|   | (Mark      one)                                                                                     |
|--------|-----------------------------------------------------------------------------------------------------|
|   |                                                                                                |
| x      | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF      1934  |
|   | For the      quarterly period ended  March 31, 2008 or                                    |
|   |                                                                                                |
| ¨ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|   | For the      transition period from ____________ to ____________                                    |
|   |                                                                                                |
|   | Commission      file number 001-00091                                                               |

| Furniture      Brands International, Inc.                  |
|------------------------------------------------------------|
| (Exact name      of registrant as specified in itscharter) |

| Delaware                             |   | 43-0337683               |
|--------------------------------------|--------|--------------------------|
| (State or      other jurisdiction of |   | (I.R.S.      Employer    |
| incorporation      or organization)  |   | Identification      No.) |

| 101 South      Hanley Road, St. Louis, Missouri |   | 63105           |
|-------------------------------------------------|--------|-----------------|
| (Address of      principal executive offices)   |   | (Zip      Code) |

|   | (314)      863-1100                                            |
|--------|----------------------------------------------------------------|
|   | (Registrant’s      telephone number, including areacode) |

|                                                                                             |
|--------------------------------------------------------------------------------------------------|
|  Former name,      former address and former fiscal year, if changed since last      report |

|   |   | ý      Yes                      o  No |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| Large      Accelerated Filer  ý | Accelerated      Filer  o         |
|------------------------------------------------|---------------------------------------------|
| Non-Accelerated      Filer  o        | Smaller      reporting company  o |

|   | (Do      not check if a smaller reporting company)                                                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                       |
|   | Indicate by      check mark whether the registrant is a shell company (as defined in rule      12b-2 of the Exchange Act). |

|   |   | o      Yes                      ý  No |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| PART I.      FINANCIAL INFORMATION                                                                            |
|---------------------------------------------------------------------------------------------------------------|
|                                                                                                          |
| Item 1.      Financial Statements                                                                             |
|                                                                                                          |
| Consolidated      Financial Statements for the quarter ended March 31,  2008.                                 |
|                                                                                                          |
| Consolidated      Balance Sheets:                                                                             |
|                                                                                                          |
| March 31,      2008                                                                                           |
| December 31,      2007                                                                                        |
|                                                                                                          |
| Consolidated      Statements of Operations:                                                                   |
|                                                                                                          |
| Three Months      Ended March 31, 2008                                                                        |
| Three Months      Ended March 31, 2007                                                                        |
|                                                                                                          |
| Consolidated      Statements of Cash Flows:                                                                   |
|                                                                                                          |
| Three Months      Ended March 31, 2008                                                                        |
| Three Months      Ended March 31, 2007                                                                        |
|                                                                                                          |
| Notes to      Consolidated Financial Statements                                                               |
|                                                                                                          |
| Item 2.      Management’s Discussion and Analysis of Financial Condition and Results of      Operations |
|                                                                                                          |
| Item 3.      Quantitative and Qualitative Disclosures about Market  Risk                                      |
|                                                                                                          |
| Item 4.      Controls and Procedures                                                                          |
|                                                                                                          |
| PART II.      OTHER INFORMATION                                                                               |
|                                                                                                          |
| Item 1A. Risk      Factors                                                                                    |
|                                                                                                          |
| Item 6.      Exhibits                                                                                         |
|                                                                                                          |
| Certification      of Principal Executive Officer                                                             |
| Certification      of Principal Financial Officer                                                             |
| 906      Certification of Principal Executive Officer                                                         |
| 906      Certification of Principal FinancialOfficer                                                          |

