Angelica Increases Line of Credit to $150 Million

FOR IMMEDIATE RELEASE
ST. LOUIS, MISSOURI

January 28, 2005

Angelica Increases Line of Credit to $150 Million
Completes Acquisition of Two Texas Facilities

ST. LOUIS , Missouri (January 28, 2005) — Angelica Corporation (NYSE:AGL), today announced that it amended its existing $100 million unsecured credit facility to expand its borrowing capacity to $150 million immediately, with an accordion feature that could increase the amount of the facility to $175 million.

Under the terms of the amended agreement, the Company has added a $50 million term loan to its existing $100 million revolving credit line. The term portion of the facility, due in January 2010, will be amortized over 5 years and the revolving line of credit maturity has been extended to January 2010. LaSalle Bank N.A. remains the lead bank and two new lenders, Union Planters and National City Bank, join Wells Fargo Bank N.A. and UMB Bank N.A. in the bank group. In addition, with its accordion feature, the Company may request an increase in the amount of the revolver up to $25 million without amending the facility, subject to bank approval.

Angelica announced also that it has completed the acquisition of two Texas facilities from National Linen Services. The laundry operations and customer contracts of the Dallas and Wichita Falls facilities, including satellite operations in Oklahoma City , OK represent approximately $18 million in annual revenue.

Steve O'Hara, President and CEO of Angelica, said, "We are pleased that our lending partners continue to show confidence in our growth potential with this credit increase. Despite the $55 million we have spent for our latest three acquisitions, representing approximately $66 million in annual revenue, we continue to have the debt capacity to expand our healthcare linen management business through a combination of organic growth and strategic acquisitions."

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, actual charges to the restructuring reserve significantly different from estimated charges, disruption to the Company's operation by union activities, the ability of the Company to sell the Life Uniform segment under financial terms and conditions currently anticipated, the ability of the Company to accomplish its strategy of re-directing 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, the ability to identify, negotiate, fund 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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