The Dixie Group Sells Three Georgia Facilities To

Chattanooga, TN, Sept. 4--The Dixie Group, Inc. today announced that it has executed a definitive agreement to sell certain of its assets that support its factory-built housing, needlebond and carpet recycling businesses to Shaw Industries Group, Inc. Together these businesses generated sales of approximately $255 million during the last 12 months. The proceeds from the transaction are expected to be approximately $180 million and will be used to reduce the company's debt. The sale is anticipated to be completed when the waiting period under the Hart-Scott-Rodino Act has expired, which could be as early as the end of September 2003. While specific terms of the agreement were not disclosed, Dixie said closing was subject to normal contractual contingencies. Daniel K. Frierson, chairman and chief executive officer of The Dixie Group, commented, "The sale of these assets will allow us to substantially reduce our debt and fund growth of our tufted residential business through our Dixie Home brands and products and our high-end residential and commercial business through our Masland and Fabrica brands. The assets being sold include our yarn, tufting, dyeing, finishing, needlebond, distribution and logistics facilities located in Calhoun, GA, our needlebond facility located in Dalton, GA, and our carpet recycling facility located in Lafayette, GA. Approximately 1,100 associates are employed in the facilities being sold."

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