Dan River Inc. Forecasts Earnings Shortfall.

Business Editors

DANVILLE, Va.--(BUSINESS WIRE)--Feb. 5, 2001

Dan River Inc. (NYSE: DRF) today announced that it will not meet its earnings forecast for the fourth quarter and full fiscal year of 2000 ending December 30, 2000.

In the Company's third quarter earnings release on October 26, 2000, it had projected annual sales of approximately $670 million and earnings per basic share around $0.68. Although the Company's results for 2000 have not been finalized, sales for the full fiscal year of 2000 were $663 million and earnings per share are expected to be in the range of $0.48 to $0.51 per basic share.

"Dan River has faced the same challenges as other companies in our industry," said Chairman and Chief Executive Officer, Joseph L. Lanier, Jr. "The shortfall is due mainly to the severity of the retail sluggishness, primarily in sales of home fashions, which undercut margins in the fourth quarter. Further, our commitment to inventory reduction resulted in sales of a less favorable mix of products than we had previously projected, which put additional pressure on margins."

Dan River Inc. invites you to join the Company for the fourth quarter earnings announcement which is currently scheduled on March 8, 2001 via webcast at www.danriver.com. The Company's annual meeting of shareholders is scheduled for April 19, 2001, in Danville, Virginia.