Exhibit 99.1

FOR IMMEDIATE RELEASE


For:        Ithaca Industries, Inc.



   ITHACA INDUSTRIES IMPLEMENTS RESTRUCTURING THROUGH
      PRE-PACKAGED PLAN OF REORGANIZATION

______________________________________________________________________________

  WILKESBORO, NORTH CAROLINA, OCTOBER 8, 1996 -- Ithaca Industries, Inc.
announced today that it has received the required acceptance of its 
prepackaged plan of reorganization from its noteholders and bank lenders and 
that it has filed the plan for court approval in Delaware.  The reorganization 
plan will give holders of Ithaca's 11.125% Senior Subordinated Notes 100% of
the outstanding common stock of the Company and provide for a restructuring of 
Ithaca's bank credit agreement.  The Company does not anticipate any difficulty 
in completing the plan.

Under the terms of the plan, the claims of the Company's trade creditors will 
be unimpaired and will be paid in full.  The company also said that employee
wages and benefits will continue to be paid as usual.

"We are pleased to have received such a high level of support from our 
noteholders and bank group," said Jim D. Waller, Ithaca's Chairman and Chief
Executive Officer.  "By implementing our restructuring through a prepackaged
reorganization, we will be able to complete our restructuring quickly and
efficiently and continue meeting our commitments to our customers, vendors
and employees without interruption."

"This restructuring will eliminate over fifty percent of Ithaca's debt and 
result in a significantly improved balance sheet, allowing us to take
advantage of the increased operational efficiencies that we have already
achieved."

Ithaca Industries, Inc. is a leading designer, marketer and manufacturer of
private label underwear, hosiery and T-shirts.