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MOHAWK INDUSTRIES, INC. COMPLETES ACQUISITION OF AMERICAN RUG CRAFTSMEN, INC.

 ATLANTA, May 3 /PRNewswire/ -- Mohawk Industries, Inc. (NASDAQ-NMS: MOHK) today announced the consummation of its acquisition of American Rug Craftsmen, Inc. and an affiliated company, Burton Rug Carpet and Rug, Inc., both of which are owned by the same shareholders.
 The agreement included a purchase price of $20 million, payable in cash, with provision for payment of up to an additional $15 million in cash, based on the earnings of the acquired businesses over the three years following the closing. John Thornton, chief executive officer of American Rug and its' majority shareholder has entered into an employment agreement providing for his continued employment. Other members of American Rug's management are remaining in their positions.
 Mohawk Industries recently completed a public offering of 2 million shares of its common stock, the proceeds of which are being used to finance the acquisition of American Rug Craftsmen, Inc.
 Commenting on the acquisition, David L. Kolb, chairman and CEO of Mohawk, stated: "We are pleased to add American Rug to Mohawk's other lines of business. Its products, which are complimentary to those produced by our commercial and residential carpet divisions, are sold primarily through different sales channels and this acquisition will provide Mohawk with additional growth opportunities. Through the leadership of John Thornton, American Rug has grown rapidly since its inception and we believe there is strong potential for continued future growth of American Rug and the realization of synergistic benefits from the combination of our two companies. Thornton will continue to manage and direct the business of this company and we are fortunate to have the benefits of his energy and talents."
 Mohawk Industries, Inc. is a leading producer of both woven and tufted broadloom carpeting for residential and commercial applications. The company designs, manufactures, and markets over 300 styles of carpets in a broad range of colors, textures and patterns and is widely recognized through its six premier brand names, "Mohawk," "Alexander Smith," "Horizon," "Harbinger" and "Helios," and markets its products primarily through specialty retailers and commercial dealers and to selected end users.
 -0- 5/3/93
 /CONTACT: John D. Swift, vice president-Finance of Mohawk Industries, 404-951-6000/
 (MOHK)


CO: Mohawk Industries, Inc.; American Rug Craftsmen, Inc.; Burton Rug
 Carpet and Rug, Inc. ST: Georgia IN: TEX SU: TNM


RA-MS -- AT009R -- 3871 05/03/93 14:22 EDT
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Publication:PR Newswire
Date:May 3, 1993
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