<PAGE>

==============================================================================
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                                  FORM 10-Q

                 QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

           For The Quarter Ended                   Commission File
                May 1, 2004                         Number 1-5674


                            ANGELICA CORPORATION
           (Exact name of Registrant as specified in its charter)


                MISSOURI                               43-0905260
     (State or other jurisdiction of      (I.R.S. Employer Identification No.)
     incorporation or organization)


        424 South Woods Mill Road
         CHESTERFIELD, MISSOURI                           63017
(Address of principal executive offices)               (Zip Code)



                               (314) 854-3800
            (Registrant's telephone number, including area code)


Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Rule 12b-2 of the Securities Exchange Act of 1934).  Yes X   No
                                                                   ---    ---

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.                  Yes  X   No
                                                                    ---     ---

The number of shares outstanding of Registrant's Common Stock, par value
$1.00 per share, at June 1, 2004 was 8,958,377 shares.

==============================================================================


<PAGE>
<PAGE>


                    ANGELICA CORPORATION AND SUBSIDIARIES

                                  INDEX TO

                   MAY 1, 2004 FORM 10-Q QUARTERLY REPORT






                                                                   Page Number
                                                                   -----------
                                                                    Reference
                                                                    ---------

PART I.   FINANCIAL INFORMATION:

  Item 1.  Condensed Financial Statements:

     Consolidated Statements of Income - First Quarter ended
      May 1, 2004 and April 26, 2003 (Unaudited)                        2

     Consolidated Balance Sheets - May 1, 2004
      and January 31, 2004 (Unaudited)                                  3

     Consolidated Statements of Cash Flows - First Quarter
      ended May 1, 2004 and April 26, 2003 (Unaudited)                  4

     Notes to Unaudited Consolidated Financial Statements              5-10

  Item 2.  Management's Discussion and Analysis of
     Financial Condition and Results of Operations                    11-14

  Item 3.  Quantitative and Qualitative Disclosures
     About Market Risk                                                 15

  Item 4.  Controls and Procedures                                    15-16

PART II.  OTHER INFORMATION:

  Item 6.  Exhibits and Reports on Form 8-K                            17

  Signatures                                                           18

  Exhibit Index                                                        19



<PAGE>
<PAGE>

                       PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED FINANCIAL STATEMENTS

<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
Angelica Corporation and Subsidiaries
Unaudited (Dollars in thousands, except per share amounts)

<CAPTION>
                                                                First Quarter Ended
                                                          -------------------------------
                                                          May 1, 2004      April 26, 2003
                                                          -----------      --------------
<S>                                                        <C>                <C>
CONTINUING OPERATIONS:
Textile service revenues                                   $ 77,730           $ 71,383
Cost of textile services                                    (65,563)           (57,795)
                                                           --------           --------
  Gross profit                                               12,167             13,588
Selling, general and administrative expenses                (10,180)           (10,009)
Other operating expense, net                                   (254)               (47)
                                                           --------           --------
  Income from operations                                      1,733              3,532
Interest expense                                               (280)              (225)
Non-operating income, net (Note 4)                            2,100                 37
                                                           --------           --------
  Income from continuing operations before taxes              3,553              3,344
Provision for income taxes (Note 5)                          (1,030)            (1,087)
                                                           --------           --------
Income from continuing operations                             2,523              2,257
                                                           --------           --------

DISCONTINUED OPERATIONS (NOTE 6):
Income from operations of discontinued segment,
 net of tax                                                     672                 83
Loss on disposal of discontinued segment,
 net of tax                                                  (3,064)                 -
                                                           --------           --------
(Loss) income from discontinued operations                   (2,392)                83
                                                           --------           --------
Net income                                                 $    131           $  2,340
                                                           ========           ========

BASIC EARNINGS PER SHARE (NOTE 7):
  Income from continuing operations                        $   0.28           $   0.26
  (Loss) income from discontinued operations                  (0.27)              0.01
                                                           --------           --------
Net income                                                 $   0.01           $   0.27
                                                           ========           ========

DILUTED EARNINGS PER SHARE (NOTE 7):
  Income from continuing operations                        $   0.27           $   0.25
  (Loss) income from discontinued operations                  (0.26)              0.01
                                                           --------           --------
Net income                                                 $   0.01           $   0.26
                                                           ========           ========


The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>

                                     2


<PAGE>
<PAGE>

<TABLE>
CONSOLIDATED BALANCE SHEETS
Angelica Corporation and Subsidiaries
Unaudited (Dollars in thousands)

<CAPTION>
                                                                    May 1,               January 31,
                                                                     2004                   2004
                                                                   --------              -----------
<S>                                                                <C>                    <C>
ASSETS
------
Current Assets:
  Cash and short-term investments                                  $    893               $  2,188
  Receivables, less reserves of $896 and $843                        38,208                 36,978
  Inventories                                                           241                    209
  Linens in service                                                  36,362                 35,255
  Prepaid expenses and other current assets                           3,747                  4,513
  Deferred income taxes                                               8,105                  5,036
  Assets of discontinued segment held for sale (Note 6)              21,504                 24,498
                                                                   --------               --------
    Total Current Assets                                            109,060                108,677
                                                                   --------               --------

