Mastercraft Inter ior s , Ltd .

Selected as Retailer for the Official Reproductions for Mount Vernon

Award-Winning Contributor,National Trust for Historic Preservation

BLUE CHIP CUSTOMERS

President George Bush

Executive Office of the President

The White House

The White House Historical Association

The United States Senate

U.S. House of Representatives

Office of the Architect of the Capitol

Marriott Corporation

National Security Council

Department of Agriculture

Embassy of Canada

Embassy of Russia

Embassy of Italy

U.S. Naval Academy

The Pentagon

The World Bank

Colonial Williamsburg Foundation

The Ritz Carlton Hotel

Governor Parris Glendenning

Governor George Allen, Jr.

General Colin Powell

General Norman Schwart z ko p f

Justice Clarence Thomas

Surgeon General C. Edward Koop

Sen. George Mitchell

Ms. Mohamed Mubarak (Egypt)

Sam Donaldson

Gordon Peterson

Roger Mudd

Arch Campbell

Lea Thompson

Willard Scott

Bob Ryan

William Saffire

Tom Clancy

Ted Koppel

Lynda Carter

Joe Jacoby

Mark Rypien

Odonna Matthews

Mic Fleetwood

Q u a l i ty. Among the top tenmarkets in the United States, one market –Washington, D.C. –leads all the others in furn i t u resales per household.

In that market, one name stands out as the leading retailer of high quality furn i t u re and home furnishings.

M a s t e rcraft Interiors, Ltd.

To some, becoming the leader in one of the country ’s stro n g e s tf u rn i t u re markets would be amission statement come true.

But at Mastercraft Interiors, i t ’s only the beginning.

O N T H E C OV E R :C l e a r ly and majestically, M a s t e rcraft Interiors’ new 51,000 square foot show ro o m

anchors the center pavilion at Fair Oaks Mall in Fairfax, V i r g i n i a , with an imposing 2-level design,

c re a ting an unusual third tier for shoppers who view the store from ground leve l .

THE YEAR 1999 HAS BEEN AN IMPORTANT YEAR FOR MASTERCRAFT INTERIORS — AND IT IS INDEED A YEAR OF CHANGE. IN FAC T, A S

A N A LYSTS AND EDUCATORS OF THE FUTURE WILL PRO BA B LY NOT E , IN 1997, THE FAMED “ BABY BOOMER” G E N E R ATION BEGAN ITS PEAK

EARNING AND BUYING Y E A R S . U N D E R S TANDING HOW, W H E R E , AND WHY THIS MARKETING PHENOMENON MOVES A L O N G T H E

SALES CHARTS IS W H AT WILL INSPIRE THE TRUE V I S I O N A R I E S , AND THE GROWTH OF MASTERCRAFT INTERIORS, LT D. OVER T H E

PAST 20 Y E A R S , MASTERCRAFT INTERIORS HAS RESPONDED SUCCESSFULLY TO DIFFICULT CHALLENGES — INCLUDING T WO S E R IOUS NAT I O N A L

RECESSIONS AND SEVERAL LOCA LIZED D OW N T U R N S . ALL REPRESENTED PERIODS WHEN WORRIED CONSUMERS COULD E A S I LY HAV E

DEFERRED HIGH END F U R N ITURE P U R C H A S E S . ALONG THE WAY, MASTERCRAFT MANAGEMENT MADE CREAT I V E , AGGRESSIVE DECISIONS

WHICH NOT ONLY HELPED THE COMPANY P RO S P E R — BUT ALSO SPURRED ITS GROW T H . BY VIEWING DOWNTURNS AS OPPORT U N I T I E S ,T H E

C O M PANY AC QUIRED T WO KEY C O M P E T I TO R S IN THE 1980’S AND EARLY 90’S — KIMELS AND W E L L I N G TON HOUSE. MEANWHILE MANY

OT H E R S , INCLUDING M A Z O R , WO O DWARD & LOT H ROP DEPA RTMENT STORES AND PREVIOUS HIGH END LEADER W. & J . S L OA N E ,

WITHDREW FROM THE M A R K E T AS WE BUILD ON THIS EXPERIENCE, WE BELIEVE MASTERCRAFT INTERIORS’ O R I G I N A L , F O U N D-

I N G COMMITMENT TO QUALITY IS MORE COMPELLING THAN E V E R . AND WE’RE V E RY PROUD T H AT WITH ALL THE CHANGES GOING O N

IN OUR BUSINESS, THE MASTERCRAFT REPUTATION FOR FINE QUA LITY WILL BE A ROUND FOR A LONG, LONG T I M E .

