$</FONT></TD>
<TD align=right width="65"><font size="2">36,806</font></TD>
<TD align=left width="10">&nbsp;</TD>
<TD align=right width="14"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="61"><font size="2">46,019</font></TD>
<TD align=left width="10">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="211"><font size="2">Cost of sales </font><FONT face="Times New Roman, Times, Serif" size=2> <i>(2)</i></FONT></TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="81"><font size="2">267</font></TD>
<TD align=left width="9">&nbsp;</TD>
<TD align=right width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="75"><font size="2">(1,217</font></TD>
<TD align=left width="11"><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="65"><font size="2">4,488</font></TD>
<TD align=left width="10">&nbsp;</TD>
<TD align=right width="14"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="61"><font size="2">1,224</font></TD>
<TD align=left width="10">&nbsp;</TD></TR>
<tr>
<TD colSpan=3 width="231">&nbsp;</TD>
<TD align=right colSpan=2 width="89">
<HR color=black noShade SIZE=1>
</TD>
<TD width="9">&nbsp;</TD>
<TD align=right colSpan=2 width="85">
<HR color=black noShade SIZE=1>
</TD>
<TD width="11">&nbsp;</TD>
<TD align=right colSpan=2 width="77">
<HR color=black noShade SIZE=1>
</TD>
<TD width="10">&nbsp;</TD>
<TD align=right colSpan=2 width="75">
<HR color=black noShade SIZE=1>
</TD>
<TD width="10">&nbsp;</TD>
</tr>
<TR vAlign=bottom>
<TD align=left width="211"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Gross profit</font></TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="81"><font size="2">9,267</font></TD>
<TD align=left width="9">&nbsp;</TD>
<TD align=right width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="75"><font size="2">9,094</font></TD>
<TD align=left width="11">&nbsp;</TD>
<TD align=right width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="65"><font size="2">32,318</font></TD>
<TD align=left width="10">&nbsp;</TD>
<TD align=right width="14"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="61"><font size="2">44,795</font></TD>
<TD align=left width="10">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="211"><font size="2">Selling, general and administrative</font></TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8">&nbsp;</TD>
<TD align=right width="81"><font size="2">11,488</font></TD>
<TD align=left width="9"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10">&nbsp;</TD>
<TD align=right width="75"><font size="2">11,115</font></TD>
<TD align=left width="11"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12">&nbsp;</TD>
<TD align=right width="65"><font size="2">38,438</font></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="14">&nbsp;</TD>
<TD align=right width="61"><font face="Times New Roman, Times, Serif" size="2">
49,825</font></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<tr>
<TD colSpan=3 width="231">&nbsp;</TD>
<TD align=right colSpan=2 width="89">
<HR color=black noShade SIZE=1>
</TD>
<TD width="9">&nbsp;</TD>
<TD align=right colSpan=2 width="85">
<HR color=black noShade SIZE=1>
</TD>
<TD width="11">&nbsp;</TD>
<TD align=right colSpan=2 width="77">
<HR color=black noShade SIZE=1>
</TD>
<TD width="10">&nbsp;</TD>
<TD align=right colSpan=2 width="75">
<HR color=black noShade SIZE=1>
</TD>
<TD width="10">&nbsp;</TD>
</tr>
<TR vAlign=bottom>
<TD align=left width="211"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Operating
loss</font></TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8">&nbsp;</TD>
<TD align=right width="81"><font size="2">(2,221</font></TD>
<TD align=left width="9"><FONT face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
<TD align=right width="10">&nbsp;</TD>
<TD align=right width="75"><font size="2">(2,021</font></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
<TD align=right width="12">&nbsp;</TD>
<TD align=right width="65"><font face="Times New Roman, Times, Serif" size="2">
(6,120</font></TD>
<TD align=left width="10"><font size="2">)</font></TD>
<TD align=right width="14">&nbsp;</TD>
<TD align=right width="61"><font face="Times New Roman, Times, Serif" size="2">
(5,030</font></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="211"><font size="2">Interest expense</font></TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="81"><font size="2">117</font></TD>
<TD align=left width="9">&nbsp;</TD>
<TD align=right width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="75"><font size="2">97</font></TD>
<TD align=left width="10">&nbsp;</TD>
<TD align=right width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="65"><font face="Times New Roman, Times, Serif" size="2">
504</font></TD>
<TD align=left width="10">&nbsp;</TD>
<TD align=right width="14"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="61"><font face="Times New Roman, Times, Serif" size="2">
427</font></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<tr>
<TD align=left width="211"><font size="2">Other expense, net </font><FONT face="Times New Roman, Times, Serif"
      size=2><i>(3)</i></FONT></TD>
<TD align=left width="8">&nbsp;</TD>
<TD align=left width="12">&nbsp;</TD>
<TD align=right width="8">&nbsp;</TD>
<TD align=right width="81"><font size="2">(276</font></TD>
<TD align=left width="9"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
<TD align=right width="10">&nbsp;</TD>
<TD align=right width="75"><font size="2">(1,092</font></TD>
<TD align=left width="10"><font size="2">)</font><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
<TD align=right width="12">&nbsp;</TD>
<TD align=right width="65"><font size="2">(1,260</font></TD>
<TD align=left width="10"><font face="Times New Roman, Times, Serif" size="2">)&nbsp;</font></TD>
<TD align=right width="14">&nbsp;</TD>
<TD align=right width="61"><font face="Times New Roman, Times, Serif" size="2">
(4,154</font></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
</tr>
<tr>
<TD colSpan=3 width="231">&nbsp;</TD>
<TD align=right colSpan=2 width="89">
<HR color=black noShade SIZE=1>
</TD>
<TD width="9">&nbsp;</TD>
<TD align=right colSpan=2 width="85">
<HR color=black noShade SIZE=1>
</TD>
<TD width="11">&nbsp;</TD>
<TD align=right colSpan=2 width="77">
<HR color=black noShade SIZE=1>
</TD>
<TD width="10">&nbsp;</TD>
<TD align=right colSpan=2 width="75">
<HR color=black noShade SIZE=1>
</TD>
<TD width="10">&nbsp;</TD>
</tr>
<tr>
<TD align=left width="211"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Pre-tax
loss</font></TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="81"><FONT size=2>(2,614</FONT></TD>
<TD align=left width="9"><FONT size=2>)</FONT></TD>
<TD align=right width="10"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="75"><FONT size=2>(3,210</FONT></TD>
<TD align=left width="10"><FONT size=2>)</FONT></TD>
<TD align=right width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="65"><FONT face="Times New Roman, Times, Serif" size=2>
(7,884</FONT></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right width="14"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="61"><FONT face="Times New Roman, Times, Serif" size=2>
(9,611</FONT></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
</tr>
<TR vAlign=bottom>
<TD align=left width="211"><font size="2">Income tax benefit</font></TD>
<TD align=left width="8">&nbsp;</TD>
<TD align=left width="12">&nbsp;</TD>
<TD align=right width="8">&nbsp;</TD>
<TD align=right width="81"><font size="2">(993</font></TD>
<TD align=left width="9"><font size="2">)</font></TD>
<TD align=right width="10">&nbsp;</TD>
<TD align=right width="75"><font size="2">(1,221</font></TD>
<TD align=left width="10"><font size="2">)</font></TD>
<TD align=right width="12">&nbsp;</TD>
<TD align=right width="65"><font size="2">(2,996</font></TD>
<TD align=left width="10"><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
<TD align=right width="14">&nbsp;</TD>
<TD align=right width="61"><font face="Times New Roman, Times, Serif" size="2">
(3,652</font></TD>
<TD align=left width="10"><font face="Times New Roman, Times, Serif" size="2">)</font></TD></TR>
<TR>
<TD colSpan=3 width="231">&nbsp;</TD>
<TD align=right colSpan=2 width="89">
<HR color=black noShade SIZE=1>
</TD>
<TD width="9">&nbsp;</TD>
<TD align=right colSpan=2 width="85">
<HR color=black noShade SIZE=1>
</TD>
<TD width="11">&nbsp;</TD>
<TD align=right colSpan=2 width="77">
<HR color=black noShade SIZE=1>
</TD>
<TD width="10">&nbsp;</TD>
<TD align=right colSpan=2 width="75">
<HR color=black noShade SIZE=1>
</TD>
<TD width="10">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="211"><font size="2">Net  loss from continuing operations</font></TD>
<TD align=left width="8"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="12"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="81"><font size="2">(1,621</font></TD>
<TD align=left width="9"><font size="2">)</font></TD>
<TD align=right width="10"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="75"><font size="2">(1,989</font></TD>
<TD align=left width="10"><font size="2">)</font></TD>
<TD align=right width="12"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="65"><font face="Times New Roman, Times, Serif" size="2">
(4,888</font></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
<TD align=right width="14"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="61"><font face="Times New Roman, Times, Serif" size="2">
(5,959</font></TD>
<TD align=left width="10"><FONT face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD></TR>
<TR>
<TD colSpan=3 width="231">&nbsp;</TD>
<TD align=right colSpan=2 width="89">
<HR color=black noShade SIZE=2>
</TD>
<TD width="9">&nbsp;</TD>
<TD align=right colSpan=2 width="85">
<HR color=black noShade SIZE=2>
</TD>
<TD width="11">&nbsp;</TD>
<TD align=right colSpan=2 width="77">
<HR color=black noShade SIZE=2>
</TD>
<TD width="10">&nbsp;</TD>
<TD align=right colSpan=2 width="75">
<HR color=black noShade SIZE=2>
</TD>
<TD width="10">&nbsp;</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>








