Angelica Increases Line of Credit to $100 Million.

Business Editors

ST. LOUIS--(BUSINESS WIRE)--March 9, 2004

Angelica Corporation (NYSE:AGL), a leading provider of healthcare linen management services, today announced that it has secured an amendment to its existing unsecured credit facility. Under the terms of the amended agreement, the Company can borrow up to $100 million, an increase of $30 million, on its revolving credit line, and the term has been extended for an additional two years. The credit facility is led by LaSalle Bank N.A. and includes Wells Fargo Bank N.A. and UMB Bank N.A., each of which increased its share of potential loans to Angelica on a pro-rata basis.

Steve O'Hara, President and CEO of Angelica, said, "Due to our strong balance sheet and overall business prospects, we are in a position to increase our credit line, which will provide us with the financial resources and flexibility to expand our healthcare linen management business through a combination of organic growth and strategic acquisitions. We are pleased that our bankers have shown confidence in our strategy with this credit increase."

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. The Company also operates a national chain of retail healthcare uniform and shoe stores with a fully-integrated catalogue and e-commerce operation as a discontinued operation pending sale of this division.

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, the ability of the Company to sell the Life Uniform segment under financial terms and conditions currently anticipated, the ability of the Company to accomplish its strategy of re-directing its resources to its healthcare linen management business in a timely and financially advantageous manner, 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.