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

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

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

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<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;August 22, 2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>


                                     (Date of Report (Date of Earliest Event Reported))</FONT></P>

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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>
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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) 241-4074</u></P>
<br>
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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;
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Former
name, former address and former fiscal year, if changed since last report.) </FONT></P>
<br>
<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><br>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.02&nbsp; Results of Operations and
Financial Condition.</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
August 22, 2005, La-Z-Boy Incorporated issued a press release to report the company&#146;s
financial results for the quarter  ended July 30, 2005. A copy of the
press release is attached to this current report on Form 8-K as Exhibit 99.1. </FONT></TD>
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<p><FONT SIZE="2">
The information shall not be
deemed &#147;filed&#148; for purposes of Section 18 of the Securities Exchange Act of 1934
(the &#147;Exchange Act&#148;) or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference in any filing under the Securities Act of
1933 or the Exchange Act, except as expressly set forth by specific reference in such a
filing. </FONT></p>

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

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&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>
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     <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 August 22, 2005</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=3% ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">4</font></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<H1 ALIGN=Left>&nbsp;</h1>


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


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


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<TD WIDTH=40%>&nbsp;</TD>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>LA-Z-BOY
INCORPORATED</B><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Registrant)</FONT><br></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: August 22, 2005 </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>On behalf of the registrant and as<br>Chief Accounting Officer</FONT>


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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">
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<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>
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     <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>
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<FONT FACE="Times New Roman, Times, Serif" SIZE="2">
<H1 ALIGN=CENTER>&nbsp;</H1></FONT>

<H1 ALIGN=CENTER><u><FONT FACE="Times New Roman, Times, Serif" SIZE=3>LA-Z-BOY REPORTS
FIRST-QUARTER OPERATING RESULTS </FONT></u></H1>

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<P>&nbsp;</P>

<P><font size="2">MONROE, MI. August 22, 2005 &#150;
La-Z-Boy Incorporated <B>(NYSE, PCX: LZB)</B> today reported its operating results for the
first quarter ended July 30, 2005. Net sales for the quarter were $451 million, compared
with $455 million in the prior fiscal year&#146;s first quarter. Net income for the
quarter was $3.2 million, or $0.06 per share, versus a loss of $3.5 million, or $0.07 per
share, in the comparable period last year. The operating margin for the first quarter was
1.7% compared with a loss of 0.9% last year, which included 2.3% of restructuring charges.
</font> </P>

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<P><font size="2">Kurt L. Darrow, President and CEO,
said, &#147;Year over year, we are encouraged with the profitability improvement we
achieved at the wholesale level. However, our results for the quarter were impacted
primarily by two factors, as detailed in our July 28, 2005 release: a weaker-than-expected
retail environment in what is typically the slowest quarter of the year; and,
greater-than-expected expenses and costs from the additional 21 La-Z-Boy Furniture
Galleries&reg; stores acquired in the fourth quarter of fiscal 2005. Although momentum
slowed due to seasonal factors, we look forward to the stronger Fall selling season with a
solid business model in place.&#148; </font> </P>

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<P><font size="2">Darrow added, &#147;Now that our
company-owned La-Z-Boy Furniture Galleries&reg; stores represent a more significant
portion of our overall business, we have aligned our management reporting structure,
accordingly. Beginning with this quarter&#146;s results, we have broadened our segment
reporting to include three business lines &#150; upholstery, casegoods and retail &#150;
and have restated last year&#146;s numbers to reflect the three segments. This will give
investors better visibility and transparency.&#148; </font> </P>

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<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upholstery Segment </FONT>
</u></H1>

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<P><font size="2">For the fiscal 2006 first quarter,
upholstery sales were flat compared with the prior-year period while the operating margin
improved year over year from 4.2% to 4.9%. Darrow noted, &#147;We are transforming our
manufacturing and sourcing process into an efficient and lean globally integrated system,
and when combined with the strength of our La-Z-Boy brand, our platform from which to grow
will be inevitably stronger.&#148; </font> </P>

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<P><font size="2">Darrow continued, &#147;Noteworthy in
the quarter was our La-Z-Boy Furniture Galleries dealer meeting, held in Las Vegas, where
we rolled out our Furniture Galleries Excellence Program, a tool designed to assist
dealers in operating their stores with best practices across a multiple of disciplines,
including: marketing; sales; merchandising; operations; and administration. The program
will give dealers several benchmarks and metrics to evaluate their performance, training
and tools to achieve those benchmarks. We are confident this new program will continue to
strengthen our dealer network. </font> </P>

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<P><font size="2">&#147;During the first quarter, we
continued to expand the La-Z-Boy Furniture Galleries&reg; store system, which includes
both company-owned and independent licensed stores. Our system opened four additional
stores, closed two and remodeled and/or relocated five stores, bringing our total store
count to 336, of which 61 are company owned, and 118 are in the new format. Since rolling
out the &#145;New Generation&#146; format program, we have seen a significant increase in
traffic levels, greater total sales volumes and higher average sales per square foot. For
the full fiscal year, we plan to open 45 to 50 new format stores, with at least 20 of
those being new stores and the remainder being store remodels or relocations. Increasing
the quality and focus of our proprietary store program is of paramount importance.&#148;
</font> </P>


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<P><font size="2">System-wide, including company-owned
and independent licensee stores, same-store written sales, which the company tracks as an
indicator of retail activity, for the second calendar quarter, were down 1.3%, and total
sales, which include new stores, increased 2.9%. </font> </P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Casegoods Segment</u> </FONT></H1>

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<P><font size="2">Casegoods sales were $105 million for
the fiscal 2006 first quarter. Darrow said, &#147;Although our sales were relatively flat
year over year after two quarters of increases, we are pleased that our operating margin
in this segment of the business continues to improve. For this quarter, the operating
margin was 4.1% compared with 0.5% in the prior-year period and 2.1% last quarter as our
residential business has moved primarily to an import model. Our sales in the hospitality
portion of this segment continue to strengthen with a concurrent increase in operating
margin. Overall, we are beginning to achieve the type of results in the casegoods segment
that we expected when we changed our business model.&#148; </font> </P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Retail Segment</u> </FONT></H1>

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<P><font size="2">For the quarter, retail sales were up
$14.2 million to $52.7 million, a 36.9% increase from last year&#146;s first quarter. The
increase was due primarily to the acquisition of stores in several markets, which the
company will build out, including two unprofitable VIEs and the Chicagoland market. On an
operating basis, the segment incurred a loss as a result of slower retail sales throughout
all the company&#146;s markets and greater-than-anticipated expenses and transition costs
from the 21 stores acquired in the fiscal 2005 fourth quarter. </font> </P>


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<P><font size="2">Darrow noted, &#147;Refreshing
merchandise on the floor and moving out older inventory adversely impacted the gross
margin. Longer term, we will need to invest in updating information systems as well as
relocating and refurbishing a number of stores. Same-store company-owned written sales for
the second calendar quarter were down 1.7% while total sales increased 2.0%. It is
important to note that last year the unprofitable VIEs were consolidated in
&#145;Corporate and Other,&#146; while this year, the two acquired VIEs are included in
our Retail Segment&#146;s income statement. We recorded a $0.04 loss in last year&#146;s
first quarter for VIEs and $0.11 for the full year. For the first quarter of fiscal 2006,
we recorded a loss of $0.02 for VIEs.&#148; </font> </P>


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<P><font size="2">Darrow continued, &#147;Our overall
retail volume was weaker than anticipated during the period. Although it was a challenging
quarter, we are excited about the future of this business and are committed to it as a
core element of our three-part business strategy. Our company-owned stores are in larger
urban markets where we can build out our store program to achieve significant market
penetration and distribution efficiencies. Our proprietary retail system helps to
differentiate La-Z-Boy from commodity products and it is a natural extension to broaden
and strengthen the power of our brand. Additionally, it positions us to better understand
the market firsthand so that we can help all dealers be successful. The retail business is
an offensive move for us and we are assembling the right team to build this segment of our
business profitably.&#148; </font> </P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Variable Interest
Entities (VIEs)</u> </FONT></H1>

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<P><font size="2">Last year, VIEs were included in
&#147;Corporate and Other;&#148; this year, those now owned by the company are included in
the Retail Segment, with those not owned by the company remaining in &#147;Corporate and
Other.&#148; </font> </P>

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<P><font size="2">Performance by the company&#146;s
VIEs impacted results for the period. A fourth VIE was added during the quarter and the
three that were expected to report breakeven results for the period, were slightly
unprofitable. Darrow said, &#147;While we fully expect these four VIEs to be profitable
for the full year, we understand, due to seasonality, there may be quarters when they will
lose money and they, too, were hurt by the unusually slower retail environment this
Summer.&#148; </font> </P>

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<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance Sheet </FONT>
</u></H1>

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<P><font size="2">For the quarter, cash flow from
operations was $19.8 million. Total debt for the quarter was down to $219 million. The
debt-to-capitalization ratio was 29.7% at quarter end, down slightly from last quarter.
Darrow commented, &#147;Although our target for debt to total capital is in the mid 20s,
given our share price, we were opportunistic during the quarter and repurchased 500,000
shares at an average price of $14.49. We have 6.2 million shares remaining in our
program.&#148; </font></P>

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<A NAME=A007><font size="2"></font></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Business Outlook</u>  </FONT></H1>

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<P><font size="2">Darrow explained, &#147;While we have
continued to make steady progress in the evolution of our business model, we remain
concerned with several macro economic factors, including continued rising energy prices
and interest rates, which could impact the industry&#146;s growth prospects and dampen
consumer confidence. Additionally, there has been fierce competition for consumers&#146;
discretionary income, with employee pricing offers from the automotive industry, which is
contributing to weak retail furniture demand. &#147; </font> </P>


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<P><font size="2">Darrow continued, &#147;With the
current tepid view on our industry, we expect our second quarter sales to decrease in the
low single-digit range compared with last year&#146;s second quarter sales of $521
million. Reported earnings for the second fiscal quarter are forecasted to be in the range
of $0.17 &#151; $0.21 per share. This compares to earnings of $0.17 per share in fiscal
2005&#145;s second quarter, which included an after-tax restructuring charge of $0.01 per
share and an extraordinary gain of $0.01 per share.&#148; </font></P>


<font size="2">

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
</font>
<A NAME=A008><font size="2"></font></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Forward-looking
Information</u>  </FONT></H1>

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

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


<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additional Information </FONT>
</u></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><font 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 size="2" COLOR="#0000FF"><U>http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx</U>.


