Tandus Group Inc. which includes Collins & Aikman Floorcoverings Inc. and Subsidiaries, reports earnings for the third quarter (13 weeks) and nine months year-to-date (39 weeks) ended October 25, 2003.

Revenues for the 13 weeks ended October 25, 2003 were $74.1 million compared to $84.3 million for the prior year. Selling, general and administrative expenses were $18.6 million compared to $17.9 million for the prior year. Adjusted EBITDA was $9.4 million compared to $13.1 million for the prior year. As a percentage of sales, adjusted EBITDA margin was 12.7 percent compared to 15.5 percent for the prior year. The decrease in revenues was due to the slow demand throughout the U.S. specified commercial market, in particular the corporate office market. Selling, general and administrative expenses increased primarily due to increased salaries and benefits of $0.3 million, professional services of $0.6 million, sampling expenses of $0.6 million, marketing and promotional expenses of $0.3 million, partially offset by foreign currency gains of $1.3 million, lower sales commissions of $0.4 million, and amortization of $0.5 million. The majority of these increases (excluding amortization) were incurred in support of the Company's new selling strategy implemented at the beginning of the fiscal year.

Additionally, the company voluntarily prepaid $10 million in term loans during the 13 weeks ended October 25, 2003. Revenues for the 39 weeks ended October 25, 2003, were $239.6 million compared to $250.6 million for the prior year. Selling, general and administrative expenses were $58.6 million compared to $54.2 million for the prior year. Adjusted EBITDA was $37.8 million compared to $44.9 million for the prior year. As a percentage of sales, Adjusted EBITDA margin was 15.8 percent compared to 17.8 percent for the prior year. The decrease in revenues was due to the slow demand throughout the U.S. specified commercial market, in particular the corporate office market, partially offset by the inclusion of extrusion's revenues for the full 39 weeks for 2003 compared to approximately 25 weeks in 2002 due to the Extrusion acquisition date of May 8, 2002. Revenues to the company's institutional end markets were slightly down for the 39 weeks year-to-date comparison. Selling, general and administrative expenses increased primarily due to increased salaries and benefits of $1.6 million, professional services of $0.6 million, sampling expenses of $1.0 million, marketing and promotional expenses of $2.2 million, partially offset by lower sales commissions of $1.2 million, foreign currency gains of $1.5 million, and amortization of $1.6 million. A portion of these increases (excluding amortization) were incurred in support of the company's new selling strategy implemented at the beginning of the fiscal year and to support a number of new floor covering product lines which were recently introduced.