EXHIBIT 99.1

FOR IMMEDIATE RELEASE

THE ROWE COMPANIES ANNOUNCES

THIRD QUARTER OPERATING RESULTS

McLean, VA, September 22, 2004 – The Rowe Companies (AMEX:ROW), a leading furniture manufacturer and home furnishings retailer, today reported operating results for the third quarter ended August 29, 2004.

Led by strong sales in its Storehouse retail unit, net shipments for the third fiscal quarter increased $6,433,000 or 9.2% to $76,585,000 from the prior year quarter’s net shipments of $70,152,000. Gross margin increased to $26,991,000 from $25,451,000, but decreased as a percentage of sales from 36.3% to 35.2%. The decline in gross profit percentage is largely attributable to reduced manufacturing productivity exacerbated by higher workers’ compensation and health care costs. Sales and administrative expenses for the quarter were $25,789,000, compared to $24,431,000 in the prior year quarter, principally due to higher retail selling expenses associated with higher volume and increased store occupancy expense from new store growth. Net earnings from continuing operations for the third quarter totaled $489,000 or $0.04 per diluted share compared to a loss in the prior year period of $(107,000) or $(0.01) per diluted share.

During the third quarter, the Company made the decision to dispose of certain investment real estate property, however there are no pending contracts for sale. Therefore, the results of operations of this property, consisting of rental revenue less operating costs, has been reclassified to discontinued operations. Net earnings from discontinued operations were $18,000 for the current year quarter, compared to a loss of $(70,000) in the same quarter last year.

For the nine months ended August 31, 2004, sales increased 10.6% overall to $223.3 million from $201.9 million in the prior year, led by a 16.8% increase in retail sales. Gross profit improved to $79.5 million from the comparable prior year period amount of $71.8 million, while remaining essentially unchanged at 35.6% in the current year compared to 35.5% in the prior year period. Selling and administrative expenses increased from $71.4 million in the first nine months of 2003 to $75.8 million in 2004, principally due to higher retail selling expenses and store occupancy costs associated with higher volume. Net earnings from continuing operations improved to $1,406,000, or $0.10 per diluted share, in 2004 compared to a loss of $(1,618,000), or $(0.12) per diluted share in 2003. Net earnings improved to $1,267,000, or $0.09 per diluted share, in 2004 from $(86,000), or $(0.01) per diluted share in the comparable 2003 period.

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Third Quarter Results

September 22, 2004

Page 2.

The 2003 results included discontinued operations and gain on the sale of Mitchell Gold in April, 2003.

“We are pleased with our ongoing revenue strength,” said Gerald M. Birnbach, Chairman and President. “Same store sales growth at our Storehouse unit for the quarter was 9%. Total sales increased 13.6% in our retail unit, and 5.1% in our manufacturing unit. However, Rowe Furniture has experienced a decline in manufacturing productivity that hurt our profit performance this quarter. Causes of this decline include continued involvement of operating management in our ERP suite implementation, the learning curve as we convert to lean manufacturing, increased health care and workers’ compensation costs, as well as some effect from fabric inventory below optimum level. While we expect near-term improvement in some of those factors, some of these will likely extend into next year.”

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 60 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 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.

(table follows)

Contact:     Gene S. Morphis, Chief Financial Officer

                    703-847-8670

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THE ROWE COMPANIES AND WHOLLY-OWNED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED AUGUST 29, 2004 AND AUGUST 31, 2003

UNAUDITED

	Three Months Ended						Nine Months Ended
	August 29,			August 31,			August 29,			August 31,
	2004			2003			2004			2003
	(in thousands—except per share amounts)
Net shipments	$	76,585		$	70,152		$	223,254		$	201,930
Cost of shipments		49,594			44,701			143,745			130,173
Gross profit		26,991			25,451			79,509			71,757
Selling and administrative expenses		25,789			24,431			75,841			71,385
Retail restructuring and other charges		—			—			—			125
Operating income		1,202			1,020			3,668			247
Interest expense		(876	)		(1,010	)		(2,537	)		(3,250	)
Other income		416			91			1,088			673
Earnings (loss) from continuing operations before taxes		742			101			2,219			(2,330	)
Tax expense (benefit)		253			208			813			(712	)
Net earnings (loss) from continuing operations		489			(107	)		1,406			(1,618	)
Earnings (loss) from discontinued operations, net of tax expense (benefit) of $11, $(44), $(86) and $655, respectively		18			(70	)		(139	)		1,070
Gain on sale of Mitchell Gold, net of tax benefit of $1,473		—			—			—			462
Net earnings (loss)	$	507		$	(177	)	$	1,267		$	(86	)
Net earnings (loss) from continuing operations per common share	$	0.04		$	(0.01	)	$	0.11		$	(0.12	)
Net earnings (loss) per common share	$	0.04		$	(0.01	)	$	0.10		$	(0.01	)
Weighted average common shares		13,201			13,168			13,188			13,166
Net earnings (loss) from continuing operations per common share assuming dilution	$	0.04		$	(0.01	)	$	0.10		$	(0.12	)
Net earnings (loss) per common share assuming dilution	$	0.04		$	(0.01	)	$	0.09		$	(0.01	)
Weighted average common shares and equivalents		13,591			13,168			13,531			13,166

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THE ROWE COMPANIES AND WHOLLY-OWNED SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	August 29, 2004		November 30, 2003
	(Unaudited)		(Audited)
	($ in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2,239	$	3,708
Restricted cash		4,964		4,034
Accounts receivable, net		20,421		19,529
Notes receivable		—		100
Inventories		34,240		32,387
Deferred income tax asset		567		880
Prepaid expenses and other		2,850		2,711
Total current assets		65,281		63,349
PROPERTY AND EQUIPMENT, net		39,318		41,624
GOODWILL, net		14,224		14,224
INVESTMENT PROPERTY HELD FOR SALE, net		810		—
OTHER NONCURRENT ASSETS		10,380		10,871
	$	130,013	$	130,068
LIABILITIES
CURRENT LIABILITIES
Current maturities of long-term debt		1,964		3,314
Accounts payable and accrued liabilities		23,549		21,683
Income taxes payable		744		1,061
Customer deposits		12,948		13,512
Total current liabilities		39,205		39,570
LONG-TERM DEBT		29,624		34,312
DEBT ASSOCIATED WITH INVESTMENT PROPERTY HELD FOR SALE		3,198		—
DEFERRED LIABILITIES		4,211		4,269
Total liabilities		76,238		78,151
Total stockholders' equity		53,775		51,917
	$	130,013	$	130,068

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