Lumber Liquidators' Income Doubles on Expansion

Toano, VA, April 29, 2008--Lumber Liquidators Inc. reported that net income nearly doubled to $4.3 million, or $0.16 per diluted share, in the first quarter of 2008 compared to $2.2 million, or $0.10 per diluted share, in the first quarter of 2007.

Net sales increased 24.5% to $114.5 million in the first quarter, compared to $92.0 million a year ago.

Comparable store net sales increased 7.0% for the quarter on top of an increase of 8.5% for the first quarter of the prior year.

New store net sales increased $16.1 million, and represented 71.3% of the total increase in the company's net sales. The company opened nine new stores during the first quarter.

Gross margin increased to 35.0% in the first quarter of 2008 compared to 33.2% in the same period of 2007.

The improvement in gross margin reflects an increase in sales of higher-margin, premium products and strong sales of opportunistic liquidation purchases.

"We are very pleased with our strong results in the first quarter and our ability to maintain the positive momentum we experienced in the second half of last year," said CEO Jeffrey W. Griffiths.

"While our gross margin expansion reflects opportunistic liquidation buys, we believe much of the improvement is sustainable as a result of our enhanced merchandise selection and retail pricing discipline. As planned, we are also beginning to more fully achieve the benefits of increased operational efficiencies as evidenced by our ability to leverage expenses. Additionally, we are pleased with the strong contributions of new stores that we have opened in the last year as their results are exceeding our expectations."

The company continues to anticipate fiscal 2008 net sales in the range of $475 million to $490 million and expects comparable store net sales will increase in the mid-single digit range.

To date in 2008, Lumber Liquidators has opened 15 stores.