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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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<A NAME=A003></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current Report Pursuant
to Section 13 or 15(d)of <BR>the Securities Exchange Act of 1934 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 7, 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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<A NAME=A005></A>
<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;</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>
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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
June 7, 2005, La-Z-Boy Incorporated issued a press release to report the company&#146;s
financial results for the quarter and fiscal year ended April 30, 2005. A copy of the
press release is attached to this current report on Form 8-K as Exhibit 99.1. Exhibit 99.2
contains unaudited quarterly financial data for the last eight quarters. </FONT></TD>
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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 June 7, 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>
<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Supplemental Financial Information</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">11</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<H1 ALIGN=Left>&nbsp;</h1>


<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: June 7, 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">
</p>


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



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     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
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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>
</TD></TR>
</TABLE>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MONROE, MI. June 7, 2005 &#150;
La-Z-Boy Incorporated <B>(NYSE, PCX: LZB)</B> today reported operating results for the
fourth fiscal quarter and full year ending April 30, 2005. Net sales for the quarter were
$566 million, up $33 million or 6.3% compared to a year earlier. This year&#146;s fourth
quarter included 14 weeks of sales versus 13 weeks last year. Quarterly earnings were $21
million or $0.40 per share, which included an after-tax loss of $0.04 per share related to
the consolidation of certain VIEs. Income from continuing operations for the fourth
quarter was $18 million or $0.35 per share. The quarter includes a number of special
items: </FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a change in estimate for worker&#146;s compensation resulting in a pre-tax charge included
in cost of goods sold of $5.9 million ($3.6 million net of tax) or $0.07 per share; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a reduction in the  allowance  for doubtful  accounts  included in SG&amp;A of $5.5 million ($3.4 million net of tax) or $0.07 per share;</FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a net pre-tax gain on restructuring of $3.1 million ($1.9 million net of tax) or $0.04 per
share, resulting primarily from gains on the sale of previously idled property and
equipment; </FONT></TD>
</TR>
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<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
an extraordinary pre-tax gain of $2.2 million ($1.4 million net of tax) or $0.03 per share
from the recoveries of accounts receivables through the acquisition of certain Variable
Interest Entities (VIEs); </FONT></TD>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
pre-tax income of $1.7 million ($1.0 million net of tax) or $0.02 per share, comprised of
pre-tax income of $0.6 million relating to discontinued operations for the fiscal fourth
quarter and a pre-tax gain on the sale of the La-Z-Boy Contract&reg; unit of $1.1 million. </FONT></TD>
</TR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This quarter&#146;s per share
earnings compare against a loss per share before the cumulative effect of change in
accounting principle of $0.64 reported in fiscal 2004&#146;s fourth quarter. The 2004
fourth quarter results included a non-cash charge of $1.07 per share or $71.9 million
before tax, $55.9 million after-tax, to reflect the impairment of certain intangible
assets. Also included in the 2004 fourth quarter was a $0.01 per share after-tax
restructuring charge related to casegoods restructuring. Additionally, the company adopted
a new accounting standard in 2004&#146;s fiscal fourth quarter, FASB Interpretation No. 46
&#147;Consolidation of Variable Interest Entities&#148; (FIN 46), resulting in a
cumulative effect non-cash charge of $8.3 million net of tax, or $0.16 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the year ended April 30, 2005 net
sales were $2.048 billion, an increase of $96 million or 4.9% from the year earlier sales
of $1.952 billion. This year&#146;s sales included 53 weeks of sales versus 52 weeks last
year. Earnings for the year totaled $37 million or $0.71 per share, which included an
after-tax loss of $0.11 per share related to the consolidation of certain VIEs. Income
from continuing operations for the year was $33 million or $0.63 per share. The full
year&#146;s results include several special items in addition to the amounts recorded for
the change in estimate for worker&#146;s compensation and the reduction in the allowance
for doubtful accounts: </FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a full year pre-tax restructuring charge of $10.3 million ($6.4 million net of tax) or
$0.12 per share, which is net of gains from the sale of property and equipment in the
fourth quarter; </FONT></TD>
</TR>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a full year pre-tax extraordinary gain of $3.4 million ($2.1 million net of tax) or $0.04
per share from the recoveries of accounts receivables of certain VIEs; </FONT></TD>
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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
pre-tax income of $3.2 million ($2.0 million net of tax) or $0.04 per share, comprised of
pre-tax income of $2.1 million relating to discontinued operations for the full fiscal
year and a pre-tax gain on the sale of the La-Z-Boy Contract&reg; Group of $1.1 million
which was recorded in the fourth quarter. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This compares to earnings before the
cumulative effect of the accounting change for fiscal 2004 of $0.05 per share, and a loss
after the cumulative effect of $0.11 from the adoption of VIE consolidation accounting
standard. Fiscal 2004 results also included a $0.12 per share charge for casegoods
restructuring and $1.04 per share for the write-down of intangibles. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating margin for the fourth
quarter was 5.8%, up from a negative 6.6% a year earlier, which included a write-down of
intangible assets and restructuring charges amounting to 13.7% of net sales. This
quarter&#146;s operating margin of 5.8% continued an improving trend in sequential
operating profit margins from 2005&#145;s third quarter&#146;s 3.9%, the second
quarter&#146;s 2.9% and first quarter&#146;s negative 0.9%. This year&#146;s fiscal fourth
quarter included a gain on restructuring amounting to 0.5% of net sales versus a
restructuring charge amounting to 0.2% last year. The effect on operating margin in the
fourth quarter of fiscal 2005 for a change in estimate for worker&#146;s compensation was
a charge of 1.0% of net sales. The effect of the reduction in the allowance for doubtful
accounts was a positive impact of 1.0% of net sales. The change in estimate for
determining our unpaid worker&#146;s compensation claims involved adopting an actuarial
methodology which will more accurately reflect our future expected costs. The reduction in
our allowance for doubtful accounts occurred as a result of the acquisition of a major
dealer and the reassessment of our credit position of a significant dealer upon obtaining
additional credit related information. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The full year operating margin was
3.1% compared to 1.4% in the same period of fiscal 2004. The fiscal 2005 full year
operating margin included 0.5% of net sales for restructuring charges, a change in
estimate for worker&#146;s compensation amounting to a charge of 0.3% of net sales and a
positive impact from the reduction of the allowance for doubtful accounts of 0.3% of net
sales. Last year included restructuring and the write-down of intangible assets amounting
to 4.2% of net sales. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>La-Z-Boy Incorporated President and
CEO Kurt L. Darrow said, &#147;We continue to make progress in the growth of our top line
and with our operating margins. The significant changes we are driving are beginning to
deliver the improvements we anticipated, specifically the change to an import model in our
casegoods business. During our fourth quarter we moved decisively by
taking actions to obtain higher market penetration levels in major markets by
repositioning underperforming dealers. We also sold our contract office seating operation
and accelerated the sale of previously idled manufacturing facilities and equipment. We
are now prepared to enter our new fiscal year with a clearer focus on our core business.
These changes are continuing to better align us with the three core elements of our
business model, which are remaining the leading marketer, manufacturer and distributor of
upholstered furniture; being a marketer, distributor and importer of casegoods furniture,
and being the leading proprietary retailer of furniture. We believe this business model
combined with the continued growth in the power of the La-Z-Boy brand will enable us to
achieve our financial objectives.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A007></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Upholstery Segment </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upholstery segment sales for the
fourth quarter of fiscal 2005 increased 3.5% from a year earlier and were up 3.6% for the
full fiscal year. This year&#146;s quarter and year included an extra week of sales.
Darrow said, &#147;Our La-Z-Boy branded business continues to outperform our non-branded
upholstery companies, though we had good feedback to our product introductions at the
recent April Market across all business units. This year we were pleased that we continued
the consistent growth of our La-Z-Boy Furniture Galleries&reg; store retail network, both
in total sales and store count. We have also made good progress in expanding our presence
with major retailers across North America and added many new customers to our distribution
portfolio.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The upholstery segment operating
margin for the quarter was 7.9% compared to 10.0% for last year&#146;s fourth quarter. The
quarter&#146;s margin was impacted by higher raw material prices for steel, poly and
plywood, but at a declining pace. This year the quarter&#146;s operating margin was also
effected by the change in estimate for worker&#146;s compensation amounting to a charge of
1.1% of the upholstery segment&#146;s net sales and a positive impact from the reduction
of bad debt reserves of 1.3% of its net sales. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating margins for the year were
6.3% versus 8.6% in fiscal 2004&#145;s full year. This year&#146;s margin decline resulted
largely from raw material prices for steel, poly and plywood rising at unprecedented
levels. The change in estimate for worker&#146;s compensation for the year amounted to a
charge of 0.3% of the upholstery segment&#146;s net sales and a positive impact from the
reduction of bad debt reserves of 0.4% of its net sales. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow mentioned, &#147;This fiscal
year we further drove the growth of our proprietary distribution network of mostly
independently operated La-Z-Boy Furniture Galleries&reg; stores by opening 17 new stores
and converting or relocating 24 existing stores to the &#147;New Generation&#148; format,
bringing the total to 109 in this new format. These new format stores are continuing to
generate increased traffic levels, higher average sales per square foot and greater total
sales volumes than our older format stores. In the fourth quarter our network opened seven
of these new format stores and four stores were remodeled to the new design. Seven
non-productive stores were closed during the fiscal year. We enter into fiscal 2006 as
North America&#146;s largest single-source store network with 334 stand-alone stores, of
which 61 are company-owned. Plans are to open 45-50 of these updated format stores during
our 2006 fiscal year, with over 20 of those being new stores and the remainder being store
remodels or relocations. This year we made great strides in improving the quality and
focus of the company&#146;s proprietary store program with our independent dealers.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow continued, &#147;In seven of
the top 25 markets the company now has an ownership role, acquiring three markets this
quarter; Chicago, Pittsburgh and Connecticut, consisting of 21 stores. Two of these
markets were previously consolidated as VIEs and will require considerable effort to
enhance their performance. During the fiscal year we opened three new stores in our
existing corporate markets and converted three stores to the new format. In fiscal 2006 we
expect to open five to six company-owned stores and convert or relocate another ten plus
stores.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System-wide, the mostly independently
owned La-Z-Boy Furniture Galleries&reg; stores&#146; April calendar year to date same
store written sales were up 0.1% and total sales, which includes new stores, increased
3.2%. Darrow noted, &#147;Our same store sales comparisons for the first four months of
the calendar year were essentially flat, but were uneven throughout that period. The month
of May appears to continue this trend in inconsistent sales patterns at retail and we
expect continued flat to slightly up trends as we enter into the seasonally slower
summer months for furniture retailing.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A008></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Sale of Contract Furniture  </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow commented, &#147;As previously
announced, during the quarter we completed the sale of our contract seating furniture
unit, La-Z-Boy Contract, as we continue to refocus the company to capitalize on our core
strengths in residential furniture. This unit was included in our upholstery segment and
sales from this discontinued operation were $48.7 million and $46.9 million for the fiscal years
2005 and 2004, respectively, and have been eliminated from consolidated sales for the
year. Pre-tax operating profits from the unit were $0.6 million ($0.3 million net of tax)
for the fiscal fourth quarter and $2.1 million ($1.3 million net of tax) for the full
year. The net sale price of $11.7 million resulted in a pre-tax gain of $1.1 million ($0.7
million net of tax) in the fourth quarter and the cash generated was primarily utilized to
pay down floating rate debt.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A009></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Casegoods Segment </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Casegoods sales increased 10.2% from
a year earlier for the fourth quarter, and were down just 0.2% for the fiscal year
including an extra week of sales during the fourth quarter. Darrow commented, &#147;The
quarter sales increase in addition to the extra week was aided by the continuing positive
trends in our hospitality business and the rebound in sales on the residential side of our
business resulting from the execution of our strategy shift to a marketer, distributor and
importer of casegoods product. This is the second consecutive quarter of year-over-year
sales improvement.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The operating margin for the
casegoods segment in the April 2005 fiscal quarter was 2.1% compared to 0.2% last year.
This year the quarter&#146;s operating margin was impacted by the change in estimate for
worker&#146;s compensation amounting to a charge of 1.1% of the casegoods segment&#146;s
net sales. For the year the segment&#146;s operating margin was 1.2%, up compared with
last year&#146;s 0.7%. The change in estimate for worker&#146;s compensation for the year
amounted to a charge of 0.3% of the segment&#146;s net sales. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>He added, &#147;Margins continued to
improve this fiscal quarter, but were still adversely affected by greater than anticipated
transition costs associated with our change to the Pennsylvania House import model. This
was somewhat offset by margin benefits of recent pricing initiatives in our hospitality
business that we now are beginning to realize. During the fourth quarter, the casegoods
distribution center which will support the logistics needs of American Drew, Lea and
Pennsylvania House became operational.&nbsp; Although the start-up cost had a negative
effect on fourth quarter earnings, this modern facility will enable us to better serve the
customers of these three companies.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A010></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Restructuring charge </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As previously announced, we began the
closure of several facilities during our second fiscal quarter of 2005 and production was
phased out at the last facility during the third fiscal quarter. During the fourth quarter
a net after-tax gain on restructuring of $0.04 per share or $1.9 million was realized,
which included an after-tax gain of $2.9 million from the sale of property and equipment
net of after-tax charges of $1 million incurred resulting from costs associated with the
restructuring plan. For the year restructuring charges amounted to a net after-tax loss on
restructuring of $0.12 per share or $6.4 million which is net of the after-tax gain from
the sale of property and equipment. Darrow stated, &#147;We continue to make steady
progress in the liquidation and the disposal of the plants and equipment, many of which
are in areas which are now economically depressed by the closure of a number of other
manufacturing plants. As we have noted previously, in our casegoods segment, where the
bulk of our restructuring has occurred, we now have three manufacturing facilities
operating today, each of which is focused on a specific product category.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A011></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Variable Interest Entities </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In April of 2004, we began
consolidating certain of our independent dealers as Variable Interest Entities (VIEs)
which are included in our corporate and other segment. During the year, the equity owner
of one of our VIEs contributed $2 million of capital to its business which was recorded as
income to reflect a recovery of previously recorded losses. Additionally, for the quarter
and the year, an after-tax extraordinary gain of $1.4 million and $2.1 million,
respectively, resulted from the recoveries of accounts receivable previously written off
relating to the acquisition of previously consolidated VIEs. Darrow commented, &#147;This
year the VIEs lost $0.04 per share in the fourth quarter and $0.11 per share for the year.
During our fiscal year we took actions to transition the ownership of two of our four
under performing VIEs to new independent ownership and acquired the other two operations
in the fourth quarter. These actions addressed our negatively performing VIEs. Although we
will continue to have some VIEs, we do not expect to have any of these operations
significantly detract from our long-term financial performance on an annualized
basis.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A012></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Cash Flow and Balance sheet  </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the quarter we generated
positive cash flow from operations of $32.1 million and $46.0 million for the year. Cash
of $11 million was generated from the sale of La-Z-Boy Contract and $5.6 million was also
generated from the continued liquidation of property, plant and equipment primarily from
closed facilities during the quarter. Total debt at quarter end was $226 million, down $17
million from last quarter. The debt-to-capitalization ratio was 30.0% at year end, down
from third quarter&#146;s 31.6%. Darrow stated, &#147;We continue to make consistent
progress in moving our debt-to-capitalization ratio toward our targeted range of the
mid-twenties.  Although we are not yet within our targeted range of leverage, with the concurrence of
our board of directors the company plans to reenter the open market on a moderate basis to begin repurchasing its
shares.  This action is being taken in light of the low market price of our stock and the belief in
the company's future prospects.&#148; At year end, 6.7 million shares remained available under the
company&#146;s existing stock repurchase authorization. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A013></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Business Outlook  </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commenting on the business outlook,
Darrow said, &#147;We are pleased with the continuing improvement in our operations and
with the progress we have made in the transition of our business model. From a macro
economic perspective, we remain cautiously optimistic about the industry&#146;s growth
prospects for the coming year, though we are concerned that May&#146;s recent consumer
confidence improvements could be challenged by a number of factors. These factors include
continued high energy prices, rising short-term interest rates and general geopolitical
uncertainty, which continue to overshadow the economic expansion which appeared to be
underway.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Darrow continued, &#147;Our first
quarter is historically our seasonally weakest and with the continued inconsistent trends
at retail we expect our first quarter sales to be up in the low single digit range
compared to last year&#146;s first quarter sales of $455 million, as reclassified to reflect
our discontinued operations. Reported earnings for the first quarter are forecasted to be
in the range of $0.10 &#151; $0.14 per share. This compares to a loss of $0.07 per share
in fiscal 2005&#145;s first quarter, which included an after-tax restructuring charge of
$0.12 per share.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A014></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Forward-looking Information  </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any forward-looking statements
contained in this news release are based on current information and assumptions and
represent management&#146;s best judgment at the present time. Actual results could differ
materially from those anticipated or projected due to a number of factors. These factors
include, but are not limited to: changes in consumer sentiment or demand, 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 of Chinese imports, the availability and cost of capital, the impact of
imports as it relates to continued domestic production, raw material price changes,
changes in currency rates, competitive factors, operating factors, such as supply, labor,
or distribution disruptions including changes in operating conditions or costs, effects of
restructuring actions, changes in the domestic or international regulatory environment,
not fully realizing cost reductions through restructurings<I>,</I> ability to implement
global sourcing organization strategies, the future financial performance and condition of
independently owned dealers that we are required to consolidate into our financial
statements or changes requiring us to consolidate additional independently owned dealers,
the impact of new manufacturing technologies, the impact of adopting new accounting
principles, fair value changes to our intangible assets due to actual results differing
from projected, 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. The
company undertakes no obligation to update or revise any forward-looking statements,
either to reflect new developments, or for any other reason. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A015></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Additional Information </U></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">This news release is just one part of
La-Z-Boy&#146;s financial disclosures and should be read in conjunction with other
information filed with the Securities and Exchange Commission, which is available at </FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2" COLOR="#0000FF"><U>http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx</U> </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">. 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>

