Dixie Group Temporarily Suspends Operations in the

Chattanooga, TN, September 15 --The Dixie Group, Inc. announced that, due to threats posed by Hurricane Ivan, it has temporarily suspended operations at its carpet manufacturing and distribution facilities located in Atmore and Saraland, Alabama, as of noon Tuesday, September 14. The company's Saraland facilities are located approximately 10 miles north of Mobile and its Atmore facility is located approximately 50 miles northeast of Mobile. The facilities will remain closed until the threat of the hurricane has passed. Commenting on the announcement, Daniel K. Frierson, chairman and chief executive officer, said, "The National Hurricane Center currently is predicting that the hurricane will make landfall near Mobile, Alabama, early Thursday morning. Although we regret any inconvenience to our customers caused by the suspension of these operations, the safety of our associates is our number one priority." Frierson added, "Although we do not anticipate any significant damage, our affected operations are adequately covered by property, casualty and business interruption insurance. Nevertheless, the full extent and impact of any disruptions are impossible to predict at this time." The company will release additional information as soon as it has had an opportunity to determine what effect, if any, the hurricane has had on its operations.