Shared Infrastructure: New Operational Models for Achieving Greater Efficiency, Effectiveness and Sustainability

1. Shared Infrastructure:New Operational Models for Achieving Greater Efficiency, Effectiveness and Sustainability Presented by: Howard Brodsky Co-CEO & Chairman CCA Global Partners May 22, 2006 New York

2. CCA Global Partners the power to do more FOCUSED ON THE FUTURE

3. CCA Global Partners Snapshot • Network gross sales of $8.7 Billion • 78 consecutive quarters of profitability • Fourteen divisions • Over 3,600 stores/locations • Seven Countries • Four Continents • 8th largest retailer in the U.S. • Top 100 Retailers in the World

4. Our Focus • Conversion franchising in the mainstream retail segment • Franchise creation in the other market segments • Strategic partner with manufacturers

5. Our Mission • To provide tools, products and services to help our members compete successfully in their markets and to assist in increasing their growth and profitability.

6. The Concept Management Buying Marketing

7. Support Divisions Companies Carpet One USA Product & Merchandising The Biking Solution Marketing & Advertising Education & Training Flooring America Lighting One HumanResources Finance & Accounting Buying Magnus Anderson International Design Guild Floor Trader Membership Recruiting Member Services ProSource Floor Expo Rug Decor Legal Meeting Services Flooring Canada Carpet One Canada National Accounts Insurance Real Estate National Programs Flooring One Lender’s One Information Technology Carpet One Africa Carpet One Australasia

8. Creating the Magic Zone • National Programs • Real Estate Services • Store Design • National Accounts • Information Technology • Human Resources & Hiring • Product & Merchandising • Marketing & Advertising • Buying • Member Services • Training • Research • Best Service • Straight-shooters • Innovative • Respects and likes their customers • Honest • Confident • Real People • Smart Business People • Know Product • Staff Works Like a Team Empathetic Owner & Staff Professional Training Maximization of Profits Owners CCA Professional & Knowledgeable World-Class Marketing Growth of Business Increase Customers & Profit Lower Operational Costs Passion for Business Magic Zone

9. Legal Structure • Cooperative • Franchiser • Licensor • Strategic Alliance

10. CCA Global Programs • On-line University • In the first 6 months of 2005: • 19,345 log-ins • 17,920 hours of use • 11,215 courses completed • Traveling University • 248 Events over the past year • 2,776 Hours of training • 5,915 People training • 156 Locations 19,345 log-ins • Meeting & Convention Services • Execute and plan: • 22 conventions per year • Hundreds of regional meetings • 10 incentive trips

11. Infrastructure, Tools, Networks • Communication Tools • Members.net • Business Tools • Advertising, Marketing • Brand Pack • Monthly Promotions • Public Relations Programs • Buying • Exclusive brands • Core products • Rebates • Product & Visual Merchandising • Store Design • Insurance and Benefits • Property & Liability • Vehicle • Workers Comp • Group Medical • Retirement • Term Life & Long Term Disability • Real Estate Services • Analysis • Negotiation • Leasing

12. Infrastructure, Tools, Networks • Operational Tools • National Programs • Credit card processing • Gift cards • Check guarantee • Consumer financing • Business Leasing • Yellow Pages • Phone/On-Hold Systems • Telephone/Cellular • Waste Disposal • Office Supplies • Mail and Shipping • Computers • Employment Verification • University • Sales training/certifications • Installation Excellence • On-line University • Customer Service • Human Resource • Technical Courses – computer applications • Product Knowledge Training & Certifications • National Accounts • Allstate • State Farm • Farmers Insurance Group

13. Explanation of Innovation • Why was the model developed/ implemented? • Strategy is offensive, not defensive • Strategy of growth and market share gain not just sustainability • What was the catalyst or moment of opportunity? • Pressures from big box stores on independent businesses offered opportunity for consolidation of fragmented industries to look for synergies to protect their market share, secure competitive prices on goods and services, and obtain operational efficiencies • What encouraged players to work together? • Created shared vision for the future and delivered on that vision

14. Benefits of the Model • What specific needs does the collaborative meet? • Gives the individual stores the marketing, training, operations and product so that they grow market share and increase profitability • How does it promote: profitability, scale, market share, market influence, prominence, etc.? • We own the brands • We increase the margins • We train on how to hire the best; keep the best • Sourcing product throughout the world • Failure rate: Industry average is 12% • Our membership has < ½% failure rate

15. Our members are recognized as the mostsuccessful, the most profitable and the bestmanaged in their industry

16. Looking Ahead… • We have targeted large fragmented industries that will not have sustainability without CCA Global’s partnerships • We envision that we will be a $20 Billion company and one of the five dominant retail players in the country and worldwide presence