----

**Form        10-Q**

| For                  The                  Quarter Ended | Commission                  File |
|---------------------------------------------------------|----------------------------------|
| April                  30,                  2005        | Number                  1-5674   |

**ANGELICA        CORPORATION**

| 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)                           |

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INDEX

|                                                                                          | Page                  Number |
|-----------------------------------------------------------------------------------------------|------------------------------|
|                                                                                          | Reference                    |
|                                                                                          |                         |
|                                                                                          |                         |
| **Part                  I. Financial Information:**                                           |                         |
|                                                                                          |                         |
| Item                  1.                  Condensed Financial Statements:                     |                         |
|                                                                                          |                         |
| Consolidated                  Statements of Income - First                  Quarter ended     |                         |
| April                  30, 2005 and May 1, 2004                  (Unaudited)                  | 2                            |
|                                                                                          |                         |
| Consolidated                  Balance Sheets - April 30,                  2005                |                         |
| and                  January 29, 2005                  (Unaudited)                            | 3                            |
|                                                                                          |                         |
| Consolidated                  Statements of Cash Flows - First Quarter                        |                         |
| ended                  April 30, 2005 and May 1, 2004                  (Unaudited)            | 4                            |
|                                                                                          |                         |
| Notes                  to Unaudited Consolidated Financial                  Statements        | 5-12                         |
|                                                                                          |                         |
| Item                  2. Management’s                  Discussion and Analysis of       |                         |
| Financial                  Condition and Results of                  Operations               | 13-17                        |
|                                                                                          |                         |
| Item                  3. Quantitative and Qualitative                  Disclosures            |                         |
| About                  Market Risk                                                            | 18                           |
|                                                                                          |                         |
| Item                  4. Controls and Procedures                                              | 18-19                        |
|                                                                                          |                         |
| **Part                  II. Other Information:**                                              |                         |
|                                                                                          |                         |
| Item                  4. Submission of Matters to a Vote of                  Security Holders | 20                           |
|                                                                                          |                         |
| Item                  6. Exhibits                                                             | 20                           |
|                                                                                          |                         |
| Signatures                                                                                    | 21                           |
|                                                                                          |                         |
| Exhibit                  Index                                                                | 22                           |

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Index

| CONSOLIDATED                  STATEMENTS OF                  INCOME               |   |                                                  |                                             |
|-----------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------------------------------------------------|
| *Angelica                  Corporation and Subsidiaries*                          |   |                                             |                                             |   |   |
| *Unaudited                  (Dollars in thousands, except per share amounts)*     |   |                                                  |                                             |
|                                                                              |   |                                             |                                             |   |   |
|                                                                              |   |                                             |                                             |   |   |
|                                                                              |   |                                             |                                             |   |   |
|                                                                              |   | First                  Quarter                  Ended |
|                                                                              |   |                                                  | April                  30,                  2005 |   |   | May                  1,                  2004 |   |
|                                                                              |   |                                                  |                                             |   |   |   |   |
| **Continuing                  Operations:**                                       |   |                                                  |                                             |   |   |   |   |
| Net                  revenues                                                     |   | $                                                     | 102,580                                          |   | $ | 77,730 |   |
| Cost                  of                  services                                |   |                                                  | (87,046                                          | ) |   | (65,563 | ) |
| Gross                  profit                                                     |   |                                                  | 15,534                                           |   |   | 12,167 |   |
| Selling,                  general and administrative expenses                     |   |                                                  | (12,663                                          | ) |   | (10,180 | ) |
| Amortization                  of other acquired assets                            |   |                                                  | (811                                             | ) |   | (225 | ) |
| Other                  operating expense, net                                     |   |                                                  | (52                                              | ) |   | (29 | ) |
| Income                  from                  operations                          |   |                                                  | 2,008                                            |   |   | 1,733 |   |
| Interest                  expense                                                 |   |                                                  | (1,150                                           | ) |   | (280 | ) |
| Non-operating                  income, net (Note 4)                               |   |                                                  | 539                                              |   |   | 2,100 |   |
| Income                  from                  continuing operations before taxes  |   |                                                  | 1,397                                            |   |   | 3,553 |   |
| Provision                  for                  income taxes (Note 5)             |   |                                                  | (377                                             | ) |   | (1,030 | ) |
| Income                  from                  continuing operations               |   |                                                  | 1,020                                            |   |   | 2,523 |   |
|                                                                              |   |                                                  |                                             |   |   |   |   |
| **Discontinued                  Operations:**                                     |   |                                                  |                                             |   |   |   |   |
| Income                  from                  operations of discontinued segment, |   |                                                  |                                             |   |   |   |   |
| net                  of                  tax                                      |   |                                                  | -                            |   |   | 672 |   |
| Loss                  on                  disposal of discontinued segment,       |   |                                                  |                                             |   |   |   |   |
| net                  of                  tax                                      |   |                                                  | -                            |   |   | (3,064 | ) |
| Loss                  from                  discontinued operations               |   |                                                  | -                            |   |   | (2,392 | ) |
| Net                  income                                                       |   | $                                                     | 1,020                                            |   | $ | 131 |   |
|                                                                              |   |                                                  |                                             |   |   |   |   |
| **Basic                  earnings per share (Note 7):**                           |   |                                                  |                                             |   |   |   |   |
| Income                  from                  continuing operations               |   | $                                                     | 0.11                                             |   | $ | 0.28 |   |
| Loss                  from                  discontinued operations               |   |                                                  | -                            |   |   | (0.27 | ) |
| Net                  income                                                       |   | $                                                     | 0.11                                             |   | $ | 0.01 |   |
|                                                                              |   |                                                  |                                             |   |   |   |   |
| **Diluted                  earnings per share (Note 7):**                         |   |                                                  |                                             |   |   |   |   |
| Income                  from                  continuing operations               |   | $                                                     | 0.11                                             |   | $ | 0.27 |   |
| Loss                  from                  discontinued operations               |   |                                                  | -                            |   |   | (0.26 | ) |
| Net                  income                                                       |   | $                                                     | 0.11                                             |   | $ | 0.01 |   |