----

|                                                                                                                                                                                                                        |   | March      31, |      |   | December      31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                                                                                                                                                                                                                        |   | 2008           |      |   | 2007              |   |
| ASSETS                                                                                                                                                                                                                      |   |           |      |   |              |   |
| Current      assets:                                                                                                                                                                                                        |   |           |      |   |              |   |
| Cash and cash      equivalents                                                                                                                                                                                              |   | $              | 187,838   |   |              | $      | 118,764 |   |
| Cash -      restricted                                                                                                                                                                                                      |   |           | -         |   |              |   | 20,000 |   |
| Receivables,      less allowances of $32,913 ($45,467 at December 31, 2007)                                                                                                                                                 |   |           | 283,792   |   |              |   | 292,694 |   |
| Inventories                                                                                                                                                                                                                 |   |           | 393,823   |   |              |   | 401,302 |   |
| Deferred      income taxes                                                                                                                                                                                                  |   |           | 34,725    |   |              |   | 36,978 |   |
| Prepaid      expenses and other current assets                                                                                                                                                                              |   |           | 14,554    |   |              |   | 17,880 |   |
| Current      assets of discontinued operations                                                                                                                                                                              |   |           | -         |   |              |   | 12,236 |   |
| Total current      assets                                                                                                                                                                                                   |   |           | 914,732   |   |              |   | 899,854 |   |
|                                                                                                                                                                                                                        |   |           |      |   |              |   |   |   |
| Property,      plant and equipment                                                                                                                                                                                          |   |           | 178,923   |   |              |   | 178,564 |   |
| Goodwill                                                                                                                                                                                                                    |   |           | 167,356   |   |              |   | 167,356 |   |
| Other      intangible assets                                                                                                                                                                                                |   |           | 162,571   |   |              |   | 162,571 |   |
| Other      assets                                                                                                                                                                                                           |   |           | 33,964    |   |              |   | 36,770 |   |
| Noncurrent      assets of discontinued operations                                                                                                                                                                           |   |           | -         |   |              |   | 17,963 |   |
| Total      assets                                                                                                                                                                                                           |   | $              | 1,457,546 |   |              | $      | 1,463,078 |   |
|                                                                                                                                                                                                                        |   |           |      |   |              |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                                                                                                             |   |           |      |   |              |   |   |   |
| Current      liabilities:                                                                                                                                                                                                   |   |           |      |   |              |   |   |   |
| Current      maturities of long-term debt                                                                                                                                                                                   |   | $              | 800       |   |              | $      | 20,800 |   |
| Accounts      payable                                                                                                                                                                                                       |   |           | 104,400   |   |              |   | 93,557 |   |
| Accrued      employee compensation                                                                                                                                                                                          |   |           | 40,926    |   |              |   | 21,633 |   |
| Accrued      expenses and other current liabilities                                                                                                                                                                         |   |           | 62,889    |   |              |   | 46,102 |   |
| Current      liabilities of discontinued operations                                                                                                                                                                         |   |           | -         |   |              |   | 5,307 |   |
| Total current      liabilities                                                                                                                                                                                              |   |           | 209,015   |   |              |   | 187,399 |   |
|                                                                                                                                                                                                                        |   |           |      |   |              |   |   |   |
| Long-term      debt                                                                                                                                                                                                         |   |           | 235,000   |   |              |   | 280,000 |   |
| Deferred      income taxes                                                                                                                                                                                                  |   |           | 27,484    |   |              |   | 28,859 |   |
| Other      long-term liabilities                                                                                                                                                                                            |   |           | 109,020   |   |              |   | 121,913 |   |
| Noncurrent      liabilities of discontinued operations                                                                                                                                                                      |   |           | -         |   |              |   | 141 |   |
|                                                                                                                                                                                                                        |   |           |      |   |              |   |   |   |
| Shareholders’      equity:                                                                                                                                                                                            |   |           |      |   |              |   |   |   |
| Preferred      stock, authorized 10,000,000 shares, no par value – issued,      none                                                                                                                                  |   |           | -         |   |              |   | - |   |
| Common stock,      200,000,000 shares authorized, $1.00 stated value – 56,482,541 issued and      48,782,518 outstanding at March 31, 2008 and 56,482,541 issued and      48,498,171 outstanding at December 31, 2007 |   |           | 56,483    |   |              |   | 56,483 |   |
| Paid-in      capital                                                                                                                                                                                                        |   |           | 221,104   |   |              |   | 226,773 |   |
| Retained      earnings                                                                                                                                                                                                      |   |           | 799,916   |   |              |   | 768,731 |   |
| Accumulated      other comprehensive income (expense)                                                                                                                                                                       |   |           | (26,648   | )      |              |   | (26,965 | ) |
| Treasury      stock at cost (7,700,023 shares at March 31, 2008 and 7,984,370 shares at      December 31, 2007)                                                                                                             |   |           | (173,828  | )      |              |   | (180,256 | ) |
| Total      shareholders’ equity                                                                                                                                                                                       |   |           | 877,027   |   |              |   | 844,766 |   |
| Total      liabilities and shareholders’ equity                                                                                                                                                                       |   | $              | 1,457,546 |   |              | $      | 1,463,078 |   |

