New Name Reflects Broad Scope of World's Largest Floor Covering Group

November 22, 2000
CCA Global Partners

Manchester, NH and St. Louis, MO (November 22, 2000) - Carpet Co-Op of America today announced that it has acquired the franchise systems of Flooring America, GCO and Carpet Max Canada. Terms of the acquisitions were not disclosed.

The purchase includes 250 Flooring America and 100 GCO stores in the U.S., and 100 Carpet Max Canada locations. All franchises were part of the estate of bankrupt Flooring America, Inc.

"We believe that these acquisitions will significantly strengthen our company and provide members with important benefits," said Howard Brodsky, co-CEO of Carpet Co-Op of America. "With the Flooring America and GCO franchises added to our organization, we will be able to achieve much greater economies of scale and higher efficiency in key areas. Among the most immediate benefits will be the ability to reduce our distribution costs significantly."

"We felt that if we could acquire these businesses on the proper terms, it would be very advantageous," added Alan Greenberg, co-CEO of Carpet Co-Op of America. "We carefully reviewed the strategic value of these transactions with our Board of Directors, Advisory Council, and members and were very pleased by their enthusiasm. We are also pleased that most of the existing management within the Flooring America and GCO organizations will remain on board."

The purchase of the Flooring America and GCO franchises is part of Carpet Co-Op of America's aggressive strategy for continued growth. Early last month, Carpet Co-Op of America acquired a majority interest in FloorExpo, Inc., which serves the fast-growing residential builder's market.

"We will soon be, without question, the number one floor covering company, not just in North America, but in the world," said Brodsky.

ABOUT CARPET CO-OP OF AMERICA

Carpet Co-Op of America, founded in 1985, is North America's largest floor covering group, with more than 1,400 locations in the United States, Canada, Australia, New Zealand and Guam, with an annual sales volume of more than $3 billion. Carpet Co-Op of America Association is headquartered in Manchester, New Hampshire; St. Louis, Missouri; and Atlanta, Georgia.