Angelica Announces Independent Committee to Address Shareholder Issues

FOR IMMEDIATE RELEASE
ST. LOUIS, MISSOURI
DECEMBER 22, 2005

Angelica Announces Independent Committee to Address Shareholder Issues

ST. LOUIS, Missouri (December 22, 2005) — Angelica Corporation (NYSE:AGL), today announced that its Board of Directors formed a special independent committee for the purpose of addressing issues raised recently by the Company’s largest shareholder, Steel Partners II, L.P. The special committee is comprised solely of independent, outside directors. 

Members of the Board who have been appointed to serve on the special independent committee include Ronald Kruszewski, Chairman, President and Chief Executive Officer of Stifel Financial Corp., who will serve as the committee’s chairman, as well as Kelvin Westbrook, President and Chief Executive Officer of Millennium Digital Media, L.L.C., and Charles Mueller, retired Chairman and Chief Executive Officer of Ameren Corporation.

Charles W. Mueller, Director, commented, “Angelica’s Board of Directors has consistently been guided by the goal of enhancing shareholder value. By forming this special committee of independent directors, the Board is, once again, demonstrating its continued commitment to that goal, as well as the Company’s responsiveness to concerns voiced by our shareholders. “

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, 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 the Company’s initiatives to reduce key operating costs as a percentage of revenues, 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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