Moretz Hosiery Agrees to be Acquired by Great American Knitting Mills.

BURLINGTON, N.C.--(BUSINESS WIRE)--Jan, 26, 1999--Great American Knitting Mills, Inc., a wholly-owned subsidiary of Cluett American Corp., said today that it will acquire the hosiery assets -- including the manufacturing facilities -- of Moretz, Inc. of Newton, N.C., under the terms of a letter of intent signed by the two companies. The transaction is expected to be completed within the next 60 days.

John Moretz will become president of the Moretz sock division of Great American Knitting Mills, reporting to James Williams, president and chief executive officer of Great American Knitting Mills, the two companies said. The division will manufacture and market sport and casual socks under the Moretz, Kathy Ireland, NASCAR, NFL Properties, Inc., and Rawlings brands. Moretz, Inc. will continue to be owned by Mr. Moretz and will retain ownership of all apparel brand licenses.

Great American Knitting Mills is headquartered in Burlington, N.C. Great American Knitting Mills currently manufactures men's, women's and children's socks under proprietary brands Gold Toe, Arrow and Silver Toe, and under licenses from Nautica, Perry Ellis, Jockey, Jockey For Her, and North Face.