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Ethan Allen Interiors Inc. (NYSE: ETH) (the �Company�) announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.25 per share. The dividend of $0.25 per share will be payable to shareholders of record as of January 9, 2009 and will be paid on January 23, 2009. Chairman and CEO, Farooq Kathwari commented, �We are gratified that our healthy balance sheet and our profitability and cash flow enables us to continue to distribute this cash dividend to shareholders.� Recognizing the extraordinary challenges of the current economic environment, the Company recently awarded options as non-cash incentive based compensation for a broad base of key management employees who contribute to the profitability and growth of the business. The independent members of the Board of Directors approved an award for the Chairman and CEO, Farooq Kathwari of up to 60,000 restricted shares, with vesting subject to achieving specified levels of operating income over the final three quarters of fiscal 2009, and a grant of options to purchase 50,000 shares, with an exercise price equal to the closing price on November 11, 2008, which vest over a four year period. Ethan Allen Interiors Inc. is a leading manufacturer and retailer of quality home furnishings and a provider of interior design solutions and service through a dedicated network of 295 retail locations called design centers located in the United States and abroad, of which 163 are Company owned. Ethan Allen has nine manufacturing facilities in the United States and one in Mexico.