NEW YORK—With sales up in all business units this year over 2011, Covington Fabric & Design LLC is fine
tuning its approach to international sourcing and selling according to Greg Tarver, president and CEO.

“As a result of our gains, the company is looking to expand its sales force in the decorative and contract
markets,” he stressed.

“We’re attending and or participating in all contract shows this year including HD in Las Vegas where we
had a bigger stand and also we are considering participation in Hospitality Match and High Connect,”
said Robert Duban, executive vice president, who heads all sales activities at Covington.

“Today, Covington has a greater focus on sourcing in China than ever before through Covington China
Trading Company in Haining,” Tarver said, but unlike residential, contract product is 65 percent from the
States. We’re doing more China to China and export to the USA,” he explained. In addition, Covington
is keeping stock in Europe for the first time through its Rosendaal, Holland bonded warehouse. Tarver
handles most of the sourcing activity for Covington which is mostly exclusive product.

“With this European warehouse, we are responding to our customers’ request to simplify their
purchasing from Covington in Europe,” said Tom Bruno, Covington’s senior vice president, sales.

With both the China and EU activities, Tarver wants to improve the price/value ratio of Covington
products as well as increase the speed to market these products.

On another front, Covington has established a digital imaging studio in its Calhoun, S.C. distribution
center. “This gives our jobber customers the chance to use our images on their own websites and also
enables them to project the fabric on furniture frame in a more precise way,” Tarver said. “This is an
example of the resources were have added to sales, service and design in the last three months at
Covington.

Stephanie Wotton has joined Covington as director, product administration and marketing, a
new position for the company. She will help manage the process of developing and bringing new
products and projects to market. Covington said it has a greater focus on specialty products with new
constructions especially for top of bed and Wotton is key to this process.

Covington is developing its next generation of products for duvets, coverlets and throws, a new category
for the company. Covington has also entered the specialty sheeting market for the first time for the
hospitality market offering natural, green constructions, Tarver said.