May 18, 2001
CCA Global Partners

Manchester, NH (May 18, 2001) - The world's largest floor covering retail group is expanding its reach from floor to ceiling. CCA Global Partners, the US$4 billion parent company of Carpet One, Flooring America, and other flooring leaders, today announced that it has acquired Ilucio, a nationwide alliance of high-quality lighting showrooms.

Ilucio, founded in 1999 and based in Chattanooga, Tennessee, currently includes 65 independently owned showrooms in 29 states. In addition to residential lighting, many showrooms carry home furnishings accessories such as mirrors, accent furniture, wall art and tabletop pieces.

"Buying Ilucio is our first full-scale entry into a non-floor covering related industry. It is part of our ongoing strategy to be a dominant player in the home furnishings marketplace," said Howard Brodsky, co-CEO of CCA Global Partners. "We believe that residential lighting is a natural complement to our core flooring business. Ilucio is a young, fast growing company that offers significant opportunities for future expansion in the multi-billion dollar lighting sector."

By becoming part of CCA Global Partners, Ilucio will have the resources and market clout of a US$4 billion business. "We expect to enhance Ilucio's capabilities in everything from distribution and shipping to IT to marketing," noted Alan Greenberg, co-CEO of CCA Global Partners. "This is a match that makes sense on all levels, and we are confident that it will help us open the door to future expansion in other home furnishings businesses."

Ilucio's co-founder and current President Jeff Carmichael and Vice President Ken Freedman will be key members of the management team. "We believe that Jeff and Ken are very experienced and competent executives who will fit extremely well into our CCA Global organization," Brodsky said.

Leveling the Playing Field with Home Centers
According to Carmichael, Ilucio and CCA Global Partners share a similar philosophy. "Our goal is to be the leading national retail lighting player, with at least 600 showrooms and an annual sales volume of US$1 billion in the next five years, which fits in very well with CCA Global's strategy of not just competing in but dominating the market," he said.

"From the beginning, we put great emphasis on giving members not just buying power but also top quality training, technology, and marketing and branding support - a strategy that has long been a hallmark of CCA Global Partners," Carmichael added. "In lighting as in floor covering, competition has shifted from the independents to the home centers and design centers. In order to succeed, it is more important than ever for lighting retailers to have sophisticated marketing, buying, training and management. Becoming part of CCA Global Partners enhances our ability to do that."

"The vision and goals of Ilucio have always been focused on helping the independent lighting showroom achieve greater profitability in an increasingly competitive and hostile marketplace," said Joe Rey-Barreau, Ilucio co-founder. "CCA Global Partners can provide all of the resources needed to achieve those objectives. Ilucio is now part of a world-class organization whose track record of success is unquestionable."

Opportunities for Vendors
Carmichael noted that CCA Global Partners and Ilucio offer vendors the opportunity to align themselves with a powerful sales and distribution channel and a visionary organization with a proven track record of growth and profitability. "Our comprehensive, consumer driven marketing programs will increase sales, while our focused buying programs will help vendors in the design and import of products that will have quicker inventory turns," he said. "In addition, our dealers can also provide selective review of potential new products before costly tooling investments are made and orders placed."

About CCA Global Partners

With $8 billion in aggregate gross sales and 74 consecutive quarters of profitability, CCA Global Partners is a formidable leader in the retail industry. Today, more than 3,000 retail stores in the United States and abroad benefit from CCA Global’s business leadership through its 13 different affiliate companies. CCA Global retailers are currently engaged in the flooring, mortgage, recreation and formalwear industries respectively including: Carpet One, FloorExpo, Flooring America, Flooring One, Stone Mountain Carpet Mill Outlet/GCO Carpet Outlet, International Design Guild, Lenders One, Lighting One, ProSource, Rug Décor, Flooring Canada, Tuxedo America Group and The Biking Solution. For more information, visit http://www.ccaglobal.com.