Hooker Furniture Discontinues Employee Stock Plan

Martinsville, VA, January 29, 2007–Hooker Furniture, an importer and manufacturer that supplies home furnishings to retailers, said on Monday that it had halted its employee stock ownership plan in a move to cut costs.

The move will result in a one-time, noncash charge of $18.4 million, the company said. It said annual compensation expense under the stock ownership plan had averaged $3.4 million from 2004 to 2006, and elimination of the plan would yield significant annual cost savings.