Beaulieu To Close Royston, Ga., Spun Yarn Plant

Dalton, Ga.-based carpet manufacturer Beaulieu of America Inc. has announced it will shutter its
spun yarn facility in Royston, Ga., on November 26, as a result of decreased demand for staple
fiber carpet yarns. The company has experienced increased demand for soft
bulked-continuous-filament (BCF) products and will expand such production at other locations.

“Balancing our capacities to meet the needs of the marketplace and our customers will only
enhance our service capabilities,” said Ralph Boe, president and CEO, Beaulieu of America. “While
there will still be demand for spun yarn, the demand will be lower than in the past. Our soft BCF
fibers in both nylon and polyester have gained tremendous momentum over the past year.

“The decision, while always difficult, will allow us to make improvements at other facilities
to keep up with the increased demand of our new soft products,” Boe added. “It is unfortunate that
the Royston mill must be shut down, as our associates have been stellar performers producing
excellent quality products for many, many years.”

The company is offering jobs and moving assistance to all 192 Royston employees who are
willing to relocate to other Beaulieu facilities, and it will offer resumé building, interview
skill training and job application assistance to those unable to relocate.

September 28, 2010