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PRESS RELEASE

For Information Contact:
Steven Kahan
Regal Fabrics
978-777-6868 phone
978-777-9901 fax

REGAL FABRICS ACQUIRES KRELAN CORP.
PLANS TO EXPAND LINE AND IMPROVE DELIVERY TIMES


Middleton, MA, November 18, 2003 --- Regal Fabrics Inc. is pleased to announce the acquisition of the business operations of Krelan Corp., a high end converter of jacquard upholstery fabrics. Krelan Fabrics will be marketed as a division of Regal Fabrics. All production, design, customer service and distribution will be consolidated with Regal's operations in Massachusetts.

Krelan Fabrics Gallant Rosso"Krelan has a great product line - luxurious soft chenilles, beautiful decorative designs and great colors. By merging the operation with Regal, we can achieve economies of scale that will allow us to give better service from stock while expanding the depth and range of the Krelan line," noted Steve Kahan, president of Regal Fabrics. "With recent mergers and acquisitions in the industry, we see an opportunity to provide a resource for upscale, sophisticated decorative fabrics that represent a good value to customers seeking something special."

The Krelan business activities will be consolidated with Regal Fabrics' operations at their offices and warehouse near Boston, Massachusetts. Krelan General Manager Alan Krigsfeld is relocating to the Boston area and will continue working with Krelan customers. "This is a great step forward for Krelan. I am excited about the chance to merge Krelan's product strength with Regal's operational expertise," noted Krigsfeld.

"We are ready for the exciting task of integrating Krelan and putting the capabilities of Regal Fabrics behind the new division," stated Regal Fabrics founder and CEO Herb Kahan. "We've already reinforced the Krelan sales team added substantially to inventories of best selling items and started working with suppliers to improve lead times. We are continually striving to be among our customers' best suppliers and will apply that philosophy to the Krelan division," he added.

Krelan Fabrics Michelle MocaKrelan will present its new line of jacquard upholstery fabrics in January at Showtime in High Point, North Carolina. The Krelan showroom is on the second floor of the Market Square Textile Tower, just around the corner from the Regal Fabrics showroom. Customers may contact Alan Krigsfeld at 978-777-6868 to make appointments for Showtime.

Regal Fabrics Inc. is a converter of woven jacquard fabrics, primarily for furniture. The company produces original, copyright-protected patterns, manufactured under exclusive agreements with weaving mills, mainly in Europe. Regal focuses on providing its customers FRESH FABRICS designs and qualities that represent a unique alternative to those from the usual sources. The company is known for its award winning customer service, extensive range of themed tapestry designs and its large fabric inventory which means quick customer deliveries.

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