Dixie Group Reports Temporary Disruption Due to Hu

Chattanooga, TN, August 31--The Dixie Group, Inc. is experiencing temporary disruptions at its carpet distribution facilities located in Saraland, Alabama due to the effects of Hurricane Katrina. The company's Saraland facilities are situated approximately 10 miles north of Mobile - within the path of the storm. The company noted that its facility in Atmore, Alabama, located approximately 50 miles northeast of Mobile, was not damaged. Dixie's Saraland facility sustained relatively minor damage and presently is capable of conducting full operations. Nevertheless, power outages, failure of communications infrastructure, and possible damage and disruptions experienced by the company's associates are likely to cause temporary interruptions to the company's operations. In particular, it is anticipated that order entry, shipping and delivery operations will be disrupted until these problems are resolved. Daniel K. Frierson, the company's chief executive officer, noted, "Although we have not experienced any significant property damage, the full extent and impact of any disruptions cannot be quantified at this time." The company intends to release additional information when it has had an opportunity to better determine the impact this Hurricane has had on its operations.