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Index

| CONSOLIDATED                  BALANCE SHEETS                                                    |   |                       |    |                         |   |
|-------------------------------------------------------------------------------------------------|--------|----------------------------|---------|------------------------------|--------|
| *Angelica                  Corporation and Subsidiaries*                                        |   |                       |    |                         |   |
| *Unaudited                  (Dollars in thousands)*                                             |   |                       |    |                         |   |
|                                                                                            |   | April                  30, |    | January                  29, |   |
|                                                                                            |   |                       | 2005    |                         |   | 2005 |   |
|                                                                                            |   |                       |    |                         |   |   |   |
| **ASSETS**                                                                                      |   |                       |    |                         |   |   |   |
| Current                  Assets:                                                                |   |                       |    |                         |   |   |   |
| Cash                  and                  short-term investments                               |   | $                          | 2,488   |                         | $      | 926 |   |
| Receivables,                  less reserves of $707 and $510                                    |   |                       | 55,210  |                         |   | 44,454 |   |
| Linens                  in                  service                                             |   |                       | 45,870  |                         |   | 38,846 |   |
| Prepaid                  expenses and other current assets                                      |   |                       | 3,371   |                         |   | 3,817 |   |
| Deferred                  income taxes                                                          |   |                       | 4,354   |                         |   | 5,386 |   |
| Total                  Current                  Assets                                          |   |                       | 111,293 |                         |   | 93,429 |   |
| Property                  and                  Equipment                                        |   |                       | 200,636 |                         |   | 193,835 |   |
| Less—accumulated                  depreciation                                            |   |                       | 95,100  |                         |   | 92,170 |   |
| Total                  Property and Equipment                                                   |   |                       | 105,536 |                         |   | 101,665 |   |
| Other:                                                                                          |   |                       |    |                         |   |   |   |
| Goodwill                  (Note 8)                                                              |   |                       | 50,586  |                         |   | 31,272 |   |
| Other                  acquired assets (Note 8)                                                 |   |                       | 43,659  |                         |   | 24,860 |   |
| Cash                  surrender value of life insurance (Note 9)                                |   |                       | 11,785  |                         |   | 30,942 |   |
| Deferred                  income taxes                                                          |   |                       | 1,515   |                         |   | 2,040 |   |
| Miscellaneous                                                                                   |   |                       | 4,977   |                         |   | 4,745 |   |
| Total                  Other                  Assets                                            |   |                       | 112,522 |                         |   | 93,859 |   |
| Total                  Assets                                                                   |   | $                          | 329,351 |                         | $      | 288,953 |   |
|                                                                                            |   |                       |    |                         |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS’ EQUITY**                                 |   |                       |    |                         |   |   |   |
| Current                  Liabilities:                                                           |   |                       |    |                         |   |   |   |
| Current                  maturities of long-term debt                                           |   | $                          | 7,919   |                         | $      | 419 |   |
| Accounts                  payable                                                               |   |                       | 21,349  |                         |   | 16,865 |   |
| Accrued                  wages                  and other compensation                          |   |                       | 6,646   |                         |   | 5,145 |   |
| Deferred                  compensation and pension liabilities                                  |   |                       | 4,019   |                         |   | 4,226 |   |
| Other                  accrued                  liabilities                                     |   |                       | 28,093  |                         |   | 29,063 |   |
| Total                  Current                  Liabilities                                     |   |                       | 68,026  |                         |   | 55,718 |   |
|                                                                                            |   |                       |    |                         |   |   |   |
| Long-Term                  Debt, less current maturities (Note 9)                               |   |                       | 94,706  |                         |   | 67,811 |   |
| Other                  Long-Term Obligations                                                    |   |                       | 13,910  |                         |   | 14,068 |   |
|                                                                                            |   |                       |    |                         |   |   |   |
| Shareholders’                  Equity:                                                    |   |                       |    |                         |   |   |   |
| Common                  Stock,                  $1 par value, authorized 20,000,000             |   |                       |    |                         |   |   |   |
| shares,                  issued: 9,471,538 shares                                               |   |                       | 9,472   |                         |   | 9,472 |   |
| Capital                  surplus                                                                |   |                       | 6,594   |                         |   | 5,336 |   |
| Retained                  earnings                                                              |   |                       | 144,632 |                         |   | 144,621 |   |
| Accumulated                  other comprehensive loss                                           |   |                       | (1,283  | )                            |   | (1,337 | ) |
| Unamortized                  restricted stock                                                   |   |                       | (2,642  | )                            |   | (1,007 | ) |
| Common                  Stock                  in treasury, at cost: 293,967 and 405,304 shares |   |                       | (4,064  | )                            |   | (5,729 | ) |
| Total                  Shareholders’                  Equity                              |   |                       | 152,709 |                         |   | 151,356 |   |
| Total                  Liabilities and Shareholders’ Equity                               |   | $                          | 329,351 |                         | $      | 288,953 |   |

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Index

| CONSOLIDATED                  STATEMENTS OF CASH FLOWS                                           |   |
|--------------------------------------------------------------------------------------------------|--------|
| *Angelica                  Corporation and Subsidiaries*                                         |   |   |   |   |   |
| *Unaudited                  (Dollars in thousands)*                                              |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |
|                                                                                             |   | First                  Quarter                  Ended |   |
|                                                                                             |   |   | April                  30,                  2005 |   |   | May                  1,                  2004 |   |
|                                                                                             |   |   |   |   |   |   |   |
| Cash                  Flows                  from Operating Activities:                          |   |   |   |   |   |   |   |
| Income                  from                  continuing operations                              |   | $ | 1,020 |   | $ | 2,523 |   |
| Non-cash                  items included in income from continuing operations:                   |   |   |   |   |   |   |   |
| Depreciation                                                                                     |   |   | 3,800 |   |   | 2,711 |   |
| Amortization                                                                                     |   |   | 1,139 |   |   | 355 |   |
| Deferred                  income taxes                                                           |   |   | 1,558 |   |   | 892 |   |
| Cash                  surrender value of life insurance                                          |   |   | (168 | ) |   | (791 | ) |
| Loss                  (gain)                  on sale of assets                                  |   |   | 61 |   |   | (1,472 | ) |
| Change                  in                  working capital components of continuing             |   |   |   |   |   |   |   |
| operations,                  net of businesses acquired/disposed of                              |   |   | (4,817 | ) |   | (117 | ) |
| Other,                  net                                                                      |   |   | (202 | ) |   | 90 |   |
| Net                  cash                  provided by operating activities of                   |   |   |   |   |   |   |   |
| continuing                  operations                                                           |   |   | 2,391 |   |   | 4,191 |   |
|                                                                                             |   |   |   |   |   |   |   |
| Cash                  Flows                  from Investing Activities:                          |   |   |   |   |   |   |   |
| Expenditures                  for property and equipment, net                                    |   |   | (4,341 | ) |   | (3,199 | ) |
| Cost                  of                  businesses and assets acquired                         |   |   | (49,491 | ) |   | (6,988 | ) |
| Disposals                  of                  assets                                            |   |   | 26 |   |   | 1,472 |   |
| Life                  insurance premiums paid, net                                               |   |   | (149 | ) |   | (163 | ) |
| Net                  cash used                  in investing activities of continuing operations |   |   | (53,955 | ) |   | (8,878 | ) |
|                                                                                             |   |   |   |   |   |   |   |
| Cash                  Flows                  from Financing Activities:                          |   |   |   |   |   |   |   |
| Repayments                  of                  long-term debt                                   |   |   | (41,705 | ) |   | (23,000 | ) |
| Borrowings                  of                  long-term debt                                   |   |   | 76,100 |   |   | 30,200 |   |
| Borrowings                  from life insurance policy loans                                     |   |   | 19,474 |   |   | - |   |
| Debt                  issuance                  costs                                            |   |   | (44 | ) |   | (145 | ) |
| Dividends                  paid                                                                  |   |   | (1,009 | ) |   | (983 | ) |
| Treasury                  stock reissued                                                         |   |   | 488 |   |   | 22 |   |
| Net                  cash                  provided by financing activities of                   |   |   |   |   |   |   |   |
| continuing                  operations                                                           |   |   | 53,304 |   |   | 6,094 |   |
|                                                                                             |   |   |   |   |   |   |   |
| Net                  cash used                  in discontinued operations                       |   |   | (178 | ) |   | (2,702 | ) |
|                                                                                             |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |
| Net                  increase                  (decrease) in cash and short-term investments     |   |   | 1,562 |   |   | (1,295 | ) |
| Balance                  at                  beginning of year                                   |   |   | 926 |   |   | 2,188 |   |