----

|                                                               |   | Three Months      Ended March 31, |    |
|--------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                               |   | 2008                              |    |   | 2007 |   |
|                                                               |   |                              |    |   |   |   |
| Net      sales                                                     |   | $                                 | 477,200 |   |   | $ | 556,959 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Cost of      sales                                                 |   |                              | 366,181 |   |   |   | 439,085 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Gross      profit                                                  |   |                              | 111,019 |   |   |   | 117,874 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Selling,      general and administrative expenses                  |   |                              | 101,981 |   |   |   | 111,029 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Earnings from      operations                                      |   |                              | 9,038   |   |   |   | 6,845 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Interest      expense                                              |   |                              | 4,143   |   |   |   | 5,073 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Other income,      net                                             |   |                              | 2,236   |   |   |   | 432 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Earnings from      continuing operations before income tax expense |   |                              | 7,131   |   |   |   | 2,204 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Income tax      expense                                            |   |                              | 3,383   |   |   |   | 901 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Net earnings      from continuing operations                       |   |                              | 3,748   |   |   |   | 1,303 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Net earnings      from discontinued operations (Note 15)           |   |                              | 29,868  |   |   |   | 1,574 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Net      earnings                                                  |   | $                                 | 33,616  |   |   | $ | 2,877 |   |
|                                                               |   |                              |    |   |   |   |   |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Earnings per      common share – Basic and Diluted:          |   |                              |    |   |   |   |   |   |
| Earnings from      continuing operations                           |   | $                                 | 0.08    |   |   | $ | 0.03 |   |
| Earnings from      discontinued operations                         |   | $                                 | 0.62    |   |   | $ | 0.03 |   |
| Net      earnings                                                  |   | $                                 | 0.69    |   |   | $ | 0.06 |   |
|                                                               |   |                              |    |   |   |   |   |   |
| Weighted      average common shares outstanding -                  |   |                              |    |   |   |   |   |   |
| Basic and      Diluted                                             |   |                              | 48,560  |   |   |   | 48,336 |   |

----

|                                                    |   | Three Months      Ended March 31, |    |
|---------------------------------------------------------|--------|-----------------------------------|---------|
|                                                    |   | 2008                              |    |   | 2007 |   |
| Cash flows      from operating activities:              |   |                              |    |   |   |   |
| Net      earnings                                       |   | $                                 | 33,616  |   |   | $ | 2,877 |   |
| Adjustments      to reconcile net earnings to net cash  |   |                              |    |   |   |   |   |   |
| provided by      operating activities:                  |   |                              |    |   |   |   |   |   |
| Depreciation      and amortization                      |   |                              | 6,289   |   |   |   | 8,242 |   |
| Stock      compensation expense                         |   |                              | 767     |   |   |   | 1,029 |   |
| Provision      (benefit) for deferred income taxes      |   |                              | 893     |   |   |   | (425 | ) |
| Gain on sale      of discontinued operation             |   |                              | (48,059 | ) |   |   | - |   |
| Other,      net                                         |   |                              | (1,033  | ) |   |   | 818 |   |
| Changes in      operating assets and liabilities:       |   |                              |    |   |   |   |   |   |
| Accounts      receivable                                |   |                              | 12,732  |   |   |   | 4,655 |   |
| Inventories                                             |   |                              | 13,663  |   |   |   | 12,023 |   |
| Prepaid      expenses and other assets                  |   |                              | 1,114   |   |   |   | 5,785 |   |
| Accounts      payable and other accrued expenses        |   |                              | 42,895  |   |   |   | 5,229 |   |
| Other      long-term liabilities                        |   |                              | (12,534 | ) |   |   | 4,922 |   |
| Net cash      provided by operating activities          |   |                              | 50,343  |   |   |   | 45,155 |   |
|                                                    |   |                              |    |   |   |   |   |   |
| Cash flows      from investing activities:              |   |                              |    |   |   |   |   |   |
| Acquisition      of stores, net of cash acquired        |   |                              | (8,741  | ) |   |   | (4,241 | ) |
| Proceeds from      the sale of discontinued operations  |   |                              | 73,309  |   |   |   | - |   |
| Proceeds from      the disposal of assets               |   |                              | 3,261   |   |   |   | 2,358 |   |
| Additions to      property, plant and equipment         |   |                              | (2,150  | ) |   |   | (4,142 | ) |
| Net cash      provided (used) by investing activities   |   |                              | 65,679  |   |   |   | (6,025 | ) |
|                                                    |   |                              |    |   |   |   |   |   |
| Cash flows      from financing activities:              |   |                              |    |   |   |   |   |   |
| Additions to      long-term debt                        |   |                              | -       |   |   |   | 4,000 |   |
| Payments of      long-term debt                         |   |                              | (65,000 | ) |   |   | (14,000 | ) |
| Restricted      cash used for payment of long-term debt |   |                              | 20,000  |   |   |   | - |   |
| Payments of      cash dividends                         |   |                              | (1,940  | ) |   |   | (7,734 | ) |
| Other                                                   |   |                              | (8      | ) |   |   | - |   |
| Net cash used      by financing activities              |   |                              | (46,948 | ) |   |   | (17,734 | ) |
|                                                    |   |                              |    |   |   |   |   |   |
| Net increase      in cash and cash equivalents          |   |                              | 69,074  |   |   |   | 21,396 |   |
| Cash and cash      equivalents at beginning of period   |   |                              | 118,764 |   |   |   | 26,565 |   |
| Cash and cash      equivalents at end of period         |   | $                                 | 187,838 |   |   | $ | 47,961 |   |
|                                                    |   |                              |    |   |   |   |   |   |
| Supplemental      disclosure:                           |   |                              |    |   |   |   |   |   |
|                                                    |   |                              |    |   |   |   |   |   |
| Cash payments      for income taxes, net                |   | $                                 | 419     |   |   | $ | 379 |   |
|                                                    |   |                              |    |   |   |   |   |   |
| Cash payments      for interest expense                 |   | $                                 | 5,647   |   |   | $ | 2,619 |   |

