Mount Vernon To Purchase Assets Of Arkwright Mills

Mount Vernon Mills Inc., Greenville, S.C., and Arkwright Mills, Spartanburg, S.C., have announced
that they have signed a letter of intent for Mount Vernon to purchase Arkwright’s textile
manufacturing assets.

Arkwright is a leading producer of cotton flannel fabrics for work gloves and woven fleece

“This sale to Mount Vernon gives the Castwood plant added market strengths,” said M.L. Cates
Jr., chairman and CEO of Arkwright. “We understand that Mount Vernon plans to replace the older
looms with more versatile looms. This will lead to better service and quality for both present and
future customers. Most importantly, this means the plant will be operating well into the future
providing opportunities for our employees.”

January 1999