| Balance                  at                  end of period                                       |   | $ | 2,488 |   | $ | 893 |   |
|                                                                                             |   |   |   |   |   |   |   |
| Supplemental                  cash flow information:                                             |   |   |   |   |   |   |   |
| Income                  taxes                  paid                                              |   | $ | 112 |   | $ | 96 |   |
| Interest                  paid                                                                   |   | $ | 624 |   | $ | 223 |   |

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Index

NOTES          TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|   | 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 29, 2005 (fiscal 2004). 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 April 30, 2005 are not necessarily indicative of the results                    that                    will be achieved for the full fiscal year 2005. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | Certain                    amounts in the prior period have been reclassified to conform                    to current                    period presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|   | 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 April 30, 2005 and May 1, 2004 totaled                      $333,000                      and $143,000, respectively. During the first quarter ended                      April 30, 2005,                      68,000 shares of restricted stock were granted with a weighted-average                      share price of $28.88. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Had                      compensation expense for stock-based compensation plans for                      the first                      quarter ended April 30, 2005 and May 1, 2004 been determined                      consistent                      with SFAS No. 123, the Company’s net income and earnings per share would                      approximate the following pro forma                      amounts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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Index

|                                                                                  |   | First                      Quarter                      Ended |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                                                       |   | April                      30,                                |   | May                      1, |   |
| (Dollars                      in                      thousands, except per share amounts) |   | 2005                                                          |   | 2004 |   |
| Net                      income                      (loss):                               |   |                                                          |   |   |   |
| As                      reported                                                           |   | $                                                             | 1,020  |   | $ | 131 |   |
| Add:                      stock-based employee compensation expense                        |   |                                                          |   |   |   |   |   |
| included                      in                      net income, net of tax               |   |                                                          | 243    |   |   | 102 |   |
| Deduct:                      stock-based employee compensation                             |   |                                                          |   |   |   |   |   |
| expense                      determined under fair-value based                             |   |                                                          |   |   |   |   |   |
| method                      for                      all awards, net of tax                |   |                                                          | (562   | ) |   | (248 | ) |
| Pro                      forma net                      income (loss)                      |   | $                                                             | 701    |   | $ | (15 | ) |
|                                                                                       |   |                                                          |   |   |   |   |   |
| Basic                      earnings per share:                                             |   |                                                          |   |   |   |   |   |
| As                      reported                                                           |   | $                                                             | 0.11   |   | $ | 0.01 |   |
| Pro                      forma                                                             |   |                                                          | 0.08   |   |   | 0.00 |   |
|                                                                                       |   |                                                          |   |   |   |   |   |
| Diluted                      earnings per share:                                           |   |                                                          |   |   |   |   |   |
| As                      reported                                                           |   | $                                                             | 0.11   |   | $ | 0.01 |   |
| Pro                      forma                                                             |   |                                                          | 0.08   |   |   | 0.00 |   |