Property and Equipment                                              186,296                176,719
Less -- reserve for depreciation                                     93,814                 94,467
                                                                   --------               --------
    Total Property and Equipment                                     92,482                 82,252
                                                                   --------               --------
Other:
  Goodwill (Note 8)                                                   9,626                  9,610
  Other acquired assets (Note 8)                                      3,659                  3,768
  Cash surrender value of life insurance                             29,960                 30,194
  Miscellaneous                                                       1,412                  1,280
                                                                   --------               --------
    Total Other Assets                                               44,657                 44,852
                                                                   --------               --------
Total Assets                                                       $246,199               $235,781
                                                                   ========               ========

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current Liabilities:
  Current maturities of long-term debt                             $      3               $      3
  Accounts payable                                                   17,642                 18,343
  Accrued wages and other compensation                                4,754                  5,092
  Other accrued liabilities                                          24,896                 21,729
  Liabilities of discontinued segment held for sale (Note 6)          7,133                  7,783
                                                                   --------               --------
    Total Current Liabilities                                        54,428                 52,950
                                                                   --------               --------
Long-Term Debt, less current maturities (Note 9)                     26,742                 19,542
Other Long-Term Obligations                                          18,986                 16,629

Shareholders' Equity:
  Common Stock, $1 par value, authorized 20,000,000
   shares, issued: 9,471,538                                          9,472                  9,472
  Capital surplus                                                     4,748                  4,748
  Retained earnings                                                 141,727                142,341
  Accumulated other comprehensive loss                                 (977)                (1,062)
  Unamortized restricted stock                                       (1,078)                  (210)
  Common Stock in treasury, at cost: 540,550 and 587,141             (7,849)                (8,629)
                                                                   --------               --------
    Total Shareholders' Equity                                      146,043                146,660
                                                                   --------               --------
Total Liabilities and Shareholders' Equity                         $246,199               $235,781
                                                                   ========               ========

The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>

                                     3


<PAGE>
<PAGE>

<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
Angelica Corporation and Subsidiaries
Unaudited (Dollars in thousands)

<CAPTION>
                                                                             First Quarter Ended
                                                                         -----------------------------
                                                                         May 1, 2004    April 26, 2003
                                                                         -----------    --------------

<S>                                                                       <C>              <C>
Cash Flows from Operating Activities:
  Income from continuing operations                                       $  2,523         $  2,257
  Non-cash items included in income from continuing operations:
    Depreciation                                                             2,711            2,380
    Amortization                                                               355              125
    Cash surrender value of life insurance                                    (791)            (267)
  Change in working capital components of continuing
   operations, net of businesses acquired/disposed of                          775           (5,911)
  Other, net                                                                   (55)             138
                                                                          --------         --------
Net cash provided by (used in) operating activities of
 continuing operations                                                       5,518           (1,278)
                                                                          --------         --------

Cash Flows from Investing Activities:
  Expenditures for property and equipment, net                              (3,199)          (4,607)
  Cost of businesses acquired                                               (6,988)             (48)
  Life insurance premiums paid                                                (163)            (147)
                                                                          --------         --------
Net cash used in investing activities of continuing operations             (10,350)          (4,802)
                                                                          --------         --------

Cash Flows from Financing Activities:
  Repayments of long-term revolving debt                                   (23,000)         (24,814)
  Borrowings of long-term revolving debt                                    30,200           18,000
  Dividends paid                                                              (983)            (880)
  Treasury stock reissued                                                       22              546
                                                                          --------         --------
Net cash provided by (used in) financing activities of
 continuing operations                                                       6,239           (7,148)
                                                                          --------         --------

Net cash (used in) provided by discontinued operations (Note 6)             (2,702)           2,643
                                                                          --------         --------

Net decrease in cash and short-term investments                             (1,295)         (10,585)
Balance at beginning of year                                                 2,188           17,414
                                                                          --------         --------
Balance at end of period                                                  $    893         $  6,829
                                                                          ========         ========

Supplemental cash flow information:
  Income taxes paid                                                       $     96         $     70
  Interest paid                                                           $    223         $    168
</TABLE>

During the first quarter ended May 1, 2004, the Company acquired
selected assets and customer contracts of various laundry
facilities for $10,611,000. The cost of businesses acquired
reflects the cash paid for these acquisitions, with the remaining
balance of $3,623,000 due in one year.

The accompanying notes are an integral part of the consolidated
financial statements.

