Court Approves Galey & Lord Sale to Patriarch Partners.

ATLANTA -- Patriarch Reiterates Commitment to Working With Management to Achieve Long-Term Success; Operations to Emerge From Bankruptcy Following Close of Transaction

Galey & Lord, Inc., a leading global supplier of denim, khaki and corduroy fabrics for the fashion apparel and uniform markets, announced that the U.S. Bankruptcy Court for the Northern District of Georgia approved its sale to Patriarch Partners, LLC pursuant to Section 363 of the U.S. Bankruptcy Code. The company's operations will emerge from bankruptcy following the close of the transaction, which is expected to occur by November 8, 2004.

"We are pleased that the court has approved the sale of Galey & Lord to Patriarch Partners. This transaction is in the best interests of our customers, employees, suppliers and stakeholders," said John J. Heldrich, Jr., president and CEO of Galey & Lord. "Patriarch is committed to helping the company achieve its strategic and financial objectives. We will have a simplified capital structure and a supportive partner that recognizes our strengths, our position in the marketplace and what we need to be successful. We will accelerate our efforts to improve profitability and we will continue to provide our customers with innovative products, flexibility and speed to market."

"Galey & Lord has an exceptional management team, an outstanding customer base, and a long track record of delivering quality and innovative products," said Lynn Tilton, principal of Patriarch Partners. "The company is an important part of an industry that is undergoing significant change and we are excited for the opportunity to invest in its future."

Under the terms of the agreement, New York-based Patriarch, whose funds have $4 billion under management, will acquire substantially all of Galey & Lord's assets in exchange for $40 million in cash and the assumption or refinancing of certain secured obligations, contracts, employee obligations and administrative liabilities. Galey & Lord entered voluntary bankruptcy protection in August of 2004 to expedite a transaction through a formal bankruptcy sale process.

Galey & Lord also announced several organizational changes designed to position the company for future success. In order to better optimize and build the company's brands, which are recognized for quality and innovation, Galey & Lord has created four strategic business units. Each business unit is headed by a managing director who is responsible for profitability and delivering the full range of products to customers. The managing directors and their respective divisions include: Bob McCormack, Sportswear; Jake Fraser, Jeans; Rick Waide, Specialty Markets and Paul Tantillo, Uniform.

In addition, Galey & Lord has named Al Blalock senior vice president of operations and Tim Driver senior vice president of international business relations. Mr. Blalock is responsible for all aspects of the company's domestic manufacturing operations. Mr. Driver is responsible for optimizing international operations including the Swift Denim Hidalgo facility in Mexico, and will work to finalize and implement ventures in other parts of the world. The senior management team will be based in Atlanta.

Galey & Lord, Inc. operates domestically and internationally through joint ventures in Europe, North Africa, Asia and Mexico. Its customers include: VF, Gap, Old Navy, Banana Republic, Polo Ralph Lauren, Abercrombie & Fitch, Levi's, Tommy Hilfiger, L.L. Bean, Nautica, Eddie Bauer, Liz Claiborne, Haggar, Land's End, and Tropical Sportswear / Savane, among others.