Anthony T. Williams, President and Chief Operating Officer, stated, "The DIP financing facility will be a significant source of liquidity for Pillowtex. It will contribute to our ability to operate in the normal course of business during the Chapter 11 case and should provide a measure of assurance to our employees, customers and vendors. We are grateful for the dedication of our employees and the continued support of our lending group, customers and vendors."

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Such risks and uncertainties may be attributable to the following factors among others: the Company's ability to propose and obtain confirmation of a plan of reorganization acceptable to creditors and other parties of interest; restrictions imposed by the terms of the DIP financing facility; the price and availability of raw materials; general retail industry conditions; and the reliance on certain key customers. These and other such factors are discussed in greater detail under the caption "Risk Factors" in Pillowtex's most recent Form 10-K and the caption "Cautionary Statement Regarding Forward Looking Statements" in Pillowtex's most recent Form 10-Q.

Pillowtex Corporation, with annual sales in excess of $1.4 billion, manufactures and markets home furnishings for the bedroom and bathroom under such industry leading brand names as ROYAL VELVETÒ , CANNONÒ , FIELDCRESTÒ , CHARISMAÒ , TOUCH of CLASSÒ , ROYAL FAMILYÒ and ROYAL VELVET BIG and SOFTÒ . Pillowtex Corporation operates a network of manufacturing and distribution facilities in the U.S. and Canada with approximately 13,000 employees.

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