FOR IMMEDIATE RELEASE

CONTACT: Leslie Cummings, Vice President of Finance and Treasurer

Knape & Vogt Manufacturing Company (616) 459-3311, Ext. 225

or

Jeff Lambert, Eric Lubbers (616) 233-0500

Lambert, Edwards & Associates, Inc. (mail@lambert-edwards.com)

Knape & Vogt Reports Fourth Quarter and Fiscal Year Sales and Income Growth

Sales Increase 19% and Net Income Increases 67% for the Year

GRAND RAPIDS, Michigan, August 12, 2004 – Knape & Vogt Manufacturing Co. (Nasdaq: KNAP) today announced double-digit growth in sales and net income for the fourth quarter and fiscal year ending July 3, 2004.

The Grand Rapids, Mich.-based manufacturer and distributor of drawer slides, shelving, storage and ergonomic office products reported that net sales increased 30.9 percent to .8 million for the fourth quarter of fiscal 2004, compared with net sales of .9 million during the same period a year ago. KV reported net income of .5 million, or .33 per diluted share, for the current quarter, compared with 8,819, or .17 per diluted share, during the same period in fiscal 2003. The fourth quarter of fiscal 2004 included 14 weeks versus 13 weeks in the prior year fourth quarter. The additional week added approximately .0 million in sales to the 2004 fourth quarter and fiscal year.

A focused sales effort led by KV’s expanded direct sales force, along with new product sales totaling .4 million in the fourth quarter of fiscal 2004, were the primary sales growth drivers. Sales volume growth combined with KV’s ability to leverage its selling and administrative costs helped to offset the negative impact of higher steel prices and improve net income. KV reported selling and administrative expenses as a percent of sales declined from 18.8 percent in the prior year quarter to 14.7 percent in the current fourth quarter.

“Our focus on new products and better penetrating our key markets resulted in solid growth for both the fourth quarter and the fiscal year,” said Bill Dutmers, chairman and CEO. “Our focus on innovation continues to spark interest in the marketplace. In June, we participated in NeoCon and introduced several new products, including our Proxiäoffice organization system; the KV Bug, a solution that allows the users to attach USB connections under any of our keyboard platforms; and the SRSä/Polarisäkeyboard arm, which brings a rigid and stable surface to the user that is easy adjusted without any buttons or dials.”

“We have also proven the value of our vendor managed inventory system with one of our largest customers,” continued Dutmers. “This system has allowed KV to serve as a purchasing resource for our customers and improve their inventory levels, while ensuring that they have the right product on hand when they need it.”

For the 2004 fiscal year, KV reported a 67.4 percent increase in net income on a 19.3 percent increase in net sales compared to the prior year period. KV posted net income of .7 million, or .83 per diluted share, on net sales of 9.0 million in fiscal 2004, compared with net income of .2 million, or .49 per diluted share, on net sales of 4.9 million in fiscal 2003. New products accounted for .7 million in sales for fiscal 2004, compared with .7 million in the prior year.

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Knape & Vogt, page 2 of 2

“Our focus on innovative new products will be demonstrated again at the International Woodworking Fair scheduled to be held later this month in Atlanta,” said Dutmers. “We will introduce over 300 new items at the show, including a new line of European designed upscale chrome kitchen and closet organization products. We will also show a wood and wire program of kitchen accessories, including pullout pan storage and a waste/recycle unit that has wood features and an undermount slide system.”

“We continue to differentiate ourselves in the markets that we serve as a partner with strong manufacturing and engineering expertise, coupled with a focus on innovation. We believe this model will allow us to continue to grow as we enter the new fiscal year.”

About Knape & Vogt

Knape & Vogt Manufacturing Co. brings more than a century of experience to the design, manufacture and distribution of kitchen and bath storage solutions and office products for original equipment manufacturers, specialty distributors, office furniture dealers, hardware chains and major home centers throughout the country. Additional information on KV’s product lines is available on www.knapeandvogt.com.

