Springs Industries Receives Proposal

Springs Industries Receives ProposalSprings Industries Inc., Fort Mill, S.C., received a proposal
from the Close family and Heartland Industrial Partners L.P., a private equity firm, to take
Springs private. The Close family, who are descendants of Springs founders, currently own
approximately 41 percent of Springs common stock. The proposed recapitalization transaction would
give public stockholders $44 per share in cash, and the Close family would own 55 percent of
Springs, with the balance held by Heartland.The proposal would be financed with $225 million in
equity from Heartland and borrowings under a senior credit facility for which a commitment has been
received from J.P. Morgan ChaseandCo.The Board of Directors at Springs Industries has created a
special committee comprising all the independent directors of Springs to consider the proposal.
April 2001