Angelica Amends Senior Credit Facility

FOR IMMEDIATE RELEAS
ST. LOUIS , MISSOURI
July 29, 2005

Angelica Amends Senior Credit Facility

ST. LOUIS , Missouri (July 29, 2005) — Angelica Corporation (NYSE:AGL), today announced that it has amended its existing credit facility creating additional borrowing capacity for the Company.

Under the terms of the amended agreement, the credit facility becomes secured and the debt to EBITDA ratio covenant is increased to 4.0, from the current 2.75 limit. The total facility remains unchanged at $150 million, but the revolving line of credit has been increased to $150 million from $100 million and the current $50 million term loan has been repaid using this increased line of credit. Additionally, the Company may request an increase in the amount of the revolver up to $25 million without amending the facility, subject to bank approval under the accordion feature of the agreement. The maturity of the line of credit has been extended to July 2010. LaSalle Bank N.A. remains the lead bank of the bank group consisting of Union Planters, National City Bank, Wells Fargo Bank N.A. and UMB Bank N.A.

Steve O'Hara, CEO of Angelica, said, "After reviewing various financing alternatives, this amended facility proposed by LaSalle Bank, the lead bank in our group, was the most competitive in the marketplace. This loan amendment allows us increased flexibility and borrowing capacity to continue executing our healthcare linen management growth strategy. We are pleased and grateful that our bankers continue to show confidence in this strategy."

Angelica Corporation, traded on the New York Stock Exchange under the symbol AGL, is a leading provider of textile rental and linen management services to the U.S. healthcare market. More information about Angelica is available on its website, www.angelica.com

Forward-Looking Statements

Any forward-looking statements made in this document reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These potential risks and uncertainties include, but are not limited to, competitive and general economic conditions, the ability to retain current customers and to add new customers in competitive market environments, competitive pricing in the marketplace, delays in the shipment of orders, ability to mitigate work disruptions at our plants arising from a union's corporate campaign against the Company, availability of labor at appropriate rates, availability and cost of energy and water supplies, the cost of workers' compensation and healthcare benefits, the ability to attract and retain key personnel, the ability of the Company to recover its seller note and avoid future lease obligations as part of its sale of Life Uniform, the ability of the Company to accomplish its strategy of redirecting its resources to its healthcare linen management business in a timely and financially advantageous manner, unusual or unexpected cash needs for operations or capital transactions, the effectiveness of certain expense reduction initiatives, the ability to obtain financing in required amounts and at appropriate rates and terms, the ability to identify, negotiate, fund, consummate and integrate acquisitions, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission.

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