----

| (1) | BASIS OF      PRESENTATION |
|-----|----------------------------|

| (2) | RECENTLY ISSUED ACCOUNTING      PRONOUNCEMENTS |
|-----|------------------------------------------------|

----

| (3) | ACQUISITIONS |
|-----|--------------|

----

| (4) | RESTRUCTURING      CHARGES |
|-----|----------------------------|

|                                         |   | Three Months      Ended March 31, |   |
|----------------------------------------------|--------|-----------------------------------|--------|
|                                         |   | 2008                              |   |   | 2007 |   |
| Restructuring      charges (benefits):       |   |                              |   |   |   |   |
| Costs to      shutdown, cleanup,             |   |                              |   |   |   |   |
| and vacate      facilities                   |   | $                                 | -      |   |   | $ | 319 |   |
| One-time      termination benefits           |   |                              | -      |   |   |   | 133 |   |
| Asset sale      gains, net of                |   |                              |   |   |   |   |   |   |
| impairment      charges                      |   |                              | (1,243 | ) |   |   | 727 |   |
| Lease      termination and idle store        |   |                              |   |   |   |   |   |   |
| occupancy      costs                         |   |                              | 2,207  |   |   |   | - |   |
| Total      restructuring charges             |   | $                                 | 964    |   |   | $ | 1,179 |   |
|                                         |   |                              |   |   |   |   |   |   |
| Statement of      Operations classification: |   |                              |   |   |   |   |   |   |
| Cost of      sales                           |   | $                                 | -      |   |   | $ | 431 |   |
| Selling,      general and                    |   |                              |   |   |   |   |   |   |
| administration      expenses                 |   |                              | 964    |   |   |   | 748 |   |
| Total      restructuring charges             |   | $                                 | 964    |   |   | $ | 1,179 |   |

| (5) | INVENTORIES |
|-----|-------------|

|   | Inventories      are summarized as follows: |
|--------|---------------------------------------------|

|                   |   | March      31, |    |   | December      31, |   |
|------------------------|--------|----------------|---------|--------|-------------------|--------|
|                   |   | 2008           |    |   | 2007              |   |
| Raw      materials     |   | $              | 91,960  |   |              | $      | 94,061 |   |
| Work-in-process        |   |           | 25,037  |   |              |   | 24,005 |   |
| Finished      products |   |           | 276,826 |   |              |   | 283,236 |   |
|                   |   | $              | 393,823 |   |              | $      | 401,302 |   |

| (6) | PROPERTY, PLANT AND      EQUIPMENT |
|-----|------------------------------------|

|   | Major classes      of property, plant and equipment consist of the  following: |
|--------|--------------------------------------------------------------------------------|

|                                |   | March      31, |    |   | December      31, |   |
|-------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                |   | 2008           |    |   | 2007              |   |
| Land                                |   | $              | 16,672  |   |              | $      | 16,964 |   |
| Buildings and      improvements     |   |           | 230,216 |   |              |   | 225,352 |   |
| Machinery and      equipment        |   |           | 271,953 |   |              |   | 268,862 |   |
|                                |   |           | 518,841 |   |              |   | 511,178 |   |
| Less:      accumulated depreciation |   |           | 339,918 |   |              |   | 332,614 |   |
|                                |   | $              | 178,923 |   |              | $      | 178,564 |   |

----

| (7) | DEBT |
|-----|------|

|                                           |   | March      31, |    |   | December      31, |   |
|------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                           |   | 2008           |    |   | 2007              |   |
| Revolving      credit facility – secured |   | $              | 235,000 |   |              | $      | 300,000 |   |
| Other                                          |   |           | 800     |   |              |   | 800 |   |
| Total      debt                                |   |           | 235,800 |   |              |   | 300,800 |   |
| Less: current      maturities                  |   |           | 800     |   |              |   | 20,800 |   |
| Long-term      debt                            |   | $              | 235,000 |   |              | $      | 280,000 |   |

