Alba Announces Outlook for 1999 and 2000.

VALDESE, N.C.--(BUSINESS WIRE)--Oct. 1, 1999--

Alba-Waldensian Inc. (ASE:AWS), one of the world's leading producers of seamless apparel and a manufacturer of specialty medical products, Friday announced that it has taken steps that will significantly increase seamless apparel production capacity beginning in the fourth quarter.

"Earlier this year, unanticipated shifts in product mix and the introduction of new styles requiring different types of sewing resulted in the company not being able to meet increased demand for certain styles. In response, we are substantially increasing sewing capacity, expanding dyeing equipment by 25% in addition to greatly increasing the efficiency of our dyeing facility, and further increasing knitting capacity by over 30% with the addition of 50 new seamless knitting machines by year end," said Clyde Wm. Engle, chairman.

Engle also announced that the company expects earnings for the year ended Dec. 31, 1999, to be slightly under the record net earnings of $1.43 per diluted share for 1998. He noted that 1999 earnings would have been significantly higher had Alba not faced the capacity limitations mentioned above.

In addition to the impact of capacity limitations, Engle said that 1999 earnings will be adversely affected by approximately $0.05 per diluted share due to a one-time charge to be booked in the third quarter for severance costs associated with the departure of its chief executive officer, announced in July.

"Demand for Alba's seamless apparel remains exceptionally strong. With the increased capacity expected to be in place by the end of 1999, along with further knitting capacity on order for next year, we currently expect very substantially higher earnings for the year 2000, significantly ahead of the previous earnings record set in 1998," Engle concluded.

About Alba-Waldensian

Alba-Waldensian manufactures and markets seamless intimate apparel and women's hosiery on a private-label basis for major retailers and on a contract basis for major brands. The company's medical specialty products group manufactures its products in Tennessee and markets them throughout the Americas and Europe. The company employs approximately 775 people in Valdese and Rockwood, Tenn.

This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements represent the company's judgment and are subject to risks and uncertainties that could cause actual operating results to differ materially from those expressed or implied in the forward-looking statements. From time to time, these risks are discussed in the company's filings with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other periodic reports.