<FONT FACE="Times New Roman, Times, Serif" SIZE="2" COLOR="#0000FF"><U>http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx</U></FONT>.


<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<A NAME=A016></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3><U>Background Information </U></FONT></H1>

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

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">The corporation&#146;s vast
proprietary distribution network is dedicated exclusively to selling La-Z-Boy Incorporated
products and brands, and includes 334 stand-alone La-Z-Boy Furniture Galleries&reg; stores
and 334 La-Z-Boy In-Store Gallerys, 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>Furniture/Today</I>, the La-Z-Boy
Furniture Galleries retail network by itself represents the industry&#146;s sixth largest
U.S. furniture retailer and the largest single source furniture retailer in North America.
Additional information is available at </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2" COLOR="#0000FF"><U>http://www.la-z-boy.com/</U> </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">. </FONT> </P>

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




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





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





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





     </TH>
     <TH COLSPAN=3>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/30/05 </FONT>
     </p>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (14 weeks)</FONT></p>
     <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/24/04</FONT></p>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (13 weeks)</FONT></p>
     <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/30/05</FONT></p>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (53 weeks)</FONT></p>
     <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/24/04</FONT></p>
     <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
     (52 weeks)</FONT></p>
     <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=48% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales</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>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD WIDTH=9% ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">565,555</font></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD WIDTH=9% ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">532,203</font></TD>
        <TD WIDTH=2% 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>$</FONT></TD><TD WIDTH=9% ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">2,048,381</font></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     1,951,997</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cost of
     sales</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>&nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;
     Cost of goods sold</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">434,941</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">406,376</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,572,844</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,509,864</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">
     &nbsp;&nbsp;
     Restructuring</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(3,107</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">948</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">10,294</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     10,441</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Total cost of sales</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">431,834</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">407,324</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,583,138</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  1,520,305</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Gross profit</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">133,721</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">124,879</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">465,243</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>431,692</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, general and administrative</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">101,053</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">88,235</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">401,592</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>331,620</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Write-down of intangibles</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">71,943</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">71,943</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>


<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Operating income
     (loss)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">32,668</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(35,299</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">63,651</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     28,129</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest expense</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">2,942</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">2,317</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">10,442</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,253</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other
     income (expense), net </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(122</font></TD>
        <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,381</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">170</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     4,364</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
     (loss)&nbsp;
     from continuing operations before income taxes</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">29,604</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(36,235</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">53,379</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     21,240</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income tax
     expense (benefit)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">11,249</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(2,479</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">20,284</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     19,362</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Income
     (loss) from continuing operations</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">18,355</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(33,756</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">33,095</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  1,878</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Income
     from discontinued operations&nbsp;(net of tax)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">1,009</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">25</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,996</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">650</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Extraordinary gains (net of tax)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,392</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">2,094</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD></TR>
<tr>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">
     Cumulative effect of accounting change (net of tax)</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(8,324</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8,324</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
</tr>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income
     (loss)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">20,756</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(42,055</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">37,185</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (5,796</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic
     average shares outstanding</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">52,192</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">52,318</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">52,082</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     53,508</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Basic net income
     (loss) per share:</u> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Income
     (loss) from continuing operations</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">0.35</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(0.64</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.63</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  0.04</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><font size="2">Income from discontinued operations
     (net of tax)</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font size="2">0.02</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.04</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  0.01</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">
     Extraordinary gains (net of tax)</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font size="2">0.03</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.04</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><font size="2">Cumulative effect of accounting change (net
     of tax)</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(0.16</font></TD>
        <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">)&nbsp;</font></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(0.16</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD>&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net income
     (loss) per basic share</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">0.40</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(0.80</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.71</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (0.11</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted
     weighted average shares outstanding</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">52,262</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">52,318</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">52,138</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     53,679</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><u><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted
     net income (loss) per share:</FONT></u></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">Income
     (loss) from continuing operations</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.35</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(0.64</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.63</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  0.04</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><font size="2">Income from discontinued operations
     (net of tax)</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font size="2">0.02</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.04</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  0.01</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
</tr>
<tr>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">
     Extraordinary gains (net of tax)</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font size="2">0.03</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.04</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
  <font size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><font size="2">Cumulative effect of accounting change (net
     of tax)</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(0.16</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(0.16</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
</tr>
<tr>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD>&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net income
     (loss) per diluted share</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">0.40</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><font size="2">$</font></TD><TD ALIGN=RIGHT><font size="2">(0.80</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.71</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (0.11</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
</tr>
<tr>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">
     Dividends paid per share</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">0.11</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><font size="2">$</font></TD><TD ALIGN=RIGHT><font size="2">
     0.10</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">0.44</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     0.40</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
</TABLE>



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



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



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="75%" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN="3" ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(Amounts in thousands)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/30/05</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/24/04</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="58%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current assets</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Cash and equivalents</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">37,705</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">33,882</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Receivables, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">283,915</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">299,801</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Inventories, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">260,556</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">250,568</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Deferred income taxes</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">22,779</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">31,387</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Other current assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">33,410</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">31,454</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">638,365</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">647,092</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Property, plant and equipment, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">210,565</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">212,739</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Intangibles</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">100,846</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">96,005</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other long-term assets,
     net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">76,581</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">85,078</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,026,357</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,040,914</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Short-term borrowings</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">9,700</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">37,219</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Current portion of long-term debt</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and capital leases</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">3,060</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">5,344</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Accounts payable</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">82,792</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">93,298</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Other current liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">133,172</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">147,460</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">228,724</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">283,321</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD><TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT>&nbsp;</TD><TD ALIGN=RIGHT>
     &nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term debt and capital leases</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">213,549</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">181,807</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deferred income taxes</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">5,389</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">13,637</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other long-term liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">51,409</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">39,821</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shareholders' equity</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">527,286</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">522,328</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
     liabilities and shareholders' equity</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,026,357</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,040,914</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD></TR>
</TABLE>
<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