| (8) | OTHER LONG-TERM      LIABILITIES |
|-----|----------------------------------|

|                   |   | March      31, |    |   | December      31, |   |
|------------------------|--------|----------------|---------|--------|-------------------|--------|
|                   |   | 2008           |    |   | 2007              |   |
| Pension      liability |   | $              | 51,087  |   |              | $      | 50,899 |   |
| Other                  |   |           | 57,933  |   |              |   | 71,014 |   |
|                   |   | $              | 109,020 |   |              | $      | 121,913 |   |

| (9) | RETIREMENT      PLANS |
|-----|-----------------------|

|                                |   | Three Months      Ended March 31, |   |
|-------------------------------------|--------|-----------------------------------|--------|
|                                |   | 2008                              |   |   | 2007 |   |
| Service      cost                   |   | $                                 | 1,157  |   |   | $ | 1,326 |   |
| Interest      cost                  |   |                              | 6,584  |   |   |   | 6,339 |   |
| Expected      return on plan assets |   |                              | (6,895 | ) |   |   | (6,571 | ) |
| Net      amortization and deferral  |   |                              | 1,011  |   |   |   | 1,316 |   |
| Net periodic      pension cost      |   | $                                 | 1,857  |   |   | $ | 2,410 |   |

----

| (10) | STOCK OPTIONS AND RESTRICTED      STOCK AWARDS |
|------|------------------------------------------------|

|                                  |   |   |      |   | Weighted |   |
|---------------------------------------|--------|--------|-----------|--------|----------|--------|
|                                  |   |   |      |   | Average  |   |
|                                  |   |   |      |   | Exercise |   |
|                                  |   | Shares |      |   | Price    |   |
| Outstanding      at December 31, 2007 |   |   | 3,262,617 |   |     | $      | 23.25 |   |
| Granted                               |   |   | 799,000   |   |     |   | 11.14 |   |
| Exercised                             |   |   | -         |   |     |   | - |   |
| Forfeited or      expired             |   |   | (190,525  | )      |     |   | 25.98 |   |
| Outstanding      at March 31, 2008    |   |   | 3,871,092 |   |     | $      | 20.62 |   |

| Risk-free      interest rate  |   |   | 2.6  | %      |
|-------------------------------|--------|--------|------|--------|
| Expected      dividend yield  |   |   | 1.4  | %      |
| Expected life      (in years) |   |   | 5.1  |   |
| Expected      volatility      |   |   | 41.1 | %      |

|                                  |   |   |    |   | Weighted        |   |
|---------------------------------------|--------|--------|---------|--------|-----------------|--------|
|                                  |   |   |    |   | Average         |   |
|                                  |   |   |    |   | Grant-Date      |   |
|                                  |   | Shares |    |   | Fair      Value |   |
| Outstanding      at December 31, 2007 |   |   | 197,867 |   |            | $      | 16.63 |   |
| Granted                               |   |   | 288,500 |   |            |   | 11.37 |   |
| Vested                                |   |   | -       |   |            |   | - |   |
| Forfeited                             |   |   | (16,873 | )      |            |   | 22.97 |   |
| Outstanding      at March 31, 2008    |   |   | 469,494 |   |            | $      | 13.17 |   |

----

| (11) | COMPREHENSIVE      INCOME |
|------|---------------------------|

|                                         |   | Three Months      Ended March 31, |   |
|----------------------------------------------|--------|-----------------------------------|--------|
|                                         |   | 2008                              |   |   | 2007 |   |
| Net      earnings                            |   | $                                 | 33,616 |   |   | $ | 2,877 |   |
| Other      comprehensive income, net of tax: |   |                              |   |   |   |   |   |   |
| Pension      liability                       |   |                              | 576    |   |   |   | 763 |   |
| Foreign      currency translation            |   |                              | (259   | ) |   |   | 371 |   |
| Other      comprehensive income              |   |                              | 317    |   |   |   | 1,134 |   |
| Total      comprehensive income              |   | $                                 | 33,933 |   |   | $ | 4,011 |   |

|                                         |   | March      31, |    |   | December      31, |   |
|----------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                         |   | 2008           |    |   | 2007              |   |
| Pension      liability                       |   | $              | (30,562 | )      |              | $      | (31,138 | ) |
| Foreign      currency translation            |   |           | 3,914   |   |              |   | 4,173 |   |
| Accumulated      other comprehensive expense |   | $              | (26,648 | )      |              | $      | (26,965 | ) |

| (12) | EARNINGS PER      SHARE |
|------|-------------------------|

|                        |   | Three Months      Ended March 31, |      |
|-----------------------------|--------|-----------------------------------|-----------|
|                        |   | 2008                              |      |   | 2007 |   |
| Stock      options          |   |                              | 3,871,092 |   |   |   | 3,521,975 |   |
| Average      exercise price |   | $                                 | 20.62     |   |   | $ | 24.55 |   |

