Avondale Mills Announces Modernization Plan

G. Stephen Felker, chairman,
president and CEO of Avondale Mills Inc., Monroe, Ga., has announced a company-wide $115-million
modernization plan to be executed over the next 18 months. An additional $30 million in
expenditures is being considered for the same time frame.

The projects include expenditures totalling $74 million in Alabama and $41 million in South
Carolina to upgrade equipment and provide the newest technology to increase production and enhance
quality and cost effectiveness. Improvements at the Bevelle Plant in Alexander City, Ala., will
also increase employment by adding 51 new positions.

According to Felker, Avondale’s willingness to invest the expenditures in Alabama are due to
the passage of the Alabama Tort Reform Act of 1999 and the cooperation of governmental entities in
providing tax incentives, which contribute to the feasibility of planned projects.

July 2000