North American Laminate Flooring Association

2003 in Review Total Industry Estimates Square Feet Sold 530 million620 million ( 17%) Dollars Sold$726 million$810 million ( 12%) Average Price$1.37$1.31

State of Laminate Industry Strong and Expanding –Category growth continues to be vigorous –Double-digit percentage increases in square feet and dollar value over 2002 –Decrease in average price is slowing, indicating an increase in sales of value-added products at high end –Estimated share of overall flooring business over 5%

Pre-glued product strong performer Embossed and in-registered decors expanded Beveled edges adding dimension Attached underlayment more prevalent in market Features and Benefits

Largest continuing product growth in flooring industry Continuing rapid design and technological innovations Consistent residential growth Significant increases in commercial sales; new frontier offers high potential Looking Ahead – What to Expect

Organization of North American manufacturers and importers of laminate flooring products Formed in 1997 Primary Mission: –To encourage the establishment and maintenance of high standards in laminate flooring in North America and to recognize those that meet these standards What is NALFA?

Regular Members Faus Group, Inc. Formica Corporation Kaindl USA Kronotex USA, Inc. Mannington Mills Shaw Industries Inc. Pergo, Inc. Wilsonart International Witex USA, Inc.

Associate Members Pactiv Corporation SaveWood, L.L.C. Sealed Air Corporation Temple-Inland Forest Products Corporation DSM Melamine Dynea Overlays, Inc. Mead Specialty Paper Midwest Padding, L.L.C.

Regular Member –Manufacturer, marketer or importer of laminate flooring for sale in North America  Does not include retailers, buying groups, retail cooperatives, retail marketing groups or wholesale distributors Associate Member –Corporation, partnership, proprietorship or other entity regularly engaged in the business of selling goods or services to those that are eligible to be regular members Membership Requirements

Member Benefits Active voice in constructively building the industry Participation in setting voluntary standards Interaction with ISO Valuable opportunities to network with other laminate floor producers and marketers

New Standards NALFA FL approved by ANSI Increasingly sophisticated products and growing commercial uses demanded more stringent requirements 3-tiered standard makes it easier for end-user to match product to application Test methods incorporated in document Considered a step in harmonizing with ISO standards

LF Residential Standards –Developed in 2001 form basic requirements for residential products Light Commercial Standards –Increased performance minimums for small offices, low-traffic commercial installations Commercial Standards –Top static load, thickness/swell, ball impact, wear resistance criteria for high traffic installations

Certification Process Sample products tested according to established protocol Company submits product to NALFA-approved testing facility Procedures strictly specified for consistent testing Approved labs listed on NALFA Web site

NALFA Certification Seal Benefits of seal –Visual symbol to assure users/specifiers that products have passed the required tests to conform to NALFA/ ANSI-LF standards –For marketing use on product packaging, collateral materials, advertising, etc. –PR efforts promoting fact that seal represents consistent performance standards

ISO Meeting NALFA will host international meeting in March 04 Delegates from 8 nations will discuss laminate flooring standards, testing procedures Meeting also will draw carpet and resilient flooring manufacturers

ISO Meeting Goal will be to harmonize ISO/NALFA (ANSI) standards Hosting meeting positions NALFA as strong player in international floor covering industry Overwhelming attendance response

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