| (13) | INCOME    TAXES |
|------|-----------------|

----

| (14) | CONTINGENT      LIABILITIES |
|------|-----------------------------|

| (15) | DISCONTINUED      OPERATIONS |
|------|------------------------------|

|                                                  |   | Three Months      Ended |   |
|-------------------------------------------------------|--------|-------------------------|--------|
|                                                  |   | March      31,2008      |   |   | Dec.      31,2007 |   |   | Sept.      30,2007 |   |   | June      30,2007 |   |   | March      31,2007 |   |
| Net      sales                                        |   | $                       | 15,348 |   |   | $ | 15,569 |   |   | $ | 15,497 |   |   | $ | 15,750 |   |   | $ | 16,790 |   |
| Cost of goods      sold                               |   |                    | 9,663  |   |   |   | 9,691 |   |   |   | 9,473 |   |   |   | 9,798 |   |   |   | 10,429 |   |
| Gross      Profit                                     |   |                    | 5,685  |   |   |   | 5,878 |   |   |   | 6,024 |   |   |   | 5,952 |   |   |   | 6,361 |   |
| Selling,      general andadministrative      expenses |   |                    | 3,953  |   |   |   | 4,035 |   |   |   | 3,609 |   |   |   | 3,700 |   |   |   | 3,801 |   |
| Operating      earnings                               |   |                    | 1,732  |   |   |   | 1,843 |   |   |   | 2,415 |   |   |   | 2,252 |   |   |   | 2,560 |   |
| Other income      (expense), net                      |   |                    | 2      |   |   |   | 3 |   |   |   | (6 | ) |   |   | 12 |   |   |   | 8 |   |
| Earnings      before income tax expense               |   |                    | 1,734  |   |   |   | 1,846 |   |   |   | 2,409 |   |   |   | 2,264 |   |   |   | 2,568 |   |
| Income tax      expense                               |   |                    | 682    |   |   |   | 715 |   |   |   | 933 |   |   |   | 877 |   |   |   | 994 |   |
| Net      earnings                                     |   | $                       | 1,052  |   |   | $ | 1,131 |   |   | $ | 1,476 |   |   | $ | 1,387 |   |   | $ | 1,574 |   |

|                                    |   | December      31,2007 |   |   | September      31,2007 |   |   | June      30,2007 |   |   | March      31,2007 |   |
|-----------------------------------------|--------|-----------------------|--------|--------|------------------------|--------|--------|-------------------|--------|--------|--------------------|--------|
| Accounts      receivable                |   | $                     | 4,824  |   |                   | $      | 6,463  |              |   | $      | 5,567              |   |   | $ | 5,437 |   |
| Inventories                             |   |                  | 7,191  |   |                   |   | 7,196  |              |   |   | 6,820              |   |   |   | 6,558 |   |
| Prepaid      expenses and other         |   |                  |   |   |                   |   |   |              |   |   |               |   |   |   |   |   |
| current      assets                     |   |                  | 221    |   |                   |   | 305    |              |   |   | 339                |   |   |   | 220 |   |
| Total current      assets               |   |                  | 12,236 |   |                   |   | 13,964 |              |   |   | 12,726             |   |   |   | 12,215 |   |
| Property,      plant and equipment, net |   |                  | 2,944  |   |                   |   | 2,949  |              |   |   | 2,900              |   |   |   | 3,007 |   |
| Goodwill                                |   |                  | 14,276 |   |                   |   | 14,276 |              |   |   | 14,276             |   |   |   | 14,276 |   |
| Other      assets                       |   |                  | 743    |   |                   |   | 793    |              |   |   | 700                |   |   |   | 720 |   |
| Total      assets                       |   | $                     | 30,199 |   |                   | $      | 31,982 |              |   | $      | 30,602             |   |   | $ | 30,218 |   |
|                                    |   |                  |   |   |                   |   |   |              |   |   |               |   |   |   |   |   |
| Accounts      payable                   |   | $                     | 3,662  |   |                   | $      | 4,221  |              |   | $      | 3,608              |   |   | $ | 4,061 |   |
| Accrued      expenses                   |   |                  | 1,645  |   |                   |   | 1,867  |              |   |   | 1,744              |   |   |   | 1,809 |   |
| Other      non-current liabilities      |   |                  | 141    |   |                   |   | 131    |              |   |   | 134                |   |   |   | 128 |   |
| Total      liabilities                  |   | $                     | 5,448  |   |                   | $      | 6,219  |              |   | $      | 5,486              |   |   | $ | 5,998 |   |

