For the first six months of fiscal 2004, income from continuing operations was $5.46 million, or 43 cents per diluted share, compared with income from continuing operations of $2.77 million, or 24 cents per diluted share, for the first half of 2003. Sales for the first six months of 2004 were $135.22 million, up 22 percent from sales of $110.74 million in the prior-year period.

"Our 2004 results significantly improved due to strong revenue growth, lower manufacturing costs and reduced interest expense," said Daniel K. Frierson, chairman and CEO. "The increase in revenues was driven by sales of our residential carpet products, which reflected year-over-year growth of 28 percent and 30 percent, respectively, for the second quarter and first six months of 2004.

"Our commercial carpet sales rose over 8 percent for the second quarter and first six months of 2004. Half of our total growth came from our Dixie Home initiative and the other half occurred at Fabrica and Masland," he continued. "Our new Dixie Home business continued to be robust, with second quarter sales up 38 percent from the first-quarter levels.

"While the infrastructure and start-up costs of this growth initiative have reduced our bottom line results, profitability of the line continues to improve. We expect that Dixie Home will drive sales growth and enhance our future profitability, and are optimistic that the brand will be a positive contributor to our results by year-end 2004."