A M essage F rom The Frank Family. We want you to know:

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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. 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 We want you to know: The words shortcut and easy way out are not in our vocabulary. Today we must work harder than ever to keep the creative ball in the air and to maintain our role as the industry s cutting edge leaders. We look to create new and different possibilities in carpeting. We strive to bring you innovative and unique products always. We keep searching for ways to make Kane carpet stand out in a crowded design field. This takes diligence and a great deal of creativity. We pride ourselves on both. We re not home much. We travel throughout the world to keep a close watch on the quality of our products. We train our factory personnel in the most up to date techniques and use only state of the art equipment to ensure that our factories produce superb quality products. Our standards of excellence are not easy to meet but it s what you expect from us and what we demand from our manufacturers. The customer is always right and you are the customer. We know you need on the mark and timely answers to your questions, quick and accurate delivery dates and Dovi Herb efficient service. We are sticklers for delivering top flight customer service and our distribution capability is second to none. We keep our promises. We promised to get orders in stock shipped within 24 to 48 hours and we did. We promised that our customer service representatives at our new distribution center would go the extra mile for you and they do. We promise excellence. We will keep improving our performance level and continue bringing you the finest quality and stunning product line at the most competitive prices. Last, but not least, we want to thank you, our valued customer, for promoting our products. We have no doubt that our stunning new displays and magnificent 2005 product line will bring you great success. If you have any questions or concerns please feel free to call or us. Herb, Dovi and Joseph Joseph

2 We're Committed to Technological Innovation A Message from Ray Pickard Vice President of Operations Since the completion of our relocation last fall, Kane Carpet continues to grow to better service our customers. We ve recently added an accumulation table and automated wrapping equipment to our cutting machine. An additional cutting machine is on order and will be operational soon. We have also added more lift trucks for increased handling capacity and are installing additional carpet racks. Our systems are continually being improved with the implementation of on-line credit approvals, increased computer and telephone capacity. Our staff has more than doubled with the addition of knowledgeable carpet professionals. And with over nine acres of room to grow Kane Carpet is committed to making the investment in inventory, plant, equipment and people. All of this has been made possible by the loyal support of our customers and sales representatives. We thank you. 2

3 and to Providing the Best Quality. From the desk of Bruce Kurtz Vice President Sales & Marketing This year at Surfaces we celebrated our 10th anniversary at Kane but it seems like only yesterday that I was sitting in Herb Frank s office reviewing a brand new concept in carpet design and manufacturing. We had developed a program called Elegant Wovens which incorporated wool with our own proprietary yarn system, Eurolon. By combining the durability of Eurolon and vibrant wool accent colors we were on our way to great success. The customers were excited to have a carpet line which was designed to incorporate North American colors, and classical designs. We were able to deliver to you, our customer, a carpet which had the look, feel and warmth of wool and the price of nylon. As the years progressed, we continuously modified the manufacturing process. In 1999 we introduced the first 1.5 million point Wilton broadloom and coordinate runner line called Royal Kingsley. This refined process gave our customers a whole new look in patterned carpets. The combination of superior durability and design definition cannot be duplicated by any other manufacturing process. Today, We were able to deliver to you, our customer, a carpet which had the look, feel and warmth of wool at the price of nylon. Kane Carpet has a total of six collections in this range as well as the world s only 2 million point broadloom line: Golden Knights. Through the years, we have also concentrated on our multiple range of wool lines. In 2005 Kane Carpet will provide the most extensive collections of anyone in the industry. at its best State of the Art Technology

4 We call them our Silent Salesmen Design Gallery and Showcase Displays Five years ago, Kane re-invented the way our customers sell patterned carpet. Traditionally, everyone felt that patterns could only be sold off cut samples. We took the full range of our carpets and offered each on a 24 x 36 board with extensive graphics that explained all the flexibility and capabilities available for each line. This program was called Design Express which is supported by over 1,000 customers today. In 2005 Kane s design innovation continues with the introduction of our new merchandising system, Designer Showcase. These two state of the art wood displays show our complete line and can be viewed on our website com. We also offer another attractive program which shows all lines that have broadloom and runner coordinates, merchandised on our new magnificent display called Design Gallery which can also be viewed on our website. Letting products sell themselves is the goal of every business owner. Kane's innovative displays help you do just that at the same time increasing your bottom line. Contact your Kane salesperson for details. Take A Virtual Tour at Our virtual reality tour will take you inside our new and mammoth distribution center. don t miss it! 4

5 and you will, too! Easy purchasing for your customers D esign Innovation

6 We're Committed to Our Customers Our Customers Speak Out Mike Furney Owner, Builder s Carpet and Design, Dallas, Texas and a Kane Satisfied Customer Our clientele build upper-end custom homes. Kane s product line has given us an opportunity to sell upgraded carpets, at a reasonable price, for specific rooms / areas of the house. As our builders receive more and more positive feedback from these upgraded carpets, it has allowed us to add these pattern carpets to even more rooms of the house. Formal staircases, studies, libraries, media rooms, master suites, formal living and dining rooms are all great possibilities. These new patterns will increase our sales and offer our homeowners new and exciting styling. We recently received our new updated display system and patterns for These new patterns will increase our sales and offer our homeowners new and exciting styling. Dealing with fast growing companies can sometimes be a challenge. Kane, however, is constantly making efforts to address these challenges. Their new warehouse facilities in Calhoun is just one example of Kane s commitment to succeed. I also like the small company mentality of if something s not right, call us, we ll fix it. When all I see in the marketplace is the same old carpet every day, every month, every year, KANE is a breath of fresh air. 6

7 and to Yours. Kane Carpet's million dollar sales awardees: Al Hassan Bernie Unger Bill Lamprecht Larry Huddleston We welcome with open arms: Ray Davis joins us as the Director of Claims, Financial and Customer Service. Ray comes to us with vast experience and knowledge from many major mills. His is: Angela Brandt joins our team of over 30 sales professionals ready to serve you. For the representative to serve you please contact: Bruce Kurtz, Vice President Sales & Marketing KANE Home of the best sales force in the world Superior Quality

8 KANE C A R P E T 125 North Industrial Blvd. Calhoun, GA U.S.A. See enclosed Discontinued Styles & Area Rug Price List inserts. We are closed on the following dates: Sept 5 Monday October 4 Tuesday October 5 Wednesday October 13 Thursday October 18 Tuesday October 19 Wednesday October 25 Tuesday October 26 Wednesday November 24 Thursday December 26 Monday Kane Carpet Nothing but the best under your feet. Look for more great new products to come within the next 3 months! DDS /2005