Dixie Expects 3Q Sales to be Up 25% Despite Ivan

Chattanooga, TN, September 20--The Dixie Group, Inc. today announced that its manufacturing and distribution facilities located in Saraland and Atmore, Alabama, were not significantly damaged by Hurricane Ivan. Revenue has been exceptionally strong during the third quarter 2004. Commenting on the announcement, Daniel K. Frierson, chairman and chief executive officer, said, "Our carpet and rug manufacturing and distribution facilities located at Atmore and Saraland, Alabama, suffered only minor damage as a result of Hurricane Ivan. The disruption of operations and the lack of power have been the biggest issues. Fortunately, power has been restored, and we have resumed operations today. "While we know that some of our associates had significant damage to their homes, we are not aware of an injury to any of our associates. We are very proud of our people who went the extra mile to lessen any impact of this disruption on our customers. "Our sales and order entry have been exceptionally strong during the third quarter 2004, with year-over-year sales comparisons up over 30% through the week prior to the hurricane. The suspension of operations last week caused shipments to be delayed. In spite of the disruption, we anticipate sales for the third quarter to be about 25% higher than year ago levels."