Mohawk Industries Inc. announced it has entered an agreement with W. L. Ross & Co. to acquire the assets and assume certain liabilities of the carpet division of Burlington Industries Inc. (Lees Carpet).

Ross has entered a binding bid to Burlington to purchase certain assets and assume certain liabilities of Burlington in connection with its emergence from bankruptcy. The bid includes a provision for Lees Carpet to be sold to Mohawk by Ross if it is successful in the auction process. The auction is scheduled to be held on July 28, 2003, and a bankruptcy court hearing to approve the auction is scheduled on July 31.

Should Ross be successful, the closing of Mohawk's purchase of Lees Carpet would be subject to customary regulatory approval and confirmation of Burlington's plan of reorganization by the bankruptcy court.