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




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3>&nbsp;</TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited Quarter Ended</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited Year Ended</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN="3" ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(Amounts in thousands)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/30/05</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/24/04</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/30/05</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4/24/04</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=47% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash flows from operating activities</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=2% 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=8% ALIGN=RIGHT>&nbsp;</TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=8% ALIGN=RIGHT>&nbsp;</TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=8% ALIGN=RIGHT>&nbsp;</TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD WIDTH=8% ALIGN=RIGHT>&nbsp;</TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Net income
     (loss)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     20,756</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (42,055</FONT></TD>
        <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">)&nbsp;</font></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">37,185</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (5,796</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Adjustments to reconcile net income
     (loss) to</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash provided by operating activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Write-down of intangibles</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">71,943</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">71,943</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Cumulative effect of accounting change (net of tax)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">8,324</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     8,324</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Extraordinary gains (net of tax)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (1,392</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (2,094</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Gain on sale of discontinued operations (net of tax)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">(668</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">(668</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Restructuring</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (3,107</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">948</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  10,294</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  10,441</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,175</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,282</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28,329</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     29,112</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Change in allowance for doubtful accounts</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (3,639</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (1,510</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  (3,189</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (1,201</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
     Change in working capital</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font size="2">435</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">(11,926</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (35,524</FONT></TD>
        <TD ALIGN=LEFT><font size="2">)</font></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font size="2">31,922</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in deferred taxes</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     12,514</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (14,906</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     11,632</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (11,843</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">11,318</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">60,155</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">8,780</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     138,698</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
     Net cash provided by operating activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">32,074</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">18,100</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">45,965</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     132,902</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash flows from investing activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Proceeds from disposals of assets</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  5,621</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font face="Times New Roman, Times, Serif" size="2">199</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  11,226</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  2,167</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
     Proceeds from sales of discontinued operation</font></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">10,985</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     10,985</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Capital expenditures</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,759</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10,558</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(34,771</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(31,593</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Acquisitions, net of cash acquired</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,806</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(9,189</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,806</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9,189</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; Change in other long-term assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">529</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     4,185</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(4,621</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     3,453</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
     Net cash provided by (used for) investing activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     2,570</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (15,363</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (23,987</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (35,162</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash flows from financing activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;
     Net changes in debt</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">(17,124</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">20,110</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">1,939</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (10,085</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;
     Stock transactions</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
  <font size="2">692</font></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(12,675</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     2,097</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(65,795</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;
     Dividends paid</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,753</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,248</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(22,868</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(21,514</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;
     Net cash

     provided by (used for) financing activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (22,185</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     2,187</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (18,832</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (97,394</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effect of exchange rate changes on cash
     and equivalents</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (748</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     (760</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     677</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">775</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Change in cash and equivalents</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">11,711</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     4,164</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     3,823</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     1,121</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash acquired from consolidation of VIEs</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">3,944</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">3,944</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>



<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and equivalents at beginning of period</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     25,994</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25,774</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     33,882</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28,817</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and equivalents at end of period</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">37,705</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     33,882</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">37,705</font></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     33,882</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=Black SIZE=2></TD><TD></TD></TR>
</TABLE>




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


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


</p>


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


<TABLE cellSpacing=0 cellPadding=0 width="80%" align=center border=0>
<TR vAlign=bottom>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=6><font face="Times New Roman, Times, Serif" size="1">Unaudited<br>
For the Quarter Ended</font>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=6><font face="Times New Roman, Times, Serif" size="1">Unaudited<br>
For the Year Ended</font>
<HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TH align=left colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>(Amounts in thousands)</FONT></TH>
<TH colSpan=3>
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">4/30/05</font>
</p>
<p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(14 weeks)</FONT></p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">4/24/04</font>
</p>
<p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(13 weeks)</FONT></p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">4/30/05</font>
</p>
<p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(53 weeks)</FONT></p>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3>
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman, Times, Serif" size="1">4/24/04</font>
</p>
<p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(52 weeks)</FONT></p>
<HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TD align=left width="31%"><FONT face="Times New Roman, Times, Serif" size=2><B>Sales</B></FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%">&nbsp;</TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Upholstery
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">436,190</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">421,587</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">1,554,087</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">1,500,724</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Casegoods
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">123,542</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">112,061</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">455,343</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">456,090</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;VIEs/Eliminations</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">5,823</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT size=2>(1,445</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">38,951</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT size=2>(4,817</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR>
<TD colSpan=3></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">565,555</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">532,203</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">2,048,381</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">1,951,997</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD colSpan=3></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD></TR>
</TABLE>

<TABLE cellSpacing=0 cellPadding=0 width="80%" align=center>
<TR vAlign=bottom>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left width="31%"><FONT face="Times New Roman, Times, Serif" size=2><B>Operating income
(loss)</B></FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="12%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Upholstery
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">34,484</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">42,364</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">98,099</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">129,327</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Casegoods
Group</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font size="2">2,638</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">274</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">5,370</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">2,991</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
Restructuring</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font size="2">3,107</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">(948</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font size="2">(10,294</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">(10,441</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD></TR>
<TR vAlign=bottom>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;
Intangible Writedown</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font size="2">--</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">(71,943</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">--</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">(71,943</font></TD>
<TD align=left><font face="Times New Roman, Times, Serif" size="2">)</font></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Corporate and other</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT size=2>(7,561</FONT></TD>
<TD align=left><FONT size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(5,046</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(29,524</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(21,805</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR>
<TD colSpan=3></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=1>
</TD>
<TD></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font size="2">32,668</font></TD>
<TD align=left>&nbsp;</TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">(35,299</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">63,651</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><font face="Times New Roman, Times, Serif" size="2">28,129</font></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD colSpan=3></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD>
<TD align=right colSpan=2>
<HR color=black noShade SIZE=2>
</TD>
<TD></TD></TR>
</TABLE>




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


<p><br></p>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Financial
Accounting Standards Board Interpretation No. 46R, &quot;Consolidation of Variable
Interest Entities&quot; (&quot;FIN 46&quot;), which was issued in December 2003, requires the
&quot;primary beneficiary&quot; of a variable interest entity (&quot;VIE&quot;) to include the VIE's
assets, liabilities and operating results in its consolidated financial
statements. &nbsp;
In general, a
VIE is a corporation, partnership, limited-liability corporation, trust or any
other legal structure used to conduct activities or hold assets that either (i)
has an insufficient amount of equity to carry out its principal activities
without additional subordinated financial support, (ii) has a group of equity
owners that are unable to make significant decisions about its activities, or
(iii) has a group of equity owners that do not have the obligation to absorb
losses or the right to receive returns generated by its operations.</font></p>




<P style="margin-top: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>La-Z-Boy Furniture Galleries&reg; stores that are not operated by us are operated by  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. Based
on the criteria for consolidation of VIEs, we have determined that several
dealers are VIEs of which, under FIN 46, we are deemed the primary beneficiary.&nbsp; &nbsp;</font></p>




<P style="margin-top: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Since
some of our VIEs have either negative or no equity in their business, we are
required to absorb their losses in our consolidated statement of operations.&nbsp;&nbsp; During the third fiscal quarter, one of the equity owners of our VIEs contributed $2.0 million of capital to their business.&nbsp; Current
accounting standards required us to record the capital contribution as income in
the third quarter of fiscal 2005 to offset previously recorded losses.&nbsp; The operating results of the
consolidated VIEs impacted our diluted earnings per share by ($0.04) and ($0.11) for the
fourth quarter and full year of fiscal 2005,
respectively.&nbsp; The extraordinary gains of $2.2 million ($1.4 million net of
tax) and $3.4 million ($2.1 million net of tax) for the fourth quarter and full
year, respectively, are the results of the application of purchase accounting relating to
the acquisition of  previously consolidated VIEs.&nbsp;
Additionally, there are certain independent dealers that qualify as VIEs;
however, we are not the primary beneficiary.&nbsp; Our interest in these dealers
is comprised of accounts and notes receivable of $20.1 million.&nbsp; </FONT></p>








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<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In prior years, we have evaluated the collectibility of our trade accounts receivable
from our independent dealers and we have provided an
appropriate reserve relating to the collectibility of our receivables with these dealers or the contingent payout under any
guarantees.  There are no VIEs consolidated into our consolidated statement of
operations in the fourth quarter and full year&nbsp; of our fiscal 2004,
however their balance sheets are included in the April 24, 2004 condensed consolidated
balance sheet.&nbsp; The tables below show the impact of this  standard on our
condensed consolidated
balance sheet and consolidated statement of operations as of April 30, 2005.&nbsp;  The
amounts reflected
in the tables include the elimination of related payables, receivables, sales,
cost of sales, and interest as well as profit in inventory. </font></p>






