Angelica Reorganizes Field Operations.

ST. LOUIS -- Angelica Corporation (NYSE: AGL), a leading provider of healthcare linen management services, announced today a significant reorganization of its operating management structure. The reorganization is designed to increase focus on customer service and satisfaction, thereby improving revenue growth. A key aspect of the reorganization, effective immediately, is that Angelica's 32 plants will now be organized into 10 market areas, with each market area reporting to a Market Vice-President. Market Vice Presidents will have responsibility for all sales, service, and operations in their markets.

The new organization structure replaces the historical plant centric structure typically utilized by the laundry industry where customer relationships are managed at the plant level. Recognizing that often times a customer is best served from multiple plants and there are different skill sets involved in running an efficient production facility versus serving the customer, the reorganization realigns resources to maximize service to the customer and increase plant efficiency. The reorganization has been designed to be cost neutral after certain one-time transition expenses.

Commenting on the reorganization, Steve O'Hara, Chief Executive Officer of Angelica, noted "Two years ago we made the strategic decision to refocus on serving the healthcare industry by being the `leading provider of linen management services to the U.S. healthcare market by providing unsurpassed customer services at a good value.' To fully achieve this vision, we need to break down the operational barriers of our own organizational model and free up the resources to provide healthcare customers the highest level of service in the industry. Today's reorganization, which was developed by Angelica's President and COO Dave Van Vliet and his senior leadership team, continues this cultural shift from a plant centric to a customer centric business model."

Mr. O'Hara will discuss this reorganization further at the Sidoti and Company Conference in Chicago, IL November 7, 2005 and at the Noble Financial Conference in Hollywood, Florida on Thursday, November 10, 2005. At these conferences Mr. O'Hara is expected to review cost saving initiatives and operational improvements designed to improve Angelica's gross margin. The slides from these presentations have been filed with the SEC in a separate 8-K. A webcast of the Noble Financial Conference will be available at www.angelica.com beginning at 8:45 a.m. (Eastern Time) on November 10, 2005 and will be archived and available on that site for 90 days thereafter.

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. More information about Angelica is available on its website, www.angelica.com.

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, the ability of the Company to recover its seller note and avoid future lease obligations as part of its sale of Life Uniform, the ability of the Company to accomplish its strategy of redirecting 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 the Company's recently announced initiatives to reduce key operating costs as a percentage of revenues, the ability to obtain financing in required amounts and at appropriate rates and terms, the ability to identify, negotiate, fund, consummate and integrate acquisitions, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission.