Lees Expands Manufacturing Plant

Kennesaw, Ga.-based Lees Carpets, a
division of Calhoun, Ga.-based Mohawk Industries Inc., is to invest $26.6 million to expand its
manufacturing plant in Glasgow, Va. The expansion of the facility, which comprises 33 acres under
one roof and employs more than 1,200 people, will create at least 25 new jobs and require
retraining for 150 existing jobs.

The Glasgow plant, located in Rockbridge County in Virginia’s Shenandoah Valley, is a fully
integrated facility, from yarn manufacturing and dyeing to tufting and finishing carpet including
modular and broadloom carpet for commercial applications. Earlier this year, the facility received
ISO 14001:2004 certification for its environmental management system.

“We are pleased to announce the expansion project for our Glasgow Facility,” said Lane
Leonard, plant manager, who declined to provide details of the planned expansion. “Since 1935, Lees
and Rockbridge County have had a strong relationship. The loyalty and talents of the thousands of
people who have supported Lees, and now Mohawk, were important criteria in our site selection
decision. This expansion ensures the continued growth of the commercial carpet operation in Glasgow
for years to come.”

The Virginia Economic Development Partnership and the Rockbridge Partnership worked together
to secure the project. A $40,000 grant from the Governor’s Opportunity Fund is providing Rockbridge
County with assistance related to the project; and a $100,000 grant from the Virginia Investment
Partnership program provided an incentive to Lees to close the deal. The company will receive
training and retraining assistance from the Virginia Department of Business Assistance through its
Workforce Services Jobs Investment Program; and rail access funding is available to the company
from the Virginia Department of Rail and Public Transportation.

March 14, 2006