The Dixie Group Announces Changes to Management Team

The Dixie Group, Inc. (NASDAQ: DXYN) today announced a change in its management structure. Effective August 13, 2012, Vinson Lee Martin will join The Dixie Group as President of Masland Contract. Mr. Martin has over 38 years of experience in both the carpet and textile businesses. Mr. David Hobbs joined The Dixie Group as the Modular Business Manager effective AugustĀ 6, 2012. Mr. Hobbs brings a wealth of knowledge in the operations of manufacturing modular products. Mr. Martin and Mr. Hobbs will be located at the Saraland, Alabama facility.

The Dixie Group (www.thedixiegroup.com) is a leading marketer and manufacturer of carpet and rugs to higher-end residential and commercial customers through the Fabrica International, Masland Carpets, Dixie Home, Masland Contract and Whitespace brands.

Statements in this news release, which relate to the future, are subject to risk factors and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Such factors include the levels of demand for the products produced by the Company. Other factors that could affect the Company's results include, but are not limited to, raw material and transportation costs related to petroleum prices, the cost and availability of capital, and general economic and competitive conditions related to the Company's business. Issues related to the availability and price of energy may adversely affect the Company's operations. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.

Contacts:

The Dixie Group, Inc.
Jon Faulkner, 706-876-5814
Chief Financial Officer
jon.faulkner@dixiegroup.com
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