Dan River Inc. (NYSE: DRF), a manufacturer and marketer of textile products for the home, apparel and industry, has agreed to purchase substantially all of the assets and assume certain operating liabilities of WesTek Inc.

The agreement is subject to government approval, lender consent, and certain other contingencies. The WesTek operations will complement those of Dan River's Engineered Products Division. The transaction is expected to close in the third quarter.

WesTek, a privately held corporation, has operations in Thomaston and Hogansville, Georgia and corporate offices in Columbia, South Carolina. The company produces specialty adhesive coated yarns and fabrics for use in automotive and industrial hoses, conveyor belts, tire reinforcement textiles, and other industrial applications. Dan River manufactures industrial yarns and fabrics at its plant in Porterdale, Georgia.

"The inclusion of the manufacturing facilities and skilled workforce of WesTek to Dan River's engineered products business will enhance Dan River's ability to service its customers in the industrial textile markets. WesTek will bring a valuable product line to Dan River with the addition of the tire reinforcement business," said Joseph L. Lanier, Jr., Chairman and CEO of Dan River. "We look forward to welcoming WesTek's associates as an integral part of the Dan River team."

"Becoming part of Dan River makes good sense for WesTek and its employees as well as being good for our customers and suppliers," said William M. Davis, President and Chief Executive Officer of WesTek.

Dan River Inc. is a leading manufacturer and marketer of textile products for the home fashions, apparel fabrics and industrial textile markets. In addition to the specialty engineered textile products referred to above, the Company designs, manufactures and markets a coordinated line of value-added home fashions products consisting of bedroom furnishings such as comforters, sheets, pillowcases, shams, bed skirts, decorative pillows, and draperies for the adult, juvenile, and institutional markets. Dan River also manufactures and markets a broad range of high quality woven cotton and cotton blend fabrics for apparel and believes that it is the leading supplier of men's dress shirting fabrics in North America.

NOTE: This press release contains statements which constitute forward-looking statements under applicable securities laws. There can be no certainty that the described acquisition will take place or that the expected positive effect on Dan River's operating results will occur. Risks generally associated with Dan River's business are detailed in Dan River's current report on Form 8-K which was filed with the Securities and Exchange Commission on July 20, 1998. Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on such statements, which are based on current expectations.