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
</font>
<A NAME=A010><font size="2"></font></A>
</p>
<H1 ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Background Information </FONT>
</u></H1>

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

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><font size="2">The corporation&#146;s vast
proprietary distribution network is dedicated exclusively to selling La-Z-Boy Incorporated
products and brands, and includes 336 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>

<!-- MARKER FORMAT-SHEET="Center Rule" FSL="Default" -->
     <P ALIGN=CENTER>&nbsp;</P>
<p>&nbsp;</p>
<HR SIZE="2" COLOR="Black">




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

<b>
<FONT face="Times New Roman, Times, Serif" size=3>
CONSOLIDATED STATEMENT OF OPERATIONS </FONT>

</b>

</P>

<P align=center><I><font size="2">(Unaudited,
amounts in thousands, except per share data) </font> </I></P>
<TABLE cellSpacing=0 cellPadding=0 width=576>

  <TR vAlign=bottom>
    <TH width=202 colSpan=3>&nbsp;</TH>
    <TH width=374 colSpan=15><FONT face="Times New Roman, Times, Serif"
      size=1>First Quarter Ended</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TH width=202 colSpan=3>&nbsp;</TH>
    <TH width=82 colSpan=3>&nbsp;</TH>
    <TH width=69 colSpan=3>&nbsp;</TH>
    <TH width=73 colSpan=3><FONT face="Times New Roman, Times, Serif" size=2>%
      Over</FONT></TH>
    <TH width=150 colSpan=6><FONT face="Times New Roman, Times, Serif"
      size=2>Percent of Sales</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TH width=202 colSpan=3>&nbsp;</TH>
    <TH width=82 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=2>7/30/05</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=69 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=2>7/24/04</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=73 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=2>(Under)</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=72 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=2>7/30/05</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=78 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=2>7/24/04</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Sales</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><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>$</FONT></TD>
    <TD align=right width=58><FONT size=2>451,487</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>455,107</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>-0.8</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>100.0</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>100.0</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=202 colSpan=3></TD>
    <TD width=82 colSpan=3></TD>
    <TD width=69 colSpan=3></TD>
    <TD width=73 colSpan=3></TD>
    <TD width=72 colSpan=3></TD>
    <TD width=78 colSpan=3></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194>&nbsp;</TD>
    <TD align=left width=4>&nbsp;</TD>
    <TD align=left width=4>&nbsp;</TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58>&nbsp;</TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=45>&nbsp;</TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=15>&nbsp;</TD>
    <TD align=right width=38>&nbsp;</TD>
    <TD align=left width=20>&nbsp;</TD>
    <TD align=right width=10>&nbsp;</TD>
    <TD align=right width=36>&nbsp;</TD>
    <TD align=left width=26>&nbsp;</TD>
    <TD align=right width=15>&nbsp;</TD>
    <TD align=right width=37>&nbsp;</TD>
    <TD align=left width=26>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT size=2>Cost of sales</FONT></TD>
    <TD align=left width=4>&nbsp;</TD>
    <TD align=left width=4>&nbsp;</TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58>&nbsp;</TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=45>&nbsp;</TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=15>&nbsp;</TD>
    <TD align=right width=38>&nbsp;</TD>
    <TD align=left width=20>&nbsp;</TD>
    <TD align=right width=10>&nbsp;</TD>
    <TD align=right width=36>&nbsp;</TD>
    <TD align=left width=26>&nbsp;</TD>
    <TD align=right width=15>&nbsp;</TD>
    <TD align=right width=37>&nbsp;</TD>
    <TD align=left width=26>&nbsp;</TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp; Cost of goods sold</FONT></TD>
    <TD align=left width=4>&nbsp;</TD>
    <TD align=left width=4>&nbsp;</TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58><FONT size=2>345,018</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>351,716</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>-1.9</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>76.4</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>77.3</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp; Restructuring</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58><FONT size=2>--</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>10,400</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>-100.0</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>--</FONT></TD>
    <TD align=left width=26>&nbsp;</TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT size=2>2.3</FONT></TD>
    <TD align=left width=26>%</TD></TR>
  <TR>
    <TD width=202 colSpan=3></TD>
    <TD align=right width=70 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=57 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=53 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=20></TD>
    <TD align=right width=46 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26>&nbsp;</TD>
    <TD align=right width=52 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Total cost of sales</FONT></TD>
    <TD align=left width=4>&nbsp;</TD>
    <TD align=left width=4>&nbsp;</TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58><FONT size=2>345,018</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>362,116</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=15>&nbsp;</TD>
    <TD align=right width=38><FONT size=2>-4.7</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=10>&nbsp;</TD>
    <TD align=right width=36><FONT size=2>76.4</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15>&nbsp;</TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>79.6</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=202 colSpan=3></TD>
    <TD align=right width=70 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=57 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=53 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=20></TD>
    <TD align=right width=46 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26>&nbsp;</TD>
    <TD align=right width=52 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><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=58><FONT size=2>106,469</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>92,991</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>14.5</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>23.6</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>20.4</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Selling, general and administrative</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58><FONT size=2>98,568</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>97,045</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>1.6</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>21.8</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>21.3</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=202 colSpan=3></TD>
    <TD align=right width=70 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=57 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=53 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=20></TD>
    <TD align=right width=46 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26>&nbsp;</TD>
    <TD align=right width=52 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Operating income (loss)</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><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=58><FONT size=2>7,901</FONT></TD>
    <TD align=left width=12><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=45><FONT face="Times New Roman, Times, Serif"
      size=2>(4,054</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>294.9</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>1.7</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>-0.9</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Interest expense</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><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=58><FONT size=2>2,741</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>2,209</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>24.1</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>0.6</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>0.5</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Other income, net</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><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=58><FONT size=2>15</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>373</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>-96.0</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>0.0</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>0.1</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=202 colSpan=3></TD>
    <TD align=right width=70 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=57 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=53 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=20></TD>
    <TD align=right width=46 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26>&nbsp;</TD>
    <TD align=right width=52 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26></TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Income (loss) from continuing
      <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations before income taxes</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD vAlign=bottom align=right width=58><FONT size=2>5,175</FONT></TD>
    <TD vAlign=bottom align=left width=12>&nbsp;</TD>
    <TD vAlign=bottom align=right width=12><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=45><FONT
      face="Times New Roman, Times, Serif" size=2>(5,890</FONT></TD>
    <TD vAlign=bottom align=left width=12><FONT
      face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=15></TD>
    <TD vAlign=bottom align=right width=38><FONT size=2>187.9</FONT></TD>
    <TD vAlign=bottom align=left width=20><FONT
      face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
    <TD vAlign=bottom align=right width=10><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=36><FONT size=2>1.1</FONT></TD>
    <TD vAlign=bottom align=left width=26><FONT size=2>%</FONT></TD>
    <TD vAlign=bottom align=right width=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=37><FONT
      face="Times New Roman, Times, Serif" size=2>-1.3</FONT></TD>
    <TD vAlign=bottom align=left width=26><FONT
      face="Times New Roman, Times, Serif" size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Income tax expense (benefit)</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58><FONT size=2>1,967</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>(2,238</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>187.9</FONT></TD>
    <TD align=left width=20><FONT face="Times New Roman, Times, Serif"
      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=36><FONT size=2>38.0</FONT></TD>
    <TD align=left width=26><FONT size=2>%*</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>38.0</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%*</FONT></TD></TR>
  <TR>
    <TD width=202 colSpan=3></TD>
    <TD align=right width=70 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=57 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=53 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=20></TD>
    <TD align=right width=46 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26>&nbsp;</TD>
    <TD align=right width=52 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Income (loss) from continuing
      <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58><FONT size=2>3,208</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>(3,652</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>187.8</FONT></TD>
    <TD align=left width=20><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=36><FONT size=2>0.7</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>-0.8</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Income from discontinued <BR>&nbsp;&nbsp;&nbsp;&nbsp; operations
      (net of tax)</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=12>&nbsp;</TD>
    <TD align=right width=58><FONT size=2>--</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>129</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>-100.0</FONT></TD>
    <TD align=left width=20><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=36><FONT size=2>--</FONT></TD>
    <TD align=left width=26>&nbsp;</TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>0.0</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=202 colSpan=3></TD>
    <TD align=right width=70 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=57 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=53 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=20></TD>
    <TD align=right width=46 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26>&nbsp;</TD>
    <TD align=right width=52 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=26></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Net income (loss)</FONT></TD>
    <TD align=left width=4><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=4><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>$</FONT></TD>
    <TD align=right width=58><FONT size=2>3,208</FONT></TD>
    <TD align=left width=12>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=45><FONT face="Times New Roman, Times, Serif"
      size=2>(3,523</FONT></TD>
    <TD align=left width=12><FONT size=2>)</FONT></TD>
    <TD align=right width=15></TD>
    <TD align=right width=38><FONT size=2>191.1</FONT></TD>
    <TD align=left width=20><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=36><FONT size=2>0.7</FONT></TD>
    <TD align=left width=26><FONT size=2>%</FONT></TD>
    <TD align=right width=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=37><FONT face="Times New Roman, Times, Serif"
      size=2>-0.8</FONT></TD>
    <TD align=left width=26><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD></TR>
  <TR>
    <TD width=202 colSpan=3></TD>
    <TD align=right width=70 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD>
    <TD align=right width=57 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD>
    <TD align=right width=53 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=20></TD>
    <TD align=right width=46 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=26></TD>
    <TD align=right width=52 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=26></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=358>

