Exhibit 99.1


               Flexsteel Announces Amendment to Credit Agreements

    DUBUQUE, Iowa--(BUSINESS WIRE)--June 2, 2006--Flexsteel Industries, Inc.
(NASDAQ:FLXS) ... The Company has executed an Amendment to its Credit
Agreements with its lead bank extending to October 31, 2010 its $20.0
million long-term credit facility and its $8.0 million available for
Letters of Credit, which were scheduled to expire September 30, 2007.
There were no other changes to the terms of the credit facilities,
including interest rates, other than described above.
    In addition, the Company renewed under the same terms, until June
29, 2007, its $20.0 million Line of Credit Note for working capital
that was set to expire on June 29, 2006.
    Flexsteel Industries, Inc. is headquartered in Dubuque, Iowa, and
was incorporated in 1929. Flexsteel is a designer, manufacturer,
importer and marketer of quality upholstered and wood furniture for
residential, recreational vehicle, office, hospitality and healthcare
markets. All products are distributed nationally.


    CONTACT: Flexsteel Industries, Inc., Dubuque
             Timothy E. Hall, Chief Financial Officer, 563-585-8392