Dixie Authorizes $10M Stock Repurchase Program

Chattanooga, TN, August 8, 2007--The Dixie Group plans to repurchase of up to $10 million of the company’s outstanding common Stock. Purchases may be made in the open market or through private transactions.

Daniel K. Frierson, chairman and chief executive officer, said, "With this stock repurchase authorization, our management will be in a position to take advantage of market opportunities to enhance shareholder value. Based on our current stock price, we believe repurchases of the Company's stock represent an excellent investment that should provide long-term value to our shareholders.”

The stock has a 52-week range of $9.63 to $14.76 and was set to open at $11.89 on Thursday.