Paragon Announces Manufacturing Operations Will Cease At

Brampton, Ontario Plant / Action Reflects Ongoing Efforts toReduce Costs and Improve Production Efficiency NORCROSS, Ga. (PROTEXT) - Paragon Trade Brands, Inc. (NYSE:PTB) today announced that the Company's Canadian subsidiary,Paragon Trade Brands (Canada) Inc., will cease manufacturinginfant disposable diapers at its Brampton, Ontario facility andanticipates taking a charge to earnings in the second quarter of1999 in connection with costs related to this action. TheBrampton plant currently employs approximately 113 people. Thefacility will curtail manufacturing operations over the next fewweeks while Paragon transitions servicing its Canadian customersto its Harmony, Pennsylvania facility. Thereafter, the Bramptonfacility will operate as a warehouse and distribution facility tocontinue to deliver outstanding service to its Canadiancustomers. Commenting on the cessation of manufacturing operations at theBrampton plant, Chairman and Chief Executive Officer, BobbyAbraham, said, "As a result of our continuing investments in thebusiness, we have increased our productivity and capacity acrossour North American manufacturing system. With this addedcapacity, it is now more economical for Paragon to service ourCanadian customers from our facility in Harmony, Pennsylvania.While our Brampton operation has been a high quality, efficientoperation, it lacks economic scale and is logisticallydisadvantaged to support our U.S. customers. The decision tocease manufacturing operations at Brampton is part of theCompany's ongoing efforts to improve efficiency and reduce costsin our North American infant disposable diaper business. Wesincerely regret the impact of this action on our highly skilledand committed Canadian associates. The Company will make everyeffort to offer them opportunities in our U.S. operations." Paragon Trade Brands is the leading manufacturer of storebrand infant disposable diapers in the United States and Canada.Paragon manufactures a line of premium and economy diapers,training pants, and feminine care and adult incontinenceproducts, which are distributed throughout the United States andCanada, primarily through grocery and food stores, massmerchandisers, warehouse clubs, toy stores and drug stores thatmarket the products under their own store brand names. Paragonhas also established international joint ventures in Mexico,Argentina, Brazil and China for the sale of infant disposablediapers and other absorbent personal care products. Statements made in this press release, other than thoseconcerning historical information, should be consideredforward-looking statements. Such statements are subject tocertain risks and uncertainties that could cause actual resultsto differ materially from those expressed in the Company'sforward-looking statements. Factors which could affect theCompany's financial results, including, but not limited to: theCompany's Chapter 11 filing; increased raw material prices andproduct costs; new product and packaging introductions bycompetitors; increased price and promotion pressure fromcompetitors; Year 2000 compliance issues; and patent litigation,are described in the Company's Annual Report on Form 10-K filedwith the Securities and Exchange Commission. Readers arecautioned not to place undue reliance on the forward-lookingstatements contained herein, which speak only as of the datehereof, and which are made by management pursuant to the "safeharbor" provisions of the Private Securities Litigation ReformAct of 1995. ots Original Text Service: Paragon Trade Brands,Inc. Internet: http://www.newsaktuell.de Contact: Alan J. Cyron,Executive Vice President and Chief Financial Officer of ParagonTrade Brands, Inc., 678-969-5200, or Kurt P. Ross or Guy B.Lawrence of K.P. Ross, Inc., 212-308-3333, or email,kpross1@msn.com , for Paragon Trade Brands, Inc.

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