NEWS RELEASE

                                                          FOR IMMEDIATE RELEASE
                                                                  July 18, 1996

                                                           Contact: John J. Ong
                                                          Phone: (910) 888-6353


                   LADD COMPLETES $190 MILLION BANK FINANCING

         HIGH POINT, NC - Fred L. Schuermann, Jr., president and chief executive
officer  of LADD  Furniture,  Inc.,  announced  today that the  corporation  has
completed a new $190 million bank  financing  agreement.  Schuermann  commented,
"This new agreement  provides LADD with considerable  financial  flexibility and
the  credit  availability  to  continue  implementing   management's  aggressive
turnaround plans." The new facility will be used to refinance LADD's outstanding
bank debt and provide additional liquidity.

         LADD executive vice president and chief  financial  officer  William S.
Creekmuir said the new secured financing facility,  underwritten by a bank group
led by  NationsBank,  consists of a $125  million  three-year  revolving  credit
facility  and a $65 million  term loan.  Creekmuir  said,  "The new  arrangement
represents a strong vote of  confidence on the part of the lending group in both
LADD's  management  team  and our  future  plans."  He  concluded,  "At  current
borrowing levels, the company's interest expense will increase  marginally under
the new facility."

         Headquartered  in High  Point,  NC,  LADD is one of the  largest  North
American manufacturers of residential furniture.  LADD markets its wide range of
residential wood and upholstered  furniture  domestically  under the major brand
names  American  Drew,  American  of  Martinsville,   Barclay,  Clayton  Marcus,
Kenbridge,  Lea,  Pennsylvania  House and Pilliod,  and exports these same brand
names  products  worldwide  through  LADD  International.  Under the American of
Martinsville  name, LADD is also one of the world's  leading  suppliers of guest
room  furniture  to  the  hotel/motel  industry,  as  well  as  to  health  care
facilities,  retirement homes and governmental and university dormitory markets.
LADD also owns and operates LADD transportation, a support company. LADD's stock
is traded on the over-the-counter National Market System under the Nasdaq symbol
LADF.