Interface Announces Pending Sale of Its Fabrics Division

June 25, 2007

Atlanta/PRNewswire-FirstCall/ - Interface Inc., a worldwide floor coverings and fabrics company, recently announced that it has entered into a definitive agreement to sell its fabrics division in an all-cash transaction valued at up to $70 million. The division, known as InterfaceFABRIC, is a leading producer of interior fabrics and upholstery products, which it markets under the Guilford of Maine®, Chatham® and Terratex® brands, and provides specialized automotive textile solutions.

The fabrics division will be sold to an affiliate of Sun Capital Partners, a leading private investment firm. According to the terms of the agreement, Interface will receive approximately $63.5 million in cash proceeds at the closing of the transaction, with potential for an additional $6.5 million in cash proceeds, subject to the division meeting certain performance metrics over the subsequent six to 18 months period. The transaction is expected to close during the third quarter, subject to regulatory review and other customary closing conditions.

For the full year 2006, the fabrics division generated revenue of $161.2 million and an operating loss of $27.3 million, and had depreciation and amortization of $9.4 million. These full year 2006 results include the operations of Interface's former European fabrics business, which was sold in April 2006. The divested European fabrics business accounted for sales of $17.3 million and an operating loss (after a $20.7 million goodwill impairment charge) of $19.6 million in 2006.

"We are pleased to enter this transaction with an affiliate of Sun Capital Partners and believe that the sale of our fabrics division is a good strategic and financial decision for Interface," says Daniel Hendrix, president and chief executive officer. "Strategically, the sale will allow Interface management to focus on leveraging the opportunities within our core modular carpet and Bentley Prince Street divisions, which have delivered consistently strong performance, while also providing the fabrics division with the resources to execute on its promising operating strategy. Financially, the transaction is in keeping with our goal of reducing our outstanding debt and further strengthening our balance sheet."

"We are excited about the opportunity for our affiliate to acquire Interface's fabrics division. We believe that the market is robust for commercial interiors and we see strong potential to increase the efficiencies within the fabrics division while leveraging its unique brands to enhance the division's future growth," adds M. Steven Liff, a managing director of Sun Capital Partners.

Interface Inc. is a recognized leader in the worldwide interiors market, offering floor coverings and fabrics. The Company is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment while enhancing shareholder value. The Company is the world's largest manufacturer of modular carpet under the InterfaceFLOR, FLOR, Heuga and Bentley Prince Street brands, and, through its Bentley Prince Street brand, enjoys a leading position in the high quality, designer-oriented segment of the broadloom carpet market. The Company's InterfaceFABRIC business is a leading producer of interior fabrics and upholstery products, which it markets under the Guilford of Maine, Chatham and Terratex brands, and provides specialized automotive textile solutions.

Sun Capital Partners Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 155 companies worldwide with combined sales in excess of $35.0 billion since Sun Capital's inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Tokyo, and Shenzhen. For more information, visit

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the other matters set forth in this news release are forward-looking statements. The forward- looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including risks and uncertainties associated with economic conditions in the commercial interiors industry as well as the risks and uncertainties discussed under the heading "Risk Factors" included in Item 1A of the company's annual report on form 10-K for the fiscal year ended December 31, 2006. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The company assumes no responsibility to update or revise forward-looking statements made in this press release and cautions readers not to place undue reliance on any such forward-looking statements.

Source: Interface Inc. (

For more information, contact: Daniel Hendrix, president and CEO, Patrick Lynch, senior vice president and CFO, (770) 437-6800, both of Interface Inc.; or Christine Mohrmann, Bob Joyce, (212) 850-5600, both of FD for Interface Inc.

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