Cautionary Statement: This press release contains certain forward-looking statements that involve risks and uncertainties. When used in this release, the words “believe,” “anticipates,” “think,” “intend,” “optimistic,” “forecast,” “expect,” “potential” and similar expressions identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning future improvements in net sales, margins and profitability. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and prices. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

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Knape & Vogt Manufacturing Company and Subsidiaries

Condensed Consolidated Statements of Income

Fiscal Year Ended Three Months Ended

(Audited) (Unaudited)

	July 3, 2004	June 28, 2003	July 3, 2004	June 28, 2003
Net sales...........................................................	$ 148,977,742	$ 124,920,476	$ 41,762,106	$ 31,914,923
Cost of sales....................................................	118,249,399	97,638,310	33,194,068	24,710,028
Gross margin....................................................	30,728,343	27,282,166	8,568,038	7,204,895
Selling and administrative expenses............	23,568,741	23,190,715	6,130,672	5,998,717
Other.................................................................	-	271,325	-	-
Operating income............................................	7,159,602	3,820,126	2,437,366	1,206,178
Interest and other expenses, net..................	1,634,403	1,202,726	418,361	247,402
Income before income taxes..........................	5,525,199	2,617,400	2,019,005	958,776
Income taxes....................................................	1,790,267	386,501	534,193	169,957
Net income.......................................................	$ 3,734,932	$ 2,230,899	$ 1,484,812	$ 788,819
Earnings per common share – basic and diluted: Weighted average shares outstanding	4,516,245	4,516,706	4,516,349	4,515,635
Net income per share......................................	$ 0 .83	$ 0.49	$ 0.33	$ 0.17
Cash dividend - Common stock....................	$ 0 .66	$ 0 .66	$ 0.165	$ 0 .165
Cash dividend - Class B common stock.......	$ 0.60	$ 0.60	$ 0 .15	$ 0 .15

Knape & Vogt Manufacturing Company and Subsidiaries

Condensed Consolidated Balance Sheets

(Audited)

	July 3, 2004		June 28, 2003
Assets Current Assets:
Cash and equivalents.......................………………	$ 5,278,869		$ 3,846,613
Accounts receivable, net...............................…….	19,959,442		16,820,600
Inventories...................................................…….	23,955,271		18,979,056
Prepaid expenses and other ..........................…….	950,911		731,749
Total current assets.........……......................…….	50,144,493		40,378,018
Property, plant and equipment, net...............…….	28,683,714		33,989,109
Other assets................................................……...	17,423,119		17,981,702
	$ 96,251,326		$ 92,348,829
Liabilities and Equity
Current liabilities..........................................……	$ 22,805,708		$ 19,920,749
Long-term debt and capital leases...................….	24,538,864		24,052,605
Deferred income taxes & other long-term liabilities...................................……..	12,082,536		13,613,613
Stockholders’ equity......................................……	36,824,218		34,761,862
	$ 96,251,326		$ 92,348,829

Knape & Vogt Manufacturing Company and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Audited)

Fiscal Year Ended

		July 3, 2004		June 28, 2003
From Operating Activities:
Net income............................................……...		$ 3,734,932		$ 2,230,899
Depreciation and amortization…...............…..		6,400,358		6,642,091
Change in retirement plan cost………………..		390,845		(4,263,407	)
Deferred income taxes………………………..		(370,106)		480,000
Loss (gain) on disposal of fixed assets…....…..		1,450		136,746
Changes in operating assets & liabilities....................................……..		(5,290,913	)	(4,765,011	)
Other, net.................................….......……….		42,098		50,000
Net cash provided by operating activities..………..		4,908,664		511,318
From Investing Activities:
Additions to property, plant & equipment net.…………..		(1,199,398	)	(3,707,536	)
Proceeds from sales of property, plant & Equipment……………………………….		53,975		243,527
Other, net............................................……..		(28,114	)	(62,282	)
Net cash used for investing activities………….…..		(1,173,537	)	(3,526,291	)
From Financing Activities:
Cash dividends paid..........…...........……..…. Net change in long-term debt/capital leases….. Repurchase and retirement of common stock……………………………………..		(2,849,192 486,259 -	)	(2,847,316 3,993,920 (23,949	) )
Net cash provided by (used for) financing activities....………………………………..		(2,362,933	)	1,122,655
Effect of Exchange Rates on Cash................……….		60,062		308,388
Net increase (decrease) in cash and equivalents ……		$ 1,432,256		$ (1,583,930	)