Delta Apparel, Inc. expects net sales for the second quarter of fiscal 2005 to be approximately $49 million, an increase of approximately 8% from the prior year’s second quarter of $45.6 million. Net income is expected to be in the range of $1.0 to $1.2 million, or 25 cents to 28 cents per diluted share compared to a net loss of $0.1 million, or (2 cents) per diluted share in the prior year’s second quarter. Based on these expected results for the second quarter ended January 1, 2005, the Company’s trailing twelve months net income is estimated to be in the range of $2.76 to $2.79 per diluted share.

On January 5, 2005, Delta Apparel completed the sale of its yarn manufacturing plant in Edgefield, South Carolina to Parkdale America, LLC for $10 million. This accomplishes the Company’s long-term yarn strategy of obtaining high quality, low cost yarn while reducing its working capital investment and eliminating the need for future capital expenditures in yarn manufacturing. The sale of the Edgefield Plant is expected to result in a financial gain of approximately $3.5 million, or $0.51 per diluted share. This gain will be recorded in the fiscal quarter ending April 2, 2005. In addition, Delta Apparel expects that the sale of the facility will allow it to lower its working capital by approximately $4.0 million.