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






<p>&nbsp;</p>






<p>&nbsp;</p>






<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=618>
<TR VALIGN=Bottom>
     <TH COLSPAN="3" ALIGN="Left" height="27" width="214">&nbsp;</TH>
     <TH COLSPAN=6 height="27" width="188">
     <div style="border-bottom-style: solid; border-bottom-width: 1; padding-bottom: 1">
       <font face="Times New Roman, Times, Serif" size="1">Unaudited<br>4/30/05</font></div>
     </TH>
     <TH height="27" width="24">
     &nbsp;</TH>
     <TH COLSPAN=6 height="27" width="207">
     <div style="border-bottom-style: solid; border-bottom-width: 1; padding-bottom: 1">
       <font face="Times New Roman, Times, Serif" size="1">Unaudited<br>4/24/04</font></div>
     </TH>
     </TR>
<TR VALIGN=Bottom>
     <TH COLSPAN="3" ALIGN="Left" height="27" width="214">
     <p><FONT FACE="Times New Roman, Times, Serif" SIZE=1><i>(</i>Amounts in thousands)</FONT></TH>
     <TH COLSPAN=3 height="27" width="77"><font face="Times New Roman, Times, Serif" size="1">VIEs</font><HR WIDTH=90% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN="3" HEIGHT="27" WIDTH="111" ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Consolidated</FONT><HR WIDTH=75% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH height="27" width="24">&nbsp;</TH>
     <TH COLSPAN=3 height="27" width="98"><font face="Times New Roman, Times, Serif" size="1">VIEs</font><HR WIDTH=90% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN="3" HEIGHT="27" WIDTH="109" ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Consolidated</FONT><HR WIDTH=75% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=199 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Assets</FONT></TD>
     <TD WIDTH=5 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=10 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=9 ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=58 ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD WIDTH=10 ALIGN=LEFT height="19">&nbsp;</TD>
        <TD WIDTH=31 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=9 ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=71 ALIGN=RIGHT height="19">&nbsp;</TD>
     <TD WIDTH=24 ALIGN=RIGHT height="19">&nbsp;</TD>
     <TD WIDTH=12 ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=70 ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD WIDTH=16 ALIGN=LEFT height="19">&nbsp;</TD>
        <TD WIDTH=30 ALIGN=LEFT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=19 ALIGN=RIGHT height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=60 ALIGN=RIGHT height="19">&nbsp;</TD>
        <TD WIDTH=28 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" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">1,699</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">37,705</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">3,944</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">33,882</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Accounts receivable,
     net</FONT></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">(9,131</font></TD>
        <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
        <TD ALIGN=LEFT height="19" width="31" valign="top"><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)&nbsp;</FONT></i></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">283,915</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">(21,826</font></TD>
        <TD ALIGN=LEFT height="19" width="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
        <TD ALIGN=LEFT height="19" width="30" valign="top"><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)&nbsp;</FONT></i></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">299,801</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Inventories, net</FONT></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">7,211</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">260,556</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">12,721</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">250,568</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">7,199</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">22,779</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">5,101</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">31,387</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Other
     current assets</FONT></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">1,226</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">33,410</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">1,951</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">31,454</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD COLSPAN=3 height="15" width="214"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="67"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="10"></TD>
     <TD height="15" width="31"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="80"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT height="15" width="24"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="82"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="16"></TD>
     <TD height="15" width="30"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="79"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="28"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="199">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
     current assets</font></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">8,204</font></TD>
        <TD ALIGN=LEFT height="19" width="10">
        &nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">638,365</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
  <font size="2">1,891</font></TD>
        <TD ALIGN=LEFT height="19" width="16">
        &nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">647,092</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Property, plant and equipment, net</FONT></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">8,431</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">210,565</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
  <font size="2">7,264</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">212,739</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Intangibles</FONT></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">7,713</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">100,846</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
  <font size="2">7,714</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">96,005</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Other
     long-term assets, net</FONT></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">(14,168</font></TD>
        <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )</FONT></TD>
        <TD ALIGN=LEFT height="19" width="31" valign="top"><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)</FONT></i></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">76,581</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
  <font size="2">(12,484</font></TD>
        <TD ALIGN=LEFT height="19" width="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )</FONT></TD>
        <TD ALIGN=LEFT height="19" width="30" valign="top"><i><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)</FONT></i></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">85,078</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR>
     <TD COLSPAN=3 height="15" width="214"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="67"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="10"></TD>
     <TD height="15" width="31"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="80"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT height="15" width="24"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="82"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="16"></TD>
     <TD height="15" width="30"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="79"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="28"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</FONT></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">10,180</font></TD>
        <TD ALIGN=LEFT height="19" width="10">
        &nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="71">
     <font face="Times New Roman, Times, Serif" size="2">1,026,357</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">4,385</font></TD>
        <TD ALIGN=LEFT height="19" width="16">
        &nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">1,040,914</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 height="16" width="214"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="67"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16" width="10"></TD>
     <TD height="16" width="31"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="80"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD ALIGN=RIGHT height="16" width="24"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="82"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16" width="16"></TD>
     <TD height="16" width="30"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="79"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16" width="28"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="15" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Liabilities and shareholders' equity</FONT></TD>
     <TD ALIGN=LEFT height="15" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="15" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;Short-term borrowings</FONT></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="71">
     <font size="2">9,700</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="60">
     <font size="2">37,219</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT height="18" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Current
     portion of long-term debt and capital leases</FONT></TD>
     <TD ALIGN=LEFT height="18" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="18" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="18" width="9"></TD>
     <TD ALIGN=RIGHT height="18" width="58">
     <font size="2">1,934</font></TD>
        <TD ALIGN=LEFT height="18" width="10"></TD>
        <TD ALIGN=LEFT height="18" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="18" width="9"></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">3,060</font></TD>
     <TD ALIGN=RIGHT height="18" width="24"></TD>
     <TD ALIGN=RIGHT height="18" width="12"></TD>
     <TD ALIGN=RIGHT height="18" width="70">
     <font size="2">255</font></TD>
        <TD ALIGN=LEFT height="18" width="16"></TD>
        <TD ALIGN=LEFT height="18" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="18" width="19"></TD>
     <TD ALIGN=RIGHT height="18" width="60">
     <font size="2">5,344</font></TD>
        <TD ALIGN=LEFT height="18" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">329</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">82,792</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">758</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="60">
  <font size="2">93,298</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Other
     current liabilities</FONT></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">3,523</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">133,172</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">4,190</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="60">
     <font size="2">147,460</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 height="15" width="214"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="67"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="10"></TD>
     <TD height="15" width="31"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="80"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT height="15" width="24"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="82"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="16"></TD>
     <TD height="15" width="30"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="79"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="28"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
     current liabilities</FONT></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">5,786</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">228,724</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">5,203</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">283,321</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT height="19" width="199">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Long-term debt and capital leases</font></TD>
     <TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">6,256</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">213,549</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="70">
  <font size="2">7,211</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">181,807</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="199">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Deferred
     income taxes</font></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19" width="10">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">5,389</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">13,637</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT height="19" width="199">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Other
     long-term liabilities</font></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
  <font size="2">(1,300</font></TD>
        <TD ALIGN=LEFT height="19" width="10"><font size="2">)</font></TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">51,409</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="70">
  <font size="2">295</font></TD>
        <TD ALIGN=LEFT height="19" width="16">&nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">39,821</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199">
     <font face="Times New Roman, Times, Serif" size="2">&nbsp;&nbsp; Shareholders' equity
     (deficit)</font></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">(562</font></TD>
        <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19" width="31">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="9">&nbsp;</TD>
     <TD ALIGN=RIGHT>
     <font face="Times New Roman, Times, Serif" size="2">527,286</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">(8,324</font></TD>
        <TD ALIGN=LEFT height="19" width="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        )&nbsp;</FONT></TD>
        <TD ALIGN=LEFT height="19" width="30">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="60">
     <font face="Times New Roman, Times, Serif" size="2">522,328</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 height="15" width="214"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="67"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="10"></TD>
     <TD height="15" width="31"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="80"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT height="15" width="24"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="82"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="16"></TD>
     <TD height="15" width="30"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="15" width="79"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD height="15" width="28"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT height="19" width="199"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and
     shareholders' equity</FONT></TD><TD ALIGN=LEFT height="19" width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT height="19" width="10"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="58">
     <font size="2">10,180</font></TD>
        <TD ALIGN=LEFT height="19" width="10">
        &nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="31"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="9"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="71">
     <font face="Times New Roman, Times, Serif" size="2">1,026,357</font></TD>
     <TD ALIGN=RIGHT height="19" width="24">&nbsp;</TD>
     <TD ALIGN=RIGHT height="19" width="12"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="70">
     <font size="2">4,385</font></TD>
        <TD ALIGN=LEFT height="19" width="16">
        &nbsp;</TD>
        <TD ALIGN=LEFT height="19" width="30"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        &nbsp;</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT height="19" width="60">
     <font face="Times New Roman, Times, Serif" size="2">1,040,914</font></TD>
        <TD ALIGN=LEFT height="19" width="28"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 height="16" width="214"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="67"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16" width="10"></TD>
     <TD height="16" width="31"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="80"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD ALIGN=RIGHT height="16" width="24"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="82"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16" width="16"></TD>
     <TD height="16" width="30"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT height="16" width="79"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD height="16" width="28"></TD></TR>
</TABLE>











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








<p>&nbsp;</P>








<p>&nbsp;</P>








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



<p>&nbsp;</P>








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








<p>&nbsp;</P>








<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=679 >
<TR VALIGN=Bottom>
     <TH COLSPAN=3 width="250" height="39">&nbsp;</TH>
     <TH COLSPAN=6 width="205" height="39"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited<BR>
     For the
     Quarter Ended 4/30/05</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6 width="224" height="39"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unaudited<BR>
     For the
     Year Ended 4/30/05</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3 valign="top" width="250" height="27">
     <p align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=1><i>(</i>Amounts in thousands)</FONT></TH>
     <TH COLSPAN=3 width="114" height="27"><font face="Times New Roman, Times, Serif" size="1">VIEs</font><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 width="91" height="27"><font face="Times New Roman, Times, Serif" size="1">
     Consolidated</font><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 width="115" height="27"><font face="Times New Roman, Times, Serif" size="1">VIEs</font><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3 width="109" height="27"><font face="Times New Roman, Times, Serif" size="1">
     Consolidated</font><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=230 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales</FONT></TD>
     <TD WIDTH=8 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=12 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=24 ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=60 ALIGN=RIGHT height="15">
     <font size="2">7,877</font></TD>
        <TD WIDTH=30 ALIGN=LEFT height="15"><font size="2">&nbsp; </font><font size="1">&nbsp;(2)</font></TD>
     <TD WIDTH=17 ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=57 ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">565,555</font></TD>
        <TD WIDTH=17 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=22 ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=56 ALIGN=RIGHT height="15">
     <font size="2">46,019</font></TD>
        <TD WIDTH=37 ALIGN=LEFT height="15">
        <FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT><font size="1">
        (2)</font></TD>
     <TD WIDTH=25 ALIGN=RIGHT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD WIDTH=63 ALIGN=RIGHT height="15">
     <font face="Times New Roman, Times, Serif" size="2">2,048,381</font></TD>
        <TD WIDTH=21 ALIGN=LEFT height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT width="230" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     Cost of sales</FONT></TD><TD ALIGN=LEFT width="8" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="16">
     </TD>
        <TD ALIGN=LEFT width="30" height="16"></TD>
     <TD ALIGN=RIGHT width="17" height="16"></TD>
     <TD ALIGN=RIGHT width="57" height="16">
     </TD>
        <TD ALIGN=LEFT width="17" height="16"></TD>
     <TD ALIGN=RIGHT width="22" height="16"></TD>
     <TD ALIGN=RIGHT width="56" height="16">
     </TD>
        <TD ALIGN=LEFT width="37" height="16"></TD>
     <TD ALIGN=RIGHT width="25" height="16"></TD>
     <TD ALIGN=RIGHT width="63" height="16">
     </TD>
        <TD ALIGN=LEFT width="21" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT width="230" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;
     Cost of goods sold</FONT></TD><TD ALIGN=LEFT width="8" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="16">
     <font size="2">(1,217</font></TD>
        <TD ALIGN=LEFT width="30" height="16"><font size="2">)&nbsp; </font><font size="1">(2)</font></TD>
     <TD ALIGN=RIGHT width="17" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="16">
     <font face="Times New Roman, Times, Serif" size="2">434,941</font></TD>
        <TD ALIGN=LEFT width="17" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="22" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="16">
     <font size="2">1,224</font></TD>
        <TD ALIGN=LEFT width="37" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT><font size="1">
        (2)</font></TD>
     <TD ALIGN=RIGHT width="25" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="16">
     <font face="Times New Roman, Times, Serif" size="2">1,572,844</font></TD>
        <TD ALIGN=LEFT width="21" height="16"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><font face="Times New Roman, Times, Serif" size="2">
     &nbsp;&nbsp;
     Restructuring</font></TD><TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font face="Times New Roman, Times, Serif" size="2">(3,107</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="22" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT width="37" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">10,294</font></TD>
        <TD ALIGN=LEFT width="21" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="17" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="78" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="37" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cost of sales</FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(1,217</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">431,834</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="22" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="15">
     <font size="2">1,224</font></TD>
        <TD ALIGN=LEFT width="37" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">1,583,138</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<TR>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="17" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="78" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="37" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Gross profit</FONT></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">9,094</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font face="Times New Roman, Times, Serif" size="2">133,721</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="22" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="19">
     <font size="2">44,795</font></TD>
        <TD ALIGN=LEFT width="37" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">465,243</font></TD>
        <TD ALIGN=LEFT width="21" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, general and administrative</FONT></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">11,115</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font face="Times New Roman, Times, Serif" size="2">101,053</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="22" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="19">
     <font size="2">49,825</font></TD>
        <TD ALIGN=LEFT width="37" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">401,592</font></TD>
        <TD ALIGN=LEFT width="21" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Write-down of intangibles</FONT></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</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="22" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT width="37" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">--</font></TD>
        <TD ALIGN=LEFT width="21" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>


