~ Second Quarter Net Sales Increased 21.1% to $128.0 Million ~

~ Second Quarter Net Income More Than Doubled to $5.9 Million, or $0.22 Per

                              Diluted Share ~

  ~ Full Year 2008 Estimated Revenue Range Positively Adjusted to $480 to

                               $490 Million ~

 ~ Full Year 2008 Estimated EPS Range Positively Adjusted to $0.73 to $0.78

                                     ~



    TOANO, Va., Aug. 6 /EMWNews/ -- Lumber Liquidators, Inc.,

(NYSE: LL) the largest specialty retailer of hardwood flooring in the U.S.,

today announced financial results for the second quarter ended June 30,

2008.



    Second Quarter Results



    Net sales increased 21.1% to $128.0 million in the second quarter of

2008 from $105.7 million in the second quarter of 2007. Comparable store

net sales increased 2.7% for the quarter on top of an increase of 9.0% for

the second quarter of the prior year. Non-comparable store net sales

increased $19.5 million from the second quarter of 2007, and represented

87.3% of the total increase in the Company's net sales. The Company opened

10 new stores during the second quarter.



    Gross margin increased to 34.6% in the second quarter of 2008 from

32.5% in the same period of 2007. The improvement in gross margin reflects

an increase in sales of higher-margin, premium products, as well as the

sell-through of opportunistic liquidation purchases, and a retroactive

reduction in the tariff on certain bamboo products.



    Selling, general and administrative (SG&A) expenses were $34.9 million,

or 27.3% of net sales, for the second quarter of 2008 compared to $30.4

million, or 28.8% of net sales, for the second quarter of 2007. The

improvement in SG&A as a percentage of sales was primarily due to the

Company's strong sales growth and a reduction in stock-based compensation

expense.



    Net income more than doubled to $5.9 million, or $0.22 per diluted

share, in the second quarter of 2008 compared to $2.3 million, or $0.10 per

diluted share, in the second quarter of 2007.



    Jeffrey W. Griffiths, President and Chief Executive Officer, commented,

"We generated net income in the second quarter that was the best in our

Company's history. We are very pleased to have achieved strong top- and

bottom-line growth for the quarter and to have extended our positive

momentum through the first half of 2008. We continued to experience

increasing customer demand for our products and high acceptance for our

appealing value proposition. In addition, improvements we have made in our

merchandise assortment, in-stock positions and inventory allocation are

reflected in our results. Overall, our performance to date this year

reflects the increased discipline we have brought to our business as well

as our entire team's ability to execute our business plan. Importantly, we

are continuing to benefit from our recent operational improvements, which

provide us with a solid foundation for long-term growth."



    First Six Months Results



    Net sales increased 22.7% to $242.6 million in the first six months of

2008 from $197.7 million in the first six months of 2007. Comparable store

net sales increased 4.7% for the first half of 2008, on top of an increase

of 8.8% for the first half of the prior year. Non-comparable store net

sales increased $35.5 million, and represented 79.3% of the total increase

in the Company's net sales. The Company opened 19 new stores during the

first six months of 2008.



    Gross margin increased to 34.8% in the first half of 2008 compared to

32.8% in the same period of 2007. SG&A expenses were $67.2 million, or

27.7% of net sales for the first half of 2008 compared to $57.2 million, or

28.9% of net sales for the first half of 2007.



    Net income more than doubled to $10.2 million, or $0.38 per diluted

share, in the first half of 2008 compared to $4.6 million, or $0.20 per

diluted share, in the first half of the prior year.



    Net income for the first half of 2008 reflects an effective tax rate of

41.8% compared to 38.7% in the first half of 2007. The higher effective tax

rate is primarily due to approximately $0.7 million of additional income

tax expense that was recorded in the first quarter of 2008 related to the

non-deductable portion of the Variable Plan's cumulative compensation cost.



    Company Outlook



    Based upon year-to-date results and current trends, the Company has

updated its fiscal 2008 expectations. The Company has positively adjusted

its expectations for fiscal 2008 net sales to a range of $480 million to

$490 million compared to its previously expected range of $475 million to

$490 million. The Company continues to expect a comparable store net sales

increase in the mid-single digit range. Additionally, the Company has

positively adjusted its expectations for fiscal 2008 earnings per diluted

share to a range of $0.73 to $0.78. This compares to its previously

expected range of $0.70 to $0.78 per diluted share. Actual results may vary

significantly from current expectations.



    The Company plans to open a total of approximately 33 to 38 stores in

2008, narrowed from its original expectation of 30 to 40 stores. To date in

the third quarter of 2008, Lumber Liquidators has opened five new stores.



    Mr. Griffiths concluded, "We are encouraged by our strong performance

in the first six months of 2008, especially given the challenging

environment, and we are optimistic about our prospects for the second half

of the year. Our new stores continue to perform ahead of our expectations

and remain a significant contributor to our results. In addition, our

stronger infrastructure is enabling us to create additional efficiencies

while positioning our business for long-term effectiveness. We remain

confident in our ability to execute our growth strategy focused on

extending our footprint, growing sales and driving sustained operating

margin expansion."



