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MOHAWK INDUSTRIES ANNOUNCES AGREEMENT TO ACQUIRE CARPET AND RUG DIVISION OF FIELDCREST CANNON

 ATLANTA, June 3 /PRNewswire/ -- Mohawk Industries, Inc. (NASDAQ-NMS: MOHK) today announced that it had reached agreement with Fieldcrest Cannon, Inc. (NYSE: FLD) for Mohawk to acquire the carpet and rug division of Fieldcrest.
 Under the agreement signed by the companies today, Mohawk will pay $140 million in cash for the assets of the carpet and rug division and will assume certain obligations and liabilities of Fieldcrest with respect to that business. The purchase price is subject to adjustment based on the differences between the March 31 net asset value of the division and the closing net asset value.
 Commenting on the proposed acquisition, David L. Kolb, chairman and chief executive officer of Mohawk, stated: "We are extremely pleased to have reached agreement with Fieldcrest for the acquisition of their carpet and rug division. This business is operated under two premier brand names, Karastan and Bigelow, which are widely known and respected throughout the United States. The products manufactured under these brand names and the other products of this division are quite compatible with those of Mohawk. This broadened product line will enhance our ability to satisfy the desires of our customers and continue our focus on high quality products. Having bolstered our equity base through a $46.4 million equity offering on April 26, 1993, we will finance the purchase through borrowings from our existing lenders, and will continue to have substantial financial flexibility after the acquisition. We anticipate realizing certain cost savings from the combined operations, and believe that the acquisition will contribute positively to earnings in the first 12 months of operations."
 Mohawk stated that the consummation of the transaction was subject to clearance under the Hart-Scott-Rodino Act and certain other customary conditions. It stated that the consummation of the transaction was expected to occur within approximately 60 days. Kidder, Peabody & Co. Incorporated has acted as financial advisor and rendered an opinion to the company in connection with this transaction.
 The Fieldcrest carpet and rug division operations are conducted in manufacturing plants and warehouse and distribution centers located in Georgia, North Carolina, Pennsylvania and South Carolina. The division's products consist of high quality woven and tufted carpets and rugs, including broadloom carpets, contemporary area rugs and oriental design rugs. Most of the division's products are sold in the mid- to upper-price points. The division's total net sales in 1992 were approximately $236 million, approximately 60 percent of which were in the residential segment. Operating profit before depreciation and amortization was approximately $23 million.
 Mohawk had net sales for 1992 of approximately $352 million and for the quarter ended April 3 had net sales of approximately $140 million. The company recently consummated its acquisition of American Rug Craftsmen, Inc. and an affiliated company, Burton Carpet and Rug, Inc. Combined revenues of American Rug Craftsmen and Burton Carpet and Rug for 1992 were approximately $40 million.
 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," "Mohawk Commercial," "Horizon," "Harbinger" and "Helios," and markets its products primarily through specialty retailers and commercial dealers and to selected end users. Through American Rug Craftsmen, the company also offers a broad line of area rugs and mats.
 -0- 6/3/93
 /CONTACT: John D. Swift, vice president, Finance of Mohawk Industries, 404-951-6000/
 (MOHK FLD)


CO: Mohawk Industries, Inc.; Fieldcrest Cannon, Inc. ST: Georgia IN: TEX SU: TNM

BN-RA -- AT007 -- 4867 06/03/93 10:12 EDT
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Date:Jun 3, 1993
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