<TR>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="17" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="78" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="37" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Operating income
     (loss)</FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(2,021</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">32,668</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="22" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="15">
     <font size="2">(5,030</font></TD>
        <TD ALIGN=LEFT width="37" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">63,651</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest expense</FONT></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">97</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font face="Times New Roman, Times, Serif" size="2">2,942</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="22" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="19">
     <font size="2">427</font></TD>
        <TD ALIGN=LEFT width="37" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">10,442</font></TD>
        <TD ALIGN=LEFT width="21" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other
     income (expense), net </FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(1,092</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font><font size="1"> (3)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">(122</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="22" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="15">
     <font size="2">(4,154</font></TD>
        <TD ALIGN=LEFT width="37" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT><font size="1">
        (3)</font></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">170</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="17" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="78" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="37" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income
     (loss) from continuing operations before income taxes</FONT></TD>
     <TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(3,210</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font size="2">29,604</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="22" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="15">
     <font size="2">(9,611</font></TD>
        <TD ALIGN=LEFT width="37" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">53,379</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income tax
     expense (benefit)</FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(1,221</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">11,249</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="22" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="15">
     <font size="2">(3,652</font></TD>
        <TD ALIGN=LEFT width="37" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;)</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">20,284</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<tr>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="17" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="78" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="37" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD>
</tr>
<tr>
     <TD ALIGN=LEFT width="230" height="15"><font face="Times New Roman, Times, Serif" size="2">Income
     (loss)
     from continuing operations</font></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(1,989</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">18,355</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="22" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="15">
     <font size="2">(5,959</font></TD>
        <TD ALIGN=LEFT width="37" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">33,095</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT width="230" height="19">&nbsp;</TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</tr>
<tr>
     <TD ALIGN=LEFT width="230" height="19"><font face="Times New Roman, Times, Serif" size="2">Income

     from discontinued operations (net of tax)</font></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font size="2">1,009</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="22" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT width="37" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">1,996</font></TD>
        <TD ALIGN=LEFT width="21" height="19">&nbsp;</TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
     &nbsp;Extraordinary gains (net of tax)</FONT></TD>
     <TD ALIGN=LEFT width="8" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT width="30" height="19">&nbsp;</TD>
     <TD ALIGN=RIGHT width="17" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="19">
     <font face="Times New Roman, Times, Serif" size="2">1,392</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="22" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="19">
     <font size="2">--</font></TD>
        <TD ALIGN=LEFT width="37" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="19"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="19">
     <font face="Times New Roman, Times, Serif" size="2">2,094</font></TD>
        <TD ALIGN=LEFT width="21" height="19">&nbsp;</TD></TR>
<tr>
     <TD COLSPAN=3 width="250" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="30" height="19">&nbsp;</TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="17" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="78" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="37" height="19"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="19"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD width="21" height="19"></TD>
</tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT width="230" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income
     (loss)</FONT></TD><TD ALIGN=LEFT width="8" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT width="12" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="24" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="60" height="15">
     <font size="2">(1,989</font></TD>
        <TD ALIGN=LEFT width="30" height="15"><font size="2">)</font></TD>
     <TD ALIGN=RIGHT width="17" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="57" height="15">
     <font face="Times New Roman, Times, Serif" size="2">20,756</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="22" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="56" height="15">
     <font size="2">(5,959</font></TD>
        <TD ALIGN=LEFT width="37" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT width="25" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT width="63" height="15">
     <font face="Times New Roman, Times, Serif" size="2">37,185</font></TD>
        <TD ALIGN=LEFT width="21" height="15"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3 width="250" height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="84" height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD width="30" height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="74" height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD width="17" height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="78" height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD width="37" height="16"></TD>
     <TD COLSPAN=2 ALIGN=RIGHT width="88" height="16"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD width="21" height="16"></TD></TR>
</TABLE>








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








<p>&nbsp;</p>








<p>&nbsp;</p>








<p>&nbsp;</p>








<p>&nbsp;</p>


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



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>Exhibit 99.2</b>
 </FONT></P>


<P align=center><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><BR><B>
<FONT size="+0">Unaudited Quarterly Financial Data</FONT></B><FONT face="Times New Roman, Times, Serif" size=2> </FONT></P>









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

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

  <TR vAlign=bottom>
    <TH align=left colSpan=3><FONT face="Times New Roman, Times, Serif"
      size=1>(Amounts in thousands, except per share data)<BR>Quarter
      ended</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3>
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>7/24/04 *</FONT> </p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3>
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>10/23/04 *</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3>
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>1/22/05 *</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3>
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>4/30/05</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (14 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%"><FONT face="Times New Roman, Times, Serif"
      size=2>Sales</FONT></TD>
    <TD align=left width="1%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="2%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%"><font size="2">455,107</font></TD>
    <TD align=left width="3%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%"><font size="2">520,760</font></TD>
    <TD align=left width="3%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%"><font size="2">506,959</font></TD>
    <TD align=left width="3%"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%"><font size="2">565,555</font></TD>
    <TD align=left width="2%">&nbsp;</TD></TR>
  <tr>
    <TD align=left><font size="2">Cost of sales</font></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; Cost
    of goods sold</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">351,716</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">400,834</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">385,353</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">434,941</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <tr>
    <TD align=left><font face="Times New Roman, Times, Serif" size="2">
    &nbsp;
    Restructuring</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">10,400</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">749</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">2,252</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">(3,107</font></TD>
    <TD align=left><font size="2">)</font></TD>
  </tr>
  <TR>
    <TD colSpan=3></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD>&nbsp;</TD></TR>
  <tr>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp; Total cost of sales</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">362,116</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">401,583</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">387,605</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">431,834</font></TD>
    <TD align=left>&nbsp;</TD>
  </tr>
  <tr>
    <TD colSpan=3></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD>&nbsp;</TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">92,991</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">119,177</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">119,354</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">133,721</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Selling,
      general and administrative</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">97,045</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">103,874</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">99,620</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">101,053</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss)</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">(4,054</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">15,303</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">19,734</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">32,668</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <tr>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Interest
      expense</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">2,209</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">2,607</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">2,684</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">2,942</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Other
      income (expense), net</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">373</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">(354</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">273</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">(122</font></TD>
    <TD align=left><font size="2">)</font></TD></TR>
  <TR>
    <TD colSpan=3></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from continuing operations before income taxes</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">(5,890</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">12,342</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">17,323</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">29,604</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Income tax
    expense (benefit) </FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">(2,238</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">4,690</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">6,583</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">11,249</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left><font face="Times New Roman, Times, Serif" size="2">Income
    (loss) from continuing operations</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">(3,652</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">7,652</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">10,740</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">18,355</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3></TD>
    <TD colSpan=3></TD>
    <TD colSpan=3></TD>
    <TD colSpan=3></TD>
    <TD colSpan=3></TD></TR>
  <tr>
    <TD align=left><font face="Times New Roman, Times, Serif" size="2">Income
    from discontinued operations (net of tax)</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">129</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">506</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">352</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">1,009</font></TD>
    <TD align=left>&nbsp;</TD>
  </tr>
  <tr>
    <TD align=left><font face="Times New Roman, Times, Serif" size="2">
    Extraordinary gains (net of tax)</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">--</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">702</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">--</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">1,392</font></TD>
    <TD align=left>&nbsp;</TD>
  </tr>
  <tr>
    <TD colSpan=3></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=1>
    </TD>
    <TD>&nbsp;</TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income
    (loss)</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right><font size="2">(3,523</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right><font size="2">8,860</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right><font size="2">11,092</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right><font size="2">20,756</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD></TD>
    <TD align=right colSpan=2>
      <HR color=black noShade SIZE=2>
    </TD>
    <TD>&nbsp;</TD></TR>
  <tr>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Diluted
      weighted average shares outstanding</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">51,967</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">52,101</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">52,193</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><font size="2">52,262</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left><font face="Times New Roman, Times, Serif" size="2">Diluted
    income (loss) from continuing operations per share</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right><font size="2">(0.07</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right><font size="2">0.15</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right><font size="2">0.21</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right><font size="2">0.35</font></TD>
    <TD align=left>&nbsp;</TD></TR>
  <tr>
    <TD align=left><font face="Times New Roman, Times, Serif" size="2">Diluted
    net income (loss) per share</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><font size="2">(0.07</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><font size="2">0.17</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><font size="2">0.21</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right><font size="2">0.40</font></TD>
    <TD align=left>&nbsp;</TD>
  </tr>
  </TABLE>
<p style="margin-bottom: 0">&nbsp;</p>



<p style="margin-bottom: 0"><font size="2">*&nbsp; Income statements have been
reclassified for discontinued operations.</font></p>



<P>&nbsp;</P>



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


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



<P>&nbsp;</P>
<p align="center"><FONT face="Times New Roman, Times, Serif" color=blue size=3><B>LA-Z-BOY INCORPORATED</B></FONT><BR><B>
<FONT size="+0">Unaudited Quarterly Financial Data</FONT></B><FONT face="Times New Roman, Times, Serif" size=2> </FONT>
</p>

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

  <TR vAlign=bottom>
    <TH align=left colSpan=3 height="53"><FONT face="Times New Roman, Times, Serif"
      size=1>(Amounts in thousands, except per share data)<BR>Quarter
      ended</FONT>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="53">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>7/26/03 *</FONT> </p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="53">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>10/25/03 *</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="53">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>1/24/04 *</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH>
    <TH colSpan=3 height="53">
    <p style="margin-top: 0; margin-bottom: 0"><FONT face="Times New Roman, Times, Serif"
      size=1>4/24/04 *</FONT></p>
    <p style="margin-top: 0; margin-bottom: 0"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
    (13 weeks)</FONT></p>
      <HR width="100%" color=black noShade SIZE=1>
    </TH></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>Sales</FONT></TD>
    <TD align=left width="1%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left width="2%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="22"><font size="2">440,530</font></TD>
    <TD align=left width="3%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="22"><font size="2">498,360</font></TD>
    <TD align=left width="3%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="22"><font size="2">480,904</font></TD>
    <TD align=left width="3%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right width="1%" height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>$</FONT></TD>
    <TD align=right width="8%" height="22"><font size="2">532,203</font></TD>
    <TD align=left width="2%" height="22">&nbsp;</TD></TR>
  <tr>
    <TD align=left height="22"><font size="2">Cost of sales</font></TD>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=left height="22">&nbsp;</TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; Cost
    of goods sold</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">344,031</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">384,883</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">374,574</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">406,376</font></TD>
    <TD align=left height="22">&nbsp;</TD></TR>
  <tr>
    <TD align=left height="22"><font face="Times New Roman, Times, Serif" size="2">
    &nbsp;
    Restructuring</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">6,273</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">1,976</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">1,244</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">948</font></TD>
    <TD align=left height="22">&nbsp;</TD>
  </tr>
  <tr>
    <TD colSpan=3 height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22">&nbsp;</TD>
  </tr>
  <tr>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp; Total cost of sales</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">350,304</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">386,859</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">375,818</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">407,324</font></TD>
    <TD align=left height="22">&nbsp;</TD>
  </tr>
  <TR>
    <TD colSpan=3 height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">90,226</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">111,501</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">105,086</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">124,879</font></TD>
    <TD align=left height="22">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif" size=2>Selling,
      general and administrative</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">78,700</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">85,211</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">79,474</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">88,235</font></TD>
    <TD align=left height="22">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="22"><font face="Times New Roman, Times, Serif" size="2">
    Writedown of intangible </font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">--</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">--</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">--</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">71,943</font></TD>
    <TD align=left height="22">&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3 height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss)</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">11,526</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">26,290</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">25,612</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">(35,299</font></TD>
    <TD align=left height="19"><font size="2">)</font></TD></TR>
  <tr>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif" size=2>Interest
      expense</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">3,213</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">3,026</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">2,697</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">2,317</font></TD>
    <TD align=left height="22">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif" size=2>Other
    income, net</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">1,270</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">440</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">1,273</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">1,381</font></TD>
    <TD align=left height="22">&nbsp;</TD></TR>
  <TR>
    <TD colSpan=3 height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from continuing operations before income taxes</FONT></TD>
    <TD align=left height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="20"><font size="2">9,583</font></TD>
    <TD align=left height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="20"><font size="2">23,704</font></TD>
    <TD align=left height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="20"><font size="2">24,188</font></TD>
    <TD align=left height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="20"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="20"><font size="2">(36,235</font></TD>
    <TD align=left height="20"><font size="2">)</font></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif" size=2>Income tax
    expense (benefit)</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">3,641</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">9,008</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">9,192</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">(2,479</font></TD>
    <TD align=left height="19"><font size="2">)</font></TD></TR>
  <TR>
    <TD colSpan=3 height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><font face="Times New Roman, Times, Serif" size="2">Income
    (loss) from continuing operations</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">5,942</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">14,696</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">14,996</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">(33,756</font></TD>
    <TD align=left height="19"><font size="2">)</font></TD></TR>
  <TR>
    <TD colSpan=3 height="1"></TD>
    <TD colSpan=3 height="1"></TD>
    <TD colSpan=3 height="1"></TD>
    <TD colSpan=3 height="1"></TD>
    <TD colSpan=3 height="1"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="22"><font face="Times New Roman, Times, Serif" size="2">
    Income (loss) from discontinued operations (net of tax)</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">(139</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>)&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">481</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">283</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">25</font></TD>
    <TD align=left height="22">&nbsp;</TD></TR>
  <tr>
    <TD align=left height="19"><font face="Times New Roman, Times, Serif" size="2">
    Cumulative effect of accounting change (net of tax)</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">--</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">--</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">--</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><font size="2">(8,324</font></TD>
    <TD align=left height="19"><font size="2">)</font></TD>
  </tr>
  <tr>
    <TD colSpan=3 height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=1>
    </TD>
    <TD height="22">&nbsp;</TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income
    (loss)</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">5,803</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">15,177</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">15,279</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">(42,055</font></TD>
    <TD align=left height="19"><font size="2">)</font></TD></TR>
  <TR>
    <TD colSpan=3 height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="22"></TD>
    <TD align=right colSpan=2 height="22">
      <HR color=black noShade SIZE=2>
    </TD>
    <TD height="22">&nbsp;</TD></TR>
  <tr>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
  </tr>
  <TR vAlign=bottom>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif" size=2>Diluted
      weighted average shares outstanding</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">54,916</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">54,339</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">52,931</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22"><font size="2">52,318</font></TD>
    <TD align=left height="22">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="22">&nbsp;</TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left height="19"><font face="Times New Roman, Times, Serif" size="2">Diluted
    income (loss)&nbsp; from continuing operations per share</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">0.11</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">0.27</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">0.28</font></TD>
    <TD align=left height="19"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="19"><FONT face="Times New Roman, Times, Serif"
    size=2>$</FONT></TD>
    <TD align=right height="19"><font size="2">(0.65</font></TD>
    <TD align=left height="19"><font size="2">)</font></TD></TR>
  <tr>
    <TD align=left height="22"><font face="Times New Roman, Times, Serif" size="2">Diluted
    net income (loss) per share</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=right height="22"><font size="2">0.11</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=right height="22"><font size="2">0.28</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=right height="22"><font size="2">0.29</font></TD>
    <TD align=left height="22"><FONT face="Times New Roman, Times, Serif"
      size=2>&nbsp;</FONT></TD>
    <TD align=right height="22">&nbsp;</TD>
    <TD align=right height="22"><font size="2">(0.80</font></TD>
    <TD align=left height="22"><font size="2">)</font></TD>
  </tr>
  </TABLE>
<p>
<BR>
<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<font size="2">*&nbsp; Income statements have been reclassified for discontinued
operations.</font></p>