    Conference Call and Webcast Information



    The Company plans to host a conference call and audio webcast on August

6, 2008 at 10:00 a.m. Eastern Time. The conference may be accessed by

dialing (800) 762-8779 or (480) 629-9041. A replay will be available

approximately one hour after the call through August 13, 2008 and may be

accessed by dialing (800) 406-7325 or (303) 590-3030 and referencing PIN

code 3897556. The live conference call and replay can also be accessed via

audio webcast at the Investor Relations section of the Company's website,

http://www.lumberliquidators.com.

    About Lumber Liquidators, Inc.



    Lumber Liquidators is the largest specialty retailer of hardwood

flooring in the United States. With more than 135 stores and 150 varieties

of flooring, including solid and engineered hardwood, bamboo, cork and

laminate, and featuring premier brands such as Bellawood (which features a

50-year warranty), Dream Home, Schon, Virginia Mill Works, and Morning

Star, Lumber Liquidators has one of the most extensive selections of

prefinished and unfinished hardwood flooring in the industry. Its hardwood

line is made up of more than 25 domestic and exotic wood species in both

prefinished and unfinished brands of various lengths and widths.



    While keeping costs down is part of the Company's philosophy, Lumber

Liquidators is also committed to offering high-quality, name-brand products

that it stands behind with confidence.



    Forward-Looking Statements



    This press release and accompanying financial tables may contain

"forward-looking statements" as defined in the Private Securities

Litigation Reform Act. These statements are based on currently available

information as of the date of such statements and are subject to risks and

uncertainties that may cause actual results to differ. The Company

specifically disclaims any obligation to update these statements which

speak only as of their respective dates, except as may be required under

the federal securities laws. Information regarding these additional risks

and uncertainties is contained in the Company's most recent periodic

filings with the Securities and Exchange Commission.






    For further information contact:



    Lumber Liquidators, Inc.           Financial Dynamics

    Daniel Terrell                     Leigh Parrish/Caren Barbara

    Tel: 757.566.7512                  Tel. 212.850.5600







                             Lumber Liquidators, Inc.

                   Condensed Consolidated Statements of Income

             (in thousands, except share data and per share amounts)

                                   (unaudited)



                            Three Months Ended        Six Months Ended

                                 June 30,                  June 30,

                            2008         2007         2008         2007





    Net Sales             $128,037     $105,725     $242,586     $197,747

    Cost of Sales           83,782       71,350      158,209      132,801

      Gross Profit          44,255       34,375       84,377       64,946



    Selling, General and

     Administrative

     Expenses               34,934       30,415       67,248       57,231

      Operating Income       9,321        3,960       17,129        7,715



    Interest Expense             1          182           26          356

    Other (Income) Expense    (160)         (45)        (398)        (100)

      Income Before

       Income Taxes          9,480        3,823       17,501        7,459



    Provision for

     Income Taxes            3,604        1,478        7,313        2,883

    Net Income              $5,876       $2,345      $10,188       $4,576

    Net Income per

     Common Share -- Basic   $0.22        $0.16        $0.38        $0.31

    Net Income per

    Common Share -- Diluted  $0.22        $0.10        $0.38        $0.20

    Weighted Average

     Common Shares

     Outstanding:

      Basic             26,760,119   15,000,100   26,751,686   15,000,100

      Diluted           27,261,011   23,103,493   27,031,200   23,027,806







                             Lumber Liquidators, Inc.

                       Condensed Consolidated Balance Sheet

                        (in thousands, except share data)



                                                     June 30,    December 31,

                                                       2008         2007

    Assets                                          (unaudited)

    Current Assets:

      Cash and Cash Equivalents                       $22,325      $33,168

      Merchandise Inventories                          99,964       72,024

      Prepaid Expenses                                  3,379        4,011

      Other Current Assets                              4,657        3,862

        Total Current Assets                          130,325      113,065

    Property and Equipment, net                        13,359       11,580

    Deferred Income Taxes                               1,889        1,220

    Other Assets                                        2,552        2,559

    Total Assets                                     $148,125     $128,424



    Liabilities and Stockholders' Equity

    Current Liabilities:

      Accounts Payable                                $19,558      $15,654

      Customer Deposits and Store Credits              12,433        9,609

      Other Current Liabilities                        12,250       10,973

        Total Current Liabilities                      44,241       36,236



    Stockholders' Equity:

      Common Stock ($0.001 par value;

       35,000,000 authorized; 26,780,919

       and 26,752,118 issued and

       outstanding, respectively)                          27           27

      Additional Capital                               89,061       87,553

      Retained Earnings                                14,796        4,608

      Total Stockholders' Equity                      103,884       92,188

    Total Liabilities and Stockholders' Equity       $148,125     $128,424