Lynch Sales Company

Drury's Furniture & Interior Design Studio

Minneapolis, MN

October 8, 2007

Mr. Jud Lynch and Mr. Chris Lynch
Lynch Sales Company
161 Ottawa Ave. N.W. Suite 300-F
Grand Rapids, Michigan 49503

Dear Jud and Chris,

This is a final update on our Consolidation Sale held in our stores in Rochester and Fountain, Minnesota.

We made the decision not to renew our lease on our Flexsteel Comfort Seating store in Rochester and to consolidate all operations in our larger, full-line store in Fountain. We had great concerns on how to achieve this goal, while protecting our 82-year reputation. The Lynch Sales Company came recommended. After our initial visit from Dave Yerrick, who outlined your process, we decided to bring in your Company to facilitate this sale.

The results of this decision were remarkable!

We had initially set two possible sales volume goals: The first was a higher, “Best Results” scenario, and the second was a lower “Very Acceptable” goal. I am pleased to be able to tell you we exceeded our “Higher” goal by over 7% – while maintaining margins and keeping the advertising expenses under budget!

We feel one of the keys to our success was your sales coordinators. We were fortunate in having two outstanding coordinators assigned to our stores. Shän Stewart and his staff of Kim, J.R., and Justin handled the Rochester location while Doug Dowell, along with staff of Rhonda and Pam worked the Fountain store.

I worked closely with Doug Dowell and found that his management style, organizational skills and enthusiasm fit perfectly with our staff. He handled every detail from staff scheduling, hands-on store displays, advertising and daily sales meetings. He was truly a “hands-on” coordinator. He also inspired our staff to continue writing special orders at significantly higher margins. His results were amazing!

Shän’s staff was able to sell off existing stock in Rochester, clear out old and discontinued items, and still write a significant number of special orders.

The leadership of Doug and Shän was a major factor in our exceeding all Lynch sales projections! We were amazed at how smoothly this 6-week event went, and would recommend the Lynch Sales Company to anyone considering this type of sale.

For our entire family, Ora Mae, Michelle, Ginny, Michael, Jeff and our entire staff,

Sincerely,

David Drury