Interface Has Record First Quarter

Atlanta, GA, April 24, 2008--Interface Inc. reported net income for the first quarter of $14.1 million or $0.23 per share.

Last year, Interface posted a net loss in the first quarter on a loss from discontinued operations.

"The 2008 first quarter was the best first quarter in our history, giving us a good start to the year," said CEO Daniel T. Hendrix.

"Sales were up nearly 8 percent during what historically has been the seasonally slowest quarter for our business. Our growth was driven by the market's secular shift to carpet tile and by our market segmentation strategy, which has enabled us to continue expanding our presence in education, hospitality and other non-office segments.”

Sales for the first quarter of 2008 increased 7.5 percent to $261.7 million from sales of $243.5 million in the year ago period.

Gross profit margin expanded 180 basis points to 36 percent compared to 34.2 percent a year ago.

Operating income for the first quarter of 2008 increased 27.4 percent to $31.0 million, or 11.8 percent of sales, compared with operating income of $24.3 million, or 10 percent of sales, in the first quarter of last year.

The company said revenues were particularly strong in Asia and other emerging markets, where it continued to see growing demand for modular carpet.

"Our modular carpet business segment continued to lead the way during the first quarter, with its sales increasing 10 percent compared with the prior year period,” said Chief Financial Officer Patrick C. Lynch.

“While Bentley Prince Street's sales were essentially flat year-over-year, we are encouraged by the continued growth of the modular component of this business, and its operating income improved a healthy percentage versus last year due to improved manufacturing efficiencies."