DOMCO TARKETT BANKS ON NEW GROUNDS FOR GROWTH

Farnham, Quebec, May 30, 2000 – Following a pivotal year in its history, North American floor covering giant Domco Tarkett Inc. is developing new grounds for growth in this third millennium. Such is the message conveyed to shareholders by the Corporation’s senior management during the annual meeting of shareholders held in Farnham, Quebec, today.

Domco Tarkett’s senior management reminded their audience that 1999 was marked by Domco Inc.’s acquisition of Tarkett North America, which was completed on July 30. In the context of this transaction, which doubled the Corporation’s size, Domco Inc. changed its name to Domco Tarkett Inc., and increased its sales from $350.8 million in 1998 to $491.4 million in 1999 and its profits from $14.7 million to $18.4 million ¾ an upsurge of close to 25%. On an annual basis, Domco Tarkett’s sales are now close to $700 million.

Vice Chairman and Chief Executive Officer Robert W. Van Buren explained that this important acquisition was true to the three-prong strategy the Corporation has been following for the past ten years:

• To stand out as one of the most efficient manufacturers in the North American industry ¾ to this effect, the integration and restructuring of Tarkett and Domco’s manufacturing activities should allow for annual savings of approximately $12 million.

• Expand its line of products ¾ Domco Tarkett is currently offering an extensive and constantly renewed line of attractive, easy installation and easy maintenance floor coverings to the residential and commercial markets. These floor coverings include sheet vinyl, vinyl tiles and hardwood floor coverings.

• Strengthen its distribution network — Domco Tarkett decided to fully maintain the existing Domco and Tarkett networks, for vinyl products, and Harris-Tarkett network, for hardwood.

"Innovation is our future"

For his part, President and Chief Operating Officer Ulf Mattsson indicated that innovation would be Domco Tarkett’s trademark from now on, and even more so than in the past. Promoted to this position last March, Mr. Mattsson stressed that innovation had to become a way of life for Domco Tarkett in terms of design, marketing, distribution and manufacturing.

Mr. Mattsson especially pointed out that the floor covering industry was slower than others to take full advantage of the recent advancements in e-commerce. While expressing his intention of continuing to collaborate with current distributors, he insisted on the need to explore the new distribution channels offered by new information technology.

Domco Tarkett Inc., whose head office is located in Farnham, Quebec, is the second largest vinyl and hardwood-flooring manufacturer in North America. Thanks to its nine plants and vast distribution networks serving all areas of Canada and the United States, Domco Tarkett offers one of the widest range of high quality products in the flooring industry. Its products are sold to residential and commercial users under the brand names of Azrock, Domco, Nafco, Tarkett and Harris Tarkett. Domco Tarkett counts some 2,400 employees and its annualized sales exceed $700 million.

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