  <TR vAlign=bottom>
    <TH width=207 colSpan=3>&nbsp;</TH>
    <TH width=85 colSpan=3>&nbsp;</TH>
    <TH width=63 colSpan=3>&nbsp;</TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic average shares</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=7>&nbsp;</TD>
    <TD align=right width=68><FONT size=2>52,129</FONT></TD>
    <TD align=left width=10>&nbsp;</TD>
    <TD align=right width=5><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=57><FONT size=2>51,967</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=207 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=10></TD>
    <TD align=right width=62 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD></TR>
  <TR>
    <TD width=194></TD></TR>
  <TR>
    <TD width=207 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>&nbsp;</TD>
    <TD width=10></TD>
    <TD align=right width=62 colSpan=2>&nbsp;</TD>
    <TD width=12></TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic income (loss) from <BR>&nbsp;&nbsp;&nbsp; continuing
      operations per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=7><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width=68><FONT size=2>0.06</FONT></TD>
    <TD vAlign=bottom align=left width=10>&nbsp;</TD>
    <TD vAlign=bottom align=right width=5><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD vAlign=bottom align=right width=57><FONT size=2>(0.07</FONT></TD>
    <TD vAlign=bottom align=left width=12><FONT size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Basic net income (loss) per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=7><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=68><FONT size=2>0.06</FONT></TD>
    <TD align=left width=10>&nbsp;</TD>
    <TD align=right width=5><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=57><FONT size=2>(0.07</FONT></TD>
    <TD align=left width=12><FONT size=2>)</FONT></TD></TR>
  <TR>
    <TD width=207 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=10></TD>
    <TD align=right width=62 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted average shares</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=7><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=68><FONT size=2>52,195</FONT></TD>
    <TD align=left width=10><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=5><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=57><FONT size=2>51,967</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=207 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=10></TD>
    <TD align=right width=62 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD></TR>
  <TR>
    <TD width=207 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>&nbsp;</TD>
    <TD width=10></TD>
    <TD align=right width=62 colSpan=2>&nbsp;</TD>
    <TD width=12></TD></TR>
  <TR>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted income (loss) from <BR>&nbsp;&nbsp;&nbsp; continuing
      operations per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=7><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=68><FONT size=2>0.06</FONT></TD>
    <TD align=left width=10>&nbsp;</TD>
    <TD align=right width=5><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=57><FONT size=2>(0.07</FONT></TD>
    <TD align=left width=12><FONT size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Diluted net income (loss) <BR>&nbsp;&nbsp;&nbsp;&nbsp; per
      share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=7><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=68><FONT size=2>0.06</FONT></TD>
    <TD align=left width=10>&nbsp;</TD>
    <TD align=right width=5><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=57><FONT size=2>(0.07</FONT></TD>
    <TD align=left width=12><FONT size=2>)</FONT></TD></TR>
  <TR>
    <TD width=207 colSpan=3></TD>
    <TD align=right width=75 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=10></TD>
    <TD align=right width=62 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD></TR>
  <TR>
    <TD width=207 colSpan=3></TD>
    <TD width=85 colSpan=3></TD>
    <TD width=74 colSpan=3></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=194><FONT face="Times New Roman, Times, Serif"
      size=2>Dividends paid per share</FONT></TD>
    <TD align=left width=3><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=7><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=68><FONT size=2>0.11</FONT></TD>
    <TD align=left width=10></TD>
    <TD align=right width=5><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=57><FONT size=2>0.11</FONT></TD>
    <TD align=left width=12></TD></TR></TABLE><!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P>*As a percent of pretax income, not sales. </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">CONSOLIDATED BALANCE SHEET</FONT></B></P>



<P align=center><FONT face="Times New Roman, Times, Serif" size=2><I>(Unaudited,
amounts in thousands)</I></font> </P>
<TABLE cellSpacing=0 cellPadding=0 width=672>

  <TR vAlign=bottom>
    <TH width=245 colSpan=3>&nbsp;</TH>
    <TH width=99 colSpan=3>&nbsp;</TH>
    <TH width=99 colSpan=3>&nbsp;</TH>
    <TH width=160 colSpan=6><FONT face="Times New Roman, Times, Serif"
      size=1>Increase/(Decrease)</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH width=69 colSpan=3>&nbsp;</TH></TR>
  <TR vAlign=bottom>
    <TH width=245 colSpan=3>&nbsp;</TH>
    <TH width=99 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=1>7/30/05</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=99 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=1>7/24/04</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=76 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=1>Dollars</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=84 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=1>Percent</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH width=69 colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=1>4/30/05</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Current assets</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66>&nbsp;</TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64>&nbsp;</TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49>&nbsp;</TD>
    <TD align=left width=16><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=54>&nbsp;</TD>
    <TD align=left width=16><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=49>&nbsp;</TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Cash and equivalents</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=66><FONT size=2>19,011</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=64><FONT size=2>28,965</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49><FONT size=2>(9,954</FONT></TD>
    <TD align=left width=16><FONT size=2>)</FONT></TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>-34.4</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49><FONT face="Times New Roman, Times, Serif"
      size=2>37,705</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Receivables, net</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>248,677</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>250,081</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(1,404</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-0.6</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>283,915</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>264,739</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>275,852</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(11,113</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-4.0</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>260,556</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>26,048</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>42,707</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(16,659</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-39.0</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>22,779</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Other current assets</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>21,195</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>27,316</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(6,121</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-22.4</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>33,410</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=245 colSpan=3></TD>
    <TD align=right width=87 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=86 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16>&nbsp;</TD>
    <TD align=right width=68 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16></TD>
    <TD align=right width=61 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current
      assets</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>579,670</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>624,921</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(45,251</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-7.2</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>638,365</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Property, plant and equipment, net</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>213,287</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>206,622</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>6,665</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>3.2</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>210,565</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Goodwill</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>79,770</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>68,116</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>11,654</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>17.1</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>79,362</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Trade names</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>21,484</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>27,889</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(6,405</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-23.0</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>21,484</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Other long-term assets</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>86,284</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>83,651</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>2,633</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>3.1</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>76,581</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=245 colSpan=3></TD>
    <TD align=right width=87 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=86 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16>&nbsp;</TD>
    <TD align=right width=68 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16></TD>
    <TD align=right width=61 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      assets</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=66><FONT size=2>980,495</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=64><FONT size=2>1,011,199</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49><FONT size=2>(30,704</FONT></TD>
    <TD align=left width=16><FONT size=2>)</FONT></TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>-3.0</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49><FONT face="Times New Roman, Times, Serif"
      size=2>1,026,357</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=245 colSpan=3></TD>
    <TD align=right width=87 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD>
    <TD align=right width=86 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=13></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16></TD>
    <TD align=right width=68 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16></TD>
    <TD align=right width=61 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=8></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Current liabilities</FONT></TD>
    <TD align=left width=14><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></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=66><FONT size=2>22,000</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=64><FONT size=2>6,000</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49><FONT size=2>16,000</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>266.7</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      size=2>%&nbsp;</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49><FONT face="Times New Roman, Times, Serif"
      size=2>9,700</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term</FONT></TD>
    <TD align=left width=14><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></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;debt </FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>2,801</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>1,864</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>937</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>50.3</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>3,060</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>69,342</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>85,186</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(15,844</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-18.6</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>82,792</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other</FONT></TD>
    <TD align=left width=14><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></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;current
      liabilities</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>112,587</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>113,317</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(730</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-0.6</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>133,172</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=245 colSpan=3></TD>
    <TD align=right width=87 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=86 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16></TD>
    <TD align=right width=68 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16></TD>
    <TD align=right width=61 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current
      liabilities</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>206,730</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>206,367</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>363</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>0.2</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>228,724</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Long-term debt</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>194,687</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>232,833</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(38,146</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-16.4</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>213,549</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Deferred income taxes</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>5,420</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>20,030</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(14,610</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-72.9</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>5,389</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Other long-term liabilities</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>54,965</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>39,585</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>15,380</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>38.9</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>51,409</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Contingencies and commitments</FONT></TD>
    <TD align=left width=14><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></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>Shareholders' equity</FONT></TD>
    <TD align=left width=14><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></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Common shares, $1 par value</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>51,806</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>52,003</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(197</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-0.4</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>52,225</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>213,578</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>215,822</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(2,244</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-1.0</FONT></TD>
    <TD align=left width=16><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=49><FONT face="Times New Roman, Times, Serif"
      size=2>214,087</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>265,274</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>243,208</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>22,066</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>9.1</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>273,143</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Unearned compensation</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>(1,367</FONT></TD>
    <TD align=left width=12><FONT size=2>)</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>--</FONT></TD>
    <TD align=left width=13>&nbsp;</TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(1,367</FONT></TD>
    <TD align=left width=16><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=54><FONT size=2>N/M</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT face="Times New Roman, Times, Serif"
      size=2>(1,536</FONT></TD>
    <TD align=left width=8><FONT size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive
      <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income
    (loss)</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>(10,598</FONT></TD>
    <TD align=left width=12><FONT size=2>)</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>1,351</FONT></TD>
    <TD align=left width=13>&nbsp;</TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>(11,949</FONT></TD>
    <TD align=left width=16><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=54><FONT size=2>-884.5</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>(10,633</FONT></TD>
    <TD align=left width=8><FONT size=2>)</FONT></TD></TR>
  <TR>
    <TD width=245 colSpan=3></TD>
    <TD align=right width=87 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=86 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16></TD>
    <TD align=right width=68 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16></TD>
    <TD align=right width=61 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders'
      equity</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=66><FONT size=2>518,693</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=64><FONT size=2>512,384</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=49><FONT size=2>6,309</FONT></TD>
    <TD align=left width=16>&nbsp;</TD>
    <TD align=right width=14><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=54><FONT size=2>1.2</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      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=49><FONT face="Times New Roman, Times, Serif"
      size=2>527,286</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=245 colSpan=3></TD>
    <TD align=right width=87 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=12></TD>
    <TD align=right width=86 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=13></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16></TD>
    <TD align=right width=68 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16></TD>
    <TD align=right width=61 colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=8></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities
      and</FONT></TD>
    <TD align=left width=14><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></TR>
  <TR vAlign=bottom>
    <TD align=left width=219><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders'
      equity</FONT></TD>
    <TD align=left width=14><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=21><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=66><FONT size=2>980,495</FONT></TD>
    <TD align=left width=12><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=22><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=64><FONT size=2>1,011,199</FONT></TD>
    <TD align=left width=13><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width=11><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49><FONT size=2>(30,704</FONT></TD>
    <TD align=left width=16><FONT 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=54><FONT size=2>-3.0</FONT></TD>
    <TD align=left width=16><FONT face="Times New Roman, Times, Serif"
      size=2>%</FONT></TD>
    <TD align=right width=12><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width=49><FONT face="Times New Roman, Times, Serif"
      size=2>1,026,357</FONT></TD>
    <TD align=left width=8><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width=245 colSpan=3></TD>
    <TD align=right width=87 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=12></TD>
    <TD align=right width=86 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=13></TD>
    <TD align=right width=60 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16></TD>
    <TD align=right width=68 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16></TD>
    <TD align=right width=61 colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=8></TD></TR></TABLE><!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><font size="2">N/M = not meaningful </font>
<BR>&nbsp;</P>

