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                                                                      EXHIBIT 99

FOR IMMEDIATE RELEASE:

DYERSBURG CORPORATION ANNOUNCES ADOPTION OF SHAREHOLDER RIGHTS PLAN

         CHARLOTTE, NORTH CAROLINA (June 3, 1999) - Dyersburg Corporation
(NYSE:DBG) announced today that its Board of Directors has adopted a Shareholder
Rights Plan. Holders of Dyersburg Common Stock as of June 14, 1999 will receive
preferred stock purchase rights as a dividend at the rate of one Right for each
share of Common Stock. The Rights will expire on June 3, 2009.

         The Shareholder Rights Plan is designed to deter certain types of
unfair takeover tactics and to prevent an acquirer from gaining control of the
Company without offering a fair price to all of the Company's shareholders. The
Plan is not intended to prevent a fully financed and adequate offer for the
Company. The Shareholder Rights Plan was not adopted in response to any specific
attempt to acquire control of the Company and the Company is not aware of any
such effort.

         Each Right will initially entitle its holder to purchase one
one-hundredth of a share of a new Series A Junior Preferred Stock at an exercise
price of $12.00 per Right, subject to adjustment. Because the Rights will not
initially be exercisable and will trade with the Common Stock, separate right
certificates will not be provided to shareholders at this time. With certain
exceptions as set forth in the Shareholder Rights Plan, each Right will become
exercisable only upon a person's or group's acquisition of, or commencement of a
tender or exchange offer for, 15% or more of the Company's Common Stock. Rights
will also become exercisable in the event of certain mergers or asset sales
involving more than 50% of the Company's assets or earning power.

         Upon becoming exercisable, each Right will allow the holder (other than
the person or group whose action has triggered the exercisability of the
Rights), under alternative circumstances, to buy either securities of Dyersburg
Corporation or securities of the acquiring company (depending on the form of the
transaction) having a value of twice the exercise price of the Rights. The
Rights generally are redeemable by the Board of Directors at $0.001 per Right
for a period of ten business days following the time the Rights become
exercisable. The Rights also are generally exchangeable by the Board of
Directors at an exchange ratio of one share of Common Stock per Right at any
time after the Rights have become exercisable and prior to the acquisition by
any person or group, with certain exceptions described in the Shareholder Rights
Plan, of 50% or more of the Company's Common Stock.

         Details of the Shareholder Rights Plan and Rights are summarized in a
letter that will be mailed to all Dyersburg shareholders.

         Dyersburg is one of the largest manufacturers and marketers of fleece,
jersey and stretch knit fabrics that are used principally for activewear,
bodywear, outerwear and various branded sportswear.