Lumber Liquidators Announces Acquisition of Sequoia Floorings

Lumber Liquidators LL today announced it has entered into an agreement to acquire certain assets of Sequoia Floorings relating to Sequoia's quality control and assurance, product development and logistics operations in China. In connection with the agreement, Lumber Liquidators expects to retain certain key Sequoia personnel in Shanghai, China and assume direct control of sourcing previously managed by Sequoia. The acquisition strengthens Lumber Liquidators' mill direct relationships pursuant to its long-term sourcing strategy, and allows for a coordinated and efficient transition to direct servicing of mill relationships by an experienced team of quality and product development experts. Sequoia, a trading company, had provided product quality and development services on approximately 40% of the Company's 2010 merchandise purchases, primarily those in Asia. As part of the transaction, the Company will be opening a representative office in Shanghai upon approval of its application to the Chinese government, expected to occur in October.