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Glenoit Consolidating Rug Division

New York — Glenoit Universal Ltd. plans to consolidate its rug division, Glenoit, into its Ex-Cell Home Fashions operations.

As a result, the company is shutting down its Tarboro, N.C., facility by yearend, and moving all rug warehousing and distribution to Ex-Cell's site in Goldsboro, N.C.

“This will create even greater synergies for both Glenoit Universal and its customers by enabling orders for common customers to be consolidated into one shipment,” explained Barry Leonard, president and CEO of Glenoit Universal.

He added that this move is part of the company's original plan to relocate its manufacturing operations to China, where it works with a partner under a strategic alliance.

“For the past year, we have been moving equipment to our Chinese manufacturing partner and this process will continue through 2005,” Leonard said. Most of the equipment from Tarboro is being moved to China.

In a related effort, Glenoit Universal began moving Ex-Cell's manufacturing to China and India in 1995, Leonard said, after the signing of the WTO agreements, “and continues to be well positioned for future growth after quotas were lifted. We are using the same model for Glenoit Rugs … For our customers, this was a seamless transition with Ex-Cell as it has been for Glenoit Rugs for the last year, and will be for Glenoit Rugs for the remainder of 2005.”

The Goldsboro facility will now serve as the warehousing and distribution center for Ex-Cell's product lines — table linens, kitchen textiles, bath coordinates and window treatments — as well as warehousing and distribution of all floor coverings — kitchen and accent rugs and doormats. Leonard said at this site the company will also continue to domestically manufacture a “very small” portion of its kitchen and accent rugs.

The Goldsboro site will also continue to be home to Glenoit Universal's corporate headquarters.

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