Dixie Group Sells Colormaster Dyeing Facility

Chattanooga, Tenn.-based The Dixie Group Inc., has completed the sale of its Colormaster dyeing
facility located in Calhoun, Ga., to Products Concepts Residential LLC.The sale of these assets is
a part of our strategy to consolidate our north Georgia operations, reduce debt and improve our
balance sheet. The transaction is not expected to affect employment levels at the dyeing facility,
said Daniel K. Frierson, chairman and CEO, The Dixie Group.

July 2001