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EXHIBIT INDEX
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Exhibit Page
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99 Additional Exhibits
99.1 News Release issued by Springs Industries, Inc., on
June 2, 2000. 6
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EXHIBIT 99.1
FOR IMMEDIATE RELEASE June 2, 2000
GRIFFIN, GA--Springs Industries announced today it will phase out
production at its baby apparel plants in Griffin and Jackson, GA, and begin
sourcing the production after the two facilities close during August. Clarence
McMerty, president of Springs' Baby Products Division, said the division will
continue to service its retail customers with a complete product line of infant
apparel, bedding and related accessories, and that customers would not
experience a disruption in service.
"We have consolidated our U.S. production and made other attempts
during the past two years to keep our baby products associates employed at
Jackson and Carver Road Plants," McMerty said. "While these actions were helpful
in the short run, they were not enough to counter the economic realities of our
business. We are competing against imported products with a wider range of
fabrics and more complex constructions than we can produce competitively and
profitably in Georgia."
McMerty said the division will continue to manufacture its baby bedding
products in Gainesville, GA. Baby bedding, such as crib sheets, comforters and
accessories, requires less labor to produce compared to apparel and is being
made competitively in Gainesville.
In an unrelated announcement, Springs Industries will phase out yarn
production for terry towels at its No. 2 Plant in Griffin during August. The
facility's old equipment cannot make yarn competitively compared to new
technology installed recently at the company's Plant No. 5 in Griffin and
Hartwell Yarn Plant in Hartwell, GA. Springs has invested about $26 million in
Griffin and $40 million in Hartwell to modernize and build facilities that
produce towels for Springs' growing bath products business. Towel weaving
operations will continue at Plant No. 2, which will employ about 100 people
after August.
The two announcements affect approximately 65 jobs at Plant No. 2 and
about 390 jobs at the Jackson and Carver Road plants. The company employs about
1,200
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people at its other facilities in Griffin and hopes to place some associates at
those facilities. In addition, Springs will provide severance pay and job
counseling services to employees who do not have job opportunities with the
company, and area employers will be invited into Springs' facilities to assist
associates with securing employment.
"These are great people who have a terrific work ethic and are
committed to producing quality products," said Charles Emory, vice president,
human resources for Springs' operations. "We're going to do everything possible
to employ as many of our associates in our other Springs facilities, where we
currently have as many as 160 openings. Also, we hope to find opportunities for
our associates with other employers who are looking for quality people."
Area employers interested in recruiting Springs associates should
contact Loretta Hays, human resources manager for the Carver Road and Jackson
plants, at 770-412-5618, or Harry Kierbow, human resources manager for terry
manufacturing, at 770-412-5535.
Springs Industries (NYSE: Ticker Symbol SMI) supplies leading retailers
with a complete line of coordinated home fashions designed to simplify home
decorating for every consumer. Our major brands are Wamsutta(R), Springmaid(R),
Graber(R), Bali(R), Nanik(R), and Dundee(R). Springs also markets baby bedding
and apparel products, home sewing fabrics, and bed and bath products for
institutional and hospitality customers. The company operates facilities in 13
U.S. states and owns marketing and distribution subsidiaries in Canada and
Mexico.
WWW.SPRINGS.COM
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