Prosource Announces Aggressive Expansion In 2006, Record-Setting 2005

Reaching record system-wide sales of over $500 million in 2005, ProSource Wholesale Floorcoverings, the largest professionals-only wholesale flooring showroom Franchise in North America with more than 200,000 members, announced an aggressive U.S. and Canadian expansion plan for 2006. ProSource opened a record 10 locations in 2005, and plans call for 12-15 new locations in 2006 in markets where construction spending is on the rise, adding to the more than 150 franchise locations currently operational.

“We are thrilled with our record growth in the U.S. in 2005,” said Mark Jameson, vice president of franchise development for ProSource. “With national construction spending for 2006 expected to be higher than previous years, we look forward to more dynamic growth in the next 12 months and beyond.”

To date, the company has confirmed openings in existing markets including Seattle, New Orleans, Boston, St. Louis, and southern Florida, as well as openings in new markets including Lafayette, LA; Pensacola, FL; Augusta, GA; Savannah, GA and northwest Arkansas.

ProSource will also continue development in Canada during 2006, targeting several Canadian markets for expansion, including Toronto, Calgary, Edmonton and Vancouver. As the projected growth of construction spending in Canada reaches $141 billion in 2006, this trend makes the Canadian market an ideal region for ProSource’s products and services.* The company already has two locations serving Toronto, with one of those recognized as the “Floor Covering Supplier of the Year” in both 2003 and 2004 by the Canadian Decorators’ Association (CDECA), a professional association for Canada’s decorating and design professionals.

As a company dedicated to supporting its franchise network, ProSource opened several new locations in existing markets with high renovation activity – including Houston, Baltimore and Phoenix – to help franchisees gain market share in their exclusive territories. To further support their network, the company has also opened smaller “Design Center” showrooms in metro areas of large markets that cater to more modern and upscale projects. The showrooms carry a limited assortment of high-end products for luxury building and design projects. With showrooms already open in Chicago, Dallas and Houston, additional “Design Centers” are planned to open in Baltimore, Philadelphia and Washington DC.

Operating under the flooring industry’s premier cooperative CCA Global Partners, ProSource offers Franchise Opportunities to all qualified candidates outside the CCA Global network. With a franchise fee of $46,450, ProSource offers a solid Franchise Opportunity with excellent ROI potential. The company has close relationships and tremendous buying power with over 110 manufactures, driving inventory and overhead costs down to a minimum for franchise owners. Showrooms average 10,000-12,000 square feet, and ProSource provides franchisees with exclusive territories, as well as ongoing marketing, technology, operations and field support to ensure long-term success. Through the company’s intranet site, franchisees can access information on nearly every aspect of the business 24 hours a day including advertising, marketing, products, pricing and training. All marketing is handled by ProSource home office, so franchisees can focus on their members and quality service.

New for 2006, ProSource showrooms will begin to offer an exclusive line of flooring in a limited inventory so that members can walk out with the materials they need. The line offers a wide selection of flooring in all categories including various hardwood, carpet, and ceramics. The new line, exclusive to ProSource, allows franchisees to offer more competitive prices, increase their margins and receive product immediately for their members.

About ProSource Wholesale Floorcoverings

ProSource is the #1 professionals-only flooring showroom franchise in North America. With more than 150 showrooms in the United States and Canada, and $3 billion in annual buying power among its affiliates, ProSource guarantees professionals the largest selection of name brand flooring at the lowest price. Each showroom offers more than 20,000 flooring choices, including carpet, vinyl, ceramic tile, natural stone, laminate and wood products from the world’s leading manufacturers. Showrooms are available exclusively to trade professional members and their clients.