</BODY>
</HTML>
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{"company-data": {"conformed-name": "LA-Z-BOY INC", "cik": "0000057131", "assigned-sic": "2510", "irs-number": "380751137", "state-of-incorporation": "MI", "fiscal-year-end": "0430"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09656", "film-number": "05883271"}, "business-address": {"street1": "1284 N TELEGRAPH RD", "city": "MONROE", "state": "MI", "zip": "48162", "phone": "7342414414"}, "mail-address": {"street1": "1284 N TELEGRAPH RD", "city": "MONROE", "state": "MI", "zip": "48162"}, "former-company": {"former-conformed-name": "LA Z BOY CHAIR CO", "date-changed": "19920703"}}
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549-1004
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d)of
the Securities Exchange Act of 1934
June 7, 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.)
Item 2.02  Results of Operations and
Financial Condition.
On
June 7, 2005, La-Z-Boy Incorporated issued a press release to report the company's
financial results for the quarter and fiscal year ended April 30, 2005. A copy of the
press release is attached to this current report on Form 8-K as Exhibit 99.1. Exhibit 99.2
contains unaudited quarterly financial data for the last eight quarters.
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 June 7, 2005
4
99
.2
Supplemental Financial Information
11
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
LA-Z-BOY
INCORPORATED
——————————————
(Registrant)
Date: June 7, 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 FOURTH QUARTER AND FULL YEAR OPERATING RESULTS
MONROE, MI. June 7, 2005 –
La-Z-Boy Incorporated
(NYSE, PCX: LZB)
today reported operating results for the
fourth fiscal quarter and full year ending April 30, 2005. Net sales for the quarter were
$566 million, up $33 million or 6.3% compared to a year earlier. This year's fourth
quarter included 14 weeks of sales versus 13 weeks last year. Quarterly earnings were $21
million or $0.40 per share, which included an after-tax loss of $0.04 per share related to
the consolidation of certain VIEs. Income from continuing operations for the fourth
quarter was $18 million or $0.35 per share. The quarter includes a number of special
items:
o
a change in estimate for worker's compensation resulting in a pre-tax charge included
in cost of goods sold of $5.9 million ($3.6 million net of tax) or $0.07 per share;
o
a reduction in the  allowance  for doubtful  accounts  included in SG&A of $5.5 million ($3.4 million net of tax) or $0.07 per share;
o
a net pre-tax gain on restructuring of $3.1 million ($1.9 million net of tax) or $0.04 per
share, resulting primarily from gains on the sale of previously idled property and
equipment;
o
an extraordinary pre-tax gain of $2.2 million ($1.4 million net of tax) or $0.03 per share
from the recoveries of accounts receivables through the acquisition of certain Variable
Interest Entities (VIEs);
o
pre-tax income of $1.7 million ($1.0 million net of tax) or $0.02 per share, comprised of
pre-tax income of $0.6 million relating to discontinued operations for the fiscal fourth
quarter and a pre-tax gain on the sale of the La-Z-Boy Contract® unit of $1.1 million.
This quarter's per share
earnings compare against a loss per share before the cumulative effect of change in
accounting principle of $0.64 reported in fiscal 2004's fourth quarter. The 2004
fourth quarter results included a non-cash charge of $1.07 per share or $71.9 million
before tax, $55.9 million after-tax, to reflect the impairment of certain intangible
assets. Also included in the 2004 fourth quarter was a $0.01 per share after-tax
restructuring charge related to casegoods restructuring. Additionally, the company adopted
a new accounting standard in 2004's fiscal fourth quarter, FASB Interpretation No. 46
"Consolidation of Variable Interest Entities" (FIN 46), resulting in a
cumulative effect non-cash charge of $8.3 million net of tax, or $0.16 per share.
For the year ended April 30, 2005 net
sales were $2.048 billion, an increase of $96 million or 4.9% from the year earlier sales
of $1.952 billion. This year's sales included 53 weeks of sales versus 52 weeks last
year. Earnings for the year totaled $37 million or $0.71 per share, which included an
after-tax loss of $0.11 per share related to the consolidation of certain VIEs. Income
from continuing operations for the year was $33 million or $0.63 per share. The full
year's results include several special items in addition to the amounts recorded for
the change in estimate for worker's compensation and the reduction in the allowance
for doubtful accounts:
o
a full year pre-tax restructuring charge of $10.3 million ($6.4 million net of tax) or
$0.12 per share, which is net of gains from the sale of property and equipment in the
fourth quarter;
o
a full year pre-tax extraordinary gain of $3.4 million ($2.1 million net of tax) or $0.04
per share from the recoveries of accounts receivables of certain VIEs;
o
pre-tax income of $3.2 million ($2.0 million net of tax) or $0.04 per share, comprised of
pre-tax income of $2.1 million relating to discontinued operations for the full fiscal
year and a pre-tax gain on the sale of the La-Z-Boy Contract® Group of $1.1 million
which was recorded in the fourth quarter.
This compares to earnings before the
cumulative effect of the accounting change for fiscal 2004 of $0.05 per share, and a loss
after the cumulative effect of $0.11 from the adoption of VIE consolidation accounting
standard. Fiscal 2004 results also included a $0.12 per share charge for casegoods
restructuring and $1.04 per share for the write-down of intangibles.
Operating margin for the fourth
quarter was 5.8%, up from a negative 6.6% a year earlier, which included a write-down of
intangible assets and restructuring charges amounting to 13.7% of net sales. This
quarter's operating margin of 5.8% continued an improving trend in sequential
operating profit margins from 2005's third quarter's 3.9%, the second
quarter's 2.9% and first quarter's negative 0.9%. This year's fiscal fourth
quarter included a gain on restructuring amounting to 0.5% of net sales versus a
restructuring charge amounting to 0.2% last year. The effect on operating margin in the
fourth quarter of fiscal 2005 for a change in estimate for worker's compensation was
a charge of 1.0% of net sales. The effect of the reduction in the allowance for doubtful
accounts was a positive impact of 1.0% of net sales. The change in estimate for
determining our unpaid worker's compensation claims involved adopting an actuarial
methodology which will more accurately reflect our future expected costs. The reduction in
our allowance for doubtful accounts occurred as a result of the acquisition of a major
dealer and the reassessment of our credit position of a significant dealer upon obtaining
additional credit related information.
The full year operating margin was
3.1% compared to 1.4% in the same period of fiscal 2004. The fiscal 2005 full year
operating margin included 0.5% of net sales for restructuring charges, a change in
estimate for worker's compensation amounting to a charge of 0.3% of net sales and a
positive impact from the reduction of the allowance for doubtful accounts of 0.3% of net
sales. Last year included restructuring and the write-down of intangible assets amounting
to 4.2% of net sales.
La-Z-Boy Incorporated President and
CEO Kurt L. Darrow said, "We continue to make progress in the growth of our top line
and with our operating margins. The significant changes we are driving are beginning to
deliver the improvements we anticipated, specifically the change to an import model in our
casegoods business. During our fourth quarter we moved decisively by
taking actions to obtain higher market penetration levels in major markets by
repositioning underperforming dealers. We also sold our contract office seating operation
and accelerated the sale of previously idled manufacturing facilities and equipment. We
are now prepared to enter our new fiscal year with a clearer focus on our core business.
These changes are continuing to better align us with the three core elements of our
business model, which are remaining the leading marketer, manufacturer and distributor of
upholstered furniture; being a marketer, distributor and importer of casegoods furniture,
and being the leading proprietary retailer of furniture. We believe this business model
combined with the continued growth in the power of the La-Z-Boy brand will enable us to
achieve our financial objectives."
Upholstery Segment
Upholstery segment sales for the
fourth quarter of fiscal 2005 increased 3.5% from a year earlier and were up 3.6% for the
full fiscal year. This year's quarter and year included an extra week of sales.
Darrow said, "Our La-Z-Boy branded business continues to outperform our non-branded
upholstery companies, though we had good feedback to our product introductions at the
recent April Market across all business units. This year we were pleased that we continued
the consistent growth of our La-Z-Boy Furniture Galleries® store retail network, both
in total sales and store count. We have also made good progress in expanding our presence
with major retailers across North America and added many new customers to our distribution
portfolio."
The upholstery segment operating
margin for the quarter was 7.9% compared to 10.0% for last year's fourth quarter. The
quarter's margin was impacted by higher raw material prices for steel, poly and
plywood, but at a declining pace. This year the quarter's operating margin was also
effected by the change in estimate for worker's compensation amounting to a charge of
1.1% of the upholstery segment's net sales and a positive impact from the reduction
of bad debt reserves of 1.3% of its net sales.
Operating margins for the year were
6.3% versus 8.6% in fiscal 2004's full year. This year's margin decline resulted
largely from raw material prices for steel, poly and plywood rising at unprecedented
levels. The change in estimate for worker's compensation for the year amounted to a
charge of 0.3% of the upholstery segment's net sales and a positive impact from the
reduction of bad debt reserves of 0.4% of its net sales.
Darrow mentioned, "This fiscal
year we further drove the growth of our proprietary distribution network of mostly
independently operated La-Z-Boy Furniture Galleries® stores by opening 17 new stores
and converting or relocating 24 existing stores to the "New Generation" format,
bringing the total to 109 in this new format. These new format stores are continuing to
generate increased traffic levels, higher average sales per square foot and greater total
sales volumes than our older format stores. In the fourth quarter our network opened seven
of these new format stores and four stores were remodeled to the new design. Seven
non-productive stores were closed during the fiscal year. We enter into fiscal 2006 as
North America's largest single-source store network with 334 stand-alone stores, of
which 61 are company-owned. Plans are to open 45-50 of these updated format stores during
our 2006 fiscal year, with over 20 of those being new stores and the remainder being store
remodels or relocations. This year we made great strides in improving the quality and
focus of the company's proprietary store program with our independent dealers."
Darrow continued, "In seven of
the top 25 markets the company now has an ownership role, acquiring three markets this
quarter; Chicago, Pittsburgh and Connecticut, consisting of 21 stores. Two of these
markets were previously consolidated as VIEs and will require considerable effort to
enhance their performance. During the fiscal year we opened three new stores in our
existing corporate markets and converted three stores to the new format. In fiscal 2006 we
expect to open five to six company-owned stores and convert or relocate another ten plus
stores."
System-wide, the mostly independently
owned La-Z-Boy Furniture Galleries® stores' April calendar year to date same
store written sales were up 0.1% and total sales, which includes new stores, increased
3.2%. Darrow noted, "Our same store sales comparisons for the first four months of
the calendar year were essentially flat, but were uneven throughout that period. The month
of May appears to continue this trend in inconsistent sales patterns at retail and we
expect continued flat to slightly up trends as we enter into the seasonally slower
summer months for furniture retailing."
Sale of Contract Furniture
Darrow commented, "As previously
announced, during the quarter we completed the sale of our contract seating furniture
unit, La-Z-Boy Contract, as we continue to refocus the company to capitalize on our core
strengths in residential furniture. This unit was included in our upholstery segment and
sales from this discontinued operation were $48.7 million and $46.9 million for the fiscal years
2005 and 2004, respectively, and have been eliminated from consolidated sales for the
year. Pre-tax operating profits from the unit were $0.6 million ($0.3 million net of tax)
for the fiscal fourth quarter and $2.1 million ($1.3 million net of tax) for the full
year. The net sale price of $11.7 million resulted in a pre-tax gain of $1.1 million ($0.7
million net of tax) in the fourth quarter and the cash generated was primarily utilized to
pay down floating rate debt."
Casegoods Segment
Casegoods sales increased 10.2% from
a year earlier for the fourth quarter, and were down just 0.2% for the fiscal year
including an extra week of sales during the fourth quarter. Darrow commented, "The
quarter sales increase in addition to the extra week was aided by the continuing positive
trends in our hospitality business and the rebound in sales on the residential side of our
business resulting from the execution of our strategy shift to a marketer, distributor and
importer of casegoods product. This is the second consecutive quarter of year-over-year
sales improvement."
The operating margin for the
casegoods segment in the April 2005 fiscal quarter was 2.1% compared to 0.2% last year.
This year the quarter's operating margin was impacted by the change in estimate for
worker's compensation amounting to a charge of 1.1% of the casegoods segment's
net sales. For the year the segment's operating margin was 1.2%, up compared with
last year's 0.7%. The change in estimate for worker's compensation for the year
amounted to a charge of 0.3% of the segment's net sales.
He added, "Margins continued to
improve this fiscal quarter, but were still adversely affected by greater than anticipated
transition costs associated with our change to the Pennsylvania House import model. This
was somewhat offset by margin benefits of recent pricing initiatives in our hospitality
business that we now are beginning to realize. During the fourth quarter, the casegoods
distribution center which will support the logistics needs of American Drew, Lea and
Pennsylvania House became operational.  Although the start-up cost had a negative
effect on fourth quarter earnings, this modern facility will enable us to better serve the
customers of these three companies."
Restructuring charge
As previously announced, we began the
closure of several facilities during our second fiscal quarter of 2005 and production was
phased out at the last facility during the third fiscal quarter. During the fourth quarter
a net after-tax gain on restructuring of $0.04 per share or $1.9 million was realized,
which included an after-tax gain of $2.9 million from the sale of property and equipment
net of after-tax charges of $1 million incurred resulting from costs associated with the
restructuring plan. For the year restructuring charges amounted to a net after-tax loss on
restructuring of $0.12 per share or $6.4 million which is net of the after-tax gain from
the sale of property and equipment. Darrow stated, "We continue to make steady
progress in the liquidation and the disposal of the plants and equipment, many of which
are in areas which are now economically depressed by the closure of a number of other
manufacturing plants. As we have noted previously, in our casegoods segment, where the
bulk of our restructuring has occurred, we now have three manufacturing facilities
operating today, each of which is focused on a specific product category."
Variable Interest Entities
In April of 2004, we began
consolidating certain of our independent dealers as Variable Interest Entities (VIEs)
which are included in our corporate and other segment. During the year, the equity owner
of one of our VIEs contributed $2 million of capital to its business which was recorded as
income to reflect a recovery of previously recorded losses. Additionally, for the quarter
and the year, an after-tax extraordinary gain of $1.4 million and $2.1 million,
respectively, resulted from the recoveries of accounts receivable previously written off
relating to the acquisition of previously consolidated VIEs. Darrow commented, "This
year the VIEs lost $0.04 per share in the fourth quarter and $0.11 per share for the year.
During our fiscal year we took actions to transition the ownership of two of our four
under performing VIEs to new independent ownership and acquired the other two operations
in the fourth quarter. These actions addressed our negatively performing VIEs. Although we
will continue to have some VIEs, we do not expect to have any of these operations
significantly detract from our long-term financial performance on an annualized
basis."
Cash Flow and Balance sheet
During the quarter we generated
positive cash flow from operations of $32.1 million and $46.0 million for the year. Cash
of $11 million was generated from the sale of La-Z-Boy Contract and $5.6 million was also
generated from the continued liquidation of property, plant and equipment primarily from
closed facilities during the quarter. Total debt at quarter end was $226 million, down $17
million from last quarter. The debt-to-capitalization ratio was 30.0% at year end, down
from third quarter's 31.6%. Darrow stated, "We continue to make consistent
progress in moving our debt-to-capitalization ratio toward our targeted range of the
mid-twenties.  Although we are not yet within our targeted range of leverage, with the concurrence of
our board of directors the company plans to reenter the open market on a moderate basis to begin repurchasing its
shares.  This action is being taken in light of the low market price of our stock and the belief in
the company's future prospects." At year end, 6.7 million shares remained available under the
company's existing stock repurchase authorization.
Business Outlook
Commenting on the business outlook,
Darrow said, "We are pleased with the continuing improvement in our operations and
with the progress we have made in the transition of our business model. From a macro
economic perspective, we remain cautiously optimistic about the industry's growth
prospects for the coming year, though we are concerned that May's recent consumer
confidence improvements could be challenged by a number of factors. These factors include
continued high energy prices, rising short-term interest rates and general geopolitical
uncertainty, which continue to overshadow the economic expansion which appeared to be
underway."
Darrow continued, "Our first
quarter is historically our seasonally weakest and with the continued inconsistent trends
at retail we expect our first quarter sales to be up in the low single digit range
compared to last year's first quarter sales of $455 million, as reclassified to reflect
our discontinued operations. Reported earnings for the first quarter are forecasted to be
in the range of $0.10 — $0.14 per share. This compares to a loss of $0.07 per share
in fiscal 2005's first quarter, which included an after-tax restructuring charge of
$0.12 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 sentiment or demand, 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 of 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, factors relating to acquisitions and other factors identified from time to
time in the company's reports filed with the Securities and Exchange Commission. The
company undertakes no obligation to update or revise any forward-looking statements,
either to reflect new developments, or for any other reason.
Additional Information
This news release is just one part of
La-Z-Boy's financial disclosures and should be read in conjunction with other
information filed with the Securities and Exchange Commission, which is available at
http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx
. Investors and
others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly
investor conference calls may sign up at:
http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx
.
Background Information
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 and office, 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 334 stand-alone La-Z-Boy Furniture Galleries® stores
and 334 La-Z-Boy In-Store Gallerys, 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
Furniture/Today
, the La-Z-Boy
Furniture Galleries retail network by itself represents the industry's sixth largest
U.S. furniture retailer and the largest single source furniture retailer in North America.
Additional information is available at
http://www.la-z-boy.com/
.
LA-Z-BOY INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
For the Quarter Ended
Unaudited
For the
     Year Ended
(Amounts
in thousands, except per share data)
4/30/05
(14 weeks)
4/24/04
(13 weeks)
4/30/05
(53 weeks)
4/24/04
(52 weeks)
Sales
$
565,555
$
532,203
$
2,048,381
$
1,951,997
Cost of
     sales
Cost of goods sold
434,941
406,376
1,572,844
1,509,864
Restructuring
(3,107
)
948
10,294
10,441
Total cost of sales
431,834
407,324
1,583,138
1,520,305
Gross profit
133,721
124,879
465,243
431,692
Selling, general and administrative
101,053
88,235
401,592
331,620
Write-down of intangibles
--
71,943
--
71,943
Operating income
     (loss)
32,668
(35,299
)
63,651
28,129
Interest expense
2,942
2,317
10,442
11,253
Other
     income (expense), net
(122
)
1,381
170
4,364
Income
     (loss) 
     from continuing operations before income taxes
29,604
(36,235
)
53,379
21,240
Income tax
     expense (benefit)
11,249
(2,479
)
20,284
19,362
Income
     (loss) from continuing operations
18,355
(33,756
)
33,095
1,878
Income
     from discontinued operations (net of tax)
1,009
25
1,996
650
Extraordinary gains (net of tax)
1,392
--
2,094
--
Cumulative effect of accounting change (net of tax)
--
(8,324
)
--
(8,324
)
Net income
     (loss)
$
20,756
$
(42,055
)
$
37,185
$
(5,796
)
Basic
     average shares outstanding
52,192
52,318
52,082
53,508
Basic net income
     (loss) per share:
Income
     (loss) from continuing operations
$
0.35
$
(0.64
)
$
0.63
$
0.04
Income from discontinued operations
     (net of tax)
0.02
--
0.04
0.01
Extraordinary gains (net of tax)
0.03
--
0.04
--
Cumulative effect of accounting change (net
     of tax)
--
(0.16
)
--
(0.16
)
Net income
     (loss) per basic share
$
0.40
$
(0.80
)
$
0.71
$
(0.11
)
Diluted
     weighted average shares outstanding
52,262
52,318
52,138
53,679
Diluted
     net income (loss) per share:
Income
     (loss) from continuing operations
$
0.35
$
(0.64
)
$
0.63
$
0.04
Income from discontinued operations
     (net of tax)
0.02
--
0.04
0.01
Extraordinary gains (net of tax)
0.03
--
0.04
--
Cumulative effect of accounting change (net
     of tax)
--
(0.16
)
--
(0.16
)
Net income
     (loss) per diluted share
$
0.40
$
(0.80
)
$
0.71
$
(0.11
)
Dividends paid per share
$
0.11
$
0.10
$
0.44
$
0.40
LA-Z-BOY INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited
(Amounts in thousands)
4/30/05
4/24/04
Current assets
Cash and equivalents
$
37,705
$
33,882
Receivables, net
283,915
299,801
Inventories, net
260,556
250,568
Deferred income taxes
22,779
31,387
Other current assets
33,410
31,454
Total current assets
638,365
647,092
Property, plant and equipment, net
210,565
212,739
Intangibles
100,846
96,005
Other long-term assets,
     net
76,581
85,078
Total assets
$
1,026,357
$
1,040,914
Current liabilities
Short-term borrowings
$
9,700
$
37,219
Current portion of long-term debt
and capital leases
3,060
5,344
Accounts payable
82,792
93,298
Other current liabilities
133,172
147,460
Total current liabilities
228,724
283,321
Long-term debt and capital leases
213,549
181,807
Deferred income taxes
5,389
13,637
Other long-term liabilities
51,409
39,821
Shareholders' equity
527,286
522,328
Total
     liabilities and shareholders' equity
$
1,026,357
$
1,040,914
LA-Z-BOY INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Quarter Ended
Unaudited Year Ended
(Amounts in thousands)
4/30/05
4/24/04
4/30/05
4/24/04
Cash flows from operating activities
Net income
     (loss)
$
20,756
$
(42,055
)
$
37,185
$
(5,796
)
Adjustments to reconcile net income
     (loss) to
cash provided by operating activities
Write-down of intangibles
--
71,943
--
71,943
Cumulative effect of accounting change (net of tax)
--
8,324
--
8,324
Extraordinary gains (net of tax)
(1,392
)
--
(2,094
)
--
Gain on sale of discontinued operations (net of tax)
(668
)
--
(668
)
--
Restructuring
(3,107
)
948
10,294
10,441
Depreciation and amortization
7,175
7,282
28,329
29,112
Change in allowance for doubtful accounts
(3,639
)
(1,510
)
(3,189
)
(1,201
)
Change in working capital
435
(11,926
)
(35,524
)
31,922
Change in deferred taxes
12,514
(14,906
)
11,632
(11,843
)
Total adjustments
11,318
60,155
8,780
138,698
Net cash provided by operating activities
32,074
18,100
45,965
132,902
Cash flows from investing activities
Proceeds from disposals of assets
5,621
199
11,226
2,167
Proceeds from sales of discontinued operation
10,985
--
10,985
--
Capital expenditures
(7,759
)
(10,558
)
(34,771
)
(31,593
)
Acquisitions, net of cash acquired
(6,806
)
(9,189
)
(6,806
)
(9,189
)
Change in other long-term assets
529
4,185
(4,621
)
3,453
Net cash provided by (used for) investing activities
2,570
(15,363
)
(23,987
)
(35,162
)
Cash flows from financing activities
Net changes in debt
(17,124
)
20,110
1,939
(10,085
)
Stock transactions
692
(12,675
)
2,097
(65,795
)
Dividends paid
(5,753
)
(5,248
)
(22,868
)
(21,514
)
Net cash

