Interface Reports 3Q Results

Atlanta, GA, Oct. 23, 2008--Interface said in a conference call with analysts that it's market diversification strategy is paying off.

The company reported earnings Oct. 21. Earnings dipped slightly and sales were flat.

CEO Dan Hendrix commented that they had raised prices to offset cost increases.

"We expect to start seeing the benefits of these efforts in the fourth quarter. Over the past several years Interface has been building its business for long term growth and to with stand economic down turn. Our work today should help mitigate the effects of the current economic environment, yet still allow us to make investments necessary to grow our business."

Hendrix said he remains very confident about the business because there's a clear sector shift to carpet tile and Interface is the largest manufacturer and the most recognized brand in modular carpets.

"Our market diversification market strategy has opened up opportunities for Interface in non-office markets including government, education, health care, and hospitality. It is in these markets that we're seeing the strongest growth rate, as spending in these areas is not as cyclical as it is in the office in retail markets."

In addition, about 50 percent of sales come from outside the U.S., which helps insulate the company.

The company believes it is taking market share, despite its higher prices, because it is winning business on design. It said the average price for the commercial carpet market is $11 a yard and Interface's is almost $21.