The Dixie Group, Inc. Announces Regular Quarterly Cash Dividend; William N. Fry, IV Elected as New Director

Business Wire, May 4, 1998

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--May 4, 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 May 29, 1998, to stockholders of record on May 15, 1998.

The Company also announced the election, at its Annual Meeting of Shareholders on April 30, 1998, of William N. Fry, IV, as a director to fill the vacancy created by the retirement of James H. Martin, Jr., who did not stand for re-election. Daniel K. Frierson, Chairman and Chief Executive Officer, said, "I want to thank Mr. Martin for the tremendous contributions he has made at Dixie and to welcome Mr. Fry as a new director. Mr. Fry serves as Dixie's Executive Vice President and Chief Operating Officer for our Floorcovering Business. We look forward to his expanded relationship with the Company."

The Dixie Group (Nasdaq/NM:DXYN) manufactures value-added floorcovering, textile and apparel 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 Textile/Apparel Business produces value-added specialty yarns for the apparel and home furnishing markets as Dixie Yarns and knit fabric and finished apparel under Caro-Knit, C-Knit Apparel, and private label brands.

CONTACT: The Dixie Group, Chattanooga

Glenn A. Berry, 423/493-7285