<p>&nbsp;</p>








<p>&nbsp;</p>








<p>&nbsp;</p>








<p>&nbsp;</p>








<p>&nbsp;</p>








<p>&nbsp;</p>
<P style="PAGE-BREAK-AFTER: always">&nbsp;</P>


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



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Exhibit 99.2</b>
 </FONT></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">Unaudited Quarterly Financial Data</FONT></B><FONT face="Times New Roman, Times, Serif" size=2> </FONT></P>









<!-- MARKER PAGE="sheet: 8; page: 8" -->

<TABLE cellSpacing=0 cellPadding=0 width="85%" align=center border=0>

  <TR vAlign=bottom>
    <TH align=left colSpan=3 height="46"><FONT face="Times New Roman, Times, Serif"
      size=1>(Amounts in thousands, except per share data)<BR>Quarter
      ended</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="46">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>7/30/05 </FONT>&nbsp;</p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="46">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>10/29/05 </FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="46">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>1/28/06</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="46">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>4/29/06</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>Sales</FONT></TD>
    <TD align=left width="1%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="2%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><font size="2">451,487</font></TD>
    <TD align=left width="3%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><font size="2">454,605</font></TD>
    <TD align=left width="3%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><font size="2">502,323</font></TD>
    <TD align=left width="3%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="15"><font size="2">508,362</font></TD>
    <TD align=left width="2%" height="15"></TD></TR>
  <tr>
    <TD align=left height="14"><font size="2">Cost of sales</font></TD>
    <TD align=left height="14"></TD>
    <TD align=left height="14"></TD>
    <TD align=right height="14"></TD>
    <TD align=right height="14"></TD>
    <TD align=left height="14"></TD>
    <TD align=right height="14"></TD>
    <TD align=right height="14"></TD>
    <TD align=left height="14"></TD>
    <TD align=right height="14"></TD>
    <TD align=right height="14"></TD>
    <TD align=left height="14"></TD>
    <TD align=right height="14"></TD>
    <TD align=right height="14"></TD>
    <TD align=left height="14"></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; Cost
    of goods sold</FONT></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">345,018</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">354,409</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">377,937</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">380,601</font></TD>
    <TD align=left height="14"></TD></TR>
  <tr>
    <TD align=left height="15"><font face="Times New Roman, Times, Serif" size="2">
    &nbsp;
    Restructuring</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>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><font size="2">--</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><font size="2">7,817</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><font size="2">594</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><font size="2">(1,768</font></TD>
    <TD align=left height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD>
  </tr>
  <TR>
    <TD colSpan=3 height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19">&nbsp;</TD></TR>
  <tr>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp; Total cost of sales</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">345,018</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">362,226</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">378,531</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">378,833</font></TD>
    <TD align=left height="19">&nbsp;</TD>
  </tr>
  <tr>
    <TD colSpan=3 height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19">&nbsp;</TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</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="9"><font size="2">106,469</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="9"><font size="2">92,379</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="9"><font size="2">123,792</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="9"><font size="2">129,529</font></TD>
    <TD align=left height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>Selling,
      general and administrative</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="15"><font size="2">98,568</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="15"><font size="2">99,597</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="15"><font size="2">105,301</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="15"><font size="2">106,882</font></TD>
    <TD align=left height="19">&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3 height="1">
    <font face="Times New Roman, Times, Serif" size="2">Write-down of
    intangibles</font></TD>
    <TD align=right colSpan=2 height="1">
      <font size="2">--</font></TD>
    <TD height="1"></TD>
    <TD align=right colSpan=2 height="1">
      <font size="2">--</font></TD>
    <TD height="1"></TD>
    <TD align=right colSpan=2 height="1">
      <font size="2">--</font></TD>
    <TD height="1"></TD>
    <TD align=right colSpan=2 height="1">
      <font size="2">22,695</font></TD>
    <TD height="1"></TD></TR>
  <TR>
    <TD colSpan=3 height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating 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>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">7,901</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="10"><font size="2">(7,218</font></TD>
    <TD align=left height="10"><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">18,491</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="10"><font size="2">(48</font></TD>
    <TD align=left height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD></TR>
  <tr>
    <TD align=left height="19">&nbsp;</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>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>Interest
      expense</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="12"><font size="2">2,741</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="12"><font size="2">3,090</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="12"><font size="2">2,965</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="12"><font size="2">2,744</font></TD>
    <TD align=left height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>Other
      income, net</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>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">15</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">295</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">1,395</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">142</font></TD>
    <TD align=left height="15"></TD></TR>
  <TR>
    <TD colSpan=3 height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Pre-tax 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>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">5,175</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">(10,013</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">16,921</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">(2,650</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>
    Income tax expense (benefit) </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">1,967</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">(3,566</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">6,453</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">7,620</font></TD>
    <TD align=left height="19">&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3 height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&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>$</FONT></TD>
    <TD align=right height="19"><font size="2">3,208</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</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>$</FONT></TD>
    <TD align=right height="19"><font size="2">10,468</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">(10,270</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 align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="19"></TD>
    <TD align=right colSpan=2 height="19">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="19">&nbsp;</TD></TR>
  <tr>
    <TD align=left height="19">&nbsp;</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>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>Diluted
      weighted average shares outstanding</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">52,195</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">51,655</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">51,857</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">51,747</font></TD>
    <TD align=left height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19">&nbsp;</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></TR>
  <tr>
    <TD align=left height="19"><font face="Times New Roman, Times, Serif" size="2">Diluted
    net income (loss) per share</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>$</FONT></TD>
    <TD align=right height="19"><font size="2">0.06</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">(0.12</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>$</FONT></TD>
    <TD align=right height="19"><font size="2">0.20</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">(0.20</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD>
  </tr>
  </TABLE>
<p style="margin-bottom: 0">&nbsp;</p>



