Analyst Maintains Mohawk Rating, Reduces Estimates

New York, June 2, 2006--Analysts at Stifel Nicolaus & Company maintain their "hold" rating on Mohawk Industries Inc., while reducing their estimates for the company. In a research note published this morning, the analysts mention that the challenges of poor residential replacement demand, high interest rates and oil prices and a generally negative sentiment on housing construction are likely to exert pressure on the company’s share price in the near term. The analysts expect an increase in fiber prices before the year-end. The EPS estimates for 2006 and 2007 have been reduced from $6.35 to $6.27 and from $7.50 to $7.40, respectively, to reflect a rise in polypropylene costs and weaker-than-expected residential demand.