Atlanta Law Firm Chitwood & Harley Files Securities Class Action Against Westpoint Stevens, Inc.

Business Editors & Legal Writers

ATLANTA--(BUSINESS WIRE)--Oct. 23, 2001

The following notice is being issued pursuant to the requirements of the Private Securities Litigation Reform Act of 1995 and consistent with the Local Rules for the Northern District of Georgia:

A class action lawsuit has been filed against WestPoint Stevens, Inc. (NYSE:WXS) ("WestPoint" or the "Company"), Holcombe T. Green, Jr. (the Company's Chairman and Chief Executive Officer), Morgan M. Schuessler (former Executive Vice President and Chief Financial Officer), William F. Crumley (former Executive Vice President), Thomas J. Ward (former President and Chief Operating Officer), Gerald B. Mitchell (director), Dale C. Williams (vice president), and Charles W. McCall, (director) (collectively, "Defendants"). The lawsuit alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 and seeks to recover damages for investors who purchased WestPoint common stock between February 10, 1999 and October 10, 2000 (the "Class Period"). This case is pending in the United States District Court for the Northern District of Georgia, Atlanta Division, located at 75 Spring St., SW, Atlanta, GA 30303 and is styled Geller vs. WestPoint Stevens, Inc., et al., Civil Action No. 1:01-CV-2673.

WestPoint describes itself as a manufacturer and marketer of bed and bath products (sheets, pillowcases, comforters, towels, blankets, and related products) for distribution to chain and department stores. The Complaint alleges that Defendants issued materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's common stock. For example, the Complaint alleges that throughout the Class Period, Defendants routinely hid the Company's sagging business prospects and overstated its sales by improperly shipping merchandise before it was requested. The Complaint further alleges that Defendants repeatedly misled investors concerning the extent of WestPoint's inventory problems and how those problems would ultimately affect the Company's business. As a result of misrepresentations like these, the Complaint alleges that investors who purchased WestPoint common stock during the Class Period were tricked into paying more for the stock than it was actually worth.

The Complaint alleges that during this period of artificial inflation, Defendants Crumley, McCall, Mitchell, Schuessler, and Williams took advantage of their insider status to sell hundreds of thousands of their own shares of WestPoint at artificially high prices for millions in proceeds. At the end of the Class Period, after having sold their own stock, Defendants revealed that the Company's sales had declined from prior periods, and earnings per share were far short of expectations. As a result of these announcements, shares of WestPoint fell to less than $9 per share (after having traded at more than $34 per share during the Class Period). The Complaint asserts claims for securities fraud against each of the Defendants, alleging that each is responsible for the artificial inflation of WestPoint stock prices during the Class Period.

Plaintiff is represented by Chitwood & Harley, an Atlanta law firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in several major actions throughout the United States in both federal and state courts and has been involved in actions that recovered billions of dollars on behalf of its clients. More information about Chitwood & Harley is available at the firm's website, www.classlaw.com.

If you are an investor who purchased WestPoint securities during the Class Period and either lost money on the transaction or still hold the stock, you may move the Court to serve as lead plaintiff. In order to serve as lead plaintiff, you must meet certain legal requirements and file appropriate papers no later than December 21, 2001. Your ability to share in any recovery is not, however, affected by the decision of whether to serve as a lead plaintiff.

If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Jeff Konis or David Bain at [phone] (toll free), or by email at [e-mail], Chitwood & Harley, 2900 Promenade II, 1230 Peachtree Street, N.E., Atlanta, Georgia 30309.