O'Sullivan Industries, Inc. Successfully Exits Bankruptcy

O'Sullivan Industries, Inc. a leading designer, marketer and manufacturer of office, home, storage and organizational products today announced their successful exit from Chapter 11 protection.

"O'Sullivan emerges from Chapter 11 with new ownership, a very manageable debt load, leaner more efficient operations and a renewed focus on our customers and consumers," said Rick Walters, Interim CEO of O'Sullivan Industries. "O'Sullivan has had its challenges in the past, but we are now poised to drive sales and profitability for O'Sullivan and our key customers through innovations in design, assembly, merchandising, advertising and promotions."

In conjunction with its emergence from Chapter 11, O'Sullivan closed on its exit financing loan agreement today. The loan agreement provides a revolving credit facility of up to $50 million, secured by substantially all the assets of the company, of which $27.3 million was drawn today. Also, $2.7 million of letters of credit are outstanding under the loan agreement. Amounts borrowed under the loan agreement will used to repay amounts borrowed under its debtor-in-possession credit agreement, to pay fees and expenses related to its bankruptcy process and to provide working capital.

In addition, as provided in its plan of reorganization, O'Sullivan issued $10 million aggregate principal amount of its secured notes to the former holders of its senior secured notes.

Effective upon today's emergence, O'Sullivan's new Board of Directors is in place. Serving on the Board of Directors are Rick Walters; Tom Shandell, founding partner and portfolio manager, GoldenTree Asset Management; Michael Ranson, Director, Capital Solutions Group, GoldenTree Asset Management; Eugene Davis, Chairman and CEO, Pirinate Consulting Group LLC; and James Malone, Founding Managing Partner, Qorval LLC.

About O'Sullivan Industries

O'Sullivan has been in business since 1954. The company designs, manufactures and distributes ready-to-assemble furniture and related products, including a growing line of desks, computer work centers, home entertainment centers, bookcases, shelving, stands for televisions and audio equipment, bedroom furniture pieces, garage storage units and commercial furniture. The majority of O'Sullivan products are sold through large retailers and office supply stores. O'Sullivan employs approximately 1,200 people, primarily at production facilities in Lamar, Missouri, and South Boston, Virginia. The company has its headquarters in the Atlanta suburb of Roswell. On Friday, October 14, 2005, O'Sullivan Industries Holdings, Inc., and certain of its direct and indirect subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.

Safe Harbor Statement

Certain statements in this press release that are not historical facts may be "forward looking statements." Actual events may differ materially from those projected in any forward looking statement. There are a number of important factors involving risks and uncertainties beyond O'Sullivan's control that could cause actual events to differ materially from those expressed or implied in such statement. Such factors include O'Sullivan's ability to maintain adequate liquidity and to operate pursuant to the terms of its credit agreement; O'Sullivan's ability to fund and execute its business plan; O'Sullivan's success with its liquidity improvement initiatives; as well as sales levels, product mix, customer acceptance of existing and new products, material price increases, bankruptcy or loss of significant customers, interest rate fluctuations and other factors, all of which are difficult to predict and most of which are beyond O'Sullivan's control. Actual results could differ materially from those projected by management. O'Sullivan disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise. Please review O'Sullivan's annual report on Form 10-K filed with the Securities and Exchange Commission.

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