Exhibit 99.1

Ethan Allen Reports Results for Quarter and Fiscal Year Ended June 30, 2010

DANBURY, Conn.--(BUSINESS WIRE)--August 4, 2010--Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:ETH) reported operating results for the three and twelve months ended June 30, 2010.

Farooq Kathwari, Chairman, President and CEO commented, “We are gratified that our positive operating results reflect the impact of the many major initiatives undertaken during this ‘Great Recession’. Net income excluding restructuring, impairment, and related transition costs as well as benefits primarily from deferred commissions and a non-cash $34 million tax asset valuation charge during the quarter was $4.6 million or $0.16 per diluted share compared to a loss of $6.8 million or $0.23 per diluted share the prior year also excluding similar charges.”

Mr. Kathwari further stated, “Our focus has been to position the Company for growth in sales and profitability. Our initiatives in our vertically integrated structure have helped us to reduce costs, improve the efficiency of our manufacturing, logistics and retail while at the same time improving quality and personal service. While pleased with the recent results, we remain cautious due to uncertain economic times.”

Three Months Ended June 30, 2010

Net delivered sales for the quarter ended June 30, 2010 were $163.3 million, up 17.8% from the prior year quarter. The Company’s Retail division delivered net sales of $121.2 million increased 18.5% from the prior year quarter. Total written orders booked for the Retail division increased 23.5% while comparable design center orders were 31.3% higher than the prior year quarter.

The net loss for the quarter ended June 30, 2010 was $26.5 million or a loss of $0.91 per diluted share. This compares with a net loss the prior year quarter of $16.9 million or $0.58 per diluted share. Net income excluding restructuring, impairment, and related transition costs as well as benefits primarily from deferred commissions and a non-cash $34 million tax asset valuation was $4.6 million or $0.16 per diluted share compared to a loss of $6.8 million or $0.23 per diluted share in the prior year quarter also excluding similar charges.

Twelve Months Ended June 30, 2010

For the twelve months ended June 30, 2010, net delivered sales totaled $590.1 million as compared to $674.3 million the prior year. Net delivered sales for the Company’s Retail division were $438.5 million versus $508.6 million the prior year. Wholesale net sales were $362.5 million versus $403.4 million the prior year.

The fiscal year loss was $44.3 million or $1.53 per diluted share compared with a loss the prior year of $52.7 million or $1.83 per diluted share. The net loss excluding restructuring, impairment, and related transition costs as well as deferred commission impacts and tax asset valuation charges from both years was $4.2 million or $0.15 per diluted share compared to $4.5 million or $0.16 per diluted share in the prior year.

Analyst Conference Call

The Company will conduct a Conference Call at 11:00 AM (Eastern) on Thursday, August 5th. The live webcast and replay are accessible via the Company’s website at http://ethanallen.com/investors.

About Ethan Allen

Ethan Allen Interiors Inc. is a leading interior design company and manufacturer and retailer of quality home furnishings. The Company offers free interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of approximately 280 Design Centers in the United States and abroad. Ethan Allen owns and operates seven manufacturing facilities in North America, including five manufacturing plants and one sawmill in the United States and one manufacturing plant in Mexico. Approximately seventy percent of its products are made in its United States plants. For more information on Ethan Allen’s products and services, visit ethanallen.com.

This press release should be read in conjunction with the Company’s Annual Report on Form 10-K/A for the year ended June 30, 2009 and other reports filed with the Securities and Exchange Commission. This press release and related discussions contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect management’s current expectations concerning future events and results of the Company, and are subject to various assumptions, risks and uncertainties. Accordingly, actual future events or results could differ materially from those contemplated by the forward-looking statements. The Company assumes no obligation to update or provide revision to any forward-looking statement at any time for any reason.

