2003 in Review

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

• Largest continuing product growth in flooring industry
• Consistent residential growth
• Significant increases in commercial sales; new frontier offers high potential
• Continuing rapid design and technological innovations

• Formed in 1997
• Organization of North American manufacturers and importers of laminate flooring products
• 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

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

• 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 Members: 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 Members: Corporation, partnership, proprietorship or other entity regularlyengaged in the business of selling goods or services to those that are eligible to be regdlar members

• 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

• NALFA FL-01-2003 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

• 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

• 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-LF01-2003 standards
• For marketing use on product packaging, collateral materials, advertising, etc.
• PR efforts promoting fact that seal represents consistent performance standards

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