A M essage F rom The Frank Family

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1 A M essage F rom The Frank Family Client satisfaction is our objective and perfection, our only standard. Customer Service & Distribution Centers: 125 North Industrial Blvd. Calhoun, GA U.S.A. Thank you for the overwhelmingly positive response to our first newsletter. We appreciated your comments and are gratified to be able to present our latest edition. It s important to us to keep the lines of communication open with our valued customers so you can be kept abreast of the always exciting new developments at Kane carpet. Although we are proud of our past achievements and pleased with our tremendous growth, at Kane we don t rest on our laurels. We look to the future and we look for ways to expand our product line and service our customers optimally. Therefore, it is with great pride that we announce, in addition to our many 2006 innovative Broadloom introductions, our full-steam entry into the area rug marketplace. You will find that Kane s reputation for the highest standards of excellence, innovative design and superior customer Dovi Herb service will be reinforced by our truly awesome area rug program. Come visit our booth at the Atlanta Rug Mart (Booth #1105) and at Surfaces in Las Vegas (Booth #5928). We will be happy to show you our brand new, full line of area rugs and Broadloom that will increase your bottom line. As always we are grateful for your business and we look forward to serving you in the coming months. If you have any questions or concerns, please call us. The Frank Family Herb, Dovi and Joseph Joseph Tel: (Kane) Fax: sales@kanecarpet.com Herb Frank, President herb@kanecarpet.com Dovi Frank, Vice-President dovi@kanecarpet.com Joseph Frank, Vice President joseph@kanecarpet.com Bruce Kurtz, Vice-President Sales & Marketing bruce@kanecarpet.com Ray Pickard, Vice President of Operations rayp@kaneatl.com Steve Lewis talks about Lewis Carpet and how his relationship with Kane has helped this thriving Chicago store. See page 6 for complete story.

2 2 The Colors and Designs You Always Dreamed of... From the desk of Bruce Kurtz Vice President Sales & Marketing Kane Carpet proudly presents The American Dream Collection For years, millions of consumers throughout the world, have come to know Kane Carpet as the first name in stunning color and the last word in exquisite design. Kane has grown to become a leader in the industry, designing and manufacturing patterned woven goods that have taken the home decorating world by storm. Our focus has always been on developing unique, never before seen patterns, colors and designs that no one in the industry can duplicate. Now Kane is proud to announce the launching of our first ever rug program designed to coordinate with hard surface flooring. Utilizing our cutting edge and advanced method Eurolon yarn system, Kane has produced a vast array of colors and designs that will dazzle you and your customers. So please visit us: January 19-22nd at The Atlanta Rug Mart (Booth 1105) and February 1-3rd at Surfaces in Las Vegas (Booth 5928) to celebrate the beginning of a true American Dream. November 10, 2005 RUGS ARE IN THE FORECAST BY CUSTOMER DEMAND Over the years, Kane carpet customers have come to expect product innovation from us and rightfully so! Others may repeat and replicate but at Kane we strive for originality and creative combinations of color and design. We ve been setting standards of excellence in the industry for half a decade. From our vantage point as experts in Broadloom manufacturing and design, we observed the design trends in machine made rugs. Our conclusion? Very little was available that could be considered outstanding. Very few possessed the wow factor. We listened to our customers and heard their call for rugs that could meet their expectations of superb quality expectations they had come to rely on from years of being a Kane carpet customer. Therefore, by customer demand, we are pleased to announce the launch of our new rug division which will coordinate with Kane Broadloom and runners. Prepare to experience the same superior design and color that have become the Kane hallmark of excellence. Exciting News! We are developing new and exciting designs as well as incorporating rugs from our award wining collections from Our first showing will be in Atlanta January 19-22nd (Booth 1105) and Surfaces February 1-3rd (Booth 5928). With the Same Exquisite Quality. Our New Collection Demands a New Sales Manager! We are pleased to announce the appointment of Marc Becker as Sales Manager of our brand new and exciting, one of a kind rug division... the American Dream Collection. Marc is a seasoned professional, with over 15 years experience in the sales department of a prestigious Rug & Broadloom manufacturer and distributor. His can-do approach to any challenge and his commitment to upholding the highest level of customer satisfaction are qualities that will make Marc a valuable asset to our company. Enthusiasm, discerning taste and a keen understanding of what works in the rug industry will ensure that our American Dream Collection will meet and surpass our expectations of success. We wish Marc the best of luck! We are pleased to announce the appointment of Marc Becker as Sales Manager of our new American Dream Collection. Rugs that make Hardwood Shine! American Dream

