Dixie Group Signs Letter Of Intent To Acquire Fabrica

The Dixie Group Inc., Chattanooga, Tenn., announced that it recently signed a letter of intent to
acquire privately held, high-end carpet and rug maker Fabrica International, Santa Ana, Calif., and
Fabricas interest in Chroma Systems Partners dyeing and finishing operations. The transaction is
subject to regulatory approval, due diligence review and execution of a definitive purchase
agreement.Fabrica has estimated its 2000 sales in excess of $50 million. It manufactures and sells
high-end luxury carpet and rugs to retailers, interior designers, luxury yachts, furniture stores
and other markets.

June 2000