<P>&nbsp;</P>



<P>&nbsp;</P>



<P>&nbsp;</P>



<P>&nbsp;</P>
<P>&nbsp;</P>

<P style="PAGE-BREAK-AFTER: always">&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><B>
<FONT size="+0">Unaudited Quarterly Financial Data</FONT></B><FONT face="Times New Roman, Times, Serif" size=2> </FONT>
</p>

<TABLE cellSpacing=0 cellPadding=0 width="85%" align=center border=0>

  <TR vAlign=bottom>
    <TH align=left colSpan=3 height="53"><FONT face="Times New Roman, Times, Serif"
      size=1>(Amounts in thousands, except per share data)<BR>Quarter
      ended</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="53">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>7/24/04 </FONT>&nbsp;</p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="53">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>10/23/04</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="53">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>1/22/05</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="53">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>4/30/05</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (14 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>Sales</FONT></TD>
    <TD align=left width="1%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="2%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="18"><font size="2">455,107</font></TD>
    <TD align=left width="3%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="18"><font size="2">520,760</font></TD>
    <TD align=left width="3%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="18"><font size="2">506,959</font></TD>
    <TD align=left width="3%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="18"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="18"><font size="2">565,555</font></TD>
    <TD align=left width="2%" height="18"></TD></TR>
  <tr>
    <TD align=left height="16"><font size="2">Cost of sales</font></TD>
    <TD align=left height="16"></TD>
    <TD align=left height="16"></TD>
    <TD align=right height="16"></TD>
    <TD align=right height="16"></TD>
    <TD align=left height="16"></TD>
    <TD align=right height="16"></TD>
    <TD align=right height="16"></TD>
    <TD align=left height="16"></TD>
    <TD align=right height="16"></TD>
    <TD align=right height="16"></TD>
    <TD align=left height="16"></TD>
    <TD align=right height="16"></TD>
    <TD align=right height="16"></TD>
    <TD align=left height="16"></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; Cost
    of goods sold</FONT></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><font size="2">351,716</font></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><font size="2">400,834</font></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><font size="2">385,353</font></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><font size="2">434,941</font></TD>
    <TD align=left height="13"></TD></TR>
  <tr>
    <TD align=left height="6"><font face="Times New Roman, Times, Serif" size="2">
    &nbsp;
    Restructuring</font></TD>
    <TD align=left height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><font size="2">10,400</font></TD>
    <TD align=left height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><font size="2">749</font></TD>
    <TD align=left height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><font size="2">2,252</font></TD>
    <TD align=left height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="6"><font size="2">(3,107</font></TD>
    <TD align=left height="6"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
  </tr>
  <tr>
    <TD colSpan=3 height="16"></TD>
    <TD align=right colSpan=2 height="16">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="16"></TD>
    <TD align=right colSpan=2 height="16">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="16"></TD>
    <TD align=right colSpan=2 height="16">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="16"></TD>
    <TD align=right colSpan=2 height="16">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="16"></TD>
  </tr>
  <tr>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp; Total cost of sales</FONT></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><font size="2">362,116</font></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><font size="2">401,583</font></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><font size="2">387,605</font></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><font size="2">431,834</font></TD>
    <TD align=left height="12"></TD>
  </tr>
  <TR>
    <TD colSpan=3 height="13"></TD>
    <TD align=right colSpan=2 height="13">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="13"></TD>
    <TD align=right colSpan=2 height="13">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="13"></TD>
    <TD align=right colSpan=2 height="13">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="13"></TD>
    <TD align=right colSpan=2 height="13">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="13"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
    <TD align=left height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="9"><font size="2">92,991</font></TD>
    <TD align=left height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="9"><font size="2">119,177</font></TD>
    <TD align=left height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="9"><font size="2">119,354</font></TD>
    <TD align=left height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="9"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="9"><font size="2">133,721</font></TD>
    <TD align=left height="9"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif" size=2>Selling,
      general and administrative</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>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><font size="2">97,045</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><font size="2">103,874</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><font size="2">99,620</font></TD>
    <TD align=left height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="15"><font size="2">101,053</font></TD>
    <TD align=left height="15"></TD></TR>
  <TR>
    <TD colSpan=3 height="15"></TD>
    <TD align=right colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="15"></TD>
    <TD align=right colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="15"></TD>
    <TD align=right colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="15"></TD>
    <TD align=right colSpan=2 height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="15"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss)</FONT></TD>
    <TD align=left height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="10"><font size="2">(4,054</font></TD>
    <TD align=left height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD>
    <TD align=right height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="10"><font size="2">15,303</font></TD>
    <TD align=left height="10"></TD>
    <TD align=right height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="10"><font size="2">19,734</font></TD>
    <TD align=left height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="10"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="10"><font size="2">32,668</font></TD>
    <TD align=left height="10"></TD></TR>
  <tr>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif" size=2>Interest
      expense</FONT></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><font size="2">2,209</font></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><font size="2">2,607</font></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><font size="2">2,684</font></TD>
    <TD align=left height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="12"><font size="2">2,942</font></TD>
    <TD align=left height="12"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif" size=2>Other
    income (expense), net</FONT></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">373</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">(354</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">273</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">(122</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD></TR>
  <TR>
    <TD colSpan=3 height="12"></TD>
    <TD align=right colSpan=2 height="12">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="12"></TD>
    <TD align=right colSpan=2 height="12">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="12"></TD>
    <TD align=right colSpan=2 height="12">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="12"></TD>
    <TD align=right colSpan=2 height="12">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="12"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from continuing operations before 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>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">(5,890</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">12,342</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">17,323</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">29,604</font></TD>
    <TD align=left height="19">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>Income tax
    expense (benefit)</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">(2,238</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">4,690</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">6,583</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">11,249</font></TD>
    <TD align=left height="19">&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3 height="11"></TD>
    <TD align=right colSpan=2 height="11">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="11"></TD>
    <TD align=right colSpan=2 height="11">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="11"></TD>
    <TD align=right colSpan=2 height="11">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="11"></TD>
    <TD align=right colSpan=2 height="11">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="11"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="14"><font face="Times New Roman, Times, Serif" size="2">Income
    (loss) from continuing operations</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">(3,652</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">7,652</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">10,740</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"><font size="2">18,355</font></TD>
    <TD align=left height="14"></TD></TR>
  <TR>
    <TD colSpan=3 height="1"></TD>
    <TD colSpan=3 height="1"></TD>
    <TD colSpan=3 height="1"></TD>
    <TD colSpan=3 height="1"></TD>
    <TD colSpan=3 height="1"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="13"><font face="Times New Roman, Times, Serif" size="2">
    Income (loss) from discontinued operations (net of tax)</font></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><font size="2">129</font></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><font size="2">506</font></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><font size="2">352</font></TD>
    <TD align=left height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="13"><font size="2">1,009</font></TD>
    <TD align=left height="13"></TD></TR>
  <tr>
    <TD align=left height="16"><font face="Times New Roman, Times, Serif" size="2">
    Cumulative effect of accounting change (net of tax)</font></TD>
    <TD align=left height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="16"><font size="2">--</font></TD>
    <TD align=left height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="16"><font size="2">702</font></TD>
    <TD align=left height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="16"><font size="2">--</font></TD>
    <TD align=left height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="16"><font size="2">1,392</font></TD>
    <TD align=left height="16"></TD>
  </tr>
  <tr>
    <TD colSpan=3 height="11"></TD>
    <TD align=right colSpan=2 height="11">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="11"></TD>
    <TD align=right colSpan=2 height="11">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="11"></TD>
    <TD align=right colSpan=2 height="11">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="11"></TD>
    <TD align=right colSpan=2 height="11">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="11"></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&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>$</FONT></TD>
    <TD align=right height="19"><font size="2">(3,523</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">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>$</FONT></TD>
    <TD align=right height="19"><font size="2">11,092</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">20,756</font></TD>
    <TD align=left height="19">&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3 height="17"></TD>
    <TD align=right colSpan=2 height="17">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="17"></TD>
    <TD align=right colSpan=2 height="17">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="17"></TD>
    <TD align=right colSpan=2 height="17">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="17"></TD>
    <TD align=right colSpan=2 height="17">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="17"></TD></TR>
  <tr>
    <TD align=left height="16"></TD>
    <TD align=left height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="16"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="17"><FONT face="Times New Roman, Times, Serif" size=2>Diluted
      weighted average shares outstanding</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">51,967</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">52,101</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">52,193</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">52,262</font></TD>
    <TD align=left height="17"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="15"></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 vAlign=bottom>
    <TD align=left height="17"><font face="Times New Roman, Times, Serif" size="2">Diluted
    income (loss)&nbsp; from continuing operations per share</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>$</FONT></TD>
    <TD align=right height="17"><font size="2">(0.07</font></TD>
    <TD align=left height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD>
    <TD align=right height="17"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="17"><font size="2">0.15</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>$</FONT></TD>
    <TD align=right height="17"><font size="2">0.21</font></TD>
    <TD align=left height="17"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="17"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="17"><font size="2">0.35</font></TD>
    <TD align=left height="17"></TD></TR>
  <tr>
    <TD align=left height="14"><font face="Times New Roman, Times, Serif" size="2">Diluted
    net income (loss) per share</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"></TD>
    <TD align=right height="14"><font size="2">(0.07</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>)</FONT></TD>
    <TD align=right height="14"></TD>
    <TD align=right height="14"><font size="2">0.17</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"></TD>
    <TD align=right height="14"><font size="2">0.21</font></TD>
    <TD align=left height="14"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="14"></TD>
    <TD align=right height="14"><font size="2">0.40</font></TD>
    <TD align=left height="14"></TD>
  </tr>
  </TABLE>
<p>
<BR>
&nbsp;</p>




<P style="PAGE-BREAK-AFTER: always">&nbsp;</P>





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









<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Exhibit 99.3</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>



<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TH ALIGN="LEFT">&nbsp;</TH>
     <TH ALIGN="CENTER">&nbsp;</TH>
     <TH ALIGN="RIGHT">&nbsp;</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>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold" FSL="Default" -->



<BR>
<H1 ALIGN=CENTER><u><FONT FACE="Times New Roman, Times, Serif" SIZE=4>LA-Z-BOY BOARD
NOMINATES NEW MEMBER </FONT></u></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MONROE, MI. June 6, 2006 &#150;
La-Z-Boy Incorporated <B>(NYSE, PCX: LZB)</B> today announced that its Board of Directors
nominated Nido Qubein to its Board. Qubein will run for election at the Annual
Stockholders&#146; Meeting in August to serve as a director for a term of three years. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Qubein, 57, currently the President
of High Point University, in High Point, North Carolina, serves on the Board of BB&amp;T
Corporation and is the Chairman of a number of companies, including: Great Harvest Bread
Company; Business Life, Inc., a publishing company; McNeil Lehman, Inc., a public
relations and advertising firm; and Creative Services, Inc., an international management
consulting firm. He is also a world renowned public speaker and serves on the boards of
several national organizations, including the YMCA of the USA. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kurt Darrow, La-Z-Boy President and
Chief Executive Officer, said, &#147;We are honored Nido has accepted the Board&#146;s
nomination. He is an extraordinarily accomplished individual who has achieved great
success in business and now in the academic world. A strategic thinker with a unique point
of view, he has made monumental changes to High Point University and will undoubtedly make
a significant contribution to our company.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Qubein is the recipient of a number
of honors and awards, including, among others: the Horatio Alger Award; the Ellis Island
Medal of Honor; and Citizen of the Year and Philanthropist of the Year from the city of
High Point, North Carolina. He is also the Chairman of the High Point Community Foundation
and is Chairman Emeritus of the National Speakers Association Foundation. </FONT></P>

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

<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Forward-looking
Information  </FONT></u></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: (a) changes in consumer confidence; (b) changes in
demographics; (c) changes in housing sales; (d) the impact of terrorism or war; (e)
continued energy price changes; (f) the impact of logistics on imports; (g) the impact of
interest rate changes; (h) the potential disruptions from Chinese imports; (i) inventory
supply price fluctuations; (j) the impact of imports as it relates to continued domestic
production; (k) changes in currency exchange rates; (l) competitive factors; (m) operating
factors, such as supply, labor, or distribution disruptions including changes in operating
conditions or costs; (n) effects of restructuring actions; (o) changes in the domestic or
international regulatory environment; (p) not fully realizing cost reductions through
restructurings; (q) ability to implement global sourcing organization strategies; (r) the
impact of new manufacturing technologies; (s) the future financial performance and
condition of independently operated dealers that we are required to consolidate into our
financial statements or changes requiring us to consolidate additional independently
operated dealers; (t) fair value changes to our intangible assets due to actual results
differing from projected; (u) the impact of adopting new accounting principles; (v) the
impact from severe weather such as hurricanes and tornadoes; (w) the ability to turn
around under-performing retail stores; (x) the impact of retail store relocation costs,
the success of new stores or the timing of converting stores to the New Generation format;
(y) the ability to procure fabric rolls or cut-and-sewn sets domestically or abroad; and
(z) factors relating to acquisitions and other factors identified from time to time in our
reports filed with the Securities and Exchange Commission. We undertake no obligation to
update or revise any forward-looking statements, either to reflect new developments, or
for any other reason. </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
<U><font color="#0000FF">http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx</font></U>. 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></P>

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


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
</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>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 337 stand-alone La-Z-Boy Furniture Galleries&reg; stores
and 340 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 <U><font color="#0000FF">http://www.la-z-boy.com/</font></U>. </FONT></P>




<p>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
</p>









</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "eightk.htm", "secsgml_size_bytes": 288904}]
{"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": "06889763"}, "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"}}
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
June 6, 2006
(Date of Report (Date of Earliest Event Reported))
LA-Z-BOY INCORPORATED
(Exact
name of registrant as specified in its charter)
MICHIGAN
38-0751137
(State or other jurisdiction of
(I.R.S. Employer Identification Number)
incorporation or organization)
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
June 6, 2006, La-Z-Boy Incorporated issued a press release to report the company's
financial results for the quarter and fiscal year ended April 29, 2006. A copy of the
press release is attached to this current report on Form 8-K as Exhibit 99.1. Exhibit 99.2
contains unaudited quarterly financial data for the last eight quarters.
Item 7.01 
Regulation FD Disclosure.
On June 6, 2006, La-Z-Boy Incorporated announced that its Board of Directors
nominated Nido Qubein to its Board. Qubein will run for election at the Annual
Stockholders' Meeting in August to serve as a director for a term of three years.
A copy of the press release is attached to this current report on Form 8-K as
Exhibit 99.3.
The information in this report 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
(d)       
          The following exhibits are furnished as part of this report:
Description
Page #
99
.1
Press Release Dated June 6, 2006
4
99
.2
Supplemental Financial Information
13
99
.3
Press Release Dated June 6, 2006
15
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: June 6, 2006
BY: /S/ Louis M. Riccio, Jr.
——————————————
Louis M. Riccio, Jr.
Corporate Controller
Exhibit 99.1
NEWS RELEASE
Contact:  Mark Stegeman
(734) 241-4418
mark.stegeman@la-z-boy.com
LA-Z-BOY REPORTS
FOURTH-QUARTER AND FULL-YEAR OPERATING RESULTS
MONROE, MI. June 6,
2006—La-Z-Boy Incorporated
(NYSE, PCX: LZB)
today reported its operating
results for the fourth fiscal quarter and full year ended April 29, 2006. Net sales for
the quarter were $508.4 million, down 10.1%, compared with the prior-year period. This
year's fourth quarter included 13 weeks of sales versus 14 weeks last year. The
company posted a quarterly loss from continuing operations of $0.20 per share, which
includes a write-down of intangible assets of $0.44 per share and a $0.02 per share
restructuring gain related to the sale of property. The $23 million, or $0.44 per share,
write-down relates to goodwill at Bauhaus, one of its non-branded upholstery companies,
which, primarily as a result of department-store consolidation, had a significant decrease
in sales and earnings. The company's tax rate for the quarter was adversely impacted
by the write-down, which carries no tax effect.
For the full year ended April 29,
2006, net sales were $1.92 billion, down 6.4% from the prior year. Sales for this year
reflect 52 weeks versus 53 weeks last year. The company posted a loss of $0.06 per share
for the year, which includes the write-down of intangible assets of $0.44 per share and a
net restructuring charge of $0.08 per share.
La-Z-Boy Incorporated President and
CEO Kurt Darrow said, "Although our quarter had one less week of sales this year, we
are pleased that we operated within our target margin ranges in our two largest segments.
In upholstery, we achieved an 8.9% margin, and, in casegoods, our margin was 4.5%. For the
full year, our top line was impacted by two factors: supply chain challenges in the first
half of the year when the hurricanes caused an industry-wide shortage of foam and
disrupted our operations; and macroeconomic issues which caused inconsistent demand in
retail. From an operating margin perspective, although softness at retail persists, we
gained traction in the second half of the fiscal year when many of the supply chain issues
were behind us."
Darrow added, "We have made
substantial progress as we have modified our business model and our operating margins
demonstrate that, even on lower volume, the changes made to the underlying cost structure
of our business are coming to fruition. Going forward, our focus will continue to be on
our retail segment, which is not only important to the wholesale side of our business, but
is a key element of our longer term strategy, and we are working diligently to make the
changes necessary to improve our results."
Upholstery Segment
For the fiscal fourth quarter, sales
in the company's upholstery segment were $361.6 million, a 12.5% decrease from the
prior year, largely reflecting the 13-week quarter. The company's branded business
continued to outperform that of its non-branded companies. Overall, the segment's
operating margin increased sequentially for the quarter to 8.9% from 7.2% in the fiscal
third quarter.
Darrow commented, "In the fourth
quarter of our year, we were able to improve our margins and operate more efficiently as
there was no disruption from foam supply and our Newton manufacturing facilities,
disrupted by the hurricanes, were operating normally. Additionally, as a result of the
Waterloo plant closure, we increased our capacity utilization and realized the full
benefit of this consolidation throughout the entire quarter."
Darrow added, "Our order rate
for the quarter was essentially flat on a 13-week basis comparable against last year.
Additionally, because our rate of incoming orders was equal to our production, we will
carry a higher than usual backlog into our first quarter, as we were in the process of
recruiting, hiring and training new upholsterers during our fourth quarter. With
additional trained upholsterers on staff, we expect to make progress in reducing the
backlog to normal levels.
"Going forward, we will continue
to evaluate and make changes to our cost structure to further strengthen our performance.
We expect to drive our margin through a variety of means, including: an increase in the
integration of global sourcing; the ongoing conversion of our production facilities to the
cellular manufacturing process; the growth of existing and new channels of distribution;
and, the continued expansion of our La-Z-Boy Furniture Galleries® store system in the
New Generation format, which will provide for both top-line growth and margin
expansion."
For the quarter, the company
continued to grow its La-Z-Boy Furniture Galleries® store system, which includes both
company-owned and independent-licensed stores. In the fourth quarter, the system opened
five new stores, relocated and/or remodeled five and closed four, bringing the total store
count to 337, of which 154 are in the New Generation format. For the year, with 49 new
format stores added, we substantially increased the quality of the total system and,
today, approximately 50% of our stores are less than five years old. For the first quarter
of fiscal 2007, the system plans to open seven stores, including two new locations, two
relocations and three remodels.
System-wide, for the first calendar
quarter, including company-owned and independent-licensed stores, same-store written
sales, which the company tracks as an indicator of retail activity, were up 1.7% and total
sales, which includes new stores, increased 6.3%.
Casegoods Segment
In the fourth quarter, casegoods
sales were $113.4 million, down 8.2% from the prior-year period and essentially flat on a
13-week basis. The operating margin was 4.5%, an increase from 2.1% in last year's
fourth quarter. Commenting on the segment's performance, Darrow noted, "In
December, we completed the transition to primarily an import model for our residential
business and our results for the second half of the year demonstrate our success. For the
second half of our year, we operated within our target margin range of 4% to 6% and are
confident we will continue to operate in that range or higher as volume improves. Our
hospitality business continues to improve as the travel sector rebounds and sales and
backlog are increasing with concurrent margin improvement. Looking ahead, we expect to
further increase the segment's profitability and operating margin as we introduce new
products to appeal to a broader customer base, expand our channels of distribution, focus
on SKU management, continue to further pare down our overall cost structure and increase
the effectiveness of our global sourcing."
Retail Segment
For the quarter, retail sales were
$54.1 million, up 9.6% from the prior-year period, due to the stores the company acquired.
For the year, sales were up 23.3% to $213.4 million. On an operating basis, the segment
incurred a loss, primarily a result of the ongoing costs related to the three markets
acquired last year, but also the result of a weaker-than-expected retail environment at
the end of the quarter. Darrow commented, "The dip at the end of the quarter impacted
our company-owned stores across the board this quarter and the stores we acquired last
year are not performing up to expectations. This was compounded by not only the costs
