Pillowtex Announces Production Consolidation

Pillowtex Corp., Dallas, announced it will be consolidating production of kitchen and institutional
towels at the company’s Opelika, Ala., weaving facility into three other plants located in Phenix
City, Ala.; Fiedale, Va.; and Kannapolis, N.C.According to the company, the Opelika plant will be
closed. It was acquired as part of PIllowtex’s purchase of the Leshner Corp. in 1998.”Based on
initial study of the Opelika facility, we determined the spinning operations should be moved to a
newer plant that we purchased in Tarboro, N.C.,” said Jeffery D. Cordes, president and chief
operating officer. “We have now concluded the company will achieve significant operational
efficiencies by consolidating the remaining weaving operations into other company sites.”

March 1999