From The Principals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DOUGLAS GOMEZ, P R E S I D E N T DAN GOMEZ, EXECUTIVE VICE PRESIDENT

St artwithav ısıonM a s t e rc r a f t ’s success in the past two decades

was not built just from good instincts. It was estab-

lished according to plan. The company ’s pre s i d e n t

and exe c u t i ve vice pre s i d e n t , Douglas and Dan

G o m e z , a re both MBA ’s , and Dan’s background as an

examiner for the Comptroller of The Tre a s u ry

p rovides the company additional financial expert i s e

— vital to any enterprise, but especially important in

managing heavy asset and inventory control businesses

such as high end retail furniture.

Financial Vice President Dean Nelson has

established state-of-the-art intranet commu n i c a-

t i o n s , b a rc o d i n g , and inve n t o ry control systems

designed to minimize warehousing and accelerate

m a n a g e m e n t ’s ability to make smart day - t o - d ay

b u y i n g , m e rc h a n d i s i n g , and marketing decisions.

F i n a l ly, advanced human re s o u rce systems and

a family - owned atmosphere of positive employe e

morale has resulted in reducing employee turnove r.

The company ’s managers average in excess of 15

years’ experience — much of it at Masterc r a f t .

Customer serv i c e, n o r m a l ly a re t a i l e r ’s stiffe s t

c h a ll e n g e, is re l i a b ly high. M a s t e rcraft engenders

e m p l oyee loy a l t y, which in turn results in lowe r

t u r n over and higher service pro d u c t i v i t y.

Aneyefor bril l i anc e

E a r ly in its growth the company re c r u i t e d

interior designers and home furnishings experts whose

brilliance in selecting and accessorizing products estab-

lished M a s t e rcraft as more than a furniture store.

One of them, Carolyn Gomez, brought to the

company a special talent in attracting the country’s top

m a nu f a c t u rers — among them Kindel,S t i c k l ey,T h o m a s-

ville, Pennsylvania House, H e n ke l - H a rr i s , H i c ko ry

C h a i r, D re xel Heritage, Brown Jordan, and more.

She and her staff of talented buyers and design-

ers inspired these prized vendors to create traditional

furnishings with just the right flair for a changing

market.Ms.Gomez’ eye for color, style, and upholstery

design turned Mastercraft’s showrooms into idea

centers — where savvy customers could bring their

designers and their friends to see the latest in home

f a s h i o n . This “ wo rd-of-mouth” marketing campaign

earned Mastercraft its current reputation as “ t h e

place to shop” for a long list of celebrities and

h i s t o rical icons, including The White House, George

Wa s h i n g t o n ’s Mount Vernon Plantation, and T h e

National Trust for Historic Pre s e rv a t i o n .

Using i n s i g h tas fo re s i g h t

As a market leader with imagination and vision,

M a s t e rcraft Interiors understands the dynamics of

t o d ay ’s changing consumer. C o m p a ny president Douglas

Gomez has primary responsibility for marketing and

brings to the furniture industry experience that serve d

him well during his years with United Brands and

Nashua Corporation, t wo Fo rtune 500 companies.

H aving studied Scarboro u g h , Ya n ke l ov i c h , a n d

other consumer re s e a rch pro j e c t i o n s , the company is

taking bold and exciting steps. In Janu a ry of 1998,

M a s t e rcraft Interiors opened the first “anchor” size

f u r n i t u re store in a major shopping mall — a 51,000

s q u a re foot 2-level show room at Fair Oaks Mall in

F a i r f a x ,V i r g i n i a .The decision to appeal to a broader and

younger mall shopper market was care f u l ly considere d

— and heralded by the trade press as a truly innov a t i ve

m ove for a “ t r a d i t i o n a l , c o n s e rv a t i ve” re t a i l e r.

The impact on sales was tremendous — not

o n ly in the new and beautifully appointed mall store but

in all six stores across the chain — encouraging manage-

ment to plan a similar opening at Lake Fo rest Mall

in M a ry l a n d ’s affluent Montgo m e ry County.

O p p o rt u n i t y. The challengesahead are formidable. Customerlifestyles are changing, and thati n fluences the way homes are built,f u rnished, remodeled, and re d e c o-rated. An entirely new generation,driven by quality (including morequality time at home) is looking for stores that share their feelings.

I t ’s a world of opportunity for Mastercraft.

L O C A T I O N S

MARYLAND

ROCKVILLE

1428 Rockville Pike

301 770-0400

ANNAPOLIS

1405 Forest Drive

410 269-5530

LAKE FOREST MALL

701 Russell Street

Gaithersburg

VIRGINIA

FAIR OAKS MALL

Intersection I-66 & Rt. 50

703 385-8822

ALEXANDRIA

615 N.Washington Street

703 684-1776

FAIRFAX

Thomasville Gallery

10390 Lee Highway

703 273-7800

CORPORATE

HEADQUARTERS

6800 Distribution Drive

Beltsville, MD

301-595-4422

6800 Distribution Drive · Beltsvi lle , M a ryland · (301) 5 9 5-4 4 2 2

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