Icahn’s AREP Holding Company To Purchase Additional WestPoint Stock

New York City-based American Real
Estate Partners LP (AREP), of which investor Carl Icahn is chairman, has entered into a
subscription and standby commitment agreement with New York City-based WestPoint International
Inc., its majority-owned subsidiary, to invest up to $200 million to purchase newly issued
preferred stock in the home textiles company.

AREP will purchase 1 million shares of preferred stock for $100 per share, for a total of
$100 million. AREP also will purchase an additional 1 million shares of preferred stock that are
being offered to WestPoint’s other stockholders of record at the same price per share if those
stockholders do not purchase all of those shares.

December 12, 2006