Ethan Allen Interiors Inc.
Selected Financial Information
Unaudited
(in thousands)
Selected Consolidated Financial Data:
	Three Months Ended		Twelve Months Ended
	06/30/10	06/30/09	06/30/10	06/30/09
Net sales	$163.3	$138.7	$590.1	$674.3
Gross margin	49.5%	48.7%	47.5%	51.5%
Operating margin	7.6%	-14.7%	-2.0%	-10.8%
Operating margin (excluding special charges*)	5.6%	-5.4%	0.2%	0.2%
Net income (loss)	($26.5)	($16.9)	($44.3)	($52.7)
Net income (loss) (excluding special charges* and
unusual income tax impacts)	$4.6	($6.8)	($4.2)	($4.5)
Operating cash flow	$17.7	$8.1	$51.3	$21.9
Capital expenditures	$2.3	$2.1	$9.9	$22.5
Acquisitions	$0.1	$0.6	$0.1	$1.4
Treasury stock repurchases (settlement
date basis)	$0.0	$0.0	$0.0	$0.0
EBITDA	$19.8	($13.9)	$21.5	($45.1)
EBITDA as % of net sales	12.2%	-10.0%	3.6%	-6.7%
EBITDA (excluding special charges*)	$15.5	($1.0)	$27.0	$28.9
EBITDA as % of net sales (excluding special charges*)	9.5%	-0.7%	4.6%	4.3%
Selected Financial Data by Business Segment:
	Three Months Ended		Twelve Months Ended
	06/30/10	06/30/09	06/30/10	06/30/09
Retail
Net sales	$121.2	$102.3	$438.5	$508.6
Operating margin	2.3%	-13.6%	-6.6%	-18.1%
Operating margin (excluding special charges*)	-1.6%	-12.3%	-7.1%	-7.0%
Wholesale
Net sales	$100.1	$85.2	$362.5	$403.4
Operating margin	11.1%	-9.1%	3.9%	1.7%
Operating margin (excluding special charges*)	12.5%	4.5%	8.2%	6.0%
* Special charges consist of restructuring, impairment, transition charges and impact from commission plan
changes. Related tax effects are calculated using a normalized income tax rate.

Ethan Allen Interiors Inc.
Condensed Consolidated Income Statements
Unaudited
(in thousands)
	Three Months Ended						Twelve Months Ended
		06/30/10			06/30/09			06/30/10			06/30/09
Net sales	$	163,304		$	138,657		$	590,054		$	674,277
Cost of sales		82,387			71,107			309,777			326,935
Gross profit		80,917			67,550			280,277			347,342
Operating expenses:
Selling		33,021			36,526			142,562			182,800
General and administrative		34,989			38,506			147,013			170,312
Restructuring and impairment charge		448			12,880			2,437			67,001
Total operating expenses		68,458			87,912			292,012			420,113
Operating income (loss)		12,459			(20,362	)		(11,735	)		(72,771	)
Interest and other income		2,161			336			4,872			3,355
Interest expense		2,986			2,946			11,924			11,764
Income (loss) before income taxes		11,634			(22,972	)		(18,787	)		(81,180	)
Income tax expense (benefit)		38,178			(6,049	)		25,529			(28,493	)
Net income (loss)	$	(26,544	)	$	(16,923	)	$	(44,316	)	$	(52,687	)
Basic earnings per common share:
Net income (loss) per basic share	$	(0.91	)	$	(0.58	)	$	(1.53	)	$	(1.83	)
Basic weighted average shares outstanding		29,069			28,954			28,982			28,814
Diluted earnings per common share:
Net income (loss) per diluted share	$	(0.91	)	$	(0.58	)	$	(1.53	)	$	(1.83	)
Diluted weighted average shares outstanding		29,069			28,954			28,982			28,814

Ethan Allen Interiors Inc.
Condensed Consolidated Balance Sheets
Unaudited
(in thousands)
	June 30, 2010		June 30, 2009
Assets
Current assets:
Cash and cash equivalents	$	73,852	$	52,960
Marketable securities		11,075		-
Accounts receivable, net		17,105		13,086
Inventories		134,040		156,519
Prepaid expenses & other current assets		23,620		21,060
Deferred income taxes		-		8,077
Total current assets		259,692		251,702
Property, plant and equipment, net		305,747		333,599
Intangible assets, net		45,128		45,128
Restricted cash and investments		17,318		-
Other assets		3,892		16,056
Total Assets	$	631,777	$	646,485
Liabilities and Shareholders' Equity
Current liabilities:
Current maturities of long-term debt		3,898		42
Customer deposits		52,605		31,691
Accounts payable		23,952		22,199
Accrued expenses & other current liabilities		60,062		58,531
Total current liabilities		140,517		112,463
Long-term debt		199,369		203,106
Other long-term liabilities		19,123		24,993
Deferred income taxes		14,309		-
Total liabilities		373,318		340,562
Shareholders' equity		258,459		305,923
Total Liabilities and Shareholders' Equity	$	631,777	$	646,485