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




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




<TABLE cellSpacing=0 cellPadding=0 width="90%" align=center border=0>

  <TR vAlign=bottom>
    <TH colSpan=3 height=27>&nbsp;</TH>
    <TH colSpan=6 height=27><FONT face="Times New Roman, Times, Serif"
      size=1>First Quarter Ended</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TH colSpan=3 height=27>&nbsp;</TH>
    <TH colSpan=3 height=27><FONT face="Times New Roman, Times, Serif"
      size=1>7/30/05</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height=27><FONT face="Times New Roman, Times, Serif"
      size=1>7/24/04</FONT>
      <HR width="95%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%" height=19><B><FONT
      face="Times New Roman, Times, Serif" size=2>Cash flows from operating
      activities</FONT></B></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="7%" 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="7%" height=19>&nbsp;</TD>
    <TD align=left width="4%" 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;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>$</FONT></TD>
    <TD align=right height=19><FONT size=2>3,208</FONT></TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>$</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></TR>
  <TR vAlign=bottom>
    <TD align=left height=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to
      cash provided</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;&nbsp;by (used for)
      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=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>--</FONT></TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>10,400</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;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
      amortization</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>6,998</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>6,908</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;&nbsp;&nbsp;&nbsp;&nbsp;Change in receivables</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>34,842</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>51,440</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;&nbsp;&nbsp;&nbsp;&nbsp;Change in inventories</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>(781</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>(27,284</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;&nbsp;&nbsp;&nbsp;&nbsp;Change in payables</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>(13,959</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>(8,112</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=15><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other assets and
      liabilities</FONT></TD>
    <TD align=left height=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>(7,301</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 size=2>(29,843</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;&nbsp;&nbsp;&nbsp;&nbsp;Change in deferred
    taxes</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>(3,238</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>(4,927</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 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;&nbsp;&nbsp;&nbsp;Total
      adjustments</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>16,561</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>(1,418</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 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash provided by (used for) operating activities</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>19,769</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>(4,941</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><B><FONT face="Times New Roman, Times, Serif"
      size=2>Cash flows from investing activities</FONT></B></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>&nbsp;&nbsp;&nbsp;Proceeds from disposals of assets</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>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>268</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; Purchases
    of investments</font></TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=right height=19>&nbsp;</TD>
    <TD align=right height=19><font size="2">(11,938</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">(1,506</font></TD>
    <TD align=left height=19>
    <font face="Times New Roman, Times, Serif" size="2">)</font></TD>
  </tr>
  <tr>
    <TD align=left height=19>
    <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Proceeds  from
    sale of investments</font></TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=right height=19>&nbsp;</TD>
    <TD align=right height=19><font size="2">2,143</font></TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=right height=19>&nbsp;</TD>
    <TD align=right height=19><font size="2">2,539</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;Capital expenditures</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>(6,713</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>(9,474</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;&nbsp;Change in other long-term assets</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>(2,065</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>(1,828</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 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;Net cash used for investing
      activities</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>(18,571</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>(10,001)</FONT></TD>
    <TD align=left height=19>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height=15><B><FONT face="Times New Roman, Times, Serif"
      size=2>Cash flows from financing activities</FONT></B></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>&nbsp;&nbsp;&nbsp;Proceeds from debt</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>46,079</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>69,743</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;&nbsp;Payments on debt</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19>&nbsp;</TD>
    <TD align=right height=19><FONT size=2>(53,905</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>(53,416</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;&nbsp;Stock issued for stock and employee benefit
      plans</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19>&nbsp;</TD>
    <TD align=right height=19><FONT size=2>1,000</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>1,482</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;&nbsp;Repurchase of common stock</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19>&nbsp;</TD>
    <TD align=right height=19><FONT size=2>(7,247</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>(2,476</FONT></TD>
    <TD align=left height=19><FONT size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;Dividends paid</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19>&nbsp;</TD>
    <TD align=right height=19><FONT size=2>(5,758</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>(5,649</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></TR>
  <TR vAlign=bottom>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used for)
      financing activities</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>(19,831</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>9,684</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>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 size=2>(61</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>341</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 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>Net decrease in cash and equivalents</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>(18,694</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>(4,917</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>Cash and equivalents at beginning of period</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT size=2>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 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 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>Cash and equivalents at end of period</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right height=19><FONT size=2>19,011</FONT></TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right height=19><FONT size=2>28,965</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></TR>
  <TR vAlign=bottom>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>Cash paid (net of refunds) during period&nbsp;-&nbsp;Income
      taxes</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right height=19><FONT size=2>(5,633</FONT></TD>
    <TD align=left height=19><FONT size=2>)</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right height=19><FONT size=2>7,414</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;&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;Interest</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right height=19><FONT size=2>3,222</FONT></TD>
    <TD align=left height=19>&nbsp;</TD>
    <TD align=right height=19><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right height=19><FONT size=2>2,552</FONT></TD>
    <TD align=left height=19><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR></TABLE>




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


<HR SIZE="2" COLOR="Black">
&nbsp;<p align="center"><FONT face="Times New Roman, Times, Serif" color=blue size="3"><B>
LA-Z-BOY INCORPORATED</B></FONT><BR><font size="3"><b>IMPACT OF FIN46 ON
CONSOLIDATION</b></font></p>
<TABLE cellSpacing=0 cellPadding=0 width="616" align=center>

  <tr>
    <TH align=left colSpan=3 width="414" height="13">
    </TH>
    <TH colSpan=6 width="202"><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="103"><FONT face="Times New Roman, Times, Serif"
      size=1>7/30/05</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 width="99" 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>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="29" 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="57" height="19">&nbsp;</TD>
    <TD align=left width="28" 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>$</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">2,933</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>1,699</FONT></TD>
    <TD align=left width="28" 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;Accounts receivable, 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">(9,397</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>) <i>(1)</i>&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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(9,131</FONT></TD>
    <TD align=left width="28" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>) <i>(1)</i>&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;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">9,399</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>7,211</FONT></TD>
    <TD align=left width="28" 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">7,681</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>7,199</FONT></TD>
    <TD align=left width="28" 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">1,268</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>1,226</FONT></TD>
    <TD align=left width="28" 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="29" height="15"></TD>
    <TD align=right colSpan=2 width="71" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="28" 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">11,884</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>8,204</FONT></TD>
    <TD align=left width="28" 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">9,692</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>8,431</FONT></TD>
    <TD align=left width="28" 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="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>7,714</FONT></TD>
    <TD align=left width="28" 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 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">(18,535</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>) <i>(1)</i>&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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(14,169</FONT></TD>
    <TD align=left width="28" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>) <i>(1)&nbsp;</i></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="29" height="15"></TD>
    <TD align=right colSpan=2 width="71" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="28" 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>$</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">11,163</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>10,180</FONT></TD>
    <TD align=left width="28" 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="29" height="16"></TD>
    <TD align=right colSpan=2 width="71" height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width="28" height="16"></TD>
    </TR>
  <TR>
    <TD colSpan=3 width="414" height="1"></TD>
    <TD colSpan=3 width="103" height="1"></TD>
    <TD colSpan=3 width="99" height="1"></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>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></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; Short-term borrowings</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>$</FONT></TD>
    <TD align=right width="60" height="19"><font size="2">--</font></TD>
    <TD align=left width="29" height="19">&nbsp;</TD>
    <TD align=right width="14" height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="57" height="19">
    <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
    <TD align=left width="28" height="19">&nbsp;</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;&nbsp;Current portion of long-term debt</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">&nbsp;</TD>
    <TD align=right width="60" height="19"><font size="2">1,573</font></TD>
    <TD align=left width="29" height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="19">&nbsp;</TD>
    <TD align=right width="57" height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>1,934</FONT></TD>
    <TD align=left width="28" 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;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">596</font></TD>
    <TD align=left width="29" 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="57" height="15">
    <font face="Times New Roman, Times, Serif" size="2">329</font></TD>
    <TD align=left width="28" 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">4,152</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>3,523</FONT></TD>
    <TD align=left width="28" 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="29" height="15"></TD>
    <TD align=right colSpan=2 width="71" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="28" 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">6,321</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>5,786</FONT></TD>
    <TD align=left width="28" 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">7,311</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>6,256</FONT></TD>
    <TD align=left width="28" 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>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">196</font></TD>
    <TD align=left width="29" 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="57" height="15">
    <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
    <TD align=left width="28" 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">(1,300</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(1,300</FONT></TD>
    <TD align=left width="28" 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' equity
    (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">(1,365</font></TD>
    <TD align=left width="29" height="19"><font size="2">)</font></TD>
    <TD align=right width="14" height="19">&nbsp;</TD>
    <TD align=right width="57" height="19"><font size="2">(562</font></TD>
    <TD align=left width="28" height="19">)</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="29" height="15"></TD>
    <TD align=right colSpan=2 width="71" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="28" 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>$</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">11,163</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>10,180</FONT></TD>
    <TD align=left width="28" 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="29" height="16"></TD>
    <TD align=right colSpan=2 width="71" height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width="28" height="16"></TD>
    </TR></TABLE>