----

----

|                                                                                         |   | Three Months      Ended    |   |
|----------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                         |   | March 31,      2008                       |   |   | March 31,      2007 |   |
|                                                                                         |   | Dollars                                   |   |   | %      ofNet      Sales |   |   | Dollars |   |   | %      ofNet      Sales |   |
| Net      sales                                                                               |   | $                                         | 477.2  |   |   |   | 100.0 | % |   | $ | 557.0 |   |   |   | 100.0 | % |
| Cost of      sales                                                                           |   |                                      | 366.2  |   |   |   | 76.7 |   |   |   | 439.1 |   |   |   | 78.8 |   |
| Gross      profit                                                                            |   |                                      | 111.0  |   |   |   | 23.3 |   |   |   | 117.9 |   |   |   | 21.2 |   |
| Selling,      general and administrative expenses                                            |   |                                      | 102.0  |   |   |   | 21.4 |   |   |   | 111.0 |   |   |   | 20.0 |   |
| Earnings from      operations                                                                |   |                                      | 9.0    |   |   |   | 1.9 |   |   |   | 6.9 |   |   |   | 1.2 |   |
| Interest      expense                                                                        |   |                                      | 4.1    |   |   |   | 0.9 |   |   |   | 5.1 |   |   |   | 0.9 |   |
| Other income,      net                                                                       |   |                                      | 2.2    |   |   |   | 0.5 |   |   |   | 0.4 |   |   |   | 0.1 |   |
| Earnings from      continuing operations beforeincome tax      expense                       |   |                                      | 7.1    |   |   |   | 1.5 |   |   |   | 2.2 |   |   |   | 0.4 |   |
| Income tax      expense (benefit)                                                            |   |                                      | 3.4    |   |   |   | 0.7 |   |   |   | 0.9 |   |   |   | 0.2 |   |
| Net earnings      from continuing operations                                                 |   | $                                         | 3.7    |   |   |   | 0.8 | % |   | $ | 1.3 |   |   |   | 0.2 | % |
|                                                                                         |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings      from continuing operations per common share – basic and      diluted |   | $                                         | 0.08   |   |   |   |   |   |   | $ | 0.03 |   |   |   |   |   |

|                 |   | Three Months      Ended March 31, |   |
|----------------------|--------|-----------------------------------|--------|
|                 |   | 2008                              |   |   | 2007 |   |
| Interest      Income |   | $                                 | 1.7    |   |   | $ | 0.4 |   |
| Other                |   |                              | 0.5    |   |   |   | - |   |
|                 |   | $                                 | 2.2    |   |   | $ | 0.4 |   |

----

| Debt consists      of the following (in millions) |   |  |
|---------------------------------------------------|--------|--|

|                                           |   | March      31, |   |   | December      31, |   |
|------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                           |   | 2008           |   |   | 2007              |   |
| Revolving      credit facility – secured |   | $              | 235.0  |   |              | $      | 300.0 |   |
| Other                                          |   |           | 0.8    |   |              |   | 0.8 |   |
| Total      debt                                |   |           | 235.8  |   |              |   | 300.8 |   |
| Less: current      maturities                  |   |           | 0.8    |   |              |   | 20.8 |   |
| Long-term      debt                            |   | $              | 235.0  |   |              | $      | 280.0 |   |

