New ArtiZEN Rugs Collection & Online Ordering We are pleased to announce the release of two new ArtiZEN Rug Ranges - ArtiZEN Brights and ArtiZEN Moonlight, which will be available from the 8th January 2012. ArtiZEN Brights have been selected based on new season colours and are there to generate excitement from consumers and media. ArtiZEN Moonlight are six new opulent/rich colours also based around new season trends and mainstream colour selections. The two new ranges are available in two sizes with the recommended retail pricing below:

155cm x 225cm - $199.00

190cm x 280cm - $329.00 These two new ranges are similar to the Silky Shaggy range currently on offer however are of a shorter pile and sizing difference. This enables us to have our RRP lower than our current Silky Shaggy offer making it a more attractive pricing range for customers whilst still maintaining good Member margins.

Orange Fizz Berry Jam Blue Crush

Fire Engine Green Envy Mellow Yellow

New Hand Samples & Covers to be dispatched to all stores w/c 15th January 2012. Please note we are also working

on a new Acrylic range of rugs which we will launch early 2012 as well. These will be exclusive designs to Carpet

Court.

Stormy Nights Midnight Skies Moroccan Dusk

Moon dust (Swatch colour

to come)

Purple Haze Starlight Moon dust

New Hand Sample artwork

Website – Rugs Online ordering process To coincide with the launch of our two new rug ranges we are taking our first tentative steps into the online ordering world. All rugs will be available for customers to order online via our website through a secure payment checkout process. This will enable us to test the online ordering process and iron out any potential issues we may experience prior to determining our next steps with online transactions. Below is an overview of how the process will look and work and how the Member receives the online sale. Home page Two entry points for ordering – banner and bottom button. Highlighting the TV offer and new ranges below. This is how customers enter the website.

Rug Product Page

Once customers are on the Rug Product page they can visibly see the offer and select their preferred range of Rug.

Selected Range Page Once a customer has selected the range from the above they can then see in more detail, colour options, sizing and pricing etc as below screen shot:

Zoom Page Once a customer has selected the colour from the range a shadow box as below screen shot which will enable the customer to view the rug colour of their choice from 3 different viewpoints and zoom into the rug image to see the fibre detail. From here they can select the size of the rug and add to their shopping cart:

Online Payments All online orders are processed through our payment gateway directly linked to our bank account and is automatically processed through our website. See screenshot below for shopping cart and order confirmation:

After the order is confirmed Order delivery docket is sent to Direct Rugs to be dispatched & a copy of the order is also sent to Marketing. Each Rug is dispatched within 15 working days to the customer. A return Policy card see below is included in each rug. This Return Policy is also able to be viewed online throughout the purchasing process. Please ensure all staff are familiar with the Return Policy as it directly impacts your store. Return Policy

Reports & Revenue Allocation A monthly report will detail all online sales and each store is then provided with a credit note for the margin for orders received from any customer’s postcodes that fall within their allocated territory. Each store will also be provided with the customer details to use as lead opportunities as well. This then provides and excellent opportunity for stores to provide an after sale call to find out if the customer is happy with their order or if they require any other flooring. Recommend Retail and Website Pricing Dreamland, Silky, Noodle, Soft & Stripe Shaggy

80cm x 150cm - $99.00

120cm x 170cm - $179.00

160cm x 230cm - $299.00

200cm x 300cm - $489.00 New ArtiZEN Brights & Moonlight Range (shorter pile silky minc range)

155cm x 225cm - $199.00

190cm x 280cm - $329.00 Member Involvement for website orders Please note that there is no member involvement required to transact online sales or to deliver the rugs to customers so essentially these orders act as lead generators in the form of the customer reports you will receive monthly and straight revenue. Any returns however, will need to be handled by each store and Direct Rugs will organise the collection of returned rugs from each store and deliver replacement rugs direct to the customer. Please see Return Policy for more information.

January Launch Promotion Consumers will be able to order Rugs online from 8th January to coincide with the launch of the Summer Holiday Sale TVC which commences on FTA TV. The TVC features the new ArtiZEN Brights collection and advertises free delivery throughout Australia. RRP pricing has been calculated to enable promotions such as this whilst still maintaining healthy margins for members. Free Delivery offer will conclude 31st January 2012 and from there delivery costs will be calculated based on weight and postcode automatically on the website. This is a very exciting first step for Carpet Court and more importantly so from a Market Leadership perspective as we will lead the industry in terms of our main competitors such as Choices, Carpet Call, Solomon’s, Harvey Norman etc as none of these retailers currently offer any type of flooring via online ordering. Any questions in relation to pricing or margins please contact Russell Knight and any other queries please contact me. Best regards Natasha Gallardo National marketing & Advertising Manager