Shaw To Cut Jobs At Lafayette Plant, Pledges To Reduce Energy Intensity

Dalton, Ga.-based carpet manufacturer and floor covering supplier Shaw Industries Group Inc. will
eliminate approximately 50 jobs at its Plant 67 in Lafayette, Ga., reducing the total workforce at
that site to 460 employees. The company cited the need to streamline its workforce as a result of
increased pre-dyed and space-dyed nylon production innovations at the plant, as well as reduced
demand due to external factors such as the current state of the housing market.

Shaw said it will attempt to place affected employees at other Shaw facilities, and will
assess future needs for both the Lafayette facility and the entire company as demand grows and the
business environment improves.

In other company news, Shaw has become a Founding Reporter of The Climate Registry and also,
as part of a partnership with the US Department of Energy (DOE), has pledged to cut its energy
intensity by 25 percent over 10 years.

The Climate Registry, a nonprofit organization established to measure and report greenhouse
gas (GHG) emissions, was founded by North American governmental entities including 39 US states,
the District of Columbia, eight Canadian provinces, six Mexican states and three Native American
tribes. In all, the registry comprises more than 200 founding reporting entities — including
corporations such as Shaw and others, government agencies and nonprofit organizations — that
annually will measure, verify and publicize their GHG emissions.

Shaw’s partnership with the DOE allows it to avail itself of DOE resources and join with
other companies in the region to develop energy reduction programs. The company’s efforts to
increase its energy efficiency are part of its overall commitment to environmental sustainability
and cradle to cradle design solutions, as reflected in its Shaw Green Edge™ environmental
communication platform.

“Shaw is serious about energy reduction,” said Rick Ramirez, Shaw’s vice president of
sustainability and environmental affairs. “From becoming a Founding Reporter of The Climate
Registry, to committing in partnership with the US Department of Energy to a 25-percent reduction
in energy intensity, Shaw will continue to lead the industry in environmental sustainability while
providing consistent and measurable results regarding the company’s Shaw Green Edge promise.”

June 11, 2008