Angelica shareholders continue to take company to task for poor performance

By Lisa Kerner

Charlotte, N.C., July 9 - Angelica Corp. shareholders led by Pirate Capital LLC reiterated disappointment with the company's "weak operating results" and "anemic performance" in a letter to the board on July 9.

The letter, signed by Thomas R. Hudson, Jr., was included as part of a schedule 13D filing with the Securities and Exchange Commission.

"As we made clear in our July 2, 2007 letter to the board, we believe it is in both the shareholders' and the company's interest for management to keenly focus on following the most optimal strategy to unlock value for shareholders. We want to make clear that we view Angelica's management team to be solely responsible for the company's substandard operating results over recent years (2003 - present), which we believe to have been a direct contributor to Angelica's stock price underperformance," the letter stated.

Pirate owns close to 10% of Angelica's outstanding shares, compared to executive officers and directors who beneficially own just over 260,000 shares, plus options on just over 440,000 shares.

"Clearly, based on our ownership, we believe that we are more closely aligned with shareholder interests than Angelica's management," the investors stated.

The investors plan to closely follow the company's operating results and "look forward with anticipation to management's pronouncement of strategies that will further shareholder value."

The reporting persons beneficially own 935,147 shares, or 9.8%, of the Chesterfield, Mo., textile rental and linen management company's outstanding shares.

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