Chipman-Union, Inc.

Plans to Acquire Belmont Hosiery

Mills.
UNION POINT, Ga.--(BUSINESS WIRE)--July 15, 1998-Hosiery Industry Leader Expands Capabilities
Chipman-Union, Inc. (CUI), one of the nation's top hosiery manufacturers, has signed a letter of
intent to acquire Belmont, North Carolina's Belmont Hosiery Mills. The two manufacturing plants
outside Charlotte, North Carolina, a New York sales office and the more than 200 company
employees will become the Belmont Hosiery division of Chipman-Union, Inc. Chipman-Union will
continue to serve the needs of Belmont's existing customers. The deal will be official at the end of
this month.
The acquisition of Belmont Hosiery Mills increases Chipman-Union's capacity by 40%, and expands
the company's core product base of socks more strongly into the production of women's, children's
and infant's goods. To maximize the manufacturing potential, Chipman-Union will launch a threeyear capital improvement plan for the Belmont facilities.
"This is an important step in our planned growth strategy for Chipman-Union. We're committed to
expanding our presence in the industry and saw an opportunity to do that quickly by adding the
Belmont employees and their capabilities," said Alan Brumbaugh, President of Chipman-Union.
"Chipman-Union and Belmont are very complimentary companies, we share many of the same
customers and have similar histories. The strength of this merger is based on expanding our
cumulative abilities and capacities with strong, value-driven cultures."
Chipman-Union, Inc., one of the industry's leading manufacturers, is a privately held company of 800
employees that was founded in 1884. Chipman-Union has growing hosiery lines with all the major
apparel retailers including JCPenney, Kmart, Wal-Mart, Sears, Kohls and Target. For more than 75
years, CUI has been the largest supplier of men's hosiery to JCPenney and was the innovator of the
now-standard six-pair pack. In addition, the company's licenses with adidas, Tretorn and Odor
Eaters are providing increasingly strong penetration in department stores, sport and footwear
specialty chains as well as food and drug outlets.
Founded in 1928, Belmont Hosiery Mills, Inc. began as a manufacturer of men's hosiery. The
company expanded into the children's and ladies markets in the late 1930's and opened their second
facility in North Carolina after World War II. Today, Belmont is a private label and branded hosiery
manufacturer, supplying a broad line of high quality children's, women's and men's goods to national
and regional chains, department stores, specialty shops, catalog marketers and supermarkets.
"Because Chipman-Union, like Belmont, is a family-owned business, this planned joining of our
businesses works well both culturally and strategically," commented Charles Stowe, Chief Executive
Officer of Belmont. "We've had a long and rewarding gerbe history within the hosiery industry and
we want our employees to continue to be part of an industry-leading company. Chipman-Union has
always manufactured excellent products and has an unmatched reputation for customer service. It
was important that we find a partner who shared our same high-quality standards and exceptional
commitment to people."
Combined revenues for the companies will exceed $100 million for 1998. Plans are underway to

further expand plant capacities and employment in both Georgia and North Carolina in 1999.
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