Modular Tile Gives Interface Record Quarter

Atlanta, GA, February 21, 2008--Interface Inc. said it had record operating income in the fourth quarter, rising 31.9 percent to $39.4 million, on the strength of its modular carpet business.

Sales for the fourth quarter of 2007 increased 13.2% to $293.3 million from sales of $259.1 million in the year ago period.

Operating income was 13.4 percent of sales, compared with operating income of $29.9 million, or 11.5 percent of sales a year ago. Income from continuing operations was a record $20.3 million in the quarter, an increase of 63.1 percent compared with $12.4 million the previous year.

"The 2007 fourth quarter was the best performing quarter in Interface's history and concluded our best performing year ever in terms of continuing operations," said CEO Daniel T. Hendrix.

"Our results continue to be driven by the strength of demand for modular carpet both domestically and internationally, as well as the continued expansion of our presence in non-office markets as a result of our market segmentation strategy"

Order activity during the quarter also grew 17 percent over year the previous year.

The company's InterfaceFLOR modular carpet business comprises more than 85 percent of the company's revenues. Sales increased 18 percent and operating income rose 35 percent. Although performance at Bentley Prince Street was below the company's expectations, it said the modular component of this business growth."

Sales for full year 2007 were $1.1 billion, compared with $914.7 million for 2006, an increase of 18.2 percent.