associated to build out the markets, but the current cost structure of those markets as
fixed costs continue to be concentrated among too few and older format stores.
Additionally, we closed or are in the process of closing several stores and moved
merchandise through the system at substandard margins.
"During the year, we continued
to take the steps necessary to transform these markets into profitable operations.
Although the progress is somewhat slower than we anticipated, we secured new real estate
sites in a number of markets and will make significant progress in adding new stores this
fiscal year. Increasing the number of stores in each market will enable us to garner
greater efficiencies in warehousing, advertising and distribution while at the same time,
will grow the top line. Of the 337 stores in our system, we own 63. Over the course of
this fiscal year, we plan to open seven new company-owned stores and will remodel and
relocate 11 stores, increasing substantially the number of stores in the New Generation
format from 28 to 46."
"Retail remains an important
element of our core strategy and it will play an integral and additive role in our future,
substantially impacting the earnings power of the company," Darrow concluded.
Operating Cash Flow and
Balance Sheet
For the quarter, cash flow generated
from operations was $37.9 million and was $89.8 million for the year. Darrow noted,
"Our strong cash flow generation enabled us to reduce our total debt for the quarter
by $26 million to $184.2 million and our debt-to-capitalization ratio of 26.5% is within
our target range. With a continued emphasis on lowering working capital requirements, cash
flow generated was improved by $71.4 million compared with last year. In early May, our
Board approved a 9% increase in our dividend to $0.12 per quarter and we will pay our
140
th
consecutive dividend. We did not repurchase shares this quarter, and have
5.9 million shares remaining in our program. Going forward, we will be opportunistic with
our share repurchase program."
Business Outlook
Commenting on the business outlook,
Darrow noted: "While we are pleased with our progress in our upholstery and casegoods
divisions, we are concerned about the macro economic environment as the energy markets
remain volatile and interest rates continue to increase. In particular, there has been a
change in the retail environment since the first calendar quarter with April and May being
difficult months. Due to seasonal factors, the first quarter is typically our weakest.
With that as a backdrop, we expect our first-quarter sales to be flat against last
year's $451 million and reported earnings to be in the range of $0.01 to $0.05 per
share, which will include up to a $0.02 per share charge for stock option expense.
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: (a) changes in consumer confidence; (b) changes in
demographics; (c) changes in housing sales; (d) the impact of terrorism or war; (e)
continued energy price changes; (f) the impact of logistics on imports; (g) the impact of
interest rate changes; (h) the potential disruptions from Chinese imports; (i) inventory
supply price fluctuations; (j) the impact of imports as it relates to continued domestic
production; (k) changes in currency exchange rates; (l) competitive factors; (m) operating
factors, such as supply, labor, or distribution disruptions including changes in operating
conditions or costs; (n) effects of restructuring actions; (o) changes in the domestic or
international regulatory environment; (p) not fully realizing cost reductions through
restructurings; (q) ability to implement global sourcing organization strategies; (r) the
impact of new manufacturing technologies; (s) the future financial performance and
condition of independently operated dealers that we are required to consolidate into our
financial statements or changes requiring us to consolidate additional independently
operated dealers; (t) fair value changes to our intangible assets due to actual results
differing from projected; (u) the impact of adopting new accounting principles; (v) the
impact from severe weather such as hurricanes and tornadoes; (w) the ability to turn
around under-performing retail stores; (x) the impact of retail store relocation costs,
the success of new stores or the timing of converting stores to the New Generation format;
(y) the ability to procure fabric rolls or cut-and-sewn sets domestically or abroad; and
(z) factors relating to acquisitions and other factors identified from time to time in our
reports filed with the Securities and Exchange Commission. We undertake no obligation to
update or revise any forward-looking statements, either to reflect new developments, or
for any other reason.
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
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 337 stand-alone La-Z-Boy Furniture Galleries® stores
and 340 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
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
For the Quarter Ended
Unaudited
For the
     Year Ended
(Amounts
in thousands, except per share data)
4/29/06
(13 weeks)
4/30/05
(14 weeks)
4/29/06
(52 weeks)
4/30/05
(53 weeks)
Sales
$
508,362
$
565,555
$
1,916,777
$
2,048,381
Cost of
     sales
Cost of goods sold
380,601
434,941
1,457,965
1,572,844
Restructuring
(1,768
)
(3,107
)
6,643
10,294
Total cost of sales
378,833
431,834
1,464,608
1,583,138
Gross profit
129,529
133,721
452,169
465,243
Selling, general and administrative
106,882
101,053
410,348
401,592
Write-down of intangibles
22,695
--
22,695
--
Operating income
     (loss)
(48
)
32,668
19,126
63,651
Interest expense
2,744
2,942
11,540
10,442
Other
     income (expense), net
142
(122
)
1,847
170
Income
     (loss)
     from continuing operations before income taxes
(2,650
)
29,604
9,433
53,379
Income tax expense
7,620
11,249
12,474
20,284
Income
     (loss) from continuing operations
(10,270
)
18,355
(3,041
)
33,095
Income
     from discontinued operations (net of tax)
--
1,009
--
1,996
Extraordinary gains (net of tax)
--
1,392
--
2,094
Net income
     (loss)
$
(10,270
)
$
20,756
$
(3,041
)
$
37,185
Basic
     average shares outstanding
51,747
52,192
51,801
52,082
Basic net income
     (loss) per share:
Income
     (loss) from continuing operations
$
(0.20
)
$
0.35
$
(0.06
)
$
0.63
Income from discontinued operations
     (net of tax)
--
0.02
--
0.04
Extraordinary gains (net of tax)
--
0.03
--
0.04
Net income
     (loss) per basic share
$
(0.20
)
$
0.40
$
(0.06
)
$
0.71
Diluted
     weighted average shares outstanding
51,747
52,262
51,801
52,138
Diluted
     net income (loss) per share:
Income
     (loss) from continuing operations
$
(0.20
)
$
0.35
$
(0.06
)
$
0.63
Income from discontinued operations
     (net of tax)
--
0.02
--
0.04
Extraordinary gains (net of tax)
--
0.03
--
0.04
Net income
     (loss) per diluted share
$
(0.20
)
$
0.40
$
(0.06
)
$
0.71
Dividends paid per share
$
0.11
$
0.11
$
0.44
$
0.44
LA-Z-BOY INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited
(Amounts in thousands)
4/29/06
4/30/05
Current assets
Cash and equivalents
$
24,089
$
37,705
Receivables, net
270,578
283,915
Inventories, net
238,826
260,556
Deferred income taxes
27,276
22,779
Other current assets
23,790
33,410
Total current assets
584,559
638,365
Property, plant and equipment, net
209,986
210,565
Intangibles
75,720
100,846
Other long-term assets,
     net
100,909
76,581
Total assets
$
971,174
$
1,026,357
Current liabilities
Short-term borrowings
$
8,000
$
9,700
Current portion of long-term debt
and capital leases
2,844
3,060
Accounts payable
85,561
82,792
Other current liabilities
132,005
133,172
Total current liabilities
228,410
228,724
Long-term debt and capital leases
173,368
213,549
Deferred income taxes
14,548
5,389
Other long-term liabilities
44,503
51,409
Shareholders' equity
510,345
527,286
Total
     liabilities and shareholders' equity
$
971,174
$
1,026,357
LA-Z-BOY INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Quarter Ended
Unaudited Year Ended
(Amounts in thousands)
4/29/06
4/30/05
4/29/06
4/30/05
Cash flows from operating activities
Net income
     (loss)
$
(10,270
)
$
20,756
$
(3,041
)
$
37,185
Adjustments to reconcile net income
     (loss) to
cash provided by operating activities
Write-down of intangibles
22,695
--
22,695
--
Extraordinary gains (net of tax)
--
(1,392
)
--
(2,094
)
Gain on sale of discontinued operations (net of tax)
--
(668
)
--
(668
)
Restructuring
(1,768
)
(3,107
)
6,643
10,294
Depreciation and amortization
7,559
7,175
29,234
28,329
Change in allowance for doubtful accounts
1,361
(3,639
)
1,805
(3,189
)
Change in working capital
14,676
435
35,844
(35,524
)
Change
     in deferred taxes
3,646
12,514
(3,403
)
11,632
Total adjustments
48,169
11,318
92,818
8,780
Net cash provided by operating activities
37,899
32,074
89,777
45,965
Cash flows from investing activities
Proceeds from disposals of assets
2,874
5,621
11,499
11,226
Proceeds from sale of discontinued operations
--
10,985
--
10,985
Capital expenditures
(7,512
)
(7,759
)
(27,991
)
(34,771
)
Purchases of investments
(3,309
)
(6,037
)
(25,289
)
(14,890
)
Proceeds from sale of investments
3,106
1,156
12,221
8,164
Acquisitions, net of cash acquired
--
(6,806
)
--
(6,806
)
Change in other long-term assets
1,347
5,410
(1,113
)
2,105
Net cash  used for investing activities
(3,494
)
2,570
(30,673
)
(23,987
)
Cash flows from financing activities
Net changes in debt
(26,048
)
(17,124
)
(43,102
)
1,939
Stock transactions
724
692
(7,211
)
2,097
Dividends paid
(5,723
)
(5,753
)
(22,923
)
(22,868
)
Net cash