                                     4

<PAGE>
<PAGE>

            NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                       FIRST QUARTER ENDED MAY 1, 2004
                             AND APRIL 26, 2003




Note 1.  Basis of Presentation
------------------------------

       The accompanying condensed consolidated financial statements are
       unaudited, and these consolidated statements should be read in
       conjunction with the Company's audited consolidated financial
       statements and notes thereto contained in the Company's Annual Report
       on Form 10-K for the fiscal year ended January 31, 2004 (fiscal
       2003). It is Management's opinion that all adjustments, consisting
       only of normal recurring adjustments, necessary for a fair statement
       of the results during the interim period have been included. All
       significant intercompany accounts and transactions have been
       eliminated. The results of operations and cash flows for the first
       quarter ended May 1, 2004 are not necessarily indicative of the
       results that will be achieved for the full year.

       Certain amounts in the prior periods have been reclassified to conform
       to current period presentation.

Note 2.  Stock-Based Compensation
---------------------------------

       In December 2002, the FASB issued SFAS No. 148, "Accounting for
       Stock-Based Compensation - Transition and Disclosure." SFAS No. 148
       amends SFAS No. 123, "Accounting for Stock-Based Compensation," to
       provide alternative methods of transition for a voluntary change to
       the fair-value based method of accounting for stock-based employee
       compensation. In addition, this statement amends the disclosure
       requirements of SFAS No. 123 to require prominent disclosures in both
       annual and interim financial statements about the method of
       accounting for stock-based employee compensation and the effect of
       the method used on reported results.

       The Company has various stock option and stock bonus plans that
       provide for the granting of incentive stock options, non-qualified
       stock options, restricted stock and performance awards to certain
       employees and directors. As permitted by SFAS No. 123, the Company
       applies APB Opinion No. 25, "Accounting for Stock Issued to
       Employees," in accounting for its plans. Accordingly, no compensation
       expense has been recognized for its stock-based compensation plans
       other than for restricted stock and performance-based awards, as to
       which the amounts charged to expense in the first quarter ended May
       1, 2004 and April 26, 2003 totaled $143,000 and $129,000,
       respectively. During the quarter ended May 1, 2004, 45,000 shares of
       restricted stock were granted with a weighted-average share price of
       $22.18.

       Had compensation expense for stock-based compensation plans for the
       first quarter ended May 1, 2004 and April 26, 2003 been determined
       consistent with SFAS No. 123, the Company's net income (loss) and
       earnings (loss) per share would approximate the following pro forma
       amounts:

                                     5


<PAGE>
<PAGE>

<TABLE>
<CAPTION>
                                                              May 1,        April 26,
(Dollars in thousands, except per share amounts)                2004             2003
--------------------------------------------------------------------------------------
<S>                                                           <C>              <C>
Net income (loss):
     As reported                                              $  131           $2,340
     Add: stock-based employee compensation expense
          included in net income, net of tax                     102               87
     Deduct: stock-based employee compensation
          expense determined under fair-value based
          method for all awards, net of tax                     (285)            (225)
                                                              ------           ------
     Pro forma net (loss) income                              $  (52)          $2,202
                                                              ======           ======

Basic earnings (loss) per share:
     As reported                                              $ 0.01           $ 0.27
     Pro forma                                                 (0.01)            0.25

Diluted earnings (loss) per share:
     As reported                                              $ 0.01           $ 0.26
     Pro forma                                                 (0.01)            0.25
</TABLE>

       The effect of the application of SFAS No. 123 in this disclosure is
       not necessarily indicative of the pro forma effect on net income in
       future periods.

Note 3.  Restructuring Activities
---------------------------------

       As of January 31, 2004, there was $410,000 of reserve remaining from
       the original restructuring charge recorded in the fourth quarter of
       fiscal 2001 related primarily to the closing of certain retail stores
       in the Life Uniform segment. During the first quarter ended May 1,
       2004, a total of $83,000 of the reserve was utilized for lease
       termination costs paid. The reserve balance of $327,000 remaining as
       of May 1, 2004 is expected to be utilized in fiscal 2004 for
       termination costs of the remaining store leases.

Note 4.  Non-Operating Income
-----------------------------

       In the first quarter of fiscal 2004, the Company recorded
       non-operating income of $2,100,000 which included a gain of
       $1,472,000 from the sale of real estate of the former Miami plant
       which closed in January 2000. In addition, the Company recognized
       gains of $610,000 for the excess of death benefits from Company-owned
       life insurance policies surrendered over the cash value of the
       policies.

       Non-operating income, net, also includes interest earned on invested
       cash balances.

                                     6


<PAGE>
<PAGE>


Note 5.  Income Taxes
---------------------

       Taxes on income from continuing operations were provided for at an
       effective tax rate of 29.0 percent and 32.5 percent in the first
       quarter of fiscal 2004 and fiscal 2003, respectively, based upon the
       Company's estimated effective tax rate for the year including the
       effects of permanent items and tax credits. The effective tax rate of
       34.0 percent on the loss from discontinued operations in fiscal 2004
       reflects the statutory tax rate adjusted for unutilized State net
       operating losses.

Note 6.  Discontinued Operations
--------------------------------

       In fiscal 2003, the Company retained an investment bank to review
       strategic alternatives for its underperforming Life Uniform retail
       business segment. Upon conclusion of that review in the first quarter
       of fiscal 2004, the Company decided to exit and discontinue the
       segment within the next 12 months, and focus its resources on growing
       the Textile Services healthcare laundry and linen management
       business. The Company is pursuing a divestiture strategy for Life
       Uniform through sale of the business or otherwise closing the stores
       and liquidating the assets in a manner to maximize the value of the
       segment. The Company intends to continue to operate the segment
       pending successful completion of its sale or liquidation.

       In the first quarter of fiscal 2004, the Company recorded an
       estimated pretax loss on disposal of the discontinued Life Uniform
       segment of $4,642,000 to write down the net assets of the segment to
       their estimated fair values, less costs directly incurred in
       connection with the proposed sale. The estimated loss on disposal is
       based upon preliminary negotiations on an exclusive basis with a
       potential buyer for Life Uniform. The final charge associated with
       the disposition of the segment may differ materially depending upon
       the outcome of these negotiations. The Company expects to conclude
       the sale of the segment during the second quarter of fiscal 2004.
       However, there is a risk that the Company will be unable to
       consummate the sale of Life Uniform which could result in additional
       losses upon closing of the stores and liquidation of the assets.

       In accordance with SFAS No. 144, the financial position, cash flows
       and results of operations of the Life Uniform segment are segregated
       and reported as discontinued operations for all periods presented in
       this report. Assets and liabilities of the discontinued segment held
       for sale as of May 1, 2004 consisted primarily of inventories of
       $12,880,000, net property and equipment of $9,517,000, and accounts
       payable of $5,512,000, less the loss on disposal.

       Results of operations of the Life Uniform segment for the first
       quarter ended May 1, 2004 and April 26, 2003 were as follows (dollars
       in thousands):

                                     7


<PAGE>
<PAGE>

<TABLE>
<CAPTION>
                                                    2004              2003
--------------------------------------------------------------------------

<S>                                              <C>               <C>
Net retail sales                                 $20,538           $21,656
==========================================================================

Income from operations before taxes              $ 1,018           $   122
Provision for income taxes                          (346)              (39)
--------------------------------------------------------------------------
Income from operations                           $   672           $    83
==========================================================================
</TABLE>

Note 7.  Earnings Per Share
---------------------------

       Basic earnings per share is computed by dividing net income by the
       weighted average number of shares of Common Stock outstanding during
       the period. Diluted earnings per share is computed by dividing net
       income by the weighted average number of Common and Common equivalent
       shares outstanding.

       The following table reconciles weighted average shares outstanding to
       amounts used to calculate basic and diluted earnings per share for
       the first quarter ended May 1, 2004 and April 26, 2003 (shares in
       thousands):

<TABLE>
<CAPTION>
                                                                       First Quarter Ended
                                                                     -----------------------
                                                                     May 1,        April 26,
                                                                      2004           2003
                                                                     ------        ---------
<S>                                                                   <C>            <C>
Weighted average shares:
     Average shares outstanding                                       8,876          8,786
     Effect of dilutive securities                                      229            141
                                                                      -----          -----
     Average shares outstanding, adjusted for dilutive effects        9,105          8,927
                                                                      =====          =====
</TABLE>

Note 8.  Goodwill and Other Intangible Assets
---------------------------------------------

       In accordance with SFAS No. 142, "Goodwill and Other Intangible Assets,"
       the Company performs its annual goodwill impairment test at the end
       of the third quarter. There were no material changes in the carrying
       value of goodwill during the first quarter of fiscal 2004.

       During the first quarter ended May 1, 2004, the Company acquired
       businesses with customer contracts valued at $116,000, with
       amortization periods of five to 10 years. Other acquired assets
       consisted of the following (dollars in thousands):

<TABLE>
<CAPTION>
                                       May 1, 2004                               January 31, 2004
                           --------------------------------------      --------------------------------------
                            Gross                       Other           Gross                       Other
                           Carrying    Accumulated     Acquired        Carrying    Accumulated     Acquired
                            Amount     Amortization   Assets, net       Amount     Amortization   Assets, net
                            ------     ------------   -----------       ------     ------------   -----------

<S>                         <C>          <C>            <C>             <C>          <C>             <C>
Customer contracts          $8,114       $(5,046)       $3,068          $7,998       $(4,876)        $3,122
Non-compete covenants        1,600        (1,009)          591           1,600          (954)           646
                            ------       -------        ------          ------       -------         ------

Other acquired assets       $9,714       $(6,055)       $3,659          $9,598       $(5,830)        $3,768
                            ======       =======        ======          ======       =======         ======
</TABLE>

                                     8


<PAGE>
<PAGE>

       Aggregate amortization expense for the first quarter ended May 1,
       2004 and April 26, 2003 amounted to $225,000 and $125,000,
       respectively. Other acquired assets are scheduled to be fully
       amortized by fiscal year 2014 with corresponding annual amortization
       expense estimated for each of the next five fiscal years as follows
       (dollars in thousands):

                                  2004      $851
                                  2005       746
                                  2006       693
                                  2007       601
                                  2008       364

Note 9.  Long-Term Debt
-----------------------

       On March 8, 2004, the Company amended the terms of its long-term
       credit facility. Under the terms of the amendment, the maximum amount
       which may be borrowed under the credit facility was increased from
       $70,000,000 to $100,000,000, and the maturity date of the credit
       facility was extended by one year to May 30, 2007 with two optional
       one-year extensions. In addition, certain financial covenants
       contained in the credit agreement were amended, including the minimum
       net worth requirement. This covenant requires that the Company
       maintain a minimum consolidated net worth equal to 85 percent of the
       Company's consolidated net worth as of January 31, 2004, plus an
       aggregate amount equal to 50 percent of quarterly net income
       beginning with the first quarter of fiscal 2004 (with no reduction
       for net losses except as permitted for the sale of the discontinued
       Life Uniform segment). As of May 1, 2004, the Company was in
       compliance with this and all other financial covenants in the credit
       facility.

Note 10.  Derivative Instruments and Hedging Activities
-------------------------------------------------------

       The Company entered into an interest-rate swap agreement with one of
       its lenders effective September 9, 2002. The swap agreement fixes the
       variable portion of the interest rate (excluding a margin) at 3.58
       percent on $10,000,000 of the outstanding debt under the revolving
       line of credit until termination on May 30, 2007. The Company has
       elected to apply cash flow hedge accounting for the interest-rate
       swap agreement in accordance with SFAS No. 133, "Accounting for
       Derivative Instruments and Hedging Activities." Accordingly, the
       derivative is recorded as an asset or liability at its fair value.
       The effective portion of changes in the fair value of the derivative,
       as measured quarterly, is reported in accumulated other comprehensive
       income, and the ineffective portion, if any, is reported in net
       income of the current period. The gain (loss) on the derivative
       included in accumulated other comprehensive loss in the first quarter
       ended May 1, 2004 and April 26, 2003 amounted to $89,000 and
       $(43,000), respectively, net of tax. The Company has recorded a
       long-term liability of $118,000 and $254,000 for the fair value of
       the derivative as of May 1, 2004 and January 31, 2004, respectively.

       To moderate price risk due to market fluctuations, the Company has
       entered into fixed-price contracts as of May 1, 2004 for
       approximately 33 percent of its estimated natural gas purchase
       requirements in the next 12 months. Although these contracts are
       considered derivative instruments, they meet the normal purchases
       exclusion contained in SFAS No. 133, as amended by SFAS No. 138 and
       SFAS No. 149, and are therefore exempted from the related accounting
       requirements.

                                     9


<PAGE>
<PAGE>

Note 11.  Comprehensive Income
------------------------------

       Comprehensive income, consisting primarily of net income and changes
       in the fair value of derivatives used for interest rate risk
       management, net of taxes, totaled $217,000 and $2,297,000 for the
       first quarter ended May 1, 2004 and April 26, 2003, respectively.

Note 12.  Retirement Benefits
-----------------------------

       The Company has a non-contributory defined benefit pension plan
       covering primarily all salaried and hourly administrative non-union
       personnel. The benefit formula is based on years of service and
       compensation during employment. The funding policy of the pension
       plan is in accordance with the requirements of the Employee
       Retirement Income Security Act of 1974. The net periodic pension
       expense recognized in the first quarter of fiscal years 2004 and 2003
       was as follows:

<TABLE>
<CAPTION>
(Dollars in thousands)                              2004          2003
----------------------------------------------------------------------
<S>                                                <C>           <C>
Pension expense:
     Service cost                                  $ 149         $ 135
     Interest cost                                   319           312
     Expected return on plan assets                 (353)         (356)
     Amortization of prior service cost                5             5
     Recognized actuarial loss                        29            34
----------------------------------------------------------------------
Net periodic pension expense                       $ 149         $ 130
======================================================================
</TABLE>

                                     10


<PAGE>
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                  AND RESULTS OF OPERATIONS

                FIRST QUARTER ENDED MAY 1, 2004 COMPARED WITH
                     FIRST QUARTER ENDED APRIL 26, 2003

       Analysis of Operations
       ----------------------

       As previously announced during the first quarter of fiscal 2004, the
       Company decided to exit and discontinue its Life Uniform retail
       business segment and actively market the segment for sale. As a result,
       the segment's financial position, cash flows and results of operations
       are shown as discontinued operations for all periods presented in this
       report. The Company's continuing operations reflect the results of its
       remaining Textile Services healthcare laundry and linen management
       business.

       Income from continuing operations of $2,523,000 in the first quarter of
       fiscal 2004 increased 11.8 percent from the same quarter last year, as
       non-operating income of $2,100,000 recorded in this year's first
       quarter more than offset a 50.9 percent decrease in operating income.
       Operating earnings were negatively affected by increased costs of
       utilities, linen and labor, as well as start-up costs for new laundry
       facilities in Columbia, SC and Durham, NC, which more than offset the
       impact of the revenue gains. The first quarter fiscal 2004
       non-operating income included gains of $1,472,000 from the sale of the
       vacant Miami property and $610,000 from death benefits on Company-owned
       life insurance policies.

       Loss from discontinued operations, net of tax, totaled $2,392,000 in
       the first quarter of fiscal 2004, including $672,000 income from store
       operations and $3,064,000 estimated loss on disposal of the
       discontinued Life Uniform segment. In the first quarter of fiscal 2003,
       income from operations of discontinued segment was $83,000, net of tax.

       On a per-share basis, the Company earned $.28 ($.27 diluted) from
       continuing operations in first quarter fiscal 2004, including
       non-operating income of $.17 ($.16 diluted), compared with $.26 ($.25
       diluted) earned in the first quarter a year ago. The loss from
       discontinued operations in the first quarter this year amounted to $.27
       per share ($.26 diluted) including the estimated loss on disposal of
       $.35 ($.34 diluted). Combining continuing and discontinued operations,
       first quarter fiscal 2004 net income of $.01 per share was 96.3 percent
       lower than net income of $.27 per share ($.26 diluted) in the first
       quarter of fiscal 2003.

       Textile service revenues increased 8.9 percent to $77,730,000 in the
       first quarter compared with the same period a year ago. The acquisition
       of the Tampa Bay plant in the fourth quarter of fiscal 2003 accounted
       for nearly 60 percent of the revenue increase in the first quarter,
       with the remainder due primarily to net new business added during the
       past year. Net new business added during the first quarter of fiscal
       2004 was $10,312,000 in annualized revenue compared with $3,259,000 in
       annualized revenue added during the first quarter last year. Gross
       profit margin declined to 15.7 percent in the first quarter this year
       from 19.0 percent a year earlier, reflecting greater cost pressures.
       Linen costs increased $756,000 in the first quarter due mainly to
       moderately higher linen prices. Utility costs were $912,000 unfavorable
       to prior year in the first quarter mostly as a result of higher natural
       gas prices paid for that portion of purchases not covered by
       fixed-price contracts. Direct labor and production payroll fringe costs
       were $585,000 higher than last year's first quarter due primarily to
       higher wage rates, increases in health

                                     11

<PAGE>
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       insurance costs and unemployment taxes, and inefficiencies during the
       start-up of new plants. The Company is addressing these cost
       pressures through cost reduction efforts utilizing capital
       expenditures to improve plant efficiency, as well as implementation
       of energy surcharges where possible, annual CPI price increases
       permitted in existing customer contracts, and reflecting higher costs
       in competitive bids for new contracts.

       Selling, general and administrative expenses increased 1.7 percent in
       first quarter fiscal 2004 compared with first quarter fiscal 2003 due
       to having four more plants this year and a reduction in bad debt
       expense last year of $216,000 from a favorable settlement of
       litigation. As a percent of revenues, these expenses declined to 13.1
       percent in the first quarter this year from 14.0 percent a year ago.
       Despite costs incurred in connection with union efforts currently
       targeted against the Company, corporate expenses decreased 9.1 percent
       in the quarter versus the prior year, reflecting the beginning of the
       corporate office downsizing that will continue during the remainder of
       fiscal 2004. Net other operating expense in first quarter fiscal 2003
       was mostly offset by $164,000 of income related to the disposition of
       an administrative office building in St. Louis. The increase in
       interest expense of $55,000 in the first quarter this year reflects the
       higher level of debt outstanding compared to a year ago.

       Discontinued Operations
       -----------------------

       Net retail sales of the discontinued Life Uniform segment decreased 5.2
       percent in the first quarter this year compared with the same period
       last year. A same-store sales increase of 1.4 percent for the quarter
       was more than offset by 24 fewer stores in operation this year compared
       with last year. Catalogue and e-commerce sales declined $228,000, or
       14.3 percent, as a result of reduced distribution of catalogues this
       year. Gross profit margin improved to 54.7 percent in the first quarter
       this year from 53.9 percent in last year's first quarter due to lower
       cost sourcing of products. Operating expenses of the segment in the
       first quarter fiscal 2004 decreased $1,427,000, or 12.3 percent, from
       the comparable period a year ago due to fewer stores in operation,
       reduced catalogue expenses, and $601,000 of depreciation expense
       recorded in the first quarter last year compared with no depreciation
       expense for the discontinued operation in fiscal 2004. First quarter
       fiscal 2003 earnings of the Life Uniform segment included $130,000 of
       income from the reversal of a portion of the fiscal 2001 restructuring
       charge due to favorable terminations of store leases.

       In the first quarter of fiscal 2004, the Company recorded an estimated
       loss on disposal of the discontinued Life Uniform segment of $4,642,000
       pretax. The loss consisted of a $3,917,000 writedown of net assets of
       the segment, primarily inventories, leasehold improvements and accounts
       payable, to their estimated fair values and $725,000 of estimated costs
       directly related to the proposed sale. The Company has entered into a
       period of exclusive negotiations with a potential buyer for Life
       Uniform and expects to conclude the sale of the segment during the
       second quarter of fiscal 2004. The outcome of the pending negotiations
       with the buyer will determine the amount and timing of the ultimate
       charge associated with disposal of the Life Uniform segment. However,
       there is a risk that the Company will be unable to consummate the sale
       of Life Uniform which could result in additional losses upon closing of
       the stores and liquidation of the assets.

       Financial Condition, Liquidity and Capital Resources
       ----------------------------------------------------

       As of May 1, 2004, working capital of continuing operations totaled
       $40,261,000 compared with $39,012,000 at January 31, 2004, and current
       ratio was unchanged at 1.9 to 1. Receivables


                                     12

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       increased $1,230,000 in the first quarter of fiscal 2004 due mainly
       to death benefits on company-owned life insurance policies received
       in the second quarter this year totaling $1,188,000. Receivable days
       outstanding of 42 at May 1, 2004 was unchanged from the end of fiscal
       2003. First quarter fiscal 2004 increases in linens in service of
       $1,107,000 and in net property and equipment of $10,230,000 reflect
       primarily the acquisition of the Duke University Health System
       Laundry in Durham, NC in April 2004. Corresponding increases in other
       accrued liabilities and long-term debt reflect mainly the financing
       of the Duke acquisition.

       Cash used for working capital of continuing operations in the first
       quarter last year was due to a reduction in the level of accounts
       payable and higher incentive compensation payments related to fiscal
       2002 financial performance. Capital expenditures were lower in the
       first quarter this year compared with last year's first quarter level,
       which included construction costs associated with the Phoenix, AZ
       plant.

       Assets of the discontinued Life Uniform segment held for sale decreased
       $2,994,000 in the first quarter fiscal 2004 as a result of the loss
       recognized to write down the assets to their estimated fair values less
       costs to sell, offset in part by an increase of $1,389,000 in
       inventories of the segment during the quarter. Net cash used in
       discontinued operations in the first quarter this year reflects the
       inventory increase as well as a decrease in accounts payable of
       $509,000, whereas cash provided by discontinued operations in the first
       quarter fiscal 2003 included a decrease in inventories and increase in
       accounts payable of $1,199,000 and $843,000, respectively. Concentrated
       efforts have been made in fiscal 2004 to increase store inventories to
       optimal selling levels while reducing the backlog of accounts payable.

       As previously announced during the first quarter this year, the Company
       amended the terms of its credit facility to increase the maximum
       borrowing capacity by $30,000,000 to $100,000,000. Under the terms of
       the amended loan agreement, there was $53,096,000 of borrowing capacity
       available as of May 1, 2004. The Company's ratio of total debt to total
       capitalization as of May 1, 2004 was 15.5 percent, up from 11.8 percent
       as of January 31, 2004 and 8.6 percent as of April 26, 2003. As of May
       1, 2004, the Company was in compliance with all financial covenants
       contained in its credit facility.

       Management believes that the Company's financial condition, operating
       cash flow and available sources of external funds are sufficient to
       satisfy the Company's requirements for debt service, capital
       expenditures, acquisitions, dividends and working capital over the
       course of the next 12 months.

       Forward-Looking Statements
       --------------------------

       Any forward-looking statements made in this document reflect the
       Company's current views with respect to future events and financial
       performance and are made pursuant to the safe harbor provisions of the
       Private Securities Litigation Reform Act of 1995. Such statements are
       subject to certain risks and uncertainties that may cause actual
       results to differ materially from those set forth in these statements.
       These potential risks and uncertainties include, but are not limited
       to, competitive and general economic conditions, the ability to retain
       current customers and to add new customers in competitive market
       environments, competitive pricing in the marketplace, delays in the
       shipment of orders, availability of labor at appropriate rates,
       availability and cost of energy and water supplies, the cost of
       workers' compensation and healthcare benefits, the ability to attract
       and retain key personnel, disruption to the Company's operation by
       union activities, the ability of the Company to sell the Life Uniform
       segment under financial terms and conditions currently anticipated, the
       ability of the Company to accomplish its strategy of re-


                                     13

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       directing its resources to its healthcare linen management business
       in a timely and financially advantageous manner, unusual or
       unexpected cash needs for operations or capital transactions, the
       effectiveness of certain expense reduction initiatives, the ability
       to obtain financing in required amounts and at appropriate rates, the
       ability to identify, negotiate, fund and integrate acquisitions, and
       other factors which may be identified in the Company's filings with
       the Securities and Exchange Commission.

                                     14

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       ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

       The Company is exposed to commodity price risk related to the use of
       natural gas in laundry plants of the Textile Services segment. The
       total cost of natural gas in the first quarter ended May 1, 2004 was
       $3,520,000. To reduce the uncertainty of fluctuating energy prices,
       the Company has entered into fixed-price contracts for approximately
       33 percent of its estimated natural gas purchase requirements in the
       next 12 months. A hypothetical 10 percent increase in the cost of
       natural gas not covered by these contracts would result in a
       reduction of approximately $943,000 in annual pretax earnings.

       The Company is also exposed to commodity price risk resulting from
       the consumption of gasoline and diesel fuel for delivery trucks in
       the Textile Services segment. The total cost of truck fuel in the
       first quarter ended May 1, 2004 was $1,174,000. A hypothetical 10
       percent increase in the cost of delivery fuel would result in a
       decrease of approximately $470,000 in annual pretax earnings.

       The Company's exposure to interest rate risk relates primarily to its
       variable-rate revolving debt agreement entered into in the second
       quarter of fiscal 2002. As of May 1, 2004, there was $26,700,000 of
       outstanding debt under the credit facility, of which $10,000,000
       bears interest at a fixed rate of 3.58 percent (plus a margin) under
       an interest-rate swap agreement entered into by the Company with one
       of its lenders to moderate the exposure. Amounts borrowed under the
       credit facility in excess of the $10,000,000 covered by the
       interest-rate swap agreement bear interest at a rate equal to either
       (i) LIBOR plus a margin, or (ii) a Base Rate, defined as the higher
       of (a) the Federal Funds Rate plus .50 percent or (b) the Prime Rate.
       The margin is based on the Company's ratio of "Funded Debt" to
       "EBITDA," as each is defined in the Loan Agreement. As of May 1,
       2004, the margin was 1.125 percent. A hypothetical increase of 100
       basis points in short-term interest rates applicable to the
       outstanding debt not covered by the interest-rate swap agreement
       would result in a reduction of approximately $167,000 in annual
       pretax earnings.

       ITEM 4.  CONTROLS AND PROCEDURES

       The Company maintains a system of internal controls and procedures
       designed to provide reasonable assurance as to the reliability of the
       unaudited consolidated financial statements and other disclosures
       included in this report. The Company's Board of Directors, operating
       through its Audit Committee which is composed entirely of independent
       Directors, provides oversight to the financial reporting process.

       As of the end of the period covered by this report, the Company's
       Chief Executive Officer and Chief Financial Officer evaluated the
       effectiveness of the design and operation of the Company's disclosure
       controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
       under the Securities Exchange Act of 1934, as amended). Based upon
       their evaluation, the Chief Executive Officer and Chief Financial
       Officer concluded that the Company's disclosure controls and
       procedures are effective in ensuring that material information
       relating to the Company, including its consolidated subsidiaries, is
       made known to them by others within those entities in a timely
       manner, particularly during the period for which this quarterly
       report is being prepared. The Chief Executive Officer and Chief
       Financial Officer also concluded based upon their evaluation that the
       Company's disclosure controls and procedures are effective in
       ensuring that the information required to be disclosed by the Company
       in the reports that it files or submits under the Securities Exchange
       Act of 1934 is recorded, processed, summarized and


                                     15

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       reported, within the time periods specified in the Securities and
       Exchange Commission's rules and forms.

       There were no changes in the Company's internal control over
       financial reporting during the Company's most recent fiscal quarter
       that have materially affected, or are reasonably likely to materially
       affect, the Company's internal control over financial reporting
       subsequent to the date of this most recent evaluation, nor were any
       corrective actions required with regard to significant deficiencies
       and material weaknesses.

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                         PART II. OTHER INFORMATION

       ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
       -----------------------------------------

       (a) See Exhibit Index on page 19.

       (b) REPORTS ON FORM 8-K - On March 18, 2004, the Company furnished
           a report on Form 8-K under Items 7 and 12 containing a press
           release announcing its earnings for the fourth quarter and
           fiscal year ended January 31, 2004.

                                     17

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                                 SIGNATURES
                                 ----------

       Pursuant to the requirements of the Securities Exchange Act of 1934,
       the Registrant has duly caused this report to be signed on its behalf
       by the undersigned thereunto duly authorized.

                                                 Angelica Corporation
                                                 --------------------
                                                 (Registrant)



       Date: June 10, 2004                       /s/ James W. Shaffer
                                                 -----------------------------
                                                 James W. Shaffer
                                                 Vice President, Treasurer and
                                                 Chief Financial Officer
                                                 (Principal Financial and
                                                 Accounting Officer)


                                     18

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                                EXHIBIT INDEX
                                -------------

Exhibit
Number    Description
------    -----------

<FN>
                  *Asterisk indicates exhibits filed herewith.
                  **Incorporated by reference from the document listed.

3.1       Restated Articles of Incorporation of the Company, as currently in
          effect. Filed as Exhibit 3.1 to the Form 10-K for the fiscal year
          ended January 26, 1991.**

3.2       Current By-Laws of the Company, as last amended January 27, 2004.
          Filed as Exhibit 3.2 to the Form 10-K for the fiscal year ended
          January 31, 2004.**

4.1       Shareholder Rights Plan dated August 25, 1998. Filed as Exhibit 1 to
          Registration Statement on Form 8-A on August 28, 1998.**

31.1      Section 302 Certification of Chief Executive Officer.*

31.2      Section 302 Certification of Chief Financial Officer.*

32.1      Section 906 Certification of Chief Executive Officer.*

32.2      Section 906 Certification of Chief Financial Officer.*


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