Interface Reports Improved Q4 And Year-End 2006 Sales, Income

Atlanta-based floor coverings and
interior fabrics manufacturer Interface Inc. reported its fourth quarter (Q4) 2006 sales totaled
$295.9 million — a 13.5-percent increase over year-earlier Q4 sales of $260.6 million. Q4 2006
operating income rose 28.1 percent to $29.6 million, representing 10 percent of sales, compared
with Q4 2005 income of $23.1 million, representing 8.9 percent of sales. Net income for the quarter
doubled to $12.1 million, or 21 cents per diluted share, from $5.7 million, or 11 cents per share
in Q4 2005. Excluding the company’s European fabrics business, which was sold in April 2006, sales
increased 20.4 percent over the year-earlier quarter’s sales of $245.7 million, and operating
income rose 32.7 percent over year-earlier income of $22.3 million.

Fiscal year (FY) 2006 sales totaled $1.1 billion, compared with FY 2005 sales of $985.8
million, an increase of 9.1 percent. Operating income totaled $97 million, representing 9.2 percent
of 2006 sales, compared with $78.9 million, representing 8.5 percent of sales for 2005, excluding
results from the European fabrics business and certain one-time items during 2006. Including those
results, operating income in 2006 decreased 11.7 percent to $72.4 million, from $82 million in
2005. Net income for 2006 totaled $10 million, or 18 cents per diluted share, compared with 2005
net income of $1.2 million, or 2 cents per share.

“We are pleased to report one of the best fourth quarters in our history, finishing a year
of continuously improving performance,” said Daniel T. Hendrix, president and CEO.

“Over the past three years, we have made tremendous progress in expanding and further
penetrating our end markets, strengthening our balance sheet, and focusing on our core businesses,”
he continued, expressing optimism about the company’s prospects in the coming year and noting “
robust” business during the first seven weeks of the first quarter of 2007.



February 27, 2007

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