North Carolina
Industrial Commission

MEMORANDUM

TO:         All Interested Parties

FROM:   Chairman Buck Lattimore

DATE:    October 14, 2003

RE:         Cone Mills Corporation

            Cone Mills Corporation filed a voluntary petition for relief under Chapter 11 with the U.S. Bankruptcy Court in Delaware. The Company also announced that it has accepted a letter of intent from WL Ross & Co. to purchase substantially all of the assets of the Company. Cone Mills Corporation is self-insured for workers’ compensation claims in the State of North Carolina.

            Our best current understanding is that Cone Mills Corporation is continuing to process and pay all workers’ compensation claims in the normal course.

If any claimant does not receive benefits to which they are lawfully entitled or should benefits awarded be suspended or terminated for unexplained reasons, please notify the Industrial Commission. Questions or concerns regarding Cone Mills Corporation should be directed to: Stephen T. Gheen, Chief Deputy Commissioner, 919-807-2540 or gheen@ind.commerce.state.nc.us. Due to the volume of inquiries, email communication is requested if possible, though not required.

            The Industrial Commission website (www.comp.state.nc.us) will be updated as needed with additional information.