The Dixie Group, Inc. Declares Regular Quarterly Cash Dividend

Business Wire, August 31, 1998

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Aug. 31, 1998--The Dixie Group, Inc. today announced that the Company's Board of Directors has declared a regular quarterly cash dividend of $0.05 per share, payable on September 25, 1998, to stockholders of record on September 14, 1998.

The Dixie Group (Nasdaq/NM:DXYN) manufactures value-added floorcovering and textile yarn products for specialty markets. Its Floorcovering Business is a leading carpet and rug supplier to the manufactured housing and recreational vehicle markets through Carriage Carpets, to home consumers through major retailers under the Bretlin name, to higher-end residential and commercial customers serviced by Masland, and to the specialty carpet yarn market through Candlewick. Dixie's Specialty Yarn Business produces value-added yarns for the apparel and home furnishing markets as Dixie Yarns.

CONTACT: The Dixie Group, Chattanooga

Glenn A. Berry, 423/493-7285