Collins & Aikman Plans to Close Premier Tooling Facility

TROY, Mich., Dec. 13, 2005 -- Collins & Aikman Corporation (CKCRQ) announced today plans to close its Premier Tooling operation in Sterling Heights, Michigan by March 31, 2006. The facility currently has approximately 140 employees who fabricate tooling for molded plastic products in support of future programs. The Company intends to complete existing fabrication work at the facility with employment levels expected to balance-out during the first quarter.

"Following careful and in-depth evaluation, we have elected to exit the injection mold tooling fabrication portion of the business, which will alleviate difficult capital requirements on our balance sheet and improve our cash flow," said Frank Macher, Collins & Aikman's President and CEO. "While the rationale supporting this action is compelling, we deeply regret the impact this closing will have on our employees." Macher added, "We are fully prepared to execute this plan with no disruption of service to our customers."

Collins & Aikman will transfer equipment to its facilities in New Hampshire and North Carolina where it will continue to fabricate tooling to support its proprietary manufacturing processes in plastics skins, soft trim and flooring. The Company will utilize existing suppliers to build plastic injection molds, fixtures and gages for future programs.

Company officials met yesterday with employees and customers to announce the planned closure.

Collins & Aikman Corporation is a 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. The Company is headquartered in Troy, Michigan. Additional 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.