MONROE, Mich., Sept. 13 /PRNewswire-FirstCall/ -- La-Z-Boy Incorporated (NYSE: LZB) today announced that it has reached an agreement in principle to sell its Clayton Marcus subsidiary to Rowe Fine Furniture, Inc. ("Rowe"). Working terms of the agreement, which is expected to be finalized later this month, were not disclosed.

Founded in 1960, Clayton Marcus is a well-established, niche manufacturer of medium to upper-medium priced upholstered furniture, headquartered in Hickory, North Carolina. Its product collections cover a broad variety of style categories including casual, classic, and cottage and are distributed through hundreds of independently owned retailers throughout the United States and Canada and around the world.

Kurt Darrow, President and Chief Executive Officer of La-Z-Boy Incorporated, said, "While Clayton Marcus enjoys an excellent reputation in the market, the company does not fit with La-Z-Boy's overall long-term strategy. We are confident that Rowe will be a synergistic owner for Clayton Marcus and that its customers will continue to be well serviced."

Rowe, a manufacturer of upholstered furniture, is under new ownership by an affiliate of Sun Capital Partners, Inc.

Please refer to Rowe Fine Furniture's news release for further information.

Background Information

La-Z-Boy Incorporated is one of the world's leading residential furniture producers, distributors and retailers, marketing furniture for every room of the home. The La-Z-Boy Upholstery Group companies are Bauhaus, England, La-Z-Boy and La-Z-Boy, U.K. The La-Z-Boy Casegoods Group companies are American Drew, Hammary, Kincaid and Lea. The La-Z-Boy Retail Group consists of 69 stores operating in eight metropolitan markets.

The corporation's proprietary distribution network is dedicated exclusively to selling La-Z-Boy Incorporated products and brands, and includes 333 stand-alone La-Z-Boy Furniture Galleries(R) stores and 281 La-Z-Boy In-Store Galleries, in addition to in-store gallery programs at the company's Kincaid, England and Lea operating units. According to industry trade publication In Furniture, the La-Z-Boy Furniture Galleries retail network is North America's largest single-brand furniture retailer. Additional information is available at http://www.la-z-boy.com/.

SOURCE  La-Z-Boy Incorporated
    -0-                             09/13/2007
    /CONTACT: Kathy Liebmann, +1-734-241-2438,
kathy.liebmann@la-z-boy.com /
    /Web site:  http://www.la-z-boy.com /
    (LZB)

CO:  La-Z-Boy Incorporated; Rowe Fine Furniture, Inc.; Clayton Marcus
ST:  Michigan
IN:  HOU REA
SU:  TNM

TI-MT
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3031 09/13/2007 08:45 EDT http://www.prnewswire.com