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Tuesday 26 June, 2007

Mohawk Industries, Inc.

Mohawk Industries, Inc. Announces Purchase of W...





CALHOUN, Georgia, June 26 /PRNewswire/ --

    Mohawk Industries, Inc. (NYSE: MHK) announced 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 US$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 US$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."



    Certain of the statements in the immediately preceding paragraphs,
particularly anticipating future performance and business prospects
constitute "forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. There can be no assurance that the
forward-looking statements will be accurate because they are based on many
assumptions, which involve risks and uncertainties, including our ability to
successfully implement our integration plan, and other risks identified in
Mohawk's SEC reports and public announcements.



    Mohawk is a leading supplier of flooring for both residential and
commercial applications. Mohawk offers a complete selection of carpet,
ceramic tile, laminate, wood, stone, vinyl, rugs and other home products.
These products are marketed under the premier brands in the industry, which
include Mohawk, Karastan, Ralph Lauren, Lees, Bigelow, Dal-Tile, American
Olean, Unilin and Quick Step. Mohawk's unique merchandising and marketing
assist our customers in creating the consumers' dream. Mohawk provides a
premium level of service with its own trucking fleet and over 250 local
distribution locations.



Web site: http://www.mohawkind.com

                                                                                                 

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