Delta Apparel, Inc. signed a letter of intent and expects to acquire substantially all of the net assets of Art Gun Technologies, LLC by Dec. 31, 2009. Through its “virtual art studio”, Art Gun provides shoppers the
ability to design apparel products by choosing different styles, colors
and graphics to create their customized garment. Terms were not disclosed.

In a statement, Delta said Art Gun's unique software application can be fully integrated into any company's e-commerce platform, allowing Art Gun to manage the entire process from web design and integration to digitally printing and shipping the garment.

Robert W. Humphreys, chairman & chief executive officer of Delta Apparel, Inc., commented, “We are excited to acquire what we think is one of the most compelling new ideas to emerge for the retail industry in some time. Art Gun dovetails with our existing operations and provides us with a direct entre into what we believe is a $1 billion customized apparel market. At the same time, Art Gun brings with it exciting technology, expertise in digital printing and a strong management team that we believe provides new growth opportunities for Delta Apparel, Inc.”

Art Gun began as a concept in January 2009. During the following nine months, Billy Koorse, Scott Valancy and Evan Koorse took this idea from concept to reality, launching the first Art Gun “Design a Tee Studio” in October 2009. Art Gun is currently in discussions with other large companies with strong e-commerce platforms for utilization of its software and services.

Koorse, CEO of Art Gun Technologies, LLC, commented, “We believe that Delta shares Art Gun's vision of becoming a market leader in customized apparel through digital printing. We see clear synergies between our companies that should facilitate Art Gun's continued growth and success in the future.”

The closing of the acquisition is subject to customary closing conditions. Art Gun is in its infancy, and the company anticipates the business will not have significant revenue during at least the first twelve months after acquisition. The future impact of the acquisition on the Company's financial results will depend, among other things, on Art Gun's ability to attract and retain additional customers.