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Pillowtex Announces License And Distribution Agreement

Pillowtex Corp., Dallas, announced it has signed a licensing agreement and distribution agreement for Mexico with Kaltex Home, a subsidiary of Grupo Kaltex of Mexico.Under the terms of the agreement, Kaltex will manufacture and distribute certain products in Mexico under Pillowtex brand names including Royal Velvet®, Fieldcrest® and Cannon®. Also, Kaltex will distribute in Mexico certain products manufactured by pillowtex in the United States.Kaltex will continue to distribute U.S.-manufactured non-Pillowtex products in Mexico as well as to distribute Mexican-manufactured Kaltex products and brands in the United States and Mexico.

June 1999