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it’s about a new beginning. 1999 ANNUAL REPORT

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it’s about a new beginning.

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1100 South Watkins StreetChattanooga, Tennessee 37404www.thedixiegroup.com

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Printed on Recycled Paper

T H E D I X I E G R O U P, I N C .

The Dixie Group manufactures and markets floorcovering products to select market segments.

Its brand names are well recognized for their leadership in product styling, marketing and

customer service. Dixie is a leading carpet and rug supplier to the factory-built housing and

recreational vehicle markets through Carriage Carpets, to consumers through major retailers

under the Bretlin, Globaltex, and Alliance Mills brands, to high-end residential and commercial

customers serviced by Masland Carpets, and to the specialty carpet yarn market through

Candlewick Yarns.

M A S L A N D C A R P E T S / M A S L A N D C O N T R A C T

Making fine carpets since 1866, Masland continues to enhance its reputation as a preeminent

manufacturer of design-driven specialty carpets and rugs for the residential and commercial mar-

ketplace. Its high-style products are marketed through interior designers, specifiers and

specialty floorcovering showrooms.

B R E T L I N / G L O B A L T E X

Bretlin manufactures residential indoor/outdoor needlebond carpet and runners, utility and

decorative mats and commercial/industrial needlebond carpet. Its Globaltex brand produces

residential tufted products. Both these brands market their products to home centers, mass

merchants, floorcovering buying groups/co-ops, distributors and independent floorcovering

retailers. Bretlin and Globaltex have earned an industry reputation for relentless customer focus

and speed of delivery.

C A R R I A G E C A R P E T S

Carriage manufactures tufted broadloom carpets with innovative styling for customers in the

factory-built housing, recreational vehicle and exposition trade show industries. Carriage is

known for its ability to provide its customers with floorcovering solutions and outstanding service.

A L L I A N C E M I L L S

Alliance Mills is targeting floorcovering specialty retailers with a value-added carpet program

delivered and serviced by selected distributors who are full partners in this new distribution

approach.

C A N D L E W I C K Y A R N S

Candlewick is one of the nation’s largest manufacturers of high-end quality specialty yarns for res-

idential and commercial carpet, bath and decorative accent rugs and automotive floorcovering.

The company produces a complex variety of filament and spun yarns. It continues to expand its

filament yarn extrusion capabilities. Much of its production goes into the making of Dixie

Group products.

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it’s about style.Masland Carpets has been crafting

distinctive floorcoverings since

1866. The Company’s style, design

and color capabilities have long

been attractive to interior design

professionals. Masland is now

reaching affluent homeowners by

offering merchandising and prod-

ucts in premiere floorcovering and

home furnishing showrooms.

This retail growth strategy has

increased the Company’s market

share in this segment as well as

formed new partnerships for sales

of additional Company products

such as stylish rugs.

Masland began the year by intro-

ducing its “Threads Collection”

which offers six very distinct prod-

ucts that received high praise at

“Surfaces 2000” floorcovering show.

This is the largest residential product

collection Masland has ever offered,

and we expect to attract consumers

who want their floors to be as fash-

ionable as the rest of their homes.

High-Style Residential

Masland Carpets

T H E D I X I E G R O U P 1 9 9 9 A N N U A L R E P O R T

Carpets & Rugs since 1866

M A S L A N D . L IK E Y O U , L IK E N O O T H E R.

GO A G A I N S T T H E grain .

T H R E A D S C O L L E C T IO N

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Our past. Our presence.

130 years of dedication, innovation, and creative integrity.

An enduring legacy of craftsmanship, style, and quality.

888.633.4770 maslandcontract.com

integrity

craft

accomplishment

Expedition Group

solutions.

Specified Contract

Masland Contract

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Masland’s ability to design and pro-

duce striking products appealing to

the most highly regarded specifiers

in the commercial community

explains why Masland’s contract

sales increased when industry sales

in this segment were down.

The architectural and design com-

munities have learned that

Masland’s products and services

offer them solutions for their cus-

tomers’ applications as well as

trend-setting styling, remarkable per-

formance and exceptional quality.

You can discover Masland’s

Contract products in the most pres-

tigious corporate offices, commer-

cial buildings, and hospitality estab-

lishments in the world. These

establishments put a premium on

elegance and performance. They

require a product that promotes

their own identity and style and

portrays an image they wish to

communicate to their customers.

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it’s about

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commitment.

Factory-Built Housing/Recreational Vehicles

Carriage Carpets

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it’s about

Carriage Carpets has been a leader

in the factory-built housing market

for over 30 years. We earn our lead-

ership position by focusing on

delivering exceptional products and

services to our customers. This is

no small task. The factory-built

housing industry utilizes an assem-

bly line process that leaves no room

for deviation and demands the best

value carpets made.

The Company’s customer service

department works in teams

dedicated to specific customers.

This team approach ensures quick

solutions and timely service. Dixie’s

company fleet of nearly 100 trucks

and safe, professional drivers, deliver

products to provide critical “just-in-

time” delivery.

In addition, Carriage customers

include the recreational vehicle and

trade show industries where service

and specialized products are para-

mount.

Factory-built housing, recreational

vehicles and trade shows are not

just market segments to Carriage,

they are the reasons Carriage exists.

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innovation.

The home center and mass mer-

chants market continues to be one

of tremendous growth for The

Dixie Group. Bretlin, which serves

as the umbrella company for

Bretlin Needlebond, Globaltex

Carpets and Tribune Carpets, offers

more diverse, innovative product

lines than any other company in

Dixie. This is one of the keys to

Bretlin’s success in home centers

and mass merchants.

Bretlin has become the leading

supplier in the domestic needle-

bond market. Its products include

indoor/outdoor carpet for pool

areas, decks, patios; utility and dec-

orative mats; runners; and do-it-

yourself carpet tiles for dens, play-

rooms, and other applications.

The year’s merger with Globaltex

dramatically added to Bretlin’s abili-

ty to compete in the tufted carpet

business at home centers/mass mer-

chants. The merger enabled us to

become a full product line supplier

by packaging Globaltex’s broad-

loom residential carpets with

Bretlin’s diverse product line.

Home Centers/Mass Merchants

Bretlin

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it’s about 11T H E D I X I E G R O U P 1 9 9 9 A N N U A L R E P O R T

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partnerships.While other carpet companies are

competing with independent floor-

covering distributors, we are

enhancing each other’s skills to

bring value to customers. The

Company created Alliance Mills

after careful planning and research

with floorcovering distributors

nationwide.

Alliance is targeting floorcovering

specialty retailers with a value-

added carpet program delivered and

serviced by selected distributors

who are full partners in the new

program. Alliance offers distribu-

tors a complete carpet program that

includes the ColorFirstTM and

Candlewick BerbersTM collections.

The program also includes indoor/

outdoor carpet and synthetic carpet

pad.

Alliance Mills, as the name implies,

is creating an alliance between the

mill, floorcovering distributors and

specialty floorcovering retailers.

Floorcovering Distributors:

Alliance Mills

Bretlin services several technical and

original equipment manufacturing

markets with a range of non-woven

fabrics designed for custom end use.

These products include acoustical

wall coverings, headliners, commercial

matting fabric as well as an array of

specialized fabrics for other customers

requiring tailored solutions. In addi-

tion, Bretlin recycles raw material

waste from all of Dixie’s companies

into synthetic carpet pad.

Specialty Fabrics

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it’s about

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quality.

Candlewick Yarns has a long-stand-

ing reputation for quality and inno-

vation. It continues to increase its

capacity and product offerings to

support Dixie’s growth and its abili-

ty to offer differentiated products.

The Company continues to sup-

port important external customers

who make broadloom carpet, bath

and decorative rugs and automotive

floorcovering.

Candlewick’s big story this year is

the start-up of its extrusion opera-

tion that is as flexible and state of

the art as any in the industry.

Candlewick is going through a dra-

matic expansion and facilities

realignment that will give Dixie

much more yarn capacity with

lower costs. Candlewick’s associates

have performed admirably through-

out this transformation, and Dixie’s

bottom line will reflect it as the

year progresses.

Specialty Yarns

Candlewick Yarns

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it’s about