<p>
<i><font size="2">(1)</font></i><font size="2"> Reflects the elimination of intercompany accounts and notes receivable.
</font>


</p>


<TABLE cellSpacing=0 cellPadding=0 width="616" align=center>

  <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="103"><FONT face="Times New Roman, Times, Serif"
      size=1>7/30/05</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 width="99" height="13"><FONT face="Times New Roman, Times, Serif"
      size=1>7/24/04</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15">
    <font face="Times New Roman, Times, Serif" size="2">Sales</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>$</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">8,586</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp; <i>(2)</i>&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>13,641</FONT></TD>
    <TD align=left width="28" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;<i> (2)</i></FONT></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15">
    <font face="Times New Roman, Times, Serif" size="2">Cost of sales</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">2,466</font></TD>
    <TD align=left width="29" 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="57" height="15">
    <font face="Times New Roman, Times, Serif" size="2">942</font></TD>
    <TD align=left width="28" 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="29" height="15"></TD>
    <TD align=right colSpan=2 width="71" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="28" 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;Gross profit</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">6,120</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>12,699</FONT></TD>
    <TD align=left width="28" 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">Selling, general and
    administrative</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">6,801</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>14,676</FONT></TD>
    <TD align=left width="28" 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="29" height="15"></TD>
    <TD align=right colSpan=2 width="71" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="28" 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;Operating income (loss)</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">(681</font></TD>
    <TD align=left width="29" 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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(1,977</FONT></TD>
    <TD align=left width="28" 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">Interest expense</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">108</font></TD>
    <TD align=left width="29" 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="57" height="15">
    <font face="Times New Roman, Times, Serif" size="2">167</font></TD>
    <TD align=left width="28" 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 expense, 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">(480</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;<i>(3)</i></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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(1,294</FONT></TD>
    <TD align=left width="28" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;<i>(3)</i></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="29" height="15"></TD>
    <TD align=right colSpan=2 width="71" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="28" height="15"></TD>
    </tr>
  <tr>
    <TD align=left width="402" height="15">
    <font face="Times New Roman, Times, Serif" size="2">Pre-tax loss</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">(1,269</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>)</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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(3,438</FONT></TD>
    <TD align=left width="28" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>)<i>&nbsp;</i></FONT></TD>
    </tr>
  <TR vAlign=bottom>
    <TD align=left width="402" height="15">
    <font face="Times New Roman, Times, Serif" size="2">Income tax benefit</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">(482</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>)</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="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(1,306</FONT></TD>
    <TD align=left width="28" height="15"><FONT face="Times New Roman, Times, Serif"
      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="29" height="15"></TD>
    <TD align=right colSpan=2 width="71" height="15">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width="28" 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;Net loss from continuing operations</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>$</FONT></TD>
    <TD align=right width="60" height="15"><font size="2">(787</font></TD>
    <TD align=left width="29" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right width="14" height="15"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right width="57" height="15"><FONT face="Times New Roman, Times, Serif"
      size=2>(2,132</FONT></TD>
    <TD align=left width="28" 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="29" height="16"></TD>
    <TD align=right colSpan=2 width="71" height="16">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width="28" height="16"></TD>
    </TR>
  </TABLE>

<p>
<i><font size="2">(2)</font></i><font size="2"> Includes the elimination of intercompany sales and cost of sales. <i><BR>(3)</i> Includes the elimination of intercompany interest income and interest expense.<br>


</font>


</p>



<p style="text-align:left"><font size="2">La-Z-Boy Furniture Galleries&reg;
stores that are not operated by us are operated by 118 independent dealers.
These stores sell La-Z-Boy manufactured product as well as various accessories
purchased from approved La-Z-Boy vendors.&nbsp; In some cases we have extended credit
beyond normal trade terms to the independent dealers, made direct loans and/or
guaranteed certain loans or leases.&nbsp; Most of these independent dealers have
sufficient equity to carry out their principal operating activities without
subordinated financial support; however, there are certain independent dealers
that we have determined may not have sufficient equity. &nbsp;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 table below shows the impact on our
consolidated balance sheet at July 30, 2005 and April 30, 2005 and statement of
operations for the quarters ended July 30, 2005 and July 24, 2004.&nbsp; The amounts reflected in the
table include the elimination of related payables, receivables, sales, cost of
sales, and interest as well as profit in inventory.</font></p>



<p style="text-align:justify">&nbsp;</p>



<p style="text-align:center"><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>
LA-Z-BOY INCORPORATED</B></FONT><BR><b>SEGMENT INFORMATION</b></p>
<p ><FONT face="Times New Roman, Times, Serif" size="2">Our reportable
operating segments are the Upholstery Group, the Retail Group and the Casegoods
Group.</FONT></p>
<TABLE align=center cellSpacing=0 cellPadding=0 width=590 border=0>

