Toano, Va. -- Lumber Liquidators released information on a recent network security incident. On Tuesday, August 27, with very few exceptions, stores regained the ability to transact using normal point of sales systems, and much of the customer-facing impact of the incident has been resolved. Restoration efforts continue, and the company, is in the early stages of broader recovery efforts and forensic analysis that are expected to last several weeks.

Although the investigation remains ongoing, to date, the company has not discovered anything that leads it to believe any sensitive and/or confidential consumer or employee data was compromised. That data is further protected by the fact that the vast majority of customer and employee data, including customer credit card information, is secured and maintained on systems outside of the company's network.

The company first discovered the incident mid-morning on August 21, when its network and computer systems began to manifest symptoms of malware that ultimately disabled certain corporate and store systems nationwide. The company took immediate action to contain the incident and, within hours, the information technology team had mobilized to diagnose and begin remediation processes, including securing outside expertise to help ensure the company could return to normal operations as soon as possible. In addition, employees have worked diligently to implement established business continuity procedures, and stores have remained open and serving customers throughout this incident.

"Our first priority has been to continue to serve our customers and aid our store employees in that effort," said Dennis Knowles, president and CEO. "I would like to thank the many employees who exhibited ingenuity and made personal sacrifices to ensure our customers' needs were met. Our diligent work over the past several years to develop system redundancies and business continuity plans paid dividends that were made apparent in our ability to remain open while working to restore our systems. We used manual workarounds to facilitate transactions and brought in outside resources to help ensure we returned to normal operations as soon as possible, but I would also like to thank our customers for their patience and understanding during this event."

The Company maintains cyber-security and other insurance and has been working collaboratively with its carrier throughout this incident, although it is too early in the restoration and recovery process to determine the net impact of costs and recoveries on the company's financial results. The company will provide periodic updates as appropriate or required.

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