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CARRIAGE'S CHAIRMAN AND FOUNDER COMPLETES SALE OF STOCK TO DIXIE YARNS

CARRIAGE'S CHAIRMAN AND FOUNDER COMPLETES SALE OF STOCK TO DIXIE YARNS
 CALHOUN, Ga., Oct. 15 /PRNewswire/ -- Carriage Industries, Inc. (NYSE: CGE) today announced that the previously disclosed agreement for Clarence E. Harris, Carriage's chairman and founder, together with certain of his affiliates, to sell 2,015,830 shares, or approximately 46.5 percent of Carriage's common stock, to Dixie Yarns, Inc. (NASDAQ-NMS: DXYN) for $13.25 per share, or $26.7 million, has been completed.
 The transaction had been subject to the Hart-Scott-Rodino Act waiting period which expired yesterday.
 The company previously reported in June 1992 that Harris' prostate cancer had entered a more serious phase. Carriage also noted that the proceeds of life insurance on Harris' life previously earmarked for the purchase of Harris' shares in the event of his death will now be available for general corporate purposes. The total policies owned by Carriage on the life of Harris had a net face value of $14.4 million and were recorded at a book value of $3.3 million as of Sept. 28, 1992.
 Carriage recently announced an agreement in principle with Dixie Yarns for the acquisition of Carriage by Dixie. The agreement provides that each share of Carriage common stock will be exchanged for $13.25 in value of Dixie common stock, based on the average closing price of Dixie stock for a 20-day trading period just prior to consummation. Carriage and Dixie each reserve the right to reconsider the transaction if the average closing price of Dixie stock is below $10 or above $13. The merger is subject to reaching a definitive agreement, the approval of the directors and shareholders of both companies, and the approval of appropriate governmental authorities.
 Dixie Yarns, a Chattanooga, Tenn.-based company, manufactures and markets yarns and threads as well as processes yarns into knit fabrics. Dixie has annual sales of approximately $500 million and 6,000 employees.
 Carriage, with fiscal 1992 sales of $119 million from continuing operations, is a vertically integrated manufacturer of carpet for specialized markets. The company is a leading supplier to the manufactured housing, recreational vehicle, small boat and exposition trade show industries. Carriage also produces carpet for the contract/residential, hospitality/commercial and home center/needlebond markets.
 Corporate offices and most of Carriage's 800 carpet employees are in Calhoun, Ga. Sales offices and distribution centers are strategically located across the United States. The company's transportation subsidiary operates one of the largest trucking fleets in the carpet industry.
 -0- 10/15/92
 /CONTACT: Steven G. Jones, vice president, Finance, of Carriage Industries, 706-629-9234/
 (CGE DXYN) CO: Carriage Industries, Inc.; Dixie Yarns, Inc. ST: Georgia, Tennessee IN: TEX SU: TNM


EA-CF -- AT015 -- 0705 10/15/92 17:49 EDT
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Publication:PR Newswire
Date:Oct 15, 1992
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