  <TR vAlign=bottom>
    <TH align=left width=182 colSpan=3 height=50>
    <p align="center">&nbsp;</TH>
    <TH width=87 colSpan=3 height=50><FONT size=2>First Quarter Ended</FONT>
      <HR align=left width="88%">
    </TH>
    <TH width=315 colSpan=12 height=50><FONT size=2>Quarters Ended in Fiscal
      2005</FONT>
      <HR width="100%">
    </TH>
    <TH width=8 height=50>&nbsp;</TH></TR>
  <TR vAlign=bottom>
    <TH align=left width=182 colSpan=3 height=47><FONT
      face="Times New Roman, Times, Serif" size=1>(<I>Unaudited amounts in
      thousands) </I></FONT></TH>
    <TH align=center width=87 colSpan=3 height=47><FONT
      face="Times New Roman, Times, Serif" size=1>7/30/05<BR>(13 Weeks)</FONT>
      <HR width="75%">
       </TH>
    <TH width=87 colSpan=3 height=47><FONT
      face="Times New Roman, Times, Serif" size=1>7/24/04 <BR>(13 Weeks)</FONT>
      <HR width="75%">
       </TH>
    <TH align=center width=94 colSpan=3 height=47><FONT
      face="Times New Roman, Times, Serif" size=1>10/23/04<BR>(13 Weeks)</FONT>
      <HR width="75%">
       </TH>
    <TH width=87 colSpan=3 height=47><FONT
      face="Times New Roman, Times, Serif" size=1>1/22/05 <BR>(13 Weeks)</FONT>
      <HR width="75%">
       </TH>
    <TH width=87 colSpan=4 height=47><FONT
      face="Times New Roman, Times, Serif" size=1>4/30/05<BR>(14 Weeks)</FONT>
      <HR width="85%">
       </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>Sales</FONT></TD>
    <TD align=left width=4 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=59 height=19>&nbsp;</TD>
    <TD align=left width=19 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19>&nbsp;</TD>
    <TD align=left width=17 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19>&nbsp;</TD>
    <TD align=left width=21 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19>&nbsp;</TD>
    <TD align=left width=16 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=50 colSpan=2 height=19>&nbsp;</TD>
    <TD align=right width=8 height=19></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Upholstery
      Group</FONT></TD>
    <TD align=left width=4 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width=59 height=19><FONT size=2>314,481</FONT></TD>
    <TD align=left width=19 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>316,838</FONT></TD>
    <TD align=left width=17 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>380,726</FONT></TD>
    <TD align=left width=21 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>356,507</FONT></TD>
    <TD align=left width=16 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width=61 colSpan=2 height=19><FONT
size=2>413,240</FONT></TD>
    <TD align=right width=8 height=19></TD></TR>
  <TR>
    <TD align=left width=172 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Casegoods
      Group</FONT></TD>
    <TD align=left width=4 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=59 height=19><FONT size=2>104,997</FONT></TD>
    <TD align=left width=19 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>105,714</FONT></TD>
    <TD align=left width=17 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>114,169</FONT></TD>
    <TD align=left width=21 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>111,918</FONT></TD>
    <TD align=left width=16 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 colSpan=2 height=19><FONT
size=2>123,542</FONT></TD>
    <TD align=right width=8 height=19></TD></TR>
  <TR>
    <TD align=left width=172 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Retail
    Group</FONT></TD>
    <TD align=left width=4 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=59 height=19><FONT size=2>52,655</FONT></TD>
    <TD align=left width=19 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>38,456</FONT></TD>
    <TD align=left width=17 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>40,960</FONT></TD>
    <TD align=left width=21 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>44,298</FONT></TD>
    <TD align=left width=16 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=bottom align=right width=61 colSpan=2 height=19><FONT
      size=2>49,385</FONT></TD>
    <TD align=left width=8 height=19 valign="bottom"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=15><FONT
      face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;VIEs/Eliminations</FONT></TD>
    <TD align=left width=4 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=59 height=15><FONT size=2>(20,646</FONT></TD>
    <TD align=left width=19 height=15><FONT size=2>)</FONT></TD>
    <TD align=right width=9 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>(5,901</FONT></TD>
    <TD align=left width=17 height=15><FONT size=2>)</FONT></TD>
    <TD align=right width=12 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>(15,095</FONT></TD>
    <TD align=left width=21 height=15><FONT size=2>)</FONT></TD>
    <TD align=right width=10 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>(5,764</FONT></TD>
    <TD align=left width=16 height=15><FONT size=2>)</FONT></TD>
    <TD align=right width=12 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 colSpan=2 height=15><FONT
size=2>(20,612</FONT></TD>
    <TD align=left width=8 height=15>
      <P align=left><FONT size=2>)</FONT></P></TD></TR>
  <TR>
    <TD width=182 colSpan=3 height=15></TD>
    <TD align=right width=68 colSpan=2 height=15>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=19 height=15></TD>
    <TD align=right width=70 colSpan=2 height=15>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=17 height=15></TD>
    <TD align=right width=73 colSpan=2 height=15>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=21 height=15></TD>
    <TD align=right width=71 colSpan=2 height=15>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height=15></TD>
    <TD align=right width=73 colSpan=4 height=15>
      <HR color=black noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=19><FONT
      face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Consolidated</FONT></TD>
    <TD align=left width=4 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT size=2>$</FONT></TD>
    <TD align=right width=59 height=19><FONT size=2>451,487</FONT></TD>
    <TD align=left width=19 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>455,107</FONT></TD>
    <TD align=left width=17 height=19>&nbsp;</TD>
    <TD align=right width=12 height=19><FONT size=2>$</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>520,760</FONT></TD>
    <TD align=left width=21 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>506,959</FONT></TD>
    <TD align=left width=16 height=19>&nbsp;</TD>
    <TD align=right width=12 height=19><FONT size=2>$</FONT></TD>
    <TD align=right width=61 colSpan=2 height=19><FONT
      size=2>565,555 </FONT></TD>
    <TD align=right width=8 height=19></TD></TR>
  <TR>
    <TD width=182 colSpan=3 height=16></TD>
    <TD align=right width=68 colSpan=2 height=16>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=19 height=16></TD>
    <TD align=right width=70 colSpan=2 height=16>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=17 height=16></TD>
    <TD align=right width=73 colSpan=2 height=16>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=21 height=16></TD>
    <TD align=right width=71 colSpan=2 height=16>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=21 height=16></TD>
    <TD align=right width=73 colSpan=4 height=16>
      <HR color=black noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>Operating income
    (loss)</FONT></TD>
    <TD align=left width=4 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Upholstery
      Group</FONT></TD>
    <TD align=left width=4 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=59 height=19><FONT size=2>15,254</FONT></TD>
    <TD align=left width=19 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>13,198</FONT></TD>
    <TD align=left width=17 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>27,475</FONT></TD>
    <TD align=left width=21 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>22,253</FONT></TD>
    <TD align=left width=16 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=61 colSpan=2 height=19><FONT size=2>38,930
      </FONT></TD>
    <TD align=right width=8 height=19></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Casegoods
      Group</FONT></TD>
    <TD align=left width=4 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=59 height=15><FONT size=2>4,344</FONT></TD>
    <TD align=left width=19 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=15></TD>
    <TD align=right width=61 height=15><FONT size=2>500</FONT></TD>
    <TD align=left width=17 height=15></TD>
    <TD align=right width=12 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>80</FONT></TD>
    <TD align=left width=21 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=15></TD>
    <TD align=right width=61 height=15><FONT size=2>2,152</FONT></TD>
    <TD align=left width=16 height=15></TD>
    <TD align=right width=12 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 colSpan=2 height=15><FONT size=2>2,638
      </FONT></TD>
    <TD align=left width=8 height=15></TD></TR>
  <TR>
    <TD align=left width=172 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Retail
    Group</FONT></TD>
    <TD align=left width=4 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=59 height=15><FONT size=2>(5,408</FONT></TD>
    <TD align=left width=19 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
    <TD align=right width=9 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>515</FONT></TD>
    <TD align=left width=17 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>510</FONT></TD>
    <TD align=left width=21 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>(183</FONT></TD>
    <TD align=left width=16 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
    <TD align=right width=12 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 colSpan=2 height=15><FONT
      size=2>(3,701</FONT></TD>
    <TD align=left width=12 height=15 valign="bottom"><font size="2">)&nbsp;</font></TD>
    </TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Corporate and
      Other*</FONT></TD>
    <TD align=left width=4 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=59 height=15><FONT size=2>(6,289</FONT></TD>
    <TD align=left width=19 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
    <TD align=right width=9 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>(7,867</FONT></TD>
    <TD align=left width=17 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
    <TD align=right width=12 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>(12,013</FONT></TD>
    <TD align=left width=21 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
    <TD align=right width=10 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 height=15><FONT size=2>(2,236</FONT></TD>
    <TD align=left width=16 height=15><FONT size=2>)</FONT><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=15><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=61 colSpan=2 height=15><FONT size=2>(8,306</FONT></TD>
    <TD align=left width=12 height=15><FONT size=2>)</FONT></TD>
    </TR>
  <TR>
    <TD width=182 colSpan=3 height=19><FONT size=2>&nbsp;
    Restructuring</FONT></TD>
    <TD align=right width=68 colSpan=2 height=19>--</TD>
    <TD width=19 height=19>&nbsp;</TD>
    <TD align=right width=70 colSpan=2 height=19><FONT
size=2>(10,400</FONT></TD>
    <TD width=17 height=19><FONT size=2>)</FONT></TD>
    <TD align=right width=73 colSpan=2 height=19><FONT size=2>(749</FONT></TD>
    <TD width=21 height=19><FONT size=2>)</FONT></TD>
    <TD align=right width=71 colSpan=2 height=19><FONT size=2>(2,252</FONT></TD>
    <TD width=16 height=19><FONT size=2>)</FONT></TD>
    <TD align=right width=12 height=19><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=bottom align=right width=61 height=19><FONT
    size=2>3,107</FONT></TD>
    <TD vAlign=bottom align=right width=9 colSpan=2 height=19></TD></TR>
  <TR>
    <TD width=182 colSpan=3 height=15></TD>
    <TD align=right width=68 colSpan=2 height=15>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=19 height=15></TD>
    <TD align=right width=70 colSpan=2 height=15>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=17 height=15></TD>
    <TD align=right width=73 colSpan=2 height=15>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=21 height=15></TD>
    <TD align=right width=71 colSpan=2 height=15>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD width=16 height=15></TD>
    <TD align=right width=73 colSpan=4 height=15>
      <HR color=black noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width=172 height=19><FONT
      face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Consolidated</FONT></TD>
    <TD align=left width=4 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=left width=6 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=59 height=19><FONT size=2>7,901</FONT></TD>
    <TD align=left width=19 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=9 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>(4,054</FONT></TD>
    <TD align=left width=17 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>15,303</FONT></TD>
    <TD align=left width=21 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=10 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=61 height=19><FONT size=2>19,734</FONT></TD>
    <TD align=left width=16 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right width=12 height=19><FONT
      face="Times New Roman, Times, Serif" size=2>$&nbsp;</FONT></TD>
    <TD align=right width=61 colSpan=2 height=19><FONT
      size=2>32,668</FONT></TD>
    <TD align=right width=8 height=19></TD></TR>
  <TR>
    <TD width=182 colSpan=3 height=14></TD>
    <TD align=right width=68 colSpan=2 height=14>
      <HR color=black noShade SIZE=2>

      <P>&nbsp;</P></TD>
    <TD width=19 height=14></TD>
    <TD vAlign=top align=right width=70 colSpan=2 height=14>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=17 height=14></TD>
    <TD align=right width=73 colSpan=2 height=14>
      <HR color=black noShade SIZE=2>

      <P>&nbsp;</P></TD>
    <TD width=21 height=14></TD>
    <TD vAlign=top align=right width=71 colSpan=2 height=14>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD width=16 height=14></TD>
    <TD align=right width=73 colSpan=4 height=14>
      <HR color=black noShade SIZE=2>

      <P>&nbsp;</P></TD></TR></TABLE>









<p align="left"><I><FONT size=2>*VIEs are included in corporate and other.</FONT></I></p>









</BODY>
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[{"type": "8-K", "sequence": "1", "filename": "eightkfinal.htm", "secsgml_size_bytes": 215822}]
{"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": "051041839"}, "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
August 22, 2005
(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) 241-4074
None
(Former
name, former address and former fiscal year, 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
August 22, 2005, La-Z-Boy Incorporated issued a press release to report the company's
financial results for the quarter  ended July 30, 2005. A copy of the
press release is attached to this current report on Form 8-K as Exhibit 99.1.
The information shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934
(the "Exchange Act") or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference in any filing under the Securities Act of
1933 or the Exchange Act, except as expressly set forth by specific reference in such a
filing.
Item 9.01  Financial
Statements and Exhibits
(c)       
          The following exhibits are furnished as part of this report:
Description
Page #
99
.1
Press Release Dated August 22, 2005
4
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
LA-Z-BOY
INCORPORATED
——————————————
(Registrant)
Date: August 22, 2005
BY: /S/ Louis M. Riccio, Jr.
——————————————
Louis M. Riccio, Jr.
Corporate Controller
On behalf of the registrant and as
Chief Accounting Officer
Exhibit 99.1
NEWS RELEASE
Contact:  Mark Stegeman
(734) 241-4418
mark.stegeman@la-z-boy.com
LA-Z-BOY REPORTS
FIRST-QUARTER OPERATING RESULTS
MONROE, MI. August 22, 2005 –
La-Z-Boy Incorporated
(NYSE, PCX: LZB)
today reported its operating results for the
first quarter ended July 30, 2005. Net sales for the quarter were $451 million, compared
with $455 million in the prior fiscal year's first quarter. Net income for the
quarter was $3.2 million, or $0.06 per share, versus a loss of $3.5 million, or $0.07 per
share, in the comparable period last year. The operating margin for the first quarter was
1.7% compared with a loss of 0.9% last year, which included 2.3% of restructuring charges.
Kurt L. Darrow, President and CEO,
said, "Year over year, we are encouraged with the profitability improvement we
achieved at the wholesale level. However, our results for the quarter were impacted
primarily by two factors, as detailed in our July 28, 2005 release: a weaker-than-expected
retail environment in what is typically the slowest quarter of the year; and,
greater-than-expected expenses and costs from the additional 21 La-Z-Boy Furniture
Galleries® stores acquired in the fourth quarter of fiscal 2005. Although momentum
slowed due to seasonal factors, we look forward to the stronger Fall selling season with a
solid business model in place."
Darrow added, "Now that our
company-owned La-Z-Boy Furniture Galleries® stores represent a more significant
portion of our overall business, we have aligned our management reporting structure,
accordingly. Beginning with this quarter's results, we have broadened our segment
reporting to include three business lines – upholstery, casegoods and retail –
and have restated last year's numbers to reflect the three segments. This will give
investors better visibility and transparency."
Upholstery Segment
For the fiscal 2006 first quarter,
upholstery sales were flat compared with the prior-year period while the operating margin
improved year over year from 4.2% to 4.9%. Darrow noted, "We are transforming our
manufacturing and sourcing process into an efficient and lean globally integrated system,
and when combined with the strength of our La-Z-Boy brand, our platform from which to grow
will be inevitably stronger."
Darrow continued, "Noteworthy in
the quarter was our La-Z-Boy Furniture Galleries dealer meeting, held in Las Vegas, where
we rolled out our Furniture Galleries Excellence Program, a tool designed to assist
dealers in operating their stores with best practices across a multiple of disciplines,
including: marketing; sales; merchandising; operations; and administration. The program
will give dealers several benchmarks and metrics to evaluate their performance, training
and tools to achieve those benchmarks. We are confident this new program will continue to
strengthen our dealer network.
"During the first quarter, we
continued to expand the La-Z-Boy Furniture Galleries® store system, which includes
both company-owned and independent licensed stores. Our system opened four additional
stores, closed two and remodeled and/or relocated five stores, bringing our total store
count to 336, of which 61 are company owned, and 118 are in the new format. Since rolling
out the 'New Generation' format program, we have seen a significant increase in
traffic levels, greater total sales volumes and higher average sales per square foot. For
the full fiscal year, we plan to open 45 to 50 new format stores, with at least 20 of
those being new stores and the remainder being store remodels or relocations. Increasing
the quality and focus of our proprietary store program is of paramount importance."
System-wide, including company-owned
and independent licensee stores, same-store written sales, which the company tracks as an
indicator of retail activity, for the second calendar quarter, were down 1.3%, and total
sales, which include new stores, increased 2.9%.
Casegoods Segment
Casegoods sales were $105 million for
the fiscal 2006 first quarter. Darrow said, "Although our sales were relatively flat
year over year after two quarters of increases, we are pleased that our operating margin
in this segment of the business continues to improve. For this quarter, the operating
margin was 4.1% compared with 0.5% in the prior-year period and 2.1% last quarter as our
residential business has moved primarily to an import model. Our sales in the hospitality
portion of this segment continue to strengthen with a concurrent increase in operating
margin. Overall, we are beginning to achieve the type of results in the casegoods segment
that we expected when we changed our business model."
Retail Segment
For the quarter, retail sales were up
$14.2 million to $52.7 million, a 36.9% increase from last year's first quarter. The
increase was due primarily to the acquisition of stores in several markets, which the
company will build out, including two unprofitable VIEs and the Chicagoland market. On an
operating basis, the segment incurred a loss as a result of slower retail sales throughout
all the company's markets and greater-than-anticipated expenses and transition costs
from the 21 stores acquired in the fiscal 2005 fourth quarter.
Darrow noted, "Refreshing
merchandise on the floor and moving out older inventory adversely impacted the gross
margin. Longer term, we will need to invest in updating information systems as well as
relocating and refurbishing a number of stores. Same-store company-owned written sales for
the second calendar quarter were down 1.7% while total sales increased 2.0%. It is
important to note that last year the unprofitable VIEs were consolidated in
'Corporate and Other,' while this year, the two acquired VIEs are included in
our Retail Segment's income statement. We recorded a $0.04 loss in last year's
first quarter for VIEs and $0.11 for the full year. For the first quarter of fiscal 2006,
we recorded a loss of $0.02 for VIEs."
Darrow continued, "Our overall
retail volume was weaker than anticipated during the period. Although it was a challenging
quarter, we are excited about the future of this business and are committed to it as a
core element of our three-part business strategy. Our company-owned stores are in larger
urban markets where we can build out our store program to achieve significant market
penetration and distribution efficiencies. Our proprietary retail system helps to
differentiate La-Z-Boy from commodity products and it is a natural extension to broaden
and strengthen the power of our brand. Additionally, it positions us to better understand
the market firsthand so that we can help all dealers be successful. The retail business is
an offensive move for us and we are assembling the right team to build this segment of our
business profitably."
Variable Interest
Entities (VIEs)
Last year, VIEs were included in
"Corporate and Other;" this year, those now owned by the company are included in
the Retail Segment, with those not owned by the company remaining in "Corporate and
Other."
Performance by the company's
VIEs impacted results for the period. A fourth VIE was added during the quarter and the
three that were expected to report breakeven results for the period, were slightly
unprofitable. Darrow said, "While we fully expect these four VIEs to be profitable
for the full year, we understand, due to seasonality, there may be quarters when they will
lose money and they, too, were hurt by the unusually slower retail environment this
Summer."
Balance Sheet
For the quarter, cash flow from
operations was $19.8 million. Total debt for the quarter was down to $219 million. The
debt-to-capitalization ratio was 29.7% at quarter end, down slightly from last quarter.
Darrow commented, "Although our target for debt to total capital is in the mid 20s,
given our share price, we were opportunistic during the quarter and repurchased 500,000
shares at an average price of $14.49. We have 6.2 million shares remaining in our
program."
Business Outlook
Darrow explained, "While we have
continued to make steady progress in the evolution of our business model, we remain
concerned with several macro economic factors, including continued rising energy prices
and interest rates, which could impact the industry's growth prospects and dampen
consumer confidence. Additionally, there has been fierce competition for consumers'
discretionary income, with employee pricing offers from the automotive industry, which is
contributing to weak retail furniture demand. "
Darrow continued, "With the
current tepid view on our industry, we expect our second quarter sales to decrease in the
low single-digit range compared with last year's second quarter sales of $521
million. Reported earnings for the second fiscal quarter are forecasted to be in the range
of $0.17 — $0.21 per share. This compares to earnings of $0.17 per share in fiscal
2005's second quarter, which included an after-tax restructuring charge of $0.01 per
share and an extraordinary gain of $0.01 per share."
Forward-looking
Information
Any forward-looking statements
contained in this news release are based on current information and assumptions and
represent management's best judgment at the present time. Actual results could differ
materially from those anticipated or projected due to a number of factors. These factors
include, but are not limited to: changes in consumer confidence, changes in demographics,
