Persons who are eligible to participate in the exchange offer should read the
written materials accompanying this letter carefully because they contain
important information about the exchange offer. Decorator has also filed these
written materials with the Securities and Exchange Commission as part of a
tender offer statement. Decorator stockholders and optionholders are able to
obtain these written materials and other documents filed by Decorator with the
Securities and Exchange Commission free of charge from the Securities and
Exchange Commission's website at www.sec.gov.

                                                     March 13, 2002

TO: CERTAIN EMPLOYEES OF DECORATOR INDUSTRIES, INC.
HOLDING INCENTIVE STOCK OPTIONS

         Re: Option Exchange Offer

Dear Employee:
                  The purpose of this letter is to advise you that the
Securities and Exchange Commission ("SEC") has reviewed the terms of our Option
Exchange Offer. The SEC has determined that it is not appropriate for the
Company to require an acknowledgement from tendering option holders that they
have read and understood the documents relating to the Option Exchange Offer. In
particular, the SEC has requested that we revise the Election Form that you are
required to fill out in connection with the tender of your old options in order
to remove any references to your having read and understood the terms of the
offer.

                  Accordingly, we attach a revised Election Form with this
letter. We ask those of you who have already tendered your options with the old
Election Form and those of you intend to tender to please complete and submit
the attached new Election Form. Upon our receipt of the same, we will discard
any previously submitted Election Form and its terms will no longer be
operative.

         Thank you for your cooperation. If you have any questions regarding the
contents of this letter or the enclosed documents, please contact Michael K.
Solomon at 954-436-8909.

                           Very truly yours,

                           DECORATOR INDUSTRIES, INC.

                           ------------------------------------
                           Name: William A. Bassett
                           Title: President, Chief Executive Officer and
                           Chairman of the Board of Directors