     provided by (used for) financing activities
(22,185
)
2,187
(18,832
)
(97,394
)
Effect of exchange rate changes on cash
     and equivalents
(748
)
(760
)
677
775
Change in cash and equivalents
11,711
4,164
3,823
1,121
Cash acquired from consolidation of VIEs
--
3,944
--
3,944
Cash and equivalents at beginning of period
25,994
25,774
33,882
28,817
Cash and equivalents at end of period
$
37,705
$
33,882
$
37,705
$
33,882
LA-Z-BOY INCORPORATED
Segment Information
Unaudited
For the Quarter Ended
Unaudited
For the Year Ended
(Amounts in thousands)
4/30/05
(14 weeks)
4/24/04
(13 weeks)
4/30/05
(53 weeks)
4/24/04
(52 weeks)
Sales
Upholstery
Group
$
436,190
$
421,587
$
1,554,087
$
1,500,724
Casegoods
Group
123,542
112,061
455,343
456,090
VIEs/Eliminations
5,823
(1,445
)
38,951
(4,817
)
Consolidated
$
565,555
$
532,203
$
2,048,381
$
1,951,997
Operating income
(loss)
Upholstery
Group
$
34,484
$
42,364
$
98,099
$
129,327
Casegoods
Group
2,638
274
5,370
2,991
Restructuring
3,107
(948
)
(10,294
)
(10,441
)
Intangible Writedown
--
(71,943
)
--
(71,943
)
Corporate and other
(7,561
)
(5,046
)
(29,524
)
(21,805
)
Consolidated
$
32,668
$
(35,299
)
$
63,651
$
28,129
LA-Z-BOY INCORPORATED
Impact of FIN 46 on Consolidation
Financial
Accounting Standards Board Interpretation No. 46R, "Consolidation of Variable
Interest Entities" ("FIN 46"), which was issued in December 2003, requires the
"primary beneficiary" of a variable interest entity ("VIE") to include the VIE's
assets, liabilities and operating results in its consolidated financial
statements.  
In general, a
VIE is a corporation, partnership, limited-liability corporation, trust or any
other legal structure used to conduct activities or hold assets that either (i)
has an insufficient amount of equity to carry out its principal activities
without additional subordinated financial support, (ii) has a group of equity
owners that are unable to make significant decisions about its activities, or
(iii) has a group of equity owners that do not have the obligation to absorb
losses or the right to receive returns generated by its operations.
La-Z-Boy Furniture Galleries® stores that are not operated by us are operated by  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. Based
on the criteria for consolidation of VIEs, we have determined that several
dealers are VIEs of which, under FIN 46, we are deemed the primary beneficiary.
Since
some of our VIEs have either negative or no equity in their business, we are
required to absorb their losses in our consolidated statement of operations.   During the third fiscal quarter, one of the equity owners of our VIEs contributed $2.0 million of capital to their business.  Current
accounting standards required us to record the capital contribution as income in
the third quarter of fiscal 2005 to offset previously recorded losses.  The operating results of the
consolidated VIEs impacted our diluted earnings per share by ($0.04) and ($0.11) for the
fourth quarter and full year of fiscal 2005,
respectively.  The extraordinary gains of $2.2 million ($1.4 million net of
tax) and $3.4 million ($2.1 million net of tax) for the fourth quarter and full
year, respectively, are the results of the application of purchase accounting relating to
the acquisition of  previously consolidated VIEs. 
Additionally, there are certain independent dealers that qualify as VIEs;
however, we are not the primary beneficiary.  Our interest in these dealers
is comprised of accounts and notes receivable of $20.1 million.
In prior years, we have evaluated the collectibility of our trade accounts receivable
from our independent dealers and we have provided an
appropriate reserve relating to the collectibility of our receivables with these dealers or the contingent payout under any
guarantees.  There are no VIEs consolidated into our consolidated statement of
operations in the fourth quarter and full year  of our fiscal 2004,
however their balance sheets are included in the April 24, 2004 condensed consolidated
balance sheet.  The tables below show the impact of this  standard on our
condensed consolidated
balance sheet and consolidated statement of operations as of April 30, 2005.   The
amounts reflected
in the tables include the elimination of related payables, receivables, sales,
cost of sales, and interest as well as profit in inventory.
LA-Z-BOY INCORPORATED
Impact of FIN 46 on Condensed Consolidated Balance Sheet
Unaudited
4/30/05
Unaudited
4/24/04
(
Amounts in thousands)
VIEs
Consolidated
VIEs
Consolidated
Assets
Cash and cash equivalents
$
1,699
$
37,705
$
3,944
$
33,882
Accounts receivable,
     net
(9,131
)
(1)
283,915
(21,826
)
(1)
299,801
Inventories, net
7,211
260,556
12,721
250,568
Deferred income taxes
7,199
22,779
5,101
31,387
Other
     current assets
1,226
33,410
1,951
31,454
Total
     current assets
8,204
638,365
1,891
647,092
Property, plant and equipment, net
8,431
210,565
7,264
212,739
Intangibles
7,713
100,846
7,714
96,005
Other
     long-term assets, net
(14,168
)
(1)
76,581
(12,484
)
(1)
85,078
Total assets
$
10,180
$
1,026,357
$
4,385
$
1,040,914
Liabilities and shareholders' equity
Short-term borrowings
$
--
$
9,700
$
--
$
37,219
Current
     portion of long-term debt and capital leases
1,934
3,060
255
5,344
Accounts payable
329
82,792
758
93,298
Other
     current liabilities
3,523
133,172
4,190
147,460
Total
     current liabilities
5,786
228,724
5,203
283,321
Long-term debt and capital leases
6,256
213,549
7,211
181,807
Deferred
     income taxes
--
5,389
--
13,637
Other
     long-term liabilities
(1,300
)
51,409
295
39,821
Shareholders' equity
     (deficit)
(562
)
527,286
(8,324
)
522,328
Total liabilities and
     shareholders' equity
$
10,180
$
1,026,357
$
4,385
$
1,040,914
(1)
Includes the elimination of intercompany accounts and notes
receivable.
LA-Z-BOY INCORPORATED
Impact of FIN 46 on Condensed Consolidated
Statement of Operations
Unaudited
For the
     Quarter Ended 4/30/05
Unaudited
For the
     Year Ended 4/30/05
(
Amounts in thousands)
VIEs
Consolidated
VIEs
Consolidated
Sales
$
7,877
(2)
$
565,555
$
46,019
(2)
$
2,048,381
Cost of sales
Cost of goods sold
(1,217
)
(2)
434,941
1,224
(2)
1,572,844
Restructuring
--
(3,107
)
--
10,294
Total cost of sales
(1,217
)
431,834
1,224
1,583,138
Gross profit
9,094
133,721
44,795
465,243
Selling, general and administrative
11,115
101,053
49,825
401,592
Write-down of intangibles
--
--
--
--
Operating income
     (loss)
(2,021
)
32,668
(5,030
)
63,651
Interest expense
97
2,942
427
10,442
Other
     income (expense), net
(1,092
)
(3)
(122
)
(4,154
)
(3)
170
Income
     (loss) from continuing operations before income taxes
(3,210
)
29,604
(9,611
)
53,379
Income tax
     expense (benefit)
(1,221
)
11,249
(3,652
)
20,284
Income
     (loss)
     from continuing operations
(1,989
)
18,355
(5,959
)
33,095
Income

