EXHIBIT 99.1

FOR IMMEDIATE RELEASE   Ethan Allen Interiors Inc.
    Investor Contact:  Peg Lupton
                                  (203) 743-8234
    Media Contact:     Kelly Maicon
                                  (203) 743-8575


ETHAN ALLEN ANNOUNCES THIRD QUARTER RESULTS;
SALES INCREASE 9%; EARNINGS PER SHARE INCREASE 17%

DANBURY, CT., APRIL 20, 2004 — Ethan Allen Interiors Inc. (NYSE:ETH) (“Ethan Allen” or the “Company”) today reported sales and earnings for the three and nine months ended March 31, 2004.

Net sales for the quarter ended March 31, 2004 increased 8.9% to $244.6 million from $224.6 million in the prior year quarter. Net delivered sales for the Company’s Retail division increased 13.1% to $144.1 million, while Wholesale sales increased 2.9% to $178.9 million during that same period. For the quarter, comparable Ethan Allen store delivered sales increased 9.7%. Ethan Allen sells through an exclusive network of 312 retail locations, of which 124 are Company-owned.

For the nine months ended March 31, 2004, net sales increased 5.6% to $708.5 million from $670.8 million in the prior year. Net delivered sales for the Company’s Retail division increased 10.1% to $426.3 million, while Wholesale sales increased 2.3% to $501.5 million during that same period. Year-to-date, comparable Ethan Allen store delivered sales increased 4.0%.

Earnings per share for the current quarter amounted to $0.61 on net income of $23.4 million. This compares to earnings per share and net income of $0.30 and $11.7 million, respectively, recorded in the prior year quarter, which includes pre-tax restructuring and impairment charges of $13.2 million. Excluding the impact of these restructuring and impairment charges, earnings per share increased $0.09, or 17.3%, while net income increased $3.5 million, or 17.4%.

Earnings per share for the nine month period totaled $1.74 on net income of $66.7 million. This compares to earnings per share and net income of $1.42 and $54.8 million, respectively, recorded in the prior year period, which includes pre-tax restructuring and impairment charges of $13.1 million. Excluding the impact of these restructuring and impairment charges, earnings per share increased $0.10, or 6.1%, while net income increased $3.5 million, or 5.6%.

Total written orders increased 14.0% as compared to the prior year quarter. At the Wholesale level, net orders booked increased 13.6%, while at the Retail level, written sales increased 15.2% and comparable store written sales increased 11.6%.

On a year-to-date basis, total written orders increased 8.2% as compared to the prior year. Within that same period, Wholesale net orders booked increased 7.4%, while Retail written sales increased 10.6% and comparable store written sales increased 4.4%.

Farooq Kathwari, Chairman and CEO, commented: “We are pleased with our results for the quarter. Encouraging signs noted in recent periods, which appear to indicate an increasing level of consumer confidence and a further strengthening of the U.S. economy, have continued. The sustainability of such trends continues to have a positive effect on the Company’s incoming order rate and backlog.”

Mr. Kathwari continued: “Strategic initiatives undertaken during the past year to help position the Company for this next phase of economic growth are already providing benefits. The objective of such initiatives was to ensure that Ethan Allen remained well-positioned to provide customers with a comprehensive complement of home furnishing solutions while, at the same time, remaining competitive in the global market. Stronger marketing programs, more efficient U.S. manufacturing operations, and better sourcing capacity, both domestically and abroad, have enabled us to increase sales, improve profitability, and continue generating healthy levels of operating cash which has been, and will continue to be, utilized to grow our business and increase shareholder value.”

On the question of business trends, Mr. Kathwari stated: “We continue to work under the assumption that the positive trends noted in recent months will continue. As such, we remain optimistic that the business growth we have experienced is indicative of further economic expansion for the remainder of 2004. As we have previously stated, assuming no unexpected deterioration in the economy or consumer confidence, we continue to believe we have the opportunity to generate fiscal year sales and earnings per share increases of approximately 5% and 10%, respectively.”

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 stores (310 full-line and 2 Ethan Allen Kids) in the United States and abroad. 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) on Tuesday, April 20, 2004. The live webcast and replay are accessible via the Company’s website at www.ethanallen.com/investors.

This press release should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2003 and other reports filed with the Securities and Exchange Commission. 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.

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Ethan Allen Interiors Inc.
Selected Financial Information
Unaudited

(In millions)

Selected Consolidated Financial Data:

Three Months Ended
Nine Months Ended
3/31/04
3/31/03
3/31/04
3/31/03
Net Sales     $ 244 .6 $ 224 .6 $ 708 .5 $ 670 .8
Gross Margin       48 .8%   49 .8%   48 .6%   49 .9%
Operating Margin       15 .5%   8 .4%   14 .9%   13 .1%
Operating Margin (ex restructuring & impairment charge)     15 .5%   14 .3%   14 .9%   15 .1%
Net Income     $ 23 .4 $ 11 .7 $ 66 .7 $ 54 .8
Net Income (ex restructuring & impairment charge)     $ 23 .4 $ 19 .9 $ 66 .5 $ 63 .0

