Collins & Aikman European Companies Obtain Group Wide Administration Order

TROY, Mich., July 15 -- Collins & Aikman Corporation announced today that its European companies have obtained a "group wide" Administration order pursuant to the jurisdiction of the English High Court in London. Simon Appell and Alastair Beveridge, amongst others, of Kroll UK have been appointed joint administrators of each of the companies. The companies included in the filing are located in the UK, Austria, Belgium, Czech Republic, Italy, Germany, Luxembourg, Netherlands, Spain and Sweden and have approximately 4,000 employees in 24 facilities. Collins & Aikman's European operations are expected to continue in the normal course of business without interruption while the Administrators assess appropriate options.

Commenting on the Administration, John R. Boken, Chief Restructuring Officer, said "Over the past two months, we have discussed a number of alternatives with all of our constituents, including our major customers, in an effort to fashion a permanent solution to our liquidity and balance sheet issues across Europe. In the absence of a permanent solution acceptable to all parties, it became evident that applying to the English Court for a group wide Administration order would be the best course of action to maximize value for both our European and US creditors." Mr. Boken added, "These actions will not impact our ongoing reorganization efforts in the United States. Furthermore, the Company's operations in Canada, Mexico and Brazil are unaffected."

The consolidated Administration in Europe follows Collins & Aikman's May 17, 2005 Chapter 11 reorganization filing which covered substantially all of its subsidiaries in the United States. Applying for Administration Orders was concluded to be in the best interests of creditors, employees, customers and suppliers. The Administration Orders are expected to protect the businesses while the Administrators review the available options for the companies' operations, which is likely to include going concern sales of some or all of the European businesses.

Mr. Appell, Joint Administrator, commenting upon the appointment, said "Administration is a rescue-oriented procedure and will provide the best framework to consider all the options for the businesses. In conjunction with the Administration, we have arranged financing allowing us to continue Collins & Aikman's European operations in the normal course. Among our key objectives are minimizing disruption and protecting the inherent value in the business for the benefit of creditors and stakeholders."

Additional information regarding the European group wide Administration will be available at http://www.collinsaikmaneurope.com/ , and information regarding the Chapter 11 reorganization is available on the Company's website, http://www.collinsaikman.com/, or by calling the Company's toll-free Reorganization Information Line at 1-866-795-7641 or for international callers +1 310-432-4170.

Collins & Aikman Corporation is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. Headquartered in Troy, Michigan, we have a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. Information about Collins & Aikman is available on the Internet at http://www.collinsaikman.com/.

Cautionary Statement Concerning Forward-Looking Information

The foregoing reflects the Company's views about the accounting investigation, its financial condition, performance and other matters that constitute "forward-looking" statements, as that term is defined by the federal securities laws. You can find many of these statements by looking for words such as "may," "will," "expect," "anticipate," "believe," "estimate," "should," "continue," "predict," "preliminary" and similar words used herein. These forward-looking statements are intended to be subject to the safe harbor protection provided by the federal securities laws. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. Because the statements are subject to risks and uncertainties, actual developments and results may differ materially from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on the statements, which speak only as of the date hereof.

Various factors that may affect actual outcomes and performance and results include, but are not limited to, general economic conditions in the markets in which the Company operates, declines in North American, South American and European automobile and light truck builds; labor costs and strikes at the Company's major customers and at the Company's facilities; fluctuations in the production of vehicles for which we are a supplier; changes in the popularity of particular car models, particular interior trim packages or the loss of programs on particular vehicle models; dependence on significant automotive customers; the level of competition in the automotive supply industry and pricing pressure from automotive customers; risks associated with conducting business in foreign countries; and increases in the price of certain raw materials, including resins and other petroleum-based products. In addition, the following may have a material impact on actual outcomes and performance and results: the results of the pending investigation; the change in leadership at the Company, the Company's ability to maintain access to its receivables facility and other financing arrangements, the Company's ability to otherwise maintain satisfactory relations with its creditors, suppliers, customers and creditors; the Company's ability to maintain current trade credit terms and manage its cash and liquidity, the Company's high leverage and ability to service its debt; and the impact of defaults under its material agreements and debt instruments.

The cautionary statements set forth above should be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on its behalf may issue. The Company does not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.