Dan River Inc. Submits Business Plan to New York Stock Exchange.

Business Editors

DANVILLE, Va.--(BUSINESS WIRE)--Feb. 8, 2002

Dan River Inc. (NYSE: DRF) today announced that it has submitted a business plan to the New York Stock Exchange (NYSE) to demonstrate its ability to achieve compliance with market capitalization requirements for continued listing on the NYSE.

The business plan was submitted in response to the NYSE's notice to the Company that it has fallen below the continued listing criteria relating to total market capitalization and minimum share value.

Under the market capitalization requirement, the Company's market capitalization based on a 30 trading day average must equal or exceed $15 million. Under the NYSE rules, the NYSE may grant a period of up to 18 months ending in June 2003 during which the Company would need to meet the requirement.

The Company has formally requested that this time period be granted and has submitted its business plan to the NYSE to demonstrate its ability to achieve compliance with this standard. The NYSE has up to 45 days to conclude upon the Company's plan. If the plan is accepted, the Company will be subject to quarterly monitoring by the NYSE in the interim period. If the Company's plan is not accepted and its shares cease to be listed on the NYSE, the Company believes that an alternate trading venue will be available.

Under the minimum share value requirement, the Company's shares must trade in a value exceeding $1 for thirty consecutive trading days. As a result of the NYSE notification, the Company must meet this requirement by June 2002 to retain its listing, subject to certain conditions.

The Company also announced that the date of its annual meeting has been changed. The meeting will be held at 10 a.m. Eastern time on April 30, 2002, at the Riverview Inn, Country Club Drive, in Danville, Virginia. The previously announced record date of March 1, 2002 for shareholders to participate in and vote at the annual meeting has not changed.

Note: This press release contains forward-looking statements under applicable securities laws. There can be no assurance that the Company's business plan will be approved by the NYSE, or if it is approved, that implementation of the plan will be successful. The Company's financial liquidity and results of operations, and thus its success in implementing its business plan, could be materially and adversely affected if the economy does not generally improve, if consumer demand for textile products does not improve at retail, and by various other market and industry factors, many of which are outside the Company's control. Risks generally associated with the Company's business are detailed in its Current Report on Form 8-K filed with the SEC on July 20, 1998. The Company believes its forward-looking statements are reasonable; however, undue reliance should not be placed on such statements, which are based on current expectations.