Dan River Inc. Announces The Purchase Of Home Innovations' Glenn Manufacturing Facility.

DANVILLE, Va.--(BUSINESS WIRE)--July 16, 1998--Dan River Inc. (NYSE:DRF) and Home Innovations, Inc. announced today that they have entered into an agreement whereby Dan River will purchase substantially all of the assets of Home Innovations' Glenn Manufacturing facility located in Morven, North Carolina. The purchase price is $3.8 million.

Glenn Manufacturing is a 315,000 square foot sewing and distribution facility involved in the manufacturing of home fashions textile products, such as sheets, pillowcases and comforters. Over 300 people are employed at the facility.

Joseph L. Lanier, Jr., Chairman and Chief Executive Officer of Dan River said, "This acquisition adds needed manufacturing capacity which will enable us to better serve our growing home fashions business. In addition to Glenn's existing capacity, we have the opportunity to expand production at the facility by adding new machinery and increasing employment. We are particularly pleased that the associates now employed at Glenn Manufacturing will bring their experience and expertise in manufacturing home fashions products to Dan River."

Mr. M.L. "Chip" Fontenot, Chief Executive Officer of Home Innovations said, "We are pleased to have reached an agreement with Dan River. Their growing position in home fashions textiles should provide a bright future for our Glenn Manufacturing associates, and we are hopeful and believe, given the fair value being paid for this facility, that bankruptcy court approval of the transaction will be promptly forthcoming."

The transaction is expected to close in late August or September and is contingent upon bankruptcy court approval in the Home Innovations, Inc. case.

Dan River is a leading manufacturer and marketer of textile products for the home fashions and apparel fabrics markets. The company designs, manufactures and markets a coordinated line of value-added home fashions products consisting of packaged bedroom furnishings such as comforters, sheets, pillowcases, shams, bed skirts, decorative pillows and draperies. These home fashions products are sold under the Dan River trade name as well as Alexander Julian, D. Porthault, John Wilman and Nautica licenses. Dan River also manufactures and markets a broad range of high quality woven cotton and cotton blend fabrics for apparel and is the leading supplier of men's dress shirting fabrics in North America. Dan River operates manufacturing facilities in Virginia, North Carolina and Tennessee.

On June 29, Dan River announced that it had entered into a merger agreement to acquire The Bibb Company, a manufacturer and marketer of consumer products for the home, principally sheets, bedding and bath accessories; textile products for the hospitality and healthcare industries; and specialty engineered textile products used in making high-pressure hoses and other industrial products.

The Bibb transaction is also expected to close in late August or September.

    CONTACT: Dan River Inc.
              Scott D. Batson-Vice President-Finance, 804/799-4113