Delta Apparel today reported that Institutional Shareholder Services (ISS), the US's leading independent proxy advisory firm, has recommended that its subscribers vote for the re-election of Delta Apparel's director nominees and against the slate of nominees proposed by Bettis Rainsford at its November 7, 2000 annual meeting of shareholders.

In its analysis, ISS said: "The recent announcement of Delta Apparel's strong results for the quarter ended Sept. 30, 2000, rebuts any claim that the spun-off company is unable or unlikely to compete successfully in the industry.

"Providing further support to this position is the market's enthusiastic response to Delta Apparel's first quarter results; on the day of the numbers' release, the company's stock price closed at $16.25 per share, up 28.7 per cent from the day before. The company's stock price is now 54 per cent higher than its average trading price since the spin-off. In short, Delta Apparel's future looks bright, and there appears to be little reason, from a financial perspective, to endorse a potentially disruptive changeover in the majority of the board."

ISS continued: "We conclude that current circumstances do not warrant the drastic action of removing a majority of Delta Apparel's current board in favour of a largely untried dissident group with limited experience in the apparel industry. In particular, the company's strong performance and improving stock price militate against election of the dissident nominees (such performance is particularly compelling given the company's short operating history as an independent company)."

In addition, ISS also recommended that its subscribers vote against Rainsford's proposal to limit the amount of employee bonuses: "While we note that the total cash compensation paid to Delta Apparel's officers appears to be somewhat higher than that paid to the company's competitors, we recognise that the company's performance over the past year appears to have warranted rewarding management."

About ISS
Institutional Shareholder Services is an independent advisor to more than 500 institutional shareholders on corporate governance and proxy voting matters, including proxy contests, management and shareholder resolutions, and other shareholder-related issues.