3 4 Discerning Consumers Choose Kane Broadloom. We are proud of Kane carpet s impact on the Broadloom industry. Throughout the world, millions of discerning consumers recognize that Kane is in a class by itself. Stunning combinations of colors, exquisite and unique designs, and durability unmatched by any other carpet manufacturer, have made Kane the Broadloom of choice. How do we do it? The answer is: Eurolon! This is the yarn system we use to create Kane s gorgeous array of Broadloom. Using the most advanced heat set of super fine synthetic yarn, we produce solution dyed fiber that can produce extraordinary colors and color combinations. We can weave complex designs and our woven backs are constructed to last. Kane has come far in developing this yarn system: We use it in many different methods of construction and densities (we have a vast amount of product with 1.5 million & even 2 million points per square meter, which means over 1.5 million points of the needle in just 10 square feet) and specifications. Our web-site has a comprehensive maintenance guide on all our Eurolon fibers. We know our customers have a good eye for color and design. That s why we are certain you will enjoy and make excellent use of Kane Broadloom the finest money can buy. We Recommend: All of our carpets be installed by a professional as per guidelines in CRI 104 and 105. For woven goods, we recommend a 40 oz. felt pad or a dense rebond (over 8 lb. and under ½ ). When installing product on steps, the installer wraps the pad over the nose of the step. And you thought we couldn t top last year s incredible line of Broadloom! Get ready for the show-stopping 2006 line of Broadloom that will be coming into your showrooms and thousands of satisfied customers homes very soon. There will be over 25 new and exciting styles of Broadloom with a myriad of constructions and practically unlimited colors and color combinations. From cut pile, to cut and loop, all loop and flat weaves. The styles, the designs, and the subtlety of shading and colors will take Broadloom into a new dimension that has never been seen before. You don t want to miss out on the sneak preview you will get as our valued customer. Visit us at the shows in Atlanta and Las Vegas. A Company in a Class by Itself! From East to West visit us in Atlanta and Las Vegas! Atlanta Rug Market January 19 22nd [Booth #1105] Surfaces (Las Vegas) February 1 3rd [Booth #5928]. Be the first to see our exciting new styles! Where Your Carpet Dreams Come True Las Vegas & Atlanta

4 6 A Satisfied Customer Speaks. Steve Lewis Owner of Lewis Carpet: Northbrook, Illinois When I started Lewis Carpet, you could say I had tunnel vision. I saw one goal: to become number one in the Chicago retail flooring industry. Today, Lewis Carpet has become a 64,000 square ft. mega design center in the heart of Northbrook, Illinois. We have established our reputation as being on the cutting edge of fashion and design and our customers know they can rely us on us for the finest quality Broadloom. That s why my showroom is filled with the innovative styling and almost miraculous colors that have made Kane a byword of excellence in the flooring industry. No other carpet manufacturer can match Kane s creativity or durability. The prices are highly competitive and I would describe Kane as a storybook of total design. There is one merchandising program that incredibly combines the traditional, the contemporary and the transitional. The Kane displays once again demonstrate the professionalism and expertise I have come to expect. We have placed the display in a premier space in our store and as there are no wasted sku s, the carpeting has been highly profitable for us. Kudos to the design staff at Kane. I look forward to our continuing partnership with a great leader in the manufacturing of the finest Broadloom today. Kudos to the design staff at Kane. I look forward to our continuing partnership Real People Real Answers. Our Customer Service Representatives are on the phone ready to handle your questions, comments and complaints. At Kane carpet we know that our colors, designs, product durability and competitive pricing have legions of customers singing our praises. But it s our strong and solid Customer Service Department that has won Kane the loyalty and enthusiastic approval of our customers. We are committed to delivering the highest level of customer service with easily accessible representatives to handle your questions, concerns and complaints. It s nice talking to you. Home of the best Customer Service Force in the World Customer Service

5 KANE C A R P E T 125 North Industrial Blvd. Calhoun, GA U.S.A Holiday Calendar: We are closed on the following dates: January 2 Monday April 13 Thursday April 14 Friday April 19 Wednesday April 20 Thursday May 29 Monday June 2 Friday July 4 Tuesday September 4 Monday October 2 Monday November 23 Thursday December 25 Monday Kane Carpet Nothing but the best under your feet. Come see us at Atlanta Rug Mart (January 19-22nd, Booth 1105) and at Surfaces in Las Vegas (February 1-3rd, Booth 5928) Seeing is Believing DDS /2005