Operating Cash Flow
    $ 36 .1 $ 18 .0 $ 112 .6 $ 74 .0
Capital Expenditures     $ 4 .7 $ 6 .4 $ 14 .0 $ 23 .3
Treasury Stock Repurchases     $   $ 18 .7 $   $ 48 .3

EBITDA
    $ 43 .4 $ 24 .4 $ 124 .4 $ 104 .4
EBITDA as % of Net Sales       17 .7%   10 .8%   17 .6%   15 .6%
EBITDA (ex restructuring & impairment charge)     $ 43 .4 $ 37 .6 $ 124 .2 $ 117 .6
EBITDA as % of Net Sales (ex restructuring &    
      impairment charge)       17 .7%   16 .7%   17 .5%   17 .5%

Selected Financial Data by Business Segment:

Three Months Ended
Nine Months Ended
Retail 3/31/04
3/31/03
3/31/04
3/31/03
Net Sales     $ 144 .1 $ 127 .3 $ 426 .3 $ 387 .1
Operating Margin       2 .8%   1 .7%   2 .4%   3 .4%

Three Months Ended
Nine Months Ended
Wholesale 3/31/04
3/31/03
3/31/04
3/31/03
Net Sales     $ 178 .9 $ 173 .9 $ 501 .5 $ 490 .1
Operating Margin       19 .1%   12 .0%   18 .2%   15 .9%
Operating Margin (ex restructuring
     & impairment charge)
      19 .1%   19 .7%   18 .2%   18 .6%

Ethan Allen Interiors Inc.
Condensed Consolidated Statements of Operations
Unaudited

(In thousands, except per share amounts)


Three Months
Ended March 31,
Nine Months
Ended March 31,

2004
2003
2004
2003
Net sales     $ 244,592   $ 224,574   $ 708,507   $ 670,816  
Cost of sales       125,319     112,624     364,512     336,347  




        Gross profit       119,273     111,950     343,995     334,469  

Operating expenses:
   
    Selling       45,045     45,257     130,875     132,022  
    General and administrative       36,291     34,632     107,759     101,348  
     Restructuring and impairment charges           13,223     (264 )   13,131  




       Total operating expenses       81,336     93,112     238,370     246,501  




        Operating income       37,937     18,838     105,625     87,968  
Interest and other miscellaneous income       223     58     3,171     707  
Interest and other related financing costs       179     130     487     507  




    Income before income tax expense       37,981     18,766     108,309     88,168  
Income tax expense       14,623     7,094     41,614     33,328  




        Net income     $ 23,358   $ 11,672   $ 66,695   $ 54,840  




 
Basic earnings per share:    

Net income per share
    $ 0.63   $ 0.31   $ 1.79   $ 1.45  




Basic weighted average shares outstanding       37,300     37,560     37,265     37,771  
 
Diluted earnings per share:    

Net income per share
    $ 0.61   $ 0.30   $ 1.74   $ 1.42  




Diluted weighted average shares outstanding       38,551     38,546     38,406     38,751  
 
Reconciliation of GAAP to Non-GAAP Information:    
 
Net income     $ 23,358   $ 11,672   $ 66,695   $ 54,840  

Add: restructuring & impairment charge, net of related tax effect
          8,225     (163   8,167  




Net income (ex restructuring & impairment charge)     $ 23,358   $ 19,897   $ 66,532   $ 63,007  





Earnings per basic share (ex restructuring & impairment charge)
    $ 0.63   $ 0.53   $ 1.79   $ 1.67  





Basic weighted average shares outstanding
      37,300     37,560     37,265     37,771  

Earnings per diluted share (ex restructuring & impairment charge)
    $ 0.61   $ 0.52   $ 1.73   $ 1.63  





Diluted weighted average shares outstanding
      38,551     38,546     38,406     38,751  

Ethan Allen Interiors Inc.
Condensed Consolidated Balance Sheets

(In thousands)


  March 31,
2004
June 30,
2003
 
(unaudited)

Assets            

Current Assets:
   
      Cash and cash equivalents     $ 177,018   $ 81,856  
      Accounts receivable, net       26,257     26,439  
      Inventories, net       185,794     198,212  
      Prepaid expenses and other current assets       50,201     53,755  


         Total current assets       439,270     360,262  

Property, plant, and equipment, net
      281,640     289,423  
Intangible assets, net       79,099     78,939  
Other assets       1,826     2,944  


         Total Assets     $ 801,835   $ 731,568  


Liabilities and Shareholders' Equity    

Current Liabilities:
   
      Current maturities of long-term debt                
         and capital lease obligations     $ 4,758   $ 996  
      Customer deposits       61,622     55,939  
      Accounts payable       32,301     25,375  
      Accrued expenses       51,652     52,116  


         Total current liabilities       150,333     134,426  

Long-term debt
      4,525     9,222  
Deferred income taxes       50,289     47,539  
Other long-term liabilities       1,817     2,682  
Total shareholders' equity       594,871     537,699  


         Total Liabilities and Shareholders' Equity     $ 801,835   $ 731,568