Springs To Close Two Plants, Reduce Capacity And Invest $10 Million

Springs Industries Inc. announced today it will close two fabric weaving plants and invest $10
million in its remaining weaving plant in Chester County, S.C. The company will add new technology
and relocate equipment from other Springs facilities to Katherine Plant as part of its strategy to
adapt to a smaller number of highly flexible facilities that can compete in a global

As previously announced to employees last year, the company also said it will reduce
manufacturing capacity and jobs at Grace Complex in Lancaster County, S.C.

“Despite last year’s good performance and the investments Springs has made to stay competitive,
recent events have affected expectations for our bedding business,” said Tom Gaffney, executive
vice president and president of the company’s bedding business. He said the removal of quotas on
Jan. 1, 2005, has created significant pricing pressure as new suppliers throughout the world now
compete for access to the U.S. marketplace.

“As a result, world prices for products like those we make are falling significantly, which
means we must act now,” Gaffney said.

Springs will close the Elliott and Frances plants in Fort Lawn, S.C., on or about May 15 and
July 1, respectively. The facilities weave bedding fabrics and together employ about 250

At Grace Complex, about 450 employee jobs will be affected as fabric finishing and sewing
capacity is reduced in phases, mostly during the summer and into the fall. Normal turnover and
attrition during this time frame will create some job openings, Gaffney noted, and the company will
work hard to find opportunities for all affected employees. About 3,000 people will be employed by
Springs in Chester and Lancaster counties after the layoffs take effect.

Gaffney said Springs continues to carry out strategies to remain competitive in a rapidly
changing environment.

“We believe our U.S.-based facilities can be a competitive strength, and we will compete by
balancing what we make in our U.S. plants with what we buy so we can deliver products to customers
faster than any overseas supplier.”

Press Release Courtesy Of Springs Industries Inc.

March 1, 2005