----

----

| (a) | The Company’s management, with the      participation of the Company’s Chief Executive Officer and Chief      Financial Officer evaluated the      effectiveness of the Company’s disclosure controls and procedures as of      March 31,      2008. The term      “disclosure controls and procedures” as defined in Rules 13a-15(e) and      15d-15(e) under the Exchange Act, means controls and other procedures of a      company that are designed to ensure that information required to be      disclosed by a company in the reports that it files or submits under the      Exchange Act is recorded, processed, summarized and reported, within the      time periods specified in the SEC’s rules and forms. Disclosure controls      and procedures include, without limitation, controls and procedures      designed to ensure information required to be disclosed by a company in      the reports that it files or submits under the Exchange Act is accumulated      and communicated to the company’s management, including its principal      executive and principal financial officers, as appropriate to allow timely      decisions regarding required disclosure. Management recognizes that any      controls and procedures, no matter how well designed and operated, can      provide only reasonable assurance of achieving their objectives and      management necessarily applies its judgment in evaluating the cost-benefit      relationship of possible controls and procedures. Based on the evaluation      of the Company’s disclosure controls and procedures as of March 31, 2008, the Company’s Chief Executive      Officer and Chief Financial Officer concluded that, as of such date,      the Company’s disclosure controls and procedures were effective at the      reasonable assurance level. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | No change in      our internal control over financial reporting (as defined in Rules      13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the three      months ended March 31, 2008 that has materially affected, or is reasonably      likely to materially affect, the Company’s internal control over financial      reporting. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.1    |   | Restated      Certificate of Incorporation of the Company, as amended. (Incorporated by      reference to Exhibit 3(a) to Furniture Brands International, Inc.’s      Quarterly Report on Form 10-Q for the quarter ended September 30,      2002)                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.2    |   | By-Laws of      the Company revised and amended to May 6, 1998. (Incorporated by reference      to Exhibit 3(a) to Furniture Brands International, Inc.’s Quarterly Report      on Form 10-Q for the quarter ended September 30, 1998)                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.1   |   | Credit      Agreement, dated August 9, 2007, among the Company, Broyhill Furniture      Industries, Inc., HDM Furniture Industries, Inc., Lane Furniture      Industries, Inc., and Thomasville Furniture Industries, Inc, the Loan      Parties named therein, the Lenders Parties thereto, JPMorgan Chase Bank,      N.A., as Administrative Agent, J.P.Morgan Securities Inc., as Sole      Bookrunner and Joint Lead Arranger and Banc of America Securities LLC, as      Joint Lead Arranger. (Incorporated by reference to Exhibit 10.1 to the      Company’s Current Report on Form 8-K dated on August 9, 2007 and filed on      August 10, 2007) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2   |   | First      Amendment, dated March 17, 2008, to Credit Agreement, dated August 9,      2007, among the Company, Broyhill Furniture Industries, Inc., HDM      Furniture Industries, Inc., Lane Furniture Industries, Inc., and      Thomasville Furniture Industries, Inc, the Loan Parties named therein, the      Lenders Parties thereto, JPMorgan Chase Bank, N.A., as Administrative      Agent, J.P.Morgan Securities Inc., as Sole Bookrunner and Joint Lead      Arranger and Banc of America Securities LLC, as Joint Lead      Arranger.                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.1   |   | Certification of Ralph P. Scozzafava, Chief Executive Officer of the      Company, pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.2   |   | Certification of Steven G. Rolls, Chief Financial      Officer of the      Company, as principal financial officer, pursuant to Rule      13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 32.1   |   | Certification of Ralph P. Scozzafava, Chief Executive Officer of the      Company, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to      Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 32.2   |   | Certification of Steven G. Rolls, Chief      Financial Officer of      the Company, as principal financial officer, pursuant to 18 U.S.C. Section      1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                                                                                                                                                                                                         |

|   | Furniture      Brands International, Inc. |
|--------|-------------------------------------------|
|   | (Registrant)                              |
|   |                                      |   |
|   | By:                                       | /s/ Steven G.      Rolls |
|   |                                      | Steven G.    Rolls |
|   |                                      | Chief      Financial Officer |
|   |                                      |   |
|   |  Date:                               | May 12,      2008 |
|   |                                      |   |
|   |                                      |
|   |                                      |

----

| 3.1    |   | Restated Certificate of      Incorporation of the Company, as amended. (Incorporated by reference to      Exhibit 3(a) to Furniture Brands International, Inc.’s Quarterly Report on      Form 10-Q for the quarter ended September 30, 2002)                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.2    |   | By-Laws of the Company revised and      amended to May 6, 1998. (Incorporated by reference to Exhibit 3(a) to      Furniture Brands International, Inc.’s Quarterly Report on Form 10-Q for      the quarter ended September 30, 1998)                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.1   |   | Credit      Agreement, dated August 9, 2007, among the Company, Broyhill Furniture      Industries, Inc., HDM Furniture Industries, Inc., Lane Furniture      Industries, Inc., and Thomasville Furniture Industries, Inc, the Loan      Parties named therein, the Lenders Parties thereto, JPMorgan Chase Bank,      N.A., as Administrative Agent, J.P.Morgan Securities Inc., as Sole      Bookrunner and Joint Lead Arranger and Banc of America Securities LLC, as      Joint Lead Arranger. (Incorporated by reference to Exhibit 10.1 to the      Company’s Current Report on Form 8-K dated on August 9, 2007 and filed on      August 10, 2007) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2   |   | First      Amendment, dated March 17, 2008, to Credit Agreement, dated August 9,      2007, among the Company, Broyhill Furniture Industries, Inc., HDM      Furniture Industries, Inc., Lane Furniture Industries, Inc., and      Thomasville Furniture Industries, Inc, the Loan Parties named therein, the      Lenders Parties thereto, JPMorgan Chase Bank, N.A., as Administrative      Agent, J.P.Morgan Securities Inc., as Sole Bookrunner and Joint Lead      Arranger and Banc of America Securities LLC, as Joint Lead      Arranger.                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.1   |   | Certification      of Ralph P. Scozzafava, Chief Executive Officer of the Company, pursuant      to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.2   |   | Certification      of Steven G. Rolls, Chief Financial Officer of the Company, pursuant to      Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 32.1   |   | Certification      of Ralph P. Scozzafava, Chief Executive Officer of the Company, pursuant      to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 32.2   |   | Certification      of Steven G. Rolls, Chief Financial Officer of the Company, pursuant to 18      U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |