Galey & Lord Files Reorganization Plan, Sells Klopman Group

Greensboro-based Galey & Lord Inc. and its subsidiaries have filed a proposed plan of
reorganization in US Bankruptcy Court. The company hopes to emerge from bankruptcy soon after
confirmation of the plan, which is expected by the end of January.

In other news, the company has sold its London-based Klopman International Group subsidiary,
a manufacturer of polyester/cotton apparel fabrics, to an investment group led by BS Private
Equity, Italy.

January 2004