EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACT: Peg Lupton Ethan Allen Interiors Inc. (203)743-8234 ETHAN ALLEN REPORTS THIRD QUARTER SALES AND EARNINGS DANBURY, CONN., April 22, 2003 -- Ethan Allen Interiors Inc. (NYSE:ETH) today reported sales and earnings for the three and nine months ended March 31, 2003. As previously announced in February 2003, the Company recorded a pre-tax restructuring and impairment charge of $13.2 million (or $0.22 per share) during its third quarter ended March 31, 2003. The charge relates to the consolidation of three of the Company's smaller manufacturing facilities. For the third quarter ended March 31, 2003, earnings per share, including the restructuring and impairment charge, amounted to $0.30 on net income of $11.7 million, as compared to $0.58 and $23.0 million, respectively, in the prior year third quarter. Excluding the impact of the restructuring and impairment charge, earnings per share for the quarter amounted to $0.52 and net income totaled $19.9 million. For the nine months ended March 31, 2003, earnings per share, including the restructuring and impairment charge, amounted to $1.42 on net income of $54.8 million, as compared to $1.52 and $60.9 million, respectively, in the prior year comparable period. Excluding the impact of the restructuring and impairment charge, earnings per share for the nine month period increased 7.2% to $1.63 and net income increased 3.5% to $63.0 million. -1- Net delivered sales for the third quarter ended March 31, 2003 decreased 1.5% to $224.6 million from $227.9 million in the prior year comparable period. Third quarter delivered sales for the Company's Retail division increased 9.9% to $127.3 million from $115.8 million in the prior year, and written sales increased 4.4% over that same period. Comparable Ethan Allen store delivered sales and written sales for the quarter decreased 4.3% and 9.2%, respectively, as compared to the prior year. Net delivered sales for the nine months ended March 31, 2003 increased by 2.0% to $670.8 million from $657.5 million in the prior year comparable period. Nine month delivered sales for the Company's Retail division increased 16.7% to $387.1 million from $331.6 million in the prior year, and written sales increased 17.2% over that same period. Comparable Ethan Allen store delivered sales and written sales for the nine month period decreased 3.7% and 3.2%, respectively, as compared to the prior year. Farooq Kathwari, Chairman and CEO, commented, "Despite the difficult economic conditions, we are pleased that we have maintained healthy margins, earnings and cash flow. Our strong focus on maximizing operating efficiencies while maintaining high quality standards continues to enable us to increase shareholder value. During the quarter and fiscal year to date, the Company repurchased $19.4 million and $41.8 million, respectively, of its stock in the open market. We also initiated the consolidation of three manufacturing facilities with the intention of further improving production efficiencies and related margins. At the same time, our efforts to provide our customers with excellence in service and value also continue. Last week, we introduced the new "Tuscany" line to consumers and the Ethan Allen Kids line will be marketed in July. Both will offer the consumer innovative and stylish alternatives at excellent values." -2- Commenting on expected future business results, Mr. Kathwari stated, "As we had previously indicated, the geo-political situation has negatively impacted consumer confidence during the last several months. We are positioned to perform well as the economy and consumer confidence improves. As in the past, we plan to periodically update our outlook." Ethan Allen Interiors Inc. is a leading manufacturer and retailer of quality home furnishings. The Company sells a full range of furniture products and decorative accessories through an exclusive network of 312 retail locations in the United States and abroad, of which 120 are Company-owned. Ethan Allen has 14 manufacturing facilities, which include 3 sawmills, located throughout the United States. The Company will conduct a Conference Call at 11:00 AM Eastern time on Tuesday, April 22nd to be broadcast live over the Internet linked through the Company's website at www.ethanallen.com. The information contained in this press release should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2002 and other reports filed with the Securities and Exchange Commission, including the Company's Report of Form 10-K for the year ended June 30, 2002. Management's discussion in this release contains forward-looking statements relating to future results of the Company. These forward-looking statements are subject to various assumptions, risk and uncertainties, and accordingly, actual results could differ materially from those contemplated by the forward-looking statements. ###### -3-