Cone Mills: 2002 Best Year Since 1994

Greensboro, N.C.-based Cone Mills Corp. reported a fourth quarter 2002 net income of $3 million, or
8 cents per share after preferred dividends; and a net income of $11.4 million, or 28 cents per
share, for the year – Cone’s best performance since 1994. These figures contrasted with
year-earlier net losses from continuing operations of $1.4 million, or 10 cents per share, and
$23.1 million, or $1.07 per share, respectively.

Earnings before interest, taxes, depreciation and amortization (EBItdA) including Cone’s
share of profits from Parras Cone, its joint venture in Mexico, totaled $14.8 million for the
quarter and $58.6 million for the year.

“[The year] 2002 fulfills the commitment that we made last year to return Cone Mills to
profitability and achieves our $50 million EBItdA goal set two years ago,” said John L. Bakane,

Gary L. Smith, CFO, noted that Cone reduced debt by $29 million and improved its
debt-to-EBItdA ratio to 2.9. “We continue to operate with daily liquidity of more than $20
million,” he added.

Cone Mills’ fourth-quarter 2002 profit was driven by a 31.1-percent increase in denim sales
over year-earlier sales.

March 2003