Collins & Aikman to Acquire Auto Fabric Operations From Joan Fabrics

    TROY, Mich.--April 18, 2001--Collins & Aikman Corporation announced today that it has signed a letter of intent to acquire the automotive fabric operations of Joan Fabrics (Joan), a leading supplier of bodycloth to the automotive industry, and all of the operating assets in Joan's affiliated yarn dying operation, Western Avenue Dyers (WAD). For fiscal 2000, Joan and WAD had combined EBITDA of approximately $27 million, and total sales -- including non-automotive sales, of approximately $265 million. Consideration is expected to include $100 million in cash and 12,760,000 shares of Collins & Aikman common stock. Completion of the transaction is subject to normal terms and conditions, including negotiation of definitive documentation, and is expected to close within the next several months. The transaction is anticipated to significantly enhance Collins & Aikman's automotive fabric capabilities, which should enable the company to provide its fabric customers with lower costs, while simultaneously enhancing customer service, product design, delivery, scheduling and coordination.
    Upon completion of the transaction, Elkin McCallum, principal owner of Joan Fabrics, will join the Collins & Aikman Board of Directors. McCallum is a skilled and successful veteran of the automotive fabric industry, who brings to the combined companies extensive product knowledge coupled with strong customer and supplier relationships.
    "Similar to our recently announced Becker transaction, the pending acquisition of Joan is another important component in building our position as a Mega Tier 2 supplier," stated Thomas E. Evans, Collins & Aikman's Chairman and Chief Executive Officer. "Combining Joan's automotive operations with Collins & Aikman's will create -- in one integrated company -- a world-class manufacturer of automotive woven and knit fabric, with broad capabilities in fabric styling, development, production and finishing technologies. Very importantly, we envision this combination creating significant efficiencies for our automotive fabric operations, as we join together the "best-of-the-best" in terms of automotive textile people, plants and equipment."
    Evans continued, "Through operational synergies, more efficient new product creation and all the years of automotive fabric experience that Elkin McCallum and his team bring to us, we see the combination of Joan and Collins & Aikman creating significant benefits for all of our global fabric customers -- which is why we're so very excited about this growth opportunity."