Angelica Announces Acquisition of Tenney Laundry Services.

Business Editors/Health/Medical Writers

ST. LOUIS--(BUSINESS WIRE)--Nov. 4, 2003

Angelica Corporation (NYSE:AGL) announced today that its Angelica Textile Services segment has acquired the customer contracts and selected assets of Tenney Laundry Services, Batavia, NY. The acquired business, which includes healthcare contracts with acute-care hospitals as well as sub-acute facilities, amounts to approximately $2.6 million in annual revenues. The business will be assimilated into Textile Services' existing plant and operations at Batavia, NY.

Commenting on the acquisition, Steve O'Hara, Angelica's President and CEO, noted, "We continue to look for opportunities to build our laundry market share through logical acquisitions of individual, regional and hospital-owned, on-premise laundries." He went on to say, "The Tenney Laundry acquisition will strengthen Textile Services' presence in up-state New York and improve utilization of available capacity in our Batavia, NY plant."

Angelica Corporation, traded on the New York Stock Exchange under the symbol AGL, provides textile rental and linen management services to healthcare institutions, 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 press release reflect Angelica Corporation'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, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission.