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Lumber Liquidators aims to be the industry leader in sustainability because its good for the

environment, and because its good for the future of our business. Delivering hardwood floors for less
requires us to be lean, efficient and sustainable in everything we do. We do this by minimizing our
energy and land use; having an efficient supply chain; working with credible and trustworthy suppliers;
avoiding waste; and investing in, and protecting, the long-term health of the forests, farms and
plantations that are the lifeblood of our business. Our sustainability efforts are reinforced and measured
by strong policies and we are continuously searching for new ways to be more responsible
environmental stewards.

1) Has Lumber Liquidators in the past or does Lumber Liquidators continue to sell wood sourced
illegally in the Russian Far East?

No. The policies and procedures that Lumber Liquidators has in place for the sourcing, harvesting and
manufacturing of all of our products are designed to meet or exceed all applicable U.S. and international
laws, rules and regulations wherever we do business. Further, we demand that our business partners,
suppliers and distributors meet our standards and also operate in an ethical, legal and sustainable

Above and beyond our adherence to existing law, as well as the existing practices of our peers, we
commit resources around the world to monitor our processes and compliance with environmental chain
of custody regulations at each step of the way until the products reach our stores. We reject shipments
that do not meet regulatory requirements before they leave a port of disembarkation, we have a
dedicated Lacey Act compliance staff, we conduct ongoing training initiatives for our suppliers, we have
worked with a third-party advisor to develop our own DNA-testing for wood products, and we have
engaged with environmental organizations such as Greenpeace to obtain their input into our ongoing
sustainability efforts.

An October 2013 report by Environmental Investigation Agency about logging in the Russian Far East
contained fundamental inaccuracies and unsubstantiated claims regarding Lumber Liquidators. Further,
it bears underscoring that nowhere in its report does the EIA allege that any Lumber Liquidators
products have been harvested or sourced in violation of any applicable law or regulation. In fact, we
have established compliance protocols designed to ensure that Lumber Liquidators sells wood in both a
legal and environmentally responsible manner. We have reached out numerous times to the EIA since
the publishing of their report to discuss its inaccuracies, but our requests, to date, have been met with
no response.

At Lumber Liquidators, we apply our rigorous compliance programs to every market in which we do
business, including Canada. The Lacey Act is among the most stringent regulatory policies related to
sourcing in the world, and while we adhere to the regulatory requirements of each country in which we
do business, all our operations benefit from our commitment to meeting or exceeding its provisions
everywhere. Lumber Liquidators is fully committed to responsible sourcing, production and shipment of
our products regardless of where they are eventually sold, and our efforts to ensure compliance
throughout the supply chain are without equal in the industry:

We collect documentation regarding the source of our wood on a per-purchase order basis, whereas the
industry norm is to only do a retroactive audit of a companys sourcing once or twice per year. In
cooperation with our international shipper, we add a further safeguard by using shipment codes that
physically prevent a cargo from leaving port without all required documentation essentially freezing
the shipment system until proper documentation is produced and verified. This means that if there is
any indication that the wood sourced for our products is not in compliance with national and
international regulations, or our own stringent quality requirements, we reject that order before it
leaves a dock and do not accept the product.

In addition to our own Lumber Liquidators auditing teams, we are working with outside firms to do
more third party reviews of our supply chain so that we can independently verify that the wood used in
our products come from forests that are well managed.

Importantly, Lumber Liquidators auditors in China and other foreign markets dont simply inspect cut
wood, they look at the remaining material as part of their detailed inspection for proof of compliance.
Auditors also go into factories and trace samples back to the forest from which they were harvested.
This allows us to verify a saw mills assertion that wood was harvested from permissible forests and has
met all regulations and Lumber Liquidators policies. Other directives performed by auditors include:
inspecting the factory for quality, document control, training, social compliance, Lacey Act compliance,
and compliance with the Customs-Trade Partnership against Terrorism rules. If a supplier audit reveals
deficiencies, Lumber Liquidators will work with the supplier to correct it; reject shipments if required;
and, when necessary, will suspend suppliers and sever business relationships with those that fail to
adhere to our policies and requirements.

In July 2012, Lumber Liquidators conducted our first annual training on Lacey Act compliance for
approximately 20 companies operating in China. We have subsequently continued this annual training
in August 2013 and 2014, with approximately 40 companies in attendance both years. To our
knowledge, none of Lumber Liquidators peer wood flooring or home improvement companies, nor any
furniture companies, have a similar Lacey Act training program for their suppliers. Also, we have a full-
time compliance team working on Lacey Act issues, both at our headquarters in Virginia, and at our
regional office in Shanghai.

In early 2014, we retained Double Helix Tracking Technologies, industry experts in DNA testing of
harvested wood and finished timber products, to develop our own industry-leading standard that can
decisively show whether the origin of raw materials matches what is recorded in official shipment
documents. We began implementing this testing earlier this summer. This is an unprecedented step
that no other company in our industry is taking and we believe this is a much more rigorous and
scientific approach when compared with current industry practices.

Engaging Third-Party Experts and (Non-Government Organizations) NGOs

Lumber Liquidators is committed to working with third-party industry experts in order to aid us in our
sustainability and regulatory compliance efforts.

After the Lacey Act was amended in 2008 to include wood, we engaged experienced outside counsel to
assist in creating our internal policies and procedures, and have since engaged with an industry expert
to review our processes. We regularly work with inspectors such as SGS Global, which is currently
helping Lumber Liquidators inspect operations in South America, as well as leading environmental NGOs
with expertise in this area.

Although we firmly believe that our own wood sourcing protocols are industry-leading, we are always
open to additional safeguards. When available, we source wood that has been certified by the Forest
Stewardship Council (FSC), whose mission is to promote environmentally sound, socially beneficial and
economically prosperous management of the worlds forests. FSCs independent examination of wood
and forests is one of many ways in which lumber companies can better understand whether a supplier
has complied with applicable laws.

We have been engaged in a constructive and open dialogue with Greenpeace since May of this year,
meeting and speaking with them regularly. Although it has not alleged that any Lumber Liquidators
wood was harvested or sourced illegally, Greenpeace raised concerns about the government-sponsored
timber control system in certain markets from which the industry sources product. Through the course
of the dialog, both parties realized that Lumber Liquidators needed to do a better job of broadly
communicating our longstanding policies and actions to protect the environment.. While Lumber
Liquidators has always maintained a commitment to protecting the environment and stringent sourcing
policies as part of our ongoing sustainability efforts, our lack of communication implied to some that we
did not have substantive environmental policies, let alone industry-leading practices. Our
communications with Greenpeace have helped them better understand the positive things weve always
done as a business, and our interactions have included inviting Greenpeaces input into our recent
efforts to better develop Lumber Liquidators public facing sustainable wood sourcing policy.

2) Has Lumber Liquidators in the past or does Lumber Liquidators continue to sell flooring in either
Canada or the US that does not meet the emission standards for formaldehyde as set out by the State of

No. Our product meets relevant environmental standards and undergoes rigorous, independent, third-
party testing, including those pertaining to formaldehyde emissions. More specifically, our products are
produced and independently tested to ensure compliance with the low formaldehyde emissions
standards set by the California Air Resource Board (CARB). To that end, we purchase our laminate and
engineered flooring products from manufacturers whose production methods have been certified by a
Third Party Certifier approved by the State of California to meet the CARB standards or suppliers who
source composite wood raw materials only from certified manufacturers. The scope of the certification
by the Third Party Certifier includes the confirmation that the manufacturer has implemented the
quality systems, process controls, and testing procedures outlined by CARB and that their composite
wood products conform to the specified regulatory limits. The Third Party Certifier also provides ongoing
oversight to validate the manufacturers' compliance and manufacturers must be periodically re-

In addition to the CARB requirements, Lumber Liquidators regularly selects finished products from its
suppliers and submits them for independent third-party lab testing. This is done as a monitoring activity
to validate ongoing quality controls If a product of ours is found not to meet formaldehyde emission or
other CARB requirements, we will refuse the shipment or require corrective action to ensure the
products conform to regulatory requirements. We do not distribute or sell products that do not meet
the applicable CARB requirements. Furthermore, we apply these stringent standards to products we sell
throughout the U.S. and in Canada, not just in California.

With regard to a blog post on the Seeking Alpha website in June 2013 regarding formaldehyde this
post was made by an individual investor not affiliated with any professional investment firm or
institution who disclosed that he was invested short in Lumber Liquidators stock and would therefore
experience financial gain if the stock declined. Moreover, we could not verify that this individuals
product tests were conducted appropriately at a CARB-certified lab or in compliance with approved
CARB testing methodology. In contrast, we confirmed that the supplier of the applicable product was
properly certified in accordance with CARB regulations. In addition, we performed tests at a CARB-
approved Third Party Certifier on the same type of product cited in this individuals post and found that
the emissions from the finished product fell below the regulatory limits.

Formaldehyde is listed by California as a substance subject to Proposition 65. It is important to
understand that there is some level of formaldehyde in not only the majority of flooring using glue but
also many household items such as furniture. Proposition 65 warnings and regulations, however, do not
apply in the event that the level of exposure to the listed chemical is below a designated safe harbor
limit. Internal and independent third party testing of our flooring products has shown that the levels of
exposure to formaldehyde in a sampling of our flooring products fall well below Proposition 65s safe
harbor limit; therefore, the Proposition 65 warnings and regulations are inapplicable. Nevertheless,
although we are not required to provide a warning as the result of the formaldehyde levels in our
products, we do include Proposition 65 notices on invoices and in-store signage for our California

Please also refer to information posted on our company website through the Global Responsibility link
found on our home page and, more specifically, the page links shown under #4 Sustainability which
present more information about how we exceed CARB standards.