Ethan Allen Interiors Inc. GAAP Reconciliation Three and Twelve Months Ended June 30, 2010 and 2009 Unaudited (in thousands, except per share amounts)
	Three Months Ended June 30,						Twelve Months Ended June 30,
		2010			2009			2010			2009
Net Income / Earnings Per Share
Net income (loss)	$	(26,544	)	$	(16,923	)	$	(44,316	)	$	(52,687	)
Special charges net of related tax effects *		(2,756	)		10,150			7,722			48,161
Unusual income tax impacts		33,932			-			32,386			-
Net income (loss) (excluding special charges* and
unusual income tax impacts)	$	4,632		$	(6,773	)	$	(4,208	)	$	(4,526	)
Earnings (loss) per basic share	$	(0.91	)	$	(0.58	)	$	(1.53	)	$	(1.83	)
Earnings (loss) per basic share (excluding special charges*
and unusual income tax impacts)	$	0.16		$	(0.23	)	$	(0.15	)	$	(0.16	)
Basic weighted average shares outstanding		29,069			28,954			28,982			28,814
Earnings (loss) per diluted share	$	(0.91	)	$	(0.58	)	$	(1.53	)	$	(1.83	)
Earnings (loss) per diluted share (excluding special
charges* and unusual income tax impacts)	$	0.16		$	(0.23	)	$	(0.15	)	$	(0.16	)
Diluted weighted average shares outstanding		29,069			28,954			28,982			28,814
Consolidated Operating Income / Operating Margin
Operating income (loss)	$	12,459		$	(20,362	)	$	(11,735	)	$	(72,771	)
Special charges *		(3,340	)		12,880			13,161			74,001
Operating income (loss) (excluding special charges*)	$	9,119		$	(7,482	)	$	1,426		$	1,230
Net sales	$	163,304		$	138,657		$	590,054		$	674,277
Operating margin		7.6	%		-14.7	%		-2.0	%		-10.8	%
Operating margin (excluding special charges*)		5.6	%		-5.4	%		0.2	%		0.2	%
Wholesale Operating Income / Operating Margin
Wholesale operating income (loss)	$	11,102		$	(7,726	)	$	14,201		$	6,670
Special charges		1,374			11,539			15,661			17,420
Wholesale operating income (excluding special charges*)	$	12,476		$	3,813		$	29,862		$	24,090
Wholesale net sales	$	100,094		$	85,163		$	362,468		$	403,378
Wholesale operating margin		11.1	%		-9.1	%		3.9	%		1.7	%
Wholesale operating margin (excluding special charges*)		12.5	%		4.5	%		8.2	%		6.0	%
Retail Operating Income / Operating Margin
Retail operating income (loss)	$	2,743		$	(13,944	)	$	(28,764	)	$	(92,100	)
Special charges		(4,714	)		1,341			(2,500	)		56,581
Retail operating income (loss) (excluding special charges*)	$	(1,971	)	$	(12,603	)	$	(31,264	)	$	(35,519	)
Retail net sales	$	121,153		$	102,263		$	438,539		$	508,621
Retail operating margin		2.3	%		-13.6	%		-6.6	%		-18.1	%
Retail operating margin (excluding special charges*)		-1.6	%		-12.3	%		-7.1	%		-7.0	%

Ethan Allen Interiors Inc. GAAP Reconciliation Three and Twelve Months Ended June 30, 2010 and 2009 Unaudited (in thousands, except per share amounts)
	Three Months Ended June 30,						Twelve Months Ended June 30,
		2010			2009			2010			2009
EBITDA
Net income (loss)	$	(26,544	)	$	(16,923	)	$	(44,316	)	$	(52,687	)
Add: interest expense (income), net		2,665			2,703			10,907			10,480
Add: income tax expense (benefit)		38,178			(6,049	)		25,529			(28,493	)
Add: depreciation and amortization (including
accelerated depreciation)		5,549			6,350			29,398			25,635
EBITDA	$	19,848		$	(13,919	)	$	21,518		$	(45,065	)
Net sales	$	163,304		$	138,657		$	590,054		$	674,277
EBITDA as % of net sales		12.2	%		-10.0	%		3.6	%		-6.7	%
EBITDA	$	19,848		$	(13,919	)	$	21,518		$	(45,065	)
Add: special charges*		(4,340	)		12,880			5,531			74,001
Adjusted EBITDA	$	15,508		$	(1,039	)	$	27,049		$	28,936
Net sales	$	163,304		$	138,657		$	590,054		$	674,277
Adjusted EBITDA as % of net sales		9.5	%		-0.7	%		4.6	%		4.3	%
* Special charges consist of restructuring, impairment, transition charges and impact from commission plan
changes. Special charges net of related tax effects are calculated using a normalized income tax rate.

CONTACT:
Investors/Media:
Ethan Allen Interiors Inc.
David R. Callen, Vice President Finance & Treasurer
203-743-8305