FOR IMMEDIATE RELEASE

      EMPIRE OF CAROLINA ANNOUNCES PROPOSED SALE OF THREE SUBSIDIARIES

DELRAY BEACH, FL; JANUARY 9, 2001 - EMPIRE OF CAROLINA, INC. (AMEX:EMP)
announced today that it has entered into an agreement to sell all of the
outstanding stock of three of its non-debtor subsidiaries, Dorson Sports, Inc.,
Apple Golf Shoes, Inc. and Apple Sports, Inc., for a purchase price totaling
approximately $8 million in cash. In connection with the sale, the company will
assign to the purchasers all rights under an executory license agreement with
Brunswick Bicycles for the use of the Mongoose(R)trademark and under the license
agreement with Wilson Sporting Goods Co. for the use of the Wilson trademark.
The purchasers will assume all liabilities of the three subsidiaries. The
purchasers are Dorson Sports Acquisition, Inc., Apple Shoes Acquisition, Inc.
and Apple Sports Acquisition, Inc. Timothy Moran, former CEO of Empire, is a
principal of the purchasers.

The sale has been preliminarily approved by the U.S. Bankruptcy Court contingent
upon receipt of higher bids. The Court approved a $150,000 break up fee to be
paid to the purchasers in the event the purchasers are not the highest bidders
for the subsidiaries' stock and have paid a down payment to the company as
required under the sale agreement. The Court has set a final sale hearing for
January 17, 2001, at which time, if no higher bids are received, the sale will
be finally approved.

Empire of Carolina, Inc. which designs, develops, manufactures and markets a
broad range of consumer products including children's toys and golf accessories,
and its subsidiary, Empire Industries, Inc., filed for reorganization under
Chapter 11 on November 17, 2000 and has continued operations on a
debtor-in-possession basis.

This release contains certain forward-looking statements and information that
are based on management's beliefs, as well as assumptions made by and
information currently available to management, including management's plans and
objectives. Such statements are subject to various risks and uncertainties. The
Company's liquidity, capital resources, and results of operations may be
affected from time to time by a number of factors and risks, including, but not
limited to, the factors described in the Company's filings with the Securities
and Exchange Commission; the ability of the Company to continue operations under
debtor-in-possession financing; operate successfully under a Chapter 11
proceeding; obtain shipments and negotiate terms with vendors and service
providers for current orders; fund and execute a new operating plan for the
Company; attract and retain key executives and associates; meet competitive
pressures which may affect the nature and viability of the Company's business
strategy; generate cash flow; attract and retain customers; and manage its
business notwithstanding potential adverse publicity. Certain of these as well
as other risks and uncertainties are stated in more detail in the Company's
Annual Report on Form 10-K. The Company undertakes no obligation to update any
such factors or to publicly announce the result of any revisions to any of the
forward-looking statements contained herein to reflect future events or
developments.

CONTACT: Tom MacDougall, CFO of Empire of Carolina, Inc., 631-585-5400,

Or e-mail, tmacdougall@applesports.com