The Dixie Group Completes Yarn Production Plant Sa

Chattanooga, TN, Dec. 29--The Dixie Group, Inc. today announced that it has completed the previously announced sale of its Ringgold, Georgia, spun carpet yarn production facility to Shaw Industries Group, Inc. for a cash purchase price of approximately $6.7 million. Specific terms were not disclosed. The transaction, which will be recorded in the company's fiscal quarter ending March 27, 2004, is not expected to result in a material net gain or loss. Dixie's Chairman and Chief Executive Officer Daniel K. Frierson, said, "Proceeds from this sale, plus funds generated from working capital reductions, will be used to reduce debt under the company's Senior Credit Agreement, thereby strengthening our balance sheet and improving our financial flexibility."

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