Angelica Announces Acquisition of Florida Laundry Business.

Business Editors

ST. LOUIS--(BUSINESS WIRE)--Dec. 16, 2003

Angelica Corporation (NYSE:AGL) today announced that its Angelica Textile Services segment has acquired National Services Industries' healthcare laundry plant and business located in Safety Harbor, FL.

The strategic acquisition of a market leader on the west coast of central Florida represents an important expansion for Angelica into an attractive segment of the Florida market. The plant, which was constructed in 1987 and expanded in 2001, generates annual revenues of approximately $13 million. The acquisition is expected to be accretive to Angelica in the first year of operation. The existing management team and plant employees at Safety Harbor will be retained by Angelica.

Commenting on the acquisition, Steve O'Hara, President and CEO of Angelica, noted, "We are delighted to add Safety Harbor to our expanding portfolio of quality southeastern healthcare plants." He added, "The combination of Safety Harbor and our existing Holly Hill plant located on the east coast of Florida, will enable Angelica to service approximately 75 percent of the Florida healthcare market. As the leading linen supplier to the healthcare industry, we will continue to evaluate other acquisition opportunities in Florida and elsewhere."

Angelica Corporation, traded on the New York Stock Exchange under the symbol AGL, is a leading provider of textile rental and linen management services to the U.S. healthcare market, and operates a national chain of retail healthcare uniform and shoe stores with a fully-integrated catalogue and e-commerce operation.

Forward-Looking Statements

Any forward-looking statements made in this document reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These potential risks and uncertainties include, but are not limited to, competitive and general economic conditions, the ability to retain current customers and to add new customers in competitive market environments, competitive pricing in the marketplace, delays in the shipment of orders, availability of labor at appropriate rates, availability and cost of energy and water supplies, the cost of workers' compensation and healthcare benefits, the ability to attract and retain key personnel, actual charges to the restructuring reserve significantly different from estimated charges, unusual or unexpected cash needs for operations or capital transactions, the effectiveness of certain expense reduction initiatives, the ability to obtain financing in required amounts and at appropriate rates, the ability to identify, negotiate, fund and integrate acquisitions, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission.