EMPIRE OF CAROLINA ANNOUNCES MAJOR INVESTMENT BY WEISS, PECK & GREER'S PRIVATE EQUITY GROUP; Latest in a Series of Developments to Position Toy-maker for Growth.

NEW YORK--(BUSINESS WIRE)-- Dec. 22, 1994--Empire of Carolina (AMEX:EMP), a toy manufacturer that makes the popular "Big Wheel(TM)" line of ride-on toys, announced today that it has received an investment of $15 million in growth capital from the Private Equity Group of Weiss, Peck & Greer through its WPG Corporate Development Associates IV fund. The investment is in the form of convertible subordinated debt that together with a common stock purchase will represent a 28% fully diluted common stock ownership position in Empire. The company plans to add two Weiss, Peck & Greer partners to its board of directors.

Weiss, Peck & Greer's capital infusion is one in a series of steps taken by Empire to position itself for future profitable growth. Recently, Empire introduced a new, seasoned management team led by industry veteran Steven Geller, and announced the acquisition of Marchon, Inc., a toy manufacturer with over $45 million in annual sales.

Steve Hutchinson, managing partner of Weiss, Peck & Greer's Private Equity Group, said, "We're thrilled with the opportunity to become partners with such an exceptional management team. Steve Geller did an excellent job building a sizeable toy business from a very small base before selling it to Mattel in 1986. Afterwards he stayed on for seven years serving as president of a division and joined Mattel's nine-person Executive Committee. Now, he's gathered around him other toy industry veterans to build this business, including Marvin Smollar and Neil Saul. It's a terrific team -- with all the experience they need to execute a successful strategy."

Hutchinson noted that current toy industry consolidation trends at both the manufacturer and retail level will work in favor of the industry's medium-sized manufacturers like Empire. Geller, Empire's new CEO, plans to build on the company's stable products, including "Big Wheel(TM) " ride-ons, Grand Champion Horses and MR-1 Road Racing in combination with its special promotional and licensed lines which include a broad selection of "Mighty Morphin Power Rangers(TM)" toys. Geller said this strategy would deliver, "the higher margins and quick turnover retailers crave." He continued, "We have strong relationships with the giant toy retailers, and we know how to work with them to maximize profitable sales with great toys that kids love. With capital backing from Weiss Peck & Greer, as well as their management help, we're ready to move aggressively."

Empire of Carolina manufactures and markets basic, plastic children's toys and decorative seasonal items, including Christmas, Halloween and Easter illuminated products. Through its wholly owned subsidiary, Marchon, Inc., the company manufactures and markets an additional full line of basic toys including TV advertised and licensed products.

Weiss Peck & Greer, a diversified investment firm founded in 1970, manages in excess of $13 billion in assets. Since its inception, Weiss, Peck & Greer has sponsored ten principal funds dedicated to making equity investments in management buyouts, turnarounds, special situations and venture capital. The firm maintains offices in New York, Chicago and San Francisco. WPG Corporate Development Associates IV, its fourth private equity fund, closed in March with $175 million.

CONTACT: Empire of Carolina

             Steven E. Geller, [phone]
                        or
             Bliss, Gouverneur & Associates, New York
             Joe Markulin, [phone]