Jennifer Convertibles Reports Second Quarter Results

- Revenue from continuing operations decreased 17.5% for quarter, 19.7%
year-to-date

- Comparable store sales decreased by 21.2% for quarter, 22.9% year-to-date

- Loss from continuing operations $2,184,000 versus $1,073,000 for quarter,
$3,999,000 versus $1,533,000 year-to-date

- Basic and Diluted EPS ($0.33) versus ($0.18) for quarter, ($0.60) versus
($0.25) year-to-date

WOODBURY, N.Y., April 20 /PRNewswire-FirstCall/ -- Jennifer Convertibles, Inc.
(Amex: JEN) announced today its unaudited financial results for the second
fiscal quarter ended February 28, 2009.

For the second quarter, revenue from continuing operations decreased by 17.5%
to $22.8 million from the $27.6 million reported for the same period last
year. For the six-month period, revenue from continuing operations decreased
19.7% to $49.4 million from the $61.5 reported in the same period last year.

For the second quarter, the Company had a net loss of $2,344,000 or ($0.33)
per basic and diluted share, compared to net loss of $1,246,000 or ($0.18) per
basic and diluted share for the same period last year. For the six-month
period, the net loss was $4,213,000 or ($0.60) per basic and diluted share,
compared to net loss of $1,751,000 or ($0.25) per basic and diluted share for
the same period last year.

Operating margins from continuing operations increased during the current
three-month period to 28.0% compared to 27.5% the same period last year. For
the current six-month period operating margins from continuing operations
decreased to 28.6% compared to 28.9% for the six-month period last year.

For the second quarter, selling, general, and administrative expenses from
continuing operations increased to 35.7% as a percentage of revenue from
continuing operations compared to 31.1% for the same period last year. For the
six-month period, selling, general and administrative expenses from continuing
operations increased to 35.4% compared to 31.1% for the same period last year.

During the second quarter, we closed three stores of which two stores were in
Missouri and one store in Virginia compared to three store closings in Ohio
and one store in Georgia the same period last year. The operating results of
the closed store in Virginia were recorded in continuing operations based on
management's judgment that there will be significant continuing sales to
customers of the closed stores from other stores in the respective area. The
operating results of the two closed stores in Missouri were reported as
discontinued operations. Loss from operations of discontinued operations was
$160,000 and $173,000 in the second quarter of fiscal 2009 and 2008,
respectively. For the six month periods for fiscal 2009 and 2008, loss from
discontinued operations amounted to $214,000 and $218,000, respectively.

During the quarter, the Company did not open any stores, relocated two stores
and closed three stores as described above.

Commenting on the results of the second fiscal quarter Harley J Greenfield,
Chief Executive Officer of Jennifer said, "We are disappointed by the results
achieved during our second fiscal quarter, however we continue to be
optimistic about the future. The results were impacted by both the fact that
historically the second fiscal quarter is the seasonally slowest quarter of
our year and the significant weakness in the economy particularly in the
furniture industry. We have taken a number of additional steps to reduce
operating expenses including restructuring leases and modifying the
warehousing and management agreement with the Related Company, which should
improve our operating results for the balance of the fiscal year. We still
believe that our model which provides consumers with quality products at
affordable prices while maintaining good margins will return the Company to
solid profitability when the economy begins to improve."

Mr. Greenfield added, "Our Ashley division continues to grow, producing almost
13% of revenues and generating operating profit during the quarter. At the end
of the quarter we had cash of $7.1 million. We have begun the transition of
our vendor financing from Caye to a Chinese supplier. On April 13, 2009 we
amended this agreement to provide, effective August 1, 2009, up to 150 days to
pay for our goods from the previous 75 days. This should provide us additional
working capital. In addition, we have engaged an investment banking firm to
evaluate strategic opportunities for Jennifer."

Jennifer Convertibles is the owner and licensor of the largest group of
sofabed specialty retail stores in the United States, with 151 Jennifer
Convertibles stores and is the largest specialty retailer of leather furniture
with 14 Jennifer Leather stores. As of April 20, 2009, the Company owned 144
stores and licensed 21 stores (including 19 owned and operated by a related
company on a royalty free basis) and operates two licensed Ashley Furniture
HomeStore.

