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PORTERVILLE CARPET PLANT REOPENS

The Dixie Group Announces Lease of Royalty Carpet Mills Yarn Facility

| Source: The Dixie Group, Inc.

Screen Shot 2017-08-08 at 10.10.19 AMDALTON, Ga., July 14, 2017 (GLOBE NEWSWIRE) — The Dixie Group (NASDAQ:DXYN) is pleased to announce that it has purchased all of the yarn manufacturing assets of the former Royalty Carpet Mills Porterville, California yarn plant. Dixie will lease the Porterville building through a long term arrangement and will begin hiring former associates to manage and operate the yarn plant within the next two weeks.

The output from this yarn plant will allow The Dixie Group to better service our West Coast customers and provide yarn capacity for future growth. Production is expected to begin the week of July 31, 2017. Some 64 workers are on the job.

Royalty Carpet closed all their plants in California in June.

In their latest financial statement, The Dixie Group said “in June Royalty Carpet Mills, a primarily west coast supplier of residential carpet, chose to cease operations. We took advantage of this opportunity to increase our presence by placing additional retail displays and product lines with select retailers across our three residential brands.In addition, with the recognition that the industry is tight with respect to yarn manufacturing due to higher face weights and tighter twist construction, we purchased the operating machinery of Royalty’s Porterville carpet yarn manufacturing operation. We are starting production in Porterville at the beginning of August and will shift most our west coast yarn demand to this facility. This also relieves pressure on our Roanoke yarn manufacturing facility where it simplifies the product mix and opens up capacity for growth.”

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