P.O. Box A, Hwy 5

Aberdeen, NC 28315


Fax: 910-944-6359


FOR IMMEDIATE RELEASE                    Contact:    Anne Paskoff

                                                                                           (910) 944-6340



Gulistan Carpets, Inc. Announces New Equity Investment and Financing


Aberdeen, North Carolina, August 28, 2003 -- Gulistan Carpet Inc. announced today that Hampton Capital Partners, LLC made an equity investment in the company and provided mezzanine financing to support ongoing operations.  Gulistan also announced that Fleet Financial Corporation is providing a new credit facility consisting of a term loan, a revolver, and a capital expenditure line.


Charles D. Kennedy, President of Gulistan, said, “We are thrilled about the investment Hampton is making in our business and the new more favorable financing that Fleet has extended to Gulistan.  With these two strong financial partners, Gulistan can continue to aggressively continue our limited distribution strategy.  The Gulistan brand will continue to emphasize Stainmaster® and Wear Dated® fibers.  Gulistan will become the leading producer of unique differentiated product.  This new investment and recapitalization guarantees the long term continuity of Gulistan as an independent company.  We have a great team at Gulistan and the best dealers in the world.  Now we have the financial backing to grow aggressively.”


Tom Irwin, Executive Vice President, Chief Operating Officer, added, “What a tremendous and exciting time for all of our employees and the communities where we live and work.  When we see so many North Carolina companies closing plants and people losing jobs, we are proud to be headed in the direction of growth and prosperity.  We expect our future holds job growth – not job losses.


Tony Prestipino, Executive Vice President, Sales & Marketing, added, “I am excited about our new partner.  Over the past few months, Hampton provided support to Gulistan to help us provide the highest levels of service to our customers.  With Hampton’s backing, Gulistan will continue to be the industry leader in bringing new, innovative products to our customers.  I know that our dealers already have seen the impact of this investment, particularly in improved deliveries and service.  This is only the beginning of great things to come.


“Next week we begin the rollout of numerous new Stainmaster® styles.  Ten of the new introductions feature DuPont’s Extra Body II Stainmaster continuous filament nylon in High Value – High Performance textures and friezes in solid berber and multi colorations.  Another introduction will be a heavy, dense cabled berber shag in Natural Spun Tactesse Fiber that is just exquisite in hand and feel.  These introductions could not be more apropos to usher in what will be a fabulous future for our customers and employees.”


Steven L. Griffith, Business Director, Residential Flooring, DuPont Textiles & Interiors, said, “We see this new partnership as great for Gulistan, for DuPont, and for the residential carpet market.  Gulistan has been a long-standing partner of DuPont in both residential and commercial flooring, with superior styling and high quality products.  Gulistan has been at the forefront in using new yarns and new techniques in developing its products.  With these new partners, we are confident that Gulistan will continue its long history of style innovation and dedication to its dealers.”


Founded in 1899, Gulistan is one of the leading floor covering companies in the United States.  Gulistan produces and sells a wide array of residential and commercial carpet styles.  Known for innovative and stylish designs, high quality products, and superior customer service, Gulistan is one of the strongest consumer brands in the floor covering market today.  Gulistan is headquartered in Aberdeen, North Carolina, where it also produces carpet.  It also has manufacturing facilities in Wagram and Turnersburg, North Carolina.  Gulistan employs 650 people in North Carolina and has sales representatives throughout the United States.


Hampton Capital Partners, LLC, is a Virginia-based equity firm, located in Roanoke, Virginia.  Hampton’s investors include Ronile, Inc., a Rocky Mount, Virginia based supplier of dyed yarns to the floor covering industry and the owner of Bacova Guild, Ltd., a leading supplier of rugs, mats and bath products.


For more information, please call Anne Paskoff at (910) 944-6340.


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