     provided by (used for) financing activities
(31,047
)
(22,185
)
(73,236
)
(18,832
)
Effect of exchange rate changes on cash
     and equivalents
223
(748
)
516
677
Change in cash and equivalents
3,581
11,711
(13,616
)
3,823
Cash and equivalents at beginning of period
20,508
25,994
37,705
33,882
Cash and equivalents at end of period
$
24,089
$
37,705
$
24,089
$
37,705
LA-Z-BOY INCORPORATED
Segment Information
Unaudited
For the Quarter Ended
Unaudited
For the Year Ended
(Amounts in thousands)
4/29/06
(13 weeks)
4/30/05
(14 weeks)
4/29/06
(52 weeks)
4/30/05
(53 weeks)
Sales
Upholstery
Group
$
361,595
$
413,240
$
1,347,964
$
1,467,311
Casegoods
Group
113,449
123,542
432,307
455,343
Retail Group
54,106
49,385
213,438
173,099
VIEs/Eliminations
(20,788
)
(20,612
)
(76,932
)
(47,372
)
Consolidated
$
508,362
$
565,555
$
1,916,777
$
2,048,381
Operating income
(loss)
Upholstery
Group
$
32,285
$
38,930
$
85,253
$
101,856
Casegoods
Group
5,159
2,638
18,265
5,370
Retail
Group
(8,537
)
(3,701
)
(26,006
)
(2,859
)
Corporate and other*
(8,028
)
(8,306
)
(29,048
)
(30,422
)
Restructuring
1,768
3,107
(6,643
)
(10,294
)
Write-down of intangibles
(22,695
)
--
(22,695
)
--
Consolidated
$
(48
)
$
32,668
$
19,126
$
63,651
* Variable Interest Entities ("VIEs") 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 112
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 April 29, 2006 and April 30, 2005 and statement of operations for the
fourth quarter and year ended April 29, 2006 and April 30, 2005.  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 Condensed Consolidated Balance Sheet
VIEs
(
Unaudited, amounts in thousands)
4/29/06
4/30/05
Current assets
Cash and equivalents
$
2,554
$
1,699
Receivables, net
(1)
(20,507
)
(9,131
)
Inventories, net
12,795
7,211
Deferred income taxes
10,194
7,199
Other current assets
1,487
1,226
Total
      current assets
6,523
8,204
Property,
      plant and equipment, net
12,965
8,431
Intangibles
8,122
7,714
Other long-term assets
(1)
(19,000
)
(14,169
)
Total
      assets
$
8,610
$
10,180
Current liabilities
Current portion of long-term debt
$
1,587
$
1,934
Accounts payable
1,390
329
Other
      current liabilities
6,146
3,523
Total
      current liabilities
9,123
5,786
Long-term debt
6,764
6,256
Other
      long-term liabilities
(1,632
)
(1,300
)
Shareholders' deficit
(5,645
)
(562
)
Total
      liabilities and shareholders' equity
$
8,610
$
10,180
(1)
Includes the elimination of intercompany accounts and notes
receivable.
LA-Z-BOY INCORPORATED
Impact of FIN 46 on Condensed Consolidated
Statement of Operations
Quarter Ended
For Year Ended
(Unaudited,
amounts in thousands)
4/29/06
4/30/05
4/29/06
4/30/05
Sales
(2)
$
9,534
$
7,877
$
36,806
$
46,019
Cost of sales
(2)
267
(1,217
)
4,488
1,224
Gross profit
9,267
9,094
32,318
44,795
Selling, general and administrative
11,488
11,115
38,438
49,825
Operating
loss
(2,221
)
(2,021
)
(6,120
)
(5,030
)
Interest expense
117
97
504
427
Other expense, net
(3)
(276
)
(1,092
)
(1,260
)
(4,154
)
Pre-tax
loss
(2,614
)
(3,210
)
(7,884
)
(9,611
)
Income tax benefit
(993
)
(1,221
)
(2,996
)
(3,652
)
Net  loss from continuing operations
$
(1,621
)
$
(1,989
)
$
(4,888
)
$
(5,959
)
(2)
Includes the elimination of intercompany sales and cost of
sales.
(3)
Includes
the elimination of intercompany interest income and interest expense.
Exhibit 99.2
LA-Z-BOY INCORPORATED
Unaudited Quarterly Financial Data
(Amounts in thousands, except per share data)
Quarter
      ended
7/30/05
(13 weeks)
10/29/05
(13 weeks)
1/28/06
(13 weeks)
4/29/06
(13 weeks)
Sales
$
451,487
$
454,605
$
502,323
$
508,362
Cost of sales
Cost
    of goods sold
345,018
354,409
377,937
380,601
Restructuring
--
7,817
594
(1,768
)
Total cost of sales
345,018
362,226
378,531
378,833
Gross profit
106,469
92,379
123,792
129,529
Selling,
      general and administrative
98,568
99,597
105,301
106,882
Write-down of
    intangibles
--
--
--
22,695
Operating income (loss)
7,901
(7,218
)
18,491
(48
)
Interest
      expense
2,741
3,090
2,965
2,744
Other
      income, net
15
295
1,395
142
Pre-tax income (loss)
5,175
(10,013
)
16,921
(2,650
)
Income tax expense (benefit)
1,967
(3,566
)
6,453
7,620
Net income
    (loss)
$
3,208
$
(6,447
)
$
10,468
$
(10,270
)
Diluted
      weighted average shares outstanding
52,195
51,655
51,857
51,747
Diluted
    net income (loss) per share
$
0.06
$
(0.12
)
$
0.20
$
(0.20
)
LA-Z-BOY INCORPORATED
Unaudited Quarterly Financial Data
(Amounts in thousands, except per share data)
Quarter
      ended
7/24/04
(13 weeks)
10/23/04
(13 weeks)
1/22/05
(13 weeks)
4/30/05
(14 weeks)
Sales
$
455,107
$
520,760
$
506,959
$
565,555
Cost of sales
Cost
    of goods sold
351,716
400,834
385,353
434,941
Restructuring
10,400
749
2,252
(3,107
)
Total cost of sales
362,116
401,583
387,605
431,834
Gross profit
92,991
119,177
119,354
133,721
