WestPoint Stevens Announces Restructuring Initiative: One Plant Conversion and Four Plant Closings in Capacity Realignment WEST POINT, Ga., Jan. 9 /PRNewswire-FirstCall/ -- WestPoint Stevens (BULLETIN BOARD: WSPT) ( http://www.westpointstevens.com/ ) announced today a further realignment of manufacturing capacity in which the Company will close DIXIE and DUNSON plants, LaGrange, Ga., FAIRFAX GREIGE PLANT, Valley, Ala., and COUSHATTA (La.) PLANT. LANIER PLANT, Valley will be converted to towel production. The expenses associated with this realignment were included in an additional restructuring charge approved by the Company's Board of Directors during the third quarter of 2003. The consolidation within the Company's Bath Products segment will close two older, multi-level towel units -- Fairfax Greige Plant and Dixie Plant -- and move some production equipment from those plants into Lanier-Carter facility, putting modern equipment into a one-level facility with an efficient workflow. Carter Plant, Lanier's sister facility under the same roof, was converted to towel production in 2002. Production at Dunson Plant, also an older, multi-level facility, will be folded into other Bed Products plants with more modern manufacturing layout. Capacity created by the addition of Coushatta Plant to the Basic Bedding Division is no longer needed because of increased manufacturing efficiencies achieved at other Basic Bedding plants that are better geographically located for the Company's distribution system. "Overall, these moves will strengthen the Company with greater production efficiency and better-aligned capacity and allow us to compete more effectively in a global economy," said WestPoint President and CEO M.L. (Chip) Fontenot. "We greatly appreciate the associates at these plants -- indeed all our associates -- whose skills and perseverance over the years have helped WestPoint Stevens become a home fashions leader, and we deeply regret that continuing changes in the global marketplace make necessary such restructuring in manufacturing." Layoffs will begin in mid-March, affecting approximately 200 associates at Dixie, 350 at Dunson, 300 at Fairfax Greige and 125 at Coushatta. Relocation of equipment to Lanier-Carter gets under way also mid-March, with towel production at Lanier scheduled to begin early-to-mid-summer. Attempts will be made to place laid-off associates in jobs at other area WestPoint Stevens facilities as the consolidation is completed. The move will also create a limited number of new jobs at Lanier's sister plant, Carter, which was converted to toweling in 2002. A layoff at Lanier Plant was announced on Nov. 18, allowing the Company to finalize plans for improved plant utilization. WestPoint Stevens Inc. is the nation's premier home fashions consumer products marketing company, with a wide range of bed linens, towels, blankets, comforters and accessories marketed under the well-known brand names GRAND PATRICIAN, PATRICIAN, MARTEX, ATELIER MARTEX, BABY MARTEX, UTICA, STEVENS, LADY PEPPERELL, SEDUCTION, VELLUX and CHATHAM - all registered trademarks owned by WestPoint Stevens Inc. and its subsidiaries - and under licensed brands including RALPH LAUREN HOME, DISNEY HOME, GLYNDA TURLEY and SIMMONS BEAUTYREST. WestPoint Stevens is also a manufacturer of the MARTHA STEWART and JOE BOXER bed and bath lines. WestPoint Stevens can be found on the World Wide Web at http://www.westpointstevens.com/ . Safe Harbor Statement: Except for historical information contained herein, certain matters set forth in this press release are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties may be attributable to important factors that include but are not limited to the following: Product margins may vary from those projected; Raw material prices may vary from those assumed; Additional reserves may be required for bad debts, returns, allowances, governmental compliance costs, or litigation; There may be changes in the performance of financial markets or fluctuations in foreign currency exchange rates; Unanticipated natural disasters could have a material impact upon results of operations; There may be changes in the general economic conditions that affect customer practices or consumer spending; Competition for retail and wholesale customers, pricing and transportation of products may vary from time to time due to seasonal variations or otherwise; Customer preferences for our products can be affected by competition, or general market demand for domestic or imported goods or the quantity, quality, price or delivery time of such goods; There could be an unanticipated loss of a material customer or a material license; The availability and price of raw materials could be affected by weather, disease, energy costs or other factors; The future results of operations may be adversely affected by factors relating to the Chapter 11 proceedings. The information contained in this release is as of January 9, 2004. WestPoint Stevens assumes no obligation to update publicly any forward-looking statements, contained in this document as a result of new information or future events or developments. Contact: Lorraine D. Miller, CFA Sr. VP - Investor Relations 404.378.0491 DATASOURCE: WestPoint Stevens CONTACT: Lorraine D. Miller, CFA, Sr. VP - Finance and External Communications of WestPoint Stevens, +1-404-378-0491 Web site: http://www.westpointstevens.com/

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