Mohawk Announces Strategic Alignment with Wear-Dat

Dalton, GA, December 2, 2005--Mohawk Industries, Solutia Wear-Dated, and 3M Scotchgard today announced a unique long term alignment that will bring together three of the strongest brands in the floorcovering industry for a new initiative designed to benefit all three. The new alignment will include programs for carpet and hardwood. For carpet, more than 80 Mohawk products are affected, including many that will switch from other fiber technologies to Wear-Dated fiber. In addition, Mohawk is introducing a new generation of carpets (and for the first time, hardwood) featuring the new Scotchgard Protector Advanced Repel Technology for stain protection. Scotchgard Protector Advanced Repel Technology is available only through Mohawk. Scotchgard Protector Advanced Repel Technology is the next generation of stain and soil protection from 3M. It provides the ultimate in stain and soil resistance, durability of protection, and enhanced repellency. Advanced Repel Technology has been added to all Mohawk carpets featuring Wear-Dated Carpet Fiber. “This is the most substantial commitment to a product platform in our industry’s history,” said Tom Lape, President, Mohawk Residential. “We are putting together the products, technology, and marketing necessary to make this alignment one of the most valuable resources a floorcovering dealer can have.” Mohawk is one of America’s oldest and most established brands—older, in fact, than Coca-Cola®, Hershey’s®, Disney®, and Moon Pie. Studies show that it is the most recognized brand in the floorcovering industry. Wear-Dated is accepted as an industry leader in nylon fiber technology and durable performance, with strong consumer brand awareness. Scotchgard Protector is known to more than 99% of consumers and is perceived as the leader in stain protection technology. In fact, pre-introduction consumer testing showed that Mohawk Wear-Dated with Scotchgard Protector Advanced Repel Technology is preferred by consumers in every important brand and purchase consideration. “Strong co-branded marketing platforms are proven to provide competitive advantages to channel partners,” Lape said. “Diet Coke® and NutraSweet®, Dell® and Intel® are high profile examples of this. So are Mohawk’s co-branding retail programs like Mohawk Floorscapes® and Mohawk ColorCenter®. “In 2005, we introduced SmartStrand fiber made with DuPont™ Sorona® polymer, the biggest fiber innovation in the last 20 years. In 2006, we have Scotchgard Protector Advance Repel Technology, along with our new strategic alignment with Wear-Dated to provide the catalyst for creating real consumer value.” Lape said that the new alignment is being introduced with an aggressive marketing program, featuring the opportunity for dealers to take advantage of increases in 2006 co-op support. “Wear-Dated carpets with Scotchgard Protector Advanced Repel Technology will have more co-op through enhanced funding in our partnership with 3M. Because of the number of products involved, dealers will find ample opportunities to take advantage of increased co-op funding.” The new program will be supported with first-quarter retail promotions, plus ongoing seasonal promotions through “Mohawk Rewards Plus,” the industry’s most popular retail salesperson incentive program. Additionally, retail salespeople earn on-going incentives through the Wear-Dated Rewards program. Dealers will notice that products have been re-labeled for Mohawk’s regional show events to make it easy to see which are included in the new program. Special demonstrations are planned for the Scotchgard Protector Advanced Repel Technology for Hardwood so dealers can see its advantages.