Faus to Manufacture in U.S and Asia

Gandia, Spain, October 5, 2005 -- The Faus Group, which manufactures high-end laminate flooring out of Gandia, Spain, will be manufacturing on U.S. soil by the first quarter of 2006. The expansion will be located on 78 acres of land adjacent to Interstate-75 in Calhoun, Georgia. A 400,000 sqare foot building already on the property will house 280,000 square feet of manufacturing and 100,000 square feet of shipping and receiving. The administrative offices currently housed in Dalton, including Sales and Marketing, Accounting, Customer Service and Retail Services, will be relocating to the Calhoun facility. The new facility will include four presses, one milling line and one impregnation line. Phase One will employ about 160 people. It should hit full production before the end of the second quarter of 2006. By the end of 2006, capacity should be up to 40 million square feet. Phase Two of the project should add another 40 million square feet in capacity by the end of 2007. Capacity at the company’s facility in Spain is currently about 160 million square feet. The offices will be up and running by December 2005, and the operations systems will in full production by Summer 2006. Over a two year period, the new plant will bring more than 350 new jobs to the North Georgia community. This move depicts the company's strong commitment to the U.S. market and to the manufacturing of premium laminate flooring programs. "Our strategy for growth continues to be based on bringing exclusive innovation and technology to the market," said Juan Flores, president of Faus Group, Inc. "The investment in our Calhoun plant is a key factor in supporting our North American customers." Faus Group also said yesterday that is has continued to expand its global operation strategy by revealing that it has a manufacturing facility in Shanghai, China. The new facility, Faus Timber Shanghai/ CFL, will allow Faus to offer additional value. oriented products in the US and European markets. In a movement to strengthen and promote its global growth strategy, Faus announced yesterday that it has restructured their management organization. Juan Negre, as chairman of the Board of Directors at Faus, has appointed Juan Flores as president of the company and Dan Snapper as vice president of Sales and Marketing. Both executives assume their new responsibilities effective immediately. Juan Flores, formerly the general manager, has been with the company since it's incorporation in Dalton in 1997. He has successfully led the company's efforts into the US market. Dan Snapper, formerly the company's national sales manager, reports directly to Flores Snapper has more than 20 years of experience in the flooring industry in various capacities. Members of the new management team include: Traci Powell, director of Marketing; Steve Coppenger, director of Sales-Home Depot; Stan McMackins, director of Technical Services; Stan Barden, director of Finance Operations; and Kathy McWhorter, director of Administration Logistics The U.S. accounts for about half of Faus' $200 million in annual sales and about 20% of products sold under private label. Just two years ago, private labeled products accounted for 80% of the firm's North American revenue, but since that time the firm has shifted to Faus branded programs. Most of that business is currently with Home Depot, but as Faus' U.S. manufacturing gets up to speed, independent retailers will come to account for half of its business.