Interface Earnings Off in 2Q on Fabric Sale

Atlanta, GA, July 25, 2007—Interface, Inc. in the second quarter reported earnings that fell 83% to $998,000, or $0.02 a share, from $5.89 million, or $0.11 a share, a year earlier, reflecting the company's sale of its fabrics division.

Earnings from continuing operations rose 57% to $13.3 million, or $0.22 a share, from $8.48 million, or $0.15 a share a year earlier.

Sales for the quarter were up 19% to $265 million from $223.2 million in the prior-year period.

Analysts had forecast earnings from continuing operations of $0.22 a share on sales of $268 million.

Daniel T. Hendrix, president and CEO said, "We established record revenues in our modular carpet business in each of our key geographic regions. The second quarter of 2007 was an exceptional quarter for Interface, as we reported strong performance across all of our businesses and continued to increase market share."

He said orders received continuing operations during the quarter were up 28% to $304 million, their highest level ever.

Patrick C. Lynch, senior vice president and chief financial officer, commented, "Our worldwide modular carpet business exhibited an outstanding quarter, with sales increasing 21% and orders increasing 30% compared with the second quarter last year."

The company's Bentley Prince Street business continued to see improvement, with revenue growth of 17% and increased profitability.

For the first six months of 2007, sales from continuing operations were $508.5 million, compared with $421.3 million for the same period a year ago, an increase of 20.7%. Operating income for the 2007 six-month period was $55.2 million.