Mohawk to Buy Columbia Flooring Assets

Calhoun, GA, June 26, 2007--Mohawk said today that it has entered into an asset purchase agreement with Columbia Forest Products for wood flooring plants and working capital. The assets include two pre-finished solid plants and one engineered wood plant in the U.S. and an engineered wood plant in Malaysia.

These plants currently represent approximately $180 million of annual sales and have been Mohawk's largest supplier of wood. The plants are currently experiencing losses but the business is expected to be accretive after the first year as we implement our integration plan. Losses following closing are not expected to be material to Mohawk's results. This transaction is expected to close in the third quarter of 2007 and is subject to customary governmental approvals and closing conditions.

In commenting on the acquisition, Jeffrey S. Lorberbaum, Chairman and CEO, stated, "Columbia has been an important supplier to Mohawk since we began distributing wood products. These are excellent assets which are operating at about half their potential capacity. Over the next two years we will invest some additional capital to achieve a low cost position in the market. We will continue to support the Columbia brands sold through independent distributors and enhance the product portfolio. The acquisition enables us to fully participate in the $2.4 billion wood flooring market which is anticipated to grow at 6% to 8% long term. In the U.S., Mohawk will now have the number one or two position in the wood, carpet, ceramic, laminate, stone, and rug markets. This is another key element in Mohawk's strategy to offer a total floor covering solution to our customers."