Bassett Furniture Industries (BSET)

Bassett Announces Third Quarter 2007 Results

(Bassett, Va.) – October 4, 2007 – Bassett Furniture Industries Inc. (Nasdaq:BSET) announced today its results of operations for its fiscal quarter ended August 25, 2007.

Sales for the third quarter of 2007 were $70.5 million down 9% from $77.6 million for the third quarter of 2006. This shortfall is primarily due to continued soft furniture retail conditions, which have impacted both retail sales and wholesale shipments. Gross margins for the third quarter of 2007 were 35% compared to 30% for the third quarter of 2006 due primarily to a shift in product mix from domestic to imported, improved retail margins and a change in classification of invoiced freight on wholesale shipments (see below). Selling, general and administrative expenses increased primarily due to spending to support the Company’s key retail initiatives and the change in classification of invoiced freight as noted above. The Company reported net income of $0.7 million, or $0.06 per share, as compared to net income of $0.1 million, or $0.01 per share, in the third quarter of 2006.

The Bassett Furniture retail store program had 132 stores (103 licensed and 29 Company-owned) in operation at the end of the third quarter. No stores were opened during the quarter and one store was closed. Last month, the Company unveiled a new store prototype opening a new Company-owned store in Atlanta and a remodeled store in Charlotte. The prototype was created to allow a more stylish, residential feel while highlighting Bassett’s custom manufacturing capabilities. The Company expects three new licensee-owned stores to open in the next three to four months incorporating this prototype.

“Our industry continues to suffer from sluggish consumer demand coupled with a weak housing market and a growing consumer credit crunch. Industry conditions remain difficult and our results for the third quarter reflect that,” said Robert H. Spilman Jr., Bassett president and chief executive officer. “Although business conditions are tough, we are excited about our recently announced retail strategies. Our dealers’ reception of our new lines introduced in September have been extremely positive. We also believe that the new prototype recently introduced in Atlanta and Charlotte will reinforce both our commitment to elevating the visual appeal of our stores while highlighting our custom furniture capabilities.”

Bassett Announces Second Quarter 2007 Results

(Bassett, Va.) – July 5, 2007 – Bassett Furniture Industries Inc. (Nasdaq: BSET) announced today its results of operations for its fiscal quarter ended May 26, 2007.

Sales for the second quarter of 2007 were $75.4 million down 14% from the $87.7 million sold in the second quarter of 2006. As previously reported, this shortfall is primarily due to continued soft furniture retail conditions which have impacted both retail sales and wholesale shipments. The Company reported a net loss of $(2.4) million or $(0.20) per share as compared to net income of $2.8 million or $0.24 per share in the second quarter of 2006. The net loss for the second quarter of 2007 included several non-recurring charges such as severance costs related to the Bassett plant closure, lease exit costs related to three closed stores, and a leasehold improvement asset impairment related to downsizing the Company’s wholesale showroom. Excluding the effects of these charges, the Company’s net results for the quarter would have been basically a breakeven, which represents a $2 million improvement over the results for the first quarter of 2007. A reconciliation of adjusted net loss has been set forth below.

The Bassett Furniture retail store program had 133 stores (104 licensed and 29 Company-owned) in operation at the end of the second quarter. Two stores were opened during the quarter and one store was closed. The Company expects three to four new stores will be opened in the second half of the year.

“These are truly difficult times for our industry and our results for the second quarter reflect that,” said Robert H. Spilman Jr., Bassett president and chief executive officer. “We continue to believe the initiatives we have in place to improve our store program combined with actions we have and are taking to reduce our cost structure will make us a better company and coupled with a better overall retail environment should lead to improved operating results. An additional challenge will be repositioning our upholstery fabric line in light of the recent financial difficulties of two of our key suppliers.”

Bassett Announces First Quarter 2007 Results

(Bassett, Va.) – April 2, 2007 – Bassett Furniture Industries Inc. (Nasdaq:BSET) announced today its results of operations for its fiscal quarter ended February 24, 2007.

Sales for the first quarter of 2007 were $73.4 million down 15% from the $86.5 million reported in the first quarter of 2006. As previously announced, this shortfall is primarily due to continued soft furniture retail conditions which have impacted both retail sales and wholesale shipments. This decrease was also partially due to the sale of the Company’s Weiman operation at the end of April 2006. The Company reported a net loss of $(4.2) million or $(0.35) per share as compared to net income of $2.2 million or $0.18 per share in the first quarter of 2006. Also as previously announced, the net loss for the first quarter of 2007 included a $3.6 million non-cash pre-tax or $0.19 per share after-tax charge related to closing a wood manufacturing plant in Bassett, Va. Excluding the effects of the non-cash asset impairment charge, the Company’s net loss would have been $(2.0) million. A reconciliation of net income and earnings per share calculations has been set forth below.

As noted above, the Company announced on March 5, 2007 plans to cease operations at its wood manufacturing facility in Bassett. The closure of the 323,000 square foot facility is planned to be completed during the third quarter of 2007 and will affect approximately 280 employees or 15 percent of the Company’s workforce. During the last few years, like most of the U.S. furniture industry, Bassett has experienced a shift in demand from domestically produced to imported wood furniture. With the current business levels, it was no longer feasible to continue to operate the large manufacturing facility even with the efficiency improvements and investments made over the last two years. The Company plans to source the majority of the products currently produced at this facility from overseas suppliers, to continue to produce certain custom bedroom products domestically and to discontinue production of slower selling items. The Company also expects to record a charge of approximately $1.0 million in the second quarter of 2007 for severance benefits associated with the plant closure.

The Bassett Furniture retail store program had 133 stores (106 licensed and 27 Company-owned) in operation at the end of the first quarter. No stores were opened during the quarter with one licensee store being closed. The Company expects that four or five new stores will be opened over the remainder of the year.

“This was an extremely difficult quarter for the Company both in terms of our business levels and the announcement made earlier this month related to the closing of our facility in Bassett,” said Robert H. Spilman Jr., president and chief executive officer. “While we are reducing our cost structure to reflect the pace of incoming orders, the Company continues to pursue mid and long-term growth

initiatives on a number of fronts. The reception of our dealers to new sharper value products at the High Point Market last week was very positive. Components of our store presentation improvement program were on display and favorably embraced by our licensees. The debut of our new store prototype this fall and new embellishments to our consumer catalog highlight continued efforts to strengthen store performance.”