Selling,
      general and administrative
97,045
103,874
99,620
101,053
Operating income (loss)
(4,054
)
15,303
19,734
32,668
Interest
      expense
2,209
2,607
2,684
2,942
Other
    income (expense), net
373
(354
)
273
(122
)
Income (loss) from continuing operations before income taxes
(5,890
)
12,342
17,323
29,604
Income tax
    expense (benefit)
(2,238
)
4,690
6,583
11,249
Income
    (loss) from continuing operations
(3,652
)
7,652
10,740
18,355
Income (loss) from discontinued operations (net of tax)
129
506
352
1,009
Cumulative effect of accounting change (net of tax)
--
702
--
1,392
Net income
    (loss)
$
(3,523
)
$
8,860
$
11,092
$
20,756
Diluted
      weighted average shares outstanding
51,967
52,101
52,193
52,262
Diluted
    income (loss)  from continuing operations per share
$
(0.07
)
$
0.15
$
0.21
$
0.35
Diluted
    net income (loss) per share
(0.07
)
0.17
0.21
0.40
Exhibit 99.3
NEWS RELEASE
Contact:  Mark Stegeman
(734) 241-4418
mark.stegeman@la-z-boy.com
LA-Z-BOY BOARD
NOMINATES NEW MEMBER
MONROE, MI. June 6, 2006 –
La-Z-Boy Incorporated
(NYSE, PCX: LZB)
today announced that its Board of Directors
nominated Nido Qubein to its Board. Qubein will run for election at the Annual
Stockholders' Meeting in August to serve as a director for a term of three years.
Qubein, 57, currently the President
of High Point University, in High Point, North Carolina, serves on the Board of BB&T
Corporation and is the Chairman of a number of companies, including: Great Harvest Bread
Company; Business Life, Inc., a publishing company; McNeil Lehman, Inc., a public
relations and advertising firm; and Creative Services, Inc., an international management
consulting firm. He is also a world renowned public speaker and serves on the boards of
several national organizations, including the YMCA of the USA.
Kurt Darrow, La-Z-Boy President and
Chief Executive Officer, said, "We are honored Nido has accepted the Board's
nomination. He is an extraordinarily accomplished individual who has achieved great
success in business and now in the academic world. A strategic thinker with a unique point
of view, he has made monumental changes to High Point University and will undoubtedly make
a significant contribution to our company."
Qubein is the recipient of a number
of honors and awards, including, among others: the Horatio Alger Award; the Ellis Island
Medal of Honor; and Citizen of the Year and Philanthropist of the Year from the city of
High Point, North Carolina. He is also the Chairman of the High Point Community Foundation
and is Chairman Emeritus of the National Speakers Association Foundation.
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: (a) changes in consumer confidence; (b) changes in
demographics; (c) changes in housing sales; (d) the impact of terrorism or war; (e)
continued energy price changes; (f) the impact of logistics on imports; (g) the impact of
interest rate changes; (h) the potential disruptions from Chinese imports; (i) inventory
supply price fluctuations; (j) the impact of imports as it relates to continued domestic
production; (k) changes in currency exchange rates; (l) competitive factors; (m) operating
factors, such as supply, labor, or distribution disruptions including changes in operating
conditions or costs; (n) effects of restructuring actions; (o) changes in the domestic or
international regulatory environment; (p) not fully realizing cost reductions through
restructurings; (q) ability to implement global sourcing organization strategies; (r) the
impact of new manufacturing technologies; (s) the future financial performance and
condition of independently operated dealers that we are required to consolidate into our
financial statements or changes requiring us to consolidate additional independently
operated dealers; (t) fair value changes to our intangible assets due to actual results
differing from projected; (u) the impact of adopting new accounting principles; (v) the
impact from severe weather such as hurricanes and tornadoes; (w) the ability to turn
around under-performing retail stores; (x) the impact of retail store relocation costs,
the success of new stores or the timing of converting stores to the New Generation format;
(y) the ability to procure fabric rolls or cut-and-sewn sets domestically or abroad; and
(z) factors relating to acquisitions and other factors identified from time to time in our
reports filed with the Securities and Exchange Commission. We undertake no obligation to
update or revise any forward-looking statements, either to reflect new developments, or
for any other reason.
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
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 337 stand-alone La-Z-Boy Furniture Galleries® stores
and 340 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/
.