The first quarterly results posted by Delta Apparel Inc(AMEX: DLA)since it became an independent business at the end of June, showed on-target sales of $30.6 million, up 6.9 per cent from $28.7 million in the first fiscal quarter of last year.

The company, a vertically integrated supplier of knit apparel, particularly T-shirts, also benefited from increased output at all of its factory facilities. The gross margin increased to $7.2 million, or 23.6 per cent of sales, compared to $3.7 million, or 12.9 per cent of sales, in the prior year quarter. Operating earnings were $4.6 million, up $2.8 million from $1.8 million in the first fiscal quarter of last year.

"Delta Apparel made considerable progress during the first quarter of fiscal 2001 in accomplishing its short term and long term business objectives," said president and CEO Robert W Humphreys.

"Sales growth was on target, and we exceeded our gross profit expectations for the quarter. This performance was driven by a further improvement in our sales mix."

"We also made progress on the manufacturing front with increased output at all of our facilities compared to the first quarter of last year. During the quarter, we started training sewing operators for our Mexico expansion and are now making first quality garments in our training center."

About Delta Apparel Inc
Delta Apparel Inc is a vertically integrated supplier of knit apparel, particularly T-shirts. The company sells its products as blanks, which are then screen printed or embroidered with designs and logos for sales to consumers. Delta Apparel was spun-off on June 30 2000 as an independent business when Delta Woodside Industries Inc. separated into three businesses. Delta Apparel has operations in four states and two company-operated sewing facilities in Honduras, and employs about 2,200 worldwide.

SELECTED FINANCIAL DATA:
(In thousands, except per share amounts)

Quarter Ended
Sept 30, 2000 Oct 2, 1999
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Net Sales $ 30,649 28,659
Cost of Goods Sold 23,408 24,966
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Gross Margin 7,241 3,693

SG&A 2,660 1,905
Other Expense/(Income) (6) 11
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Operating Income 4,586 1,777

Interest Expense 295 2,213
Taxes 774 23

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Net Income $ 3,518 $ (459)
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Weighted Average Shares
Outstanding (1999 Proforma)
Basic 2,408 2,380
Diluted 2,417 2,380

Net Income per Common Share
(1999 Proforma)
Basic $ 1.46 $ (0.19)
Diluted $ 1.46 $ (0.19)


Sept 30, 2000 Oct 2, 1999
--------------- ---------------
Current Assets
Cash $ 3,899 $ 102
Receivables 18,599 16,268
Inventories 32,016 25,716
Other Assets 1,951 1,323
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Total Current Assets 56,464 43,409

Noncurrent Assets
Property, Plant & Equipment 25,634 29,880
Other Noncurrent Assets 308 197
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Total Noncurrent Assets 25,942 30,077

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Total Assets $ 82,406 $ 73,486
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Current Liabilities
Current Portion of Long-Term
Debt $ 2,000 $ 239
Other Current Liabilities 15,114 109,456
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Total Current Liabilities 17,114 109,695

Noncurrent Liabilities
Long-Term Debt 7,167 30,457
Other Noncurrent Liabilities 696 349
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Total Noncurrent Liabilities 7,863 30,806

Stockholders' Equity/
(Divisional Deficit) 57,429 (67,015)

--------------- ---------------

Total Liabilities and
Stockholders' Equity/
(Divisional Deficit) $ 82,406 $ 73,486
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