Flooring America, Inc. Files for Bankruptcy, Announces Berman, DeValerio & Pease LLP.

Business Editors & Legal Writers

ATLANTA--(BUSINESS WIRE)--June 16, 2000

Berman, DeValerio & Pease LLP 

a law firm specializing in representing shareholders in

class action lawsuits, issues the following press release:

Flooring America, Inc. ("FRA" or the "Company") (NYSE:FRA) which was named as a defendant in a shareholder class action filed in the United States District Court for the Northern District of Georgia has filed for bankruptcy court protection. The shareholder action, brought by Berman, DeValerio & Pease, LLP, www.bermanesq.com, however, will proceed against the officers and directors named as defendants. The class action seeks damages for violations of the federal securities laws on behalf of all investors who purchased FRA common stock between November 11, 1999 through and including May 22, 2000 (the "Class Period").

The lawsuit charges FRA and certain of its officers, with violations of the federal securities laws by issuing materially false and misleading financial statements. The Company, on May 22, 2000, revealed that it would be restating its previously reported financial results for the first two quarters of the fiscal year 2000. In total, losses for these two periods were understated by more than $7 million. After the Company's announcement, FRA shares fell to $2 9/16 per share from a high of $6 15/16 during the class period, as the market fully absorbed the impact of these disclosures.

If you purchased Flooring America common stock during the Class Period and suffered a loss on your investment, you may wish to contact the lawyers at Berman, DeValerio & Pease LLP to discuss your rights and interests:

Julayne M. Lazar

Jeffrey C. Block, Esq.

Berman, DeValerio & Pease LLP

One Liberty Square

Boston, MA 02109

E-Mail: [e-mail].

[phone]

To learn more about this action, other cases or class actions in general, you can also visit our website at www.bermanesq.com.

If you wish to apply to be Lead Plaintiff in this action, a motion must be filed on your behalf with the court no later than August 13, 2000. To be a member of the class you need not take any action at this time and you may retain counsel of your own choice. To serve as lead plaintiff, however, you must meet certain legal requirements. You may contact the attorneys at Berman, DeValerio & Pease LLP to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action.

With offices in Boston and San Francisco, Berman, DeValerio & Pease LLP has extensive experience prosecuting shareholder class actions. The firm has been appointed lead counsel in numerous actions involving companies that have issued false and misleading statements, has successfully litigated these actions, and has been singled out for its excellence by many courts. The firm prides itself on its responsiveness to shareholders and their needs in particular cases.