Statements in this press release other than the statements of historical fact
are "forward-looking statements." Such statements are subject to certain
risks and uncertainties, including changes in retail demand, vendor
performance and other risk factors identified from time to time in the
Company's filings with the Securities and Exchange Commission that could cause
actual results to differ materially from any forward-looking statements.
These forward-looking statements represent the Company's judgment as of the
date of the release. The Company disclaims, however, any interest or
obligations to update these forward-looking statements.

JENNIFER CONVERTIBLES, INC. & SUBSIDIARIES
SUMMARY CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)

02/28/09 08/30/08
(Unaudited)

CASH AND CASH EQUIVALENTS $6,029 $9,057
RESTRICTED CASH 1,099 1,116
ACCOUNTS RECEIVABLE 1,726 779
MERCHANDISE INVENTORIES, Net 9,961 10,646
DUE FROM RELATED COMPANY 3,090 4,063
PREPAID EXPENSES AND OTHER CURRENT ASSETS 1,724 1,508
TOTAL CURRENT ASSETS 23,629 27,169

MARKETABLE AUCTION RATE SECURITIES - 1,400
FIXTURES, EQUIPMENT & LEASEHOLD IMPROVEMENTS, Net 2,749 3,202
GOODWILL 1,650 1,650
OTHER ASSETS 680 691

TOTAL ASSETS $28,708 $34,112

ACCOUNTS PAYABLE $11,674 $12,932
CUSTOMER DEPOSITS 4,877 6,493
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES 6,377 3,892
DUE TO RELATED COMPANY 300 400
DEFERRED RENT AND ALLOWANCES - Current Portion 547 634
TOTAL CURRENT LIABILITIES 23,775 24,351

DEFERRED RENT AND ALLOWANCES - Net of Current
Portion 2,300 2,905
OBLIGATIONS UNDER CAPITAL LEASES - Net of Current
Portion 118 139
TOTAL LIABILITIES 26,193 27,395

STOCKHOLDERS' EQUITY 2,515 6,717

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $28,708 $34,112

JENNIFER CONVERTIBLES, INC. & SUBSIDIARIES
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)

THREE MONTHS ENDED SIX MONTHS ENDED
02/28/09 02/23/08 02/28/09 02/23/08

REVENUE:
NET SALES $21,518 $25,997 $46,632 $57,853
REVENUE FROM SERVICE
CONTRACTS 1,282 1,641 2,764 3,650
22,800 27,638 49,396 61,503

COST OF SALES AND OTHER CHARGES 16,412 20,042 35,287 43,719

SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 8,134 8,608 17,473 19,145

DEPRECIATION AND AMORTIZATION 453 255 698 509
24,999 28,905 53,458 63,373

LOSS FROM OPERATIONS (2,199) (1,267) (4,062) (1,870)

INTEREST INCOME 20 150 74 349

INTEREST EXPENSE (5) (3) (10) (6)

LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (2,184) (1,120) (3,998) (1,527)

INCOME TAXES - (47) 1 6

LOSS FROM CONTINUING OPERATIONS (2,184) (1,073) (3,999) (1,533)

LOSS FROM OPERATIONS OF
DISCONTINUED OPERATIONS (including
loss on store closings of $118
and $70 for the thirteen week
and $113 and $70 for the
twenty-six week periods ended in
fiscal 2009 and 2008,
respectively) (160) (173) (214) (218)

NET LOSS $(2,344) $(1,246) $(4,213) $(1,751)

BASIC AND DILUTED LOSS
PER COMMON SHARE:

LOSS FROM CONTINUING
OPERATIONS $(0.31) $(0.15) $(0.57) $(0.22)
LOSS FROM DISCONTINUED
OPERATIONS (0.02) (0.03) (0.03) (0.03)
NET LOSS PER COMMON SHARE $(0.33) $(0.18) $(0.60) $(0.25)

BASIC AND DILUTED WEIGHTED
AVERAGE COMMON SHARES
OUTSTANDING 7,073,466 7,073,466 7,073,466 7,073,466

SOURCE Jennifer Convertibles, Inc.

Donald Radcliffe, Radcliffe & Associates, +1-212-605-0201