ROW Rowe

MCLEAN, Va., Nov. 21 /PRNewswire-FirstCall/ -- The Rowe Companies (AMEX:ROW), a leading furniture manufacturer and home furnishings retailer, announced today that the Company has executed a commitment letter (the "GE Commitment Letter") with GE Commercial Finance for up to $60,000,000 of secured financing. Pursuant to the GE Commitment Letter, the Company expects GE Commercial Finance to provide the Company with a senior secured revolving credit facility of up to $50,000,000 and arrange a senior secured Tranche B loan of up to $10,000,000. The GE Commitment letter, including commitments obtained for the Tranche B Loan, are subject to various conditions, including but not limited to completion of business and legal due diligence to the satisfaction of GE Commercial Finance and Tranche B lenders, respectively, and execution and delivery of final legal documentation. Proceeds of the financing are expected to be used to refinance certain of the Company's existing debt, to provide for working capital and general corporate purposes, and to pay fees associated with the refinancing. "I'm pleased that a world class company such as GE Commercial Finance recognizes the value we have created here in Rowe Furniture and Storehouse," said Gerald M. Birnbach, Chairman and President. "Upon funding, we expect to have the resources necessary to continue the growth in Storehouse, fund our working capital requirements and undertake initiatives to grow revenue and improve profitability." The Rowe Companies operates two subsidiaries in the home furnishings industry: Rowe Furniture, Inc., a major manufacturer of quality upholstered furniture serving the middle and upper middle market throughout the U.S.; and Storehouse, Inc., a multi-channel, lifestyle home furnishings business including 68 retail home furnishings stores. Storehouse makes good design accessible by selling an edited assortment of casual, contemporary home furnishings through its stores located in the Southeast, Southwest and Mid- Atlantic markets, its catalog and over the internet. Statements in this press release concerning Rowe's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items; together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, industry cyclicality, fluctuations in customer demand and order patterns, the possibility that the conditions set forth in the GE Commitment Letter will not be satisfied and the financings contemplated thereby will not be consummated, the seasonal nature of the business, changes in pricing, and general economic conditions, as well as other risks detailed in Rowe's filings with the Securities and Exchange Commission. DATASOURCE: The Rowe Companies CONTACT: Gene S. Morphis, Chief Financial Officer of The Rowe Companies, +1-703-847-8670 Web site: http://www.therowecompanies.com/

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