changes in housing sales, the impact of terrorism or war, energy price changes, the impact
of logistics on imports, the impact of interest rate changes, the effects of the ruling on
tariffs by the U.S. Department of Commerce and potential disruptions from Chinese imports,
the availability and cost of capital, the impact of imports as it relates to continued
domestic production, raw material price changes, changes in currency rates, competitive
factors, operating factors, such as supply, labor, or distribution disruptions including
changes in operating conditions or costs, effects of restructuring actions, changes in the
domestic or international regulatory environment, not fully realizing cost reductions
through restructurings, ability to implement global sourcing organization
strategies, the future financial performance and condition of independently
owned dealers that we are required to consolidate into our financial statements
or changes requiring us to consolidate additional independently owned dealers,
the impact of new manufacturing technologies, the impact of adopting new
accounting principles, fair value changes to our intangible assets due to actual
results differing from projected, the impact of severe weather, factors relating
to acquisitions and other factors identified from time to time in the company's
reports filed with the Securities and Exchange Commission.
Additional Information
This news release is just one part of
La-Z-Boy's financial disclosures and should be read in conjunction with other
information filed with the Securities and Exchange Commission, which is available at
http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx
. Investors and
others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly
investor conference calls may sign up at:
http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx
.
Background Information
With annual sales of over $2 billion,
La-Z-Boy Incorporated is one of the world's leading residential furniture producers,
marketing furniture for every room of the home, as well as for the hospitality, health
care and assisted-living industries. The La-Z-Boy Upholstery Group companies are Bauhaus,
Centurion, Clayton Marcus, England, La-Z-Boy, and Sam Moore. The La-Z-Boy Casegoods Group
companies are American Drew, American of Martinsville, Hammary, Kincaid, Lea and
Pennsylvania House.
The corporation's vast
proprietary distribution network is dedicated exclusively to selling La-Z-Boy Incorporated
products and brands, and includes 336 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
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited,
amounts in thousands, except per share data)
First Quarter Ended
%
      Over
Percent of Sales
7/30/05
7/24/04
(Under)
7/30/05
7/24/04
Sales
$
451,487
$
455,107
-0.8
%
100.0
%
100.0
%
Cost of sales
Cost of goods sold
345,018
351,716
-1.9
%
76.4
%
77.3
%
Restructuring
--
10,400
-100.0
%
--
2.3
%
Total cost of sales
345,018
362,116
-4.7
%
76.4
%
79.6
%
Gross profit
106,469
92,991
14.5
%
23.6
%
20.4
%
Selling, general and administrative
98,568
97,045
1.6
%
21.8
%
21.3
%
Operating income (loss)
7,901
(4,054
)
294.9
%
1.7
%
-0.9
%
Interest expense
2,741
2,209
24.1
%
0.6
%
0.5
%
Other income, net
15
373
-96.0
%
0.0
%
0.1
%
Income (loss) from continuing
operations before income taxes
5,175
(5,890
)
187.9
%
1.1
%
-1.3
%
Income tax expense (benefit)
1,967
(2,238
)
187.9
%
38.0
%*
38.0
%*
Income (loss) from continuing
operations
3,208
(3,652
)
187.8
%
0.7
%
-0.8
%
Income from discontinued
operations
      (net of tax)
--
129
-100.0
%
--
0.0
%
Net income (loss)
$
3,208
$
(3,523
)
191.1
%
0.7
%
-0.8
%
Basic average shares
52,129
51,967
Basic income (loss) from
continuing
      operations per share
$
0.06
$
(0.07
)
Basic net income (loss) per share
$
0.06
$
(0.07
)
Diluted average shares
52,195
51,967
Diluted income (loss) from
continuing
      operations per share
$
0.06
$
(0.07
)
Diluted net income (loss)
per
      share
$
0.06
$
(0.07
)
Dividends paid per share
$
0.11
$
0.11
*As a percent of pretax income, not sales.
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
(Unaudited,
amounts in thousands)
Increase/(Decrease)
7/30/05
7/24/04
Dollars
Percent
4/30/05
Current assets
Cash and equivalents
$
19,011
$
28,965
$
(9,954
)
-34.4
%
$
37,705
Receivables, net
248,677
250,081
(1,404
)
-0.6
%
283,915
Inventories, net
264,739
275,852
(11,113
)
-4.0
%
260,556
Deferred income taxes
26,048
42,707
(16,659
)
-39.0
%
22,779
Other current assets
21,195
27,316
(6,121
)
-22.4
%
33,410
Total current
      assets
579,670
624,921
(45,251
)
-7.2
%
638,365
Property, plant and equipment, net
213,287
206,622
6,665
3.2
%
210,565
Goodwill
79,770
68,116
11,654
17.1
%
79,362
Trade names
21,484
27,889
(6,405
)
-23.0
%
21,484
Other long-term assets
86,284
83,651
2,633
3.1
%
76,581
Total
      assets
$
980,495
$
1,011,199
$
(30,704
)
-3.0
%
$
1,026,357
Current liabilities
Short-term borrowings
$
22,000
$
6,000
$
16,000
266.7
%
$
9,700
Current portion of long-term
debt
2,801
1,864
937
50.3
%
3,060
Accounts payable
69,342
85,186
(15,844
)
-18.6
%
82,792
Accrued expenses and other
current
      liabilities
112,587
113,317
(730
)
-0.6
%
133,172
Total current
      liabilities
206,730
206,367
363
0.2
%
228,724
Long-term debt
194,687
232,833
(38,146
)
-16.4
%
213,549
Deferred income taxes
5,420
20,030
(14,610
)
-72.9
%
5,389
Other long-term liabilities
54,965
39,585
15,380
38.9
%
51,409
Contingencies and commitments
Shareholders' equity
Common shares, $1 par value
51,806
52,003
(197
)
-0.4
%
52,225
Capital in excess of par value
213,578
215,822
(2,244
)
-1.0
%
214,087
Retained earnings
265,274
243,208
22,066
9.1
%
273,143
Unearned compensation
(1,367
)
--
(1,367
)
N/M
(1,536
)
Accumulated other comprehensive
income
    (loss)
(10,598
)
1,351
(11,949
)
-884.5
%
(10,633
)
Total shareholders'
      equity
518,693
512,384
6,309
1.2
%
527,286
Total liabilities
      and
shareholders'
      equity
$
980,495
$
1,011,199
$
(30,704
)
-3.0
%
$
1,026,357
N/M = not meaningful
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited,
amounts in thousands)
First Quarter Ended
7/30/05
7/24/04
Cash flows from operating
      activities
Net income (loss)
$
3,208
$
(3,523
)
Adjustments to reconcile net income (loss) to
      cash provided
by (used for)
      operating activities
Restructuring
--
10,400
Depreciation and
      amortization
6,998
6,908
Change in receivables
34,842
51,440
Change in inventories
(781
)
(27,284
)
Change in payables
(13,959
)
(8,112
)
Change in other assets and
      liabilities
(7,301
)
(29,843
)
Change in deferred
    taxes
(3,238
)
(4,927
)
Total
      adjustments
16,561
(1,418
)
Net
      cash provided by (used for) operating activities
19,769
(4,941
)
Cash flows from investing activities
Proceeds from disposals of assets
2
268
Purchases
    of investments
(11,938
)
(1,506
)
Proceeds  from
    sale of investments
2,143
2,539
Capital expenditures
(6,713
)
(9,474
)
Change in other long-term assets
(2,065
)
(1,828
)
Net cash used for investing
      activities
(18,571
)
(10,001)
Cash flows from financing activities
Proceeds from debt
46,079
69,743
Payments on debt
(53,905
)
(53,416
)
Stock issued for stock and employee benefit
      plans
1,000
1,482
Repurchase of common stock
(7,247
)
(2,476
)
Dividends paid
(5,758
)
(5,649
)
Net cash provided by (used for)
      financing activities
(19,831
)
9,684
Effect of exchange rate changes on cash and equivalents
(61
)
341
Net decrease in cash and equivalents
(18,694
)
(4,917
)
Cash and equivalents at beginning of period
37,705
33,882
Cash and equivalents at end of period
$
19,011
$
28,965
Cash paid (net of refunds) during period - Income
      taxes
$
(5,633
)
$
7,414
- Interest
$
3,222
$
2,552
LA-Z-BOY INCORPORATED
IMPACT OF FIN46 ON
CONSOLIDATION
VIEs
(
Unaudited, amounts in thousands)
7/30/05
4/30/05
Assets
Cash and equivalents
$
2,933
$
1,699
Accounts receivable, net
(9,397
)
(1)
(9,131
)
(1)
Inventories, net
9,399
7,211
Deferred income taxes
7,681
7,199
Other current assets
1,268
1,226
Total
      current assets
11,884
8,204
Property,
      plant and equipment, net
9,692
8,431
Intangibles
8,122
7,714
Other long-term assets
(18,535
)
(1)
(14,169
)
(1)
Total
      assets
$
11,163
$
10,180
Liabilities and shareholders' equity
Short-term borrowings
$
--
$
--
Current portion of long-term debt
1,573
1,934
Accounts payable
596
329
Other
      current liabilities
4,152
3,523
Total
      current liabilities
6,321
5,786
Long-term debt
7,311
6,256
Deferred
      income taxes
196
--
Other
      long-term liabilities
(1,300
)
(1,300
)
Shareholders' equity
    (deficit)
(1,365
)
(562
)
Total
      liabilities and shareholders' equity
$
11,163
$
10,180
(1)
Reflects the elimination of intercompany accounts and notes receivable.
(
Unaudited, amounts in thousands)
7/30/05
7/24/04
Sales
$
8,586
(2)
$
13,641
(2)
Cost of sales
2,466
942
Gross profit
6,120
12,699
Selling, general and
    administrative
6,801
14,676
Operating income (loss)
(681
)
(1,977
)
Interest expense
108
167
Other expense, net
(480
)
(3)
(1,294
)
(3)
Pre-tax loss
(1,269
)
(3,438
)
Income tax benefit
(482
)
(1,306
)
Net loss from continuing operations
$
(787
)
$
(2,132
)
(2)
Includes the elimination of intercompany sales and cost of sales.
(3)
Includes the elimination of intercompany interest income and interest expense.
La-Z-Boy Furniture Galleries®
stores that are not operated by us are operated by 118 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 table below shows the impact on our
consolidated balance sheet at July 30, 2005 and April 30, 2005 and statement of
operations for the quarters ended July 30, 2005 and July 24, 2004.  The amounts reflected in the
table include the elimination of related payables, receivables, sales, cost of
sales, and interest as well as profit in inventory.
LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
Our reportable
operating segments are the Upholstery Group, the Retail Group and the Casegoods
Group.
First Quarter Ended
Quarters Ended in Fiscal
      2005
(
Unaudited amounts in
      thousands)
7/30/05
(13 Weeks)
7/24/04
(13 Weeks)
10/23/04
(13 Weeks)
1/22/05
(13 Weeks)
4/30/05
(14 Weeks)
Sales
Upholstery
      Group
$
314,481
$
316,838
$
380,726
$
356,507
$
413,240
Casegoods
      Group
104,997
105,714
114,169
111,918
123,542
Retail
    Group
52,655
38,456
40,960
44,298
49,385
VIEs/Eliminations
(20,646
)
(5,901
)
(15,095
)
(5,764
)
(20,612
)
Consolidated
$
451,487
$
455,107
$
520,760
$
506,959
$
565,555
Operating income
    (loss)
Upholstery
      Group
$
15,254
$
13,198
$
27,475
$
22,253
$
38,930
Casegoods
      Group
4,344
500
80
2,152
2,638
Retail
    Group
(5,408
)
515
510
(183
)
(3,701
)
Corporate and
      Other*
(6,289
)
(7,867
)
(12,013
)
(2,236
)
(8,306
)
Restructuring
--
(10,400
)
(749
)
(2,252
)
3,107
Consolidated
$
7,901
$
(4,054
)
$
15,303
$
19,734
$
32,668
*VIEs are included in corporate and other.