Dan River Inc. Reports First Quarter 2000 Financial Results.

Business Editors

DANVILLE, Va.--(BUSINESS WIRE)--April 19, 2000

Dan River Inc. (NYSE:DRF) today reported results for the first quarter ended April 1, 2000.

Net sales for the 13 weeks of the first quarter of 2000 were $164.9 million, down $4.6 million or 2.7% from $169.5 million for the first quarter of 1999. For the current quarter, the Company reported net income of $4.9 million or $0.22 per basic share. This compares to net earnings of $1.6 million or $0.07 per basic share for the first quarter of 1999.

Sales of home fashions products for the first quarter of 2000 were $114.4 million, down $3.0 million or 2.6% from the first quarter of 1999. Sales of apparel fabrics were $37.0 million, down $3.3 million or 8.1% from the 1999 first quarter. Sales of engineered products were $13.6 million, up $1.7 million or 14.3% from the first quarter of 1999.

Mr. Joseph L. Lanier, Jr., Chairman and Chief Executive Officer said, "We are pleased with our performance in the first quarter. As expected, we worked through most of our system issues in our home fashions division, and we were able to ship at more normalized levels as the quarter progressed. The performance of our apparel fabrics division was also gratifying as it reflects the benefits of our cost control efforts over the last year along with better operating schedules."

Mr. Lanier went on to say, "Looking forward, we see continued strength in our home fashions business. The order inflow is excellent and, as the year progresses, we expect to see further improvement in our ability to meet the strong customer demand. Our apparel fabrics business remains stable, which should allow us to maintain a reasonably efficient manufacturing schedule. Additionally, our engineered products division is experiencing some growth versus last year."

Mr. Lanier concluded, "As we move into the second quarter, our outlook for the rest of 2000 remains positive. We continue to believe we will meet analysts' earnings estimates of $1.05 per basic share for the 2000 fiscal year."

Note: This press release contains forward-looking statements under applicable securities laws. Dan River's performance could be materially and adversely affected by, among other things, further unanticipated difficulties in the conversion of computer systems, unexpected weakness in demand for Dan River's products, or by other market and industry factors, many of which are outside Dan River's control. Risks generally associated with Dan River's business are detailed in Dan River's Current Report on Form 8-K which was filed with the Securities and Exchange Commission on July 20, 1998. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on such statements, which are based on current expectations.

The following are the financial highlights: -0-

                               UNAUDITED
                CONDENSED CONSOLIDATED INCOME STATEMENT
                    (000's, EXCEPT PER SHARE DATA)


                                                  Three Months Ended
                                                April 1,      April 3,
                                                  2000          1999

Net Sales                                       $164,949      $169,536

Cost of Sales                                    131,801       141,641

Gross Profit                                      33,148        27,895

S, G and A                                        16,889        17,362

Amortization of Goodwill                             711           696

Operating Income                                  15,548         9,837

Other Income                                         198           290

Interest Expense                                   7,338         7,344

Income Before Taxes                                8,408         2,783

Provision for Income Taxes                         3,516         1,233

Net Income                                      $  4,892      $  1,550


Earnings Per Share:
     Basic                                      $   0.22      $   0.07
     Diluted                                    $   0.22      $   0.07

Wtd. Avg. No. Shares:
     Basic                                        22,501        23,355
     Diluted                                      22,501        23,524


                               UNAUDITED
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                                (000's)

                                               April 1,     January 1,
                                                 2000           2000

Assets:

   Cash                                        $  3,108      $   2,084
   Accounts Receivable                           94,845         77,009
   Inventories                                  175,383        168,487
   Other Current Assets                          18,379         17,513

       Total Current Assets                     291,715        265,093

   Property, Plant & Equipment, Net             291,445        296,733
   Goodwill, Net                                109,672        110,384
   Other Assets                                  12,773         12,372
       Total Assets                            $705,605       $684,582


Liabilities and Shareholders' Equity:

   Current Maturities of Long-Term Debt        $ 23,876       $ 22,368
   Accounts Payable & Accrued Expenses           77,748         68,360
       Total Current Liabilities                101,624         90,728

   Long-Term Debt                               298,356        292,416
   Deferred Income Taxes and Other Liabilities   32,655         30,486
   Shareholders' Equity                         272,970        270,952

       Total Liabilities & Shareholders'
        Equity                                 $705,605       $684,582


                               UNAUDITED
                          SEGMENT INFORMATION
                                (000's)

                                                 Three Months Ended
                                               April 1,       April 3,
                                                 2000           1999

Net Sales:
  Home Fashions                                 114,373        117,390
  Apparel Fabrics                                36,951         40,228
  Engineered Products                            13,625         11,918

       Consolidated Net Sales                  $164,949       $169,536

Operating Income (Loss):
  Home Fashions                                  13,750         11,764
  Apparel Fabrics                                 3,083           (127)
  Engineered Products                               720            537

  Corporate Items Not Allocated to Segments:
    Amortization of Goodwill                       (711)          (696)
    Depreciation                                    (87)        (1,409)
    Other                                        (1,207)          (232)

       Consolidated Operating Income           $ 15,548       $  9,837



                               UNAUDITED
                         OTHER FINANCIAL DATA
                                (000's)

                                                 Three Months Ended
                                               April 1,       April 3,
                                                 2000           1999

EBITDA                                         $ 25,512       $ 20,733

Depreciation & Amortization of Property,
  Plant & Equipment                            $  9,253       $ 10,200

Capital Expenditures in Cash                   $  8,494       $  9,728