HARTWELL INDUSTRIES, INC.  EMERGES FROM CHAPTER 11

Hartwell, Georgia; March 8, 2002 – Hartwell Industries, Inc., (Hartwell) a Delaware corporation and a leading provider of wearables to the promotional products, leisure products, team uniform, military, and resort markets, announced today that the Company has emerged from Chapter 11.

Hartwell Industries (Delaware) acquired the assets of and assumed certain liabilities of the former Hartwell Industries (Florida), Inc.  Included in the purchase were the assets of Hartwell Sports, Inc., Katzenberg Brothers, Inc., Embroidery Services, Inc., Desert Heat, Inc., and Hartwell of North Carolina, Inc.

James H. (Jay) Gully, President and CEO of Hartwell said, “We are happy that we have completed the necessary steps to emerge from Chapter 11.  When we filed on October 31, 2001, we knew with the support of our banks and senior note holders, the commitment to infuse new capital by RSTW, and the guarantee of 100% payment to all of our pre-petition vendors, that all of our significant constituency groups were committed and supportive of the restructuring.  Our ability to complete the asset purchase in slightly over 120 days bears witness to these commitments and to our expectations.”

A consortium of banks, comprised of the original lenders to Hartwell Industries (Florida), Inc. is participating in the new credit facility, which totals $29,300,000.  Rice Partners II L.P., an investment partnership of Rice Sangalis Toole & Wilson (RSTW) of Houston, Texas and a minority equity participant in Hartwell (Florida) has infused $1,250,000 into Hartwell and will own approximately 90% of the voting common stock of the Company.  The remaining voting stock will be owned by Trivest Fund I and other affiliated parties.

With the asset purchase and debt assumption, Hartwell has effectively been able to eliminate over $80 million of debt and other liabilities of the former company.  This will allow the Company to aggressively introduce new products, continue its tradition of shipping within 24 hours of receipt of orders, continue to offer excellent products and pricing, and pursue other internal and external growth opportunities.

Safe Harbor

Certain statements in this press release regarding Hartwell’s long-term success, including its ability to continue conducting its business operations and its intent to achieve future profitability are forward-looking statements that may invoke risks and uncertainties.  Actual results may differ from those implied by such forward-looking statements as a result of various factors.