Contact: John D. Swift, Chief Financial Officer

Calhoun, Georgia, April 16, 2001 - Mohawk Industries, Inc. (NYSE: MHK) today announced that net sales for the first quarter were $743,683,000 compared to $765,083,000 for the first quarter of 2000. Diluted earnings per share (EPS) was $0.51 per share or $27,206,000 in net earnings in the first quarter of 2001. This compares to EPS in the first quarter of 2000 of $0.61 per share or $33,997,000 in net earnings. Gross profit as percentage of net sales declined to 23.9% from 24.9%. The lower sales and earnings are attributable to declining industry shipments and the slowing economy. Recently published statistics on housing starts, building permits and existing home sales are all down when compared to the prior year. The lower gross profit percentage results from costs at higher than normal levels due to higher oil and energy costs, losses on the disposition of Crown Crafts obsolete inventory, and an unfavorable product mix. A price increase on selected items was implemented during March but had little impact on the quarter.

Selling, general and administrative expenses were slightly down at $124,420,000 in the current year compared to $124,857,000 in the prior year. This improvement was made even though costs were absorbed associated with the roll out of hard surface products to all regions. This investment is setting the foundation to support our move from being a carpet supplier to a total flooring supplier.

The Company's effective income tax rate is 37% in the current year compared to 39.5% in the prior year. This rate reduction results from tax planning strategies and is expected to continue at the lower rate into future periods.

In commenting on the first quarter performance, Jeffrey S. Lorberbaum, President and CEO, stated, “We are not satisfied with our results this quarter. The slower economy and rising energy costs continue to impact our business. We continue to expand the marketing programs to assist our dealers with the Ralph Lauren, Mohawk Floorscapes, and Mohawk Color Center programs as well as our brand advertising. Our new product introductions have been sampled earlier than in prior years and inventories to support them have been put in place. The hard surface infrastructure is being implemented and the category is growing as we anticipated. We are excited about all our hard surface products and believe that their success will add to long-term shareholder value.

As our stock price remains at levels below our expectations, we will continue the repurchase program previously authorized by our Board of Directors. During the first quarter, we purchased an additional 171,000 shares of our stock and we have purchased 8,916,000 shares since the inception of the program in September 1999. Even with our stock repurchase program and the roll out of our hard surface products, the Company's debt to total capitalization ratio improved from 43.9% at the end of 2000 to 42.8% this quarter. Finally, we are very pleased with the recognition we received recently in the financial press. We made both the Fortune 500 list (as number 491) and the Forbes 500 list (as number 468) when ranked by net sales. Even more impressive, we were named number one in our textile industry group by Fortune magazine.”

The on-going deterioration in key economic statistics that influence the floorcovering industry along with the decline in the overall economy continue to have a negative impact on sales and margins. However, the Federal Reserve's recent reductions in interest rates and the proposed income tax reductions are both positive economic events. The Company continues to look for opportunities to grow its shareholder value through acquisitions, new products offerings and cost control. After considering all of these factors, the Company believes that EPS for the second quarter of 2001 will be below last year by 10% to 15% and the third quarter of 2001 EPS will be below last year by 5% to 10%. It is too early to determine when an upturn will occur, but the industry historically leads economic cycles as consumers purchase flooring previously postponed.

Certain of the statements in the immediately preceding paragraphs, particularly anticipating future financial performance, business prospects, growth and operating strategies, proposed acquisitions, new products and similar matters, and those preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” or similar expressions constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Those statements are based on assumptions regarding the Company's ability to maintain its manufacturing capabilities, marketing strategies and distribution network. These or other assumptions could prove inaccurate and therefore, there can be no assurance that the “forward-looking statements” will prove to be accurate. Forward-looking statements involve a number of risks and uncertainties. The following important factors affect the future results of Mohawk and could cause those results to differ materially from those expressed in the forward-looking statements: materially adverse changes in economic conditions generally in the carpet, rug and floorcovering markets served by Mohawk; competition from other carpet, rug and floorcovering manufacturers; oil price increases; raw material prices; timing and level of capital expenditures; the successful integration of acquisitions including the challenges inherent in diverting Mohawk's management attention and resources from other strategic matters and from operational matters for an extended period of time; the successful introduction of new products; the successful rationalization of existing operations; and other risks identified from time to time in the Company's SEC reports and public announcements.

Mohawk is a leading producer of woven and tufted broadloom carpet and rugs for residential and commercial applications. The Company designs, manufactures and markets carpet in a broad range of colors, textures and patterns and is widely recognized through its premier brand names, some of which include “Mohawk,” “Aladdin,” “Bigelow,” “Custom Weave,” “Durkan,” “Galaxy,” “Harbinger,” “Helios,” “Horizon,” “Image,” “Karastan,” “Mohawk Commercial,” “World,” and “Wunda Weve.” Mohawk offers a broad line of area and washable rugs branded by Karastan, Aladdin, Newmark & James and American Rug Craftsmen and decorative throw blankets, placemats, pillows and chairpads branded by American Weavers. Mohawk also offers a complete laminate product line and distributes wood, vinyl, carpet padding and ceramic tile. The Company markets its products primarily through retailers and dealers.

Click for Consolidated Statement of Earnings Data

There will be a conference call Tuesday, April 17, 2001

at 11:00 AM Eastern Time

The telephone number to call is 1-800-603-9255.

A replay of the call will be available two hours after the completion of the conference from 4/17/2001 through 4/22/2001. To access the call, please call 800-642-1687 or for local participants, call 706-645-9291 and enter Conference I.D. # 749189.