ETHAN ALLEN INTERIORS INC.
                       Computation of Per Share Earnings



                                 Three Months Ended          Six Months Ended
                                     December 31,              December 31,
                                 1996        1995           1996        1995
                                 ----        ----           ----        ----

Primary Earnings Per Share:

      Average number of
        shares outstanding   14,388,000  14,395,000     14,363,000   14,375,000

      Treasury stock           (518,000)   (134,000)      (524,000)    (134,000)

      Net effect of common
        stock equivalents       751,000     211,000        788,000      295,000
                             ----------   ---------      ---------   ----------

      Average number of
        shares - primary     14,621,000  14,472,000     14,627,000   14,536,000


      Net income available
        to common
        shareholder         $12,227,000 $ 7,841,000     $21,010,000 $12,341,000
                            =========== ===========     =========== ===========


      Per Share Data

      Net income per common
      share                 $     0.84  $      0.54     $      1.44 $      0.85
                            =========== ===========     =========== ===========



Earnings Per Common Share:

      Earnings  per common  share are  computed by dividing  net earnings by the
weighted  average number of shares of common stock and common stock  equivalents
outstanding  during  each  period.  The  Company  has issued  stock  options and
warrants which are the Company's only common stock equivalents.

Fully Diluted Earnings Per Share:

      Fully  diluted  earnings  per share is within 3% of primary  earnings  per
share for all periods presented.