     from discontinued operations (net of tax)
--
1,009
--
1,996
Extraordinary gains (net of tax)
--
1,392
--
2,094
Net income
     (loss)
$
(1,989
)
$
20,756
$
(5,959
)
$
37,185
(2)
Includes the elimination of intercompany sales and cost of
sales.
(3)
Includes
the elimination of intercompany interest income and interest expense.
Exhibit 99.2
LA-Z-BOY INCORPORATED
Unaudited Quarterly Financial Data
(Amounts in thousands, except per share data)
Quarter
      ended
7/24/04 *
(13 weeks)
10/23/04 *
(13 weeks)
1/22/05 *
(13 weeks)
4/30/05
(14 weeks)
Sales
$
455,107
$
520,760
$
506,959
$
565,555
Cost of sales
Cost
    of goods sold
351,716
400,834
385,353
434,941
Restructuring
10,400
749
2,252
(3,107
)
Total cost of sales
362,116
401,583
387,605
431,834
Gross profit
92,991
119,177
119,354
133,721
Selling,
      general and administrative
97,045
103,874
99,620
101,053
Operating income (loss)
(4,054
)
15,303
19,734
32,668
Interest
      expense
2,209
2,607
2,684
2,942
Other
      income (expense), net
373
(354
)
273
(122
)
Income (loss) from continuing operations before income taxes
(5,890
)
12,342
17,323
29,604
Income tax
    expense (benefit)
(2,238
)
4,690
6,583
11,249
Income
    (loss) from continuing operations
(3,652
)
7,652
10,740
18,355
Income
    from discontinued operations (net of tax)
129
506
352
1,009
Extraordinary gains (net of tax)
--
702
--
1,392
Net income
    (loss)
$
(3,523
)
$
8,860
$
11,092
$
20,756
Diluted
      weighted average shares outstanding
51,967
52,101
52,193
52,262
Diluted
    income (loss) from continuing operations per share
$
(0.07
)
$
0.15
$
0.21
$
0.35
Diluted
    net income (loss) per share
(0.07
)
0.17
0.21
0.40
*  Income statements have been
reclassified for discontinued operations.
LA-Z-BOY INCORPORATED
Unaudited Quarterly Financial Data
(Amounts in thousands, except per share data)
Quarter
      ended
7/26/03 *
(13 weeks)
10/25/03 *
(13 weeks)
1/24/04 *
(13 weeks)
4/24/04 *
(13 weeks)
Sales
$
440,530
$
498,360
$
480,904
$
532,203
Cost of sales
Cost
    of goods sold
344,031
384,883
374,574
406,376
Restructuring
6,273
1,976
1,244
948
Total cost of sales
350,304
386,859
375,818
407,324
Gross profit
90,226
111,501
105,086
124,879
Selling,
      general and administrative
78,700
85,211
79,474
88,235
Writedown of intangible
--
--
--
71,943
Operating income (loss)
11,526
26,290
25,612
(35,299
)
Interest
      expense
3,213
3,026
2,697
2,317
Other
    income, net
1,270
440
1,273
1,381
Income (loss) from continuing operations before income taxes
9,583
23,704
24,188
(36,235
)
Income tax
    expense (benefit)
3,641
9,008
9,192
(2,479
)
Income
    (loss) from continuing operations
5,942
14,696
14,996
(33,756
)
Income (loss) from discontinued operations (net of tax)
(139
)
481
283
25
Cumulative effect of accounting change (net of tax)
--
--
--
(8,324
)
Net income
    (loss)
$
5,803
$
15,177
$
15,279
$
(42,055
)
Diluted
      weighted average shares outstanding
54,916
54,339
52,931
52,318
Diluted
    income (loss)  from continuing operations per share
$
0.11
$
0.27
$
0.28
$
(0.65
)
Diluted
    net income (loss) per share
0.11
0.28
0.29
(0.80
)
*  Income statements have been reclassified for discontinued
operations.