Collins & Aikman Confirms Strategy for New Business

Outlook for Growth Remains Strong

TROY, Mich., Nov. 6 -- Under the new leadership of Chairman and CEO David Stockman, Collins & Aikman Corporation has evaluated and refined the Company's strategy towards future business. The Company has adopted "a strong new imperative," said Stockman. "We will aggressively pursue sales growth -- but only if the prospective, risk-adjusted investment return meets new, more stringent hurdle rates." In the automotive supply industry, new business is always 2 to 3 years out, but is heavily front-loaded in terms of E&D expense, tooling investment and capital investment.

Stockman continued "Our new approach will permit us to better shepherd our financial resources in the near term while allocating existing assets and future investment spending to the most promising new opportunities available to us. Our recently announced new business wins reflect this revised approach and ensure improved utilization of our existing cash resources and future capital investment."

Consistent with this new growth and investment discipline, the Company has evaluated certain future business awards already in its backlog and concluded that certain programs are not consistent with these higher hurdle rates. A case in point is DaimlerChrysler's D-Segment (mid-size) vehicle, on which Collins & Aikman was awarded the interior trim package last April but which would not produce revenue until mid-2006 at the earliest. Stockman estimated that "the program would require front-end investment of over $50 million plus significant givebacks on current business." Because of the inherent volume risks in the congested mid-size segment, the returns looked less promising than many alternatives the Company is currently pursuing. Therefore, Collins & Aikman has fully accommodated Chrysler's effort to transition the D-Segment to another supplier.

Stockman continued, "In this context let us be very clear. We are in the business of gaining more business but not at any price. Let us also make clear this involves a discreet and specific investment decision. We obviously value our relationship with DaimlerChrysler and remain dedicated to world- class performance on all existing and future work they may award us."

Collins & Aikman is currently launching multiple programs for DaimlerChrysler that are critical for both companies and remains fully committed to support flawless launches in all of these programs. This year, the Company has already launched major interior content on the Chrysler Pacifica and the all-new Dodge Durango. Collins & Aikman also has committed resources at multiple facilities in support of Chrysler's minivan refresh launching in early 2004. Other expected 2004 launches well underway include DaimlerChrysler's next generation full-sized passenger car (LX platform) and the new Dodge Dakota pickup truck.

Stockman concluded, "The Company generally does not comment on specific out-year programs, because we are aggressively targeting new business awards with multi-billion dollar annual volume beyond 2006. In that process, we expect wins and losses, but we are focused on our strategic objective to rebalance our customer mix to better align with current and projected OEM market share trends. We also maintain our confidence, as previously stated publicly, that our back-log of net new business will grow substantially over the next two to four years."

Collins & Aikman Corporation, a Fortune 500 company, is a global leader in cockpit modules and automotive floor and acoustic systems and a leading supplier of instrument panels, automotive fabric, plastic-based trim and convertible top systems. The company's operations span the globe through 15 countries, more than 100 facilities and over 25,000 employees who are committed to achieving total excellence. Collins & Aikman's high-quality products combine superior design, styling and manufacturing capabilities with NVH "quiet" technologies that are among the most effective in the industry. Information about Collins & Aikman is available on the Internet at www.collinsaikman.com .

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to general economic conditions in the markets in which Collins & Aikman operates, fluctuations in the production of vehicles for which the company is a supplier, changes in the popularity of particular car models, labor disputes involving the company or its significant customers, changes in consumer preferences, dependence on significant automotive customers, the level of competition in the automotive supply industry, pricing pressure from automotive customers, the substantial leverage of the company and its subsidiaries, limitations imposed by the company's debt facilities, implementation of the reorganization plan, the outcome of the pending audit committee inquiry, charges made in connection with the integration of operations acquired by the company, the risks associated with conducting business in foreign countries and other risks detailed from time- to-time in the company's Securities and Exchange Commission filings.