California Transparency in Supply Chains Act

Ethan Allen manufactures and/or assembles approximately 70% (as of December, 2011) of its products in its own North American plants. These facilities are within our control and do not engage in human trafficking and/or slavery. Ethan Allen is committed to and operates in accordance with its Leadership Principles which it expects all affiliates and employees to follow, and all suppliers and contractors to embrace. Ethan Allen is engaged, at all levels, in a continuous improvement process and strives to maintain and establish a supply chain that shares Ethan Allen’s high ethical and legal standards. The Company is currently developing a more formalized verification and auditing program for all third party suppliers to ensure they operate in accordance with our Code of Conduct and all applicable laws and regulations. Ethan Allen does not condone the use of slavery or human trafficking and does not knowingly do business with any supplier who engages in such practice. Further, Ethan Allen does not maintain any long term contracts or commitments with its suppliers and is free to take its business elsewhere should a supplier fall short of our expectations.

We believe that our business relationships are grounded on a foundation of integrity, honesty and fairness. We develop relationships with carefully selected suppliers who are committed to responsible business practices.

To assist in verifying our vendors’ operations our merchants, design team, resourcing team, and quality team periodically visit many third party facilities. Ethan Allen does not currently use any third party to audit or verify third party suppliers; however, our employees perform announced visits.

Ethan Allen maintains internal accountability standards for employees and suppliers that fail to meet company standards concerning human trafficking and slavery. Ethan Allen provides formal training to all associates on Ethan Allen’s Code of Conduct including action to take in the event of a violation by an associate or supplier.