|   | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | In                        December                        2004, the FASB issued SFAS No. 123R, “Share-Based Payment,” which revises                        SFAS No. 123 and supersedes APB No. 25 and its related implementation                        guidance. SFAS No. 123R requires all share-based payments                        to employees,                        including grants of employee stock options, to be recognized                        in the                        consolidated financial statements based on their fair values                        and                        eliminates the alternative method of accounting for employee                        share-based                        payments previously available under APB No. 25. The provisions                        of this                        statement are required to be adopted by the Company beginning                        in the first                        quarter of fiscal 2006. The impact of adoption of this statement                        on the                        Company’s net income in future periods will include the remaining                        amortization of the fair value of existing unamortized stock                        options                        currently disclosed as pro-forma expense above, and is contingent                        upon the                        number of future options granted, the selected transition                        method and the                        selection between acceptable valuation methodologies for                        valuing                        options. |

|   | On                      March 21,                      2005, the Company acquired one hundred percent of the issued                      and                      outstanding shares of common stock and warrants of Royal Institutional                      Services, Inc. and its affiliate, The Surgi-Pack Corporation                      (together                      “Royal”). The total purchase price of $45,000,000 was paid in cash,                      plus                      an additional $834,000 of related acquisition costs. In connection                      with                      this transaction, a portion of the purchase price was paid                      into an escrow                      account as of the closing of the transaction pending the resolution                      of                      certain contingencies set forth in the stock purchase                      agreement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | Royal                      is the                      largest healthcare linen services company in New England, providing                      full                      linen management services to the healthcare industry in a manner                      consistent with the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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Index

|   | Company’s                      core business. With annual revenues of approximately $45,000,000,                      the                      Royal acquisition strengthens the Company’s market position in this region                      of the country. The net assets acquired consisted primarily                      of working                      capital, leasehold interests in two operating facilities and                      the related                      equipment, and customer contracts. The Company has recorded                      the                      preliminary purchase price allocation for this acquisition                      in the first                      quarter ended April 30, 2005, and expects to finalize the allocation                      in                      the second quarter fiscal 2005 once all required information                      is                      obtained.                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The                      results                      of operations of Royal are included in the Company’s Consolidated                      Statement of Income for the first quarter ended April 30, 2005                      since the                      date of acquisition on March 21, 2005. Unaudited pro forma                      consolidated                      net revenues for the first quarter ended April 30, 2005 and                      May 1, 2004,                      assuming the Royal acquisition had been completed as of the                      beginning of                      those periods, totaled $109,371,000 and $88,873,000, respectively;                      and                      unaudited pro forma consolidated income from continuing operations                      amounted to $933,000 or $.10 per diluted share, and $2,986,000                      or $.33 per                      diluted share, in the first quarter ended April 30, 2005 and                      May 1, 2004,                      respectively. These pro forma amounts are not necessarily indicative                      of                      the consolidated results of operations that would have occurred                      had this                      acquisition been made at the beginning of each period. |

|   | In                    the first                    quarter of fiscal 2005, the Company recorded non-operating income                    of                    $539,000 which included $360,000 from the second cash distribution                    received in connection with the liquidation of the parent company                    of an                    issuer of life insurance policies owned by the Company following                    its                    demutualization in 2000. These distributions did not affect the                    life                    insurance policies or their cash surrender value. The Company                    does not                    anticipate any further significant distributions from this                    liquidation. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | 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 in Miami, FL. In addition, the Company recognized gains                    totaling                    $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                    and                    notes receivable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

|   | Taxes                      on                      income from continuing operations were provided for at an effective                      tax                      rate of 27.0 percent and 29.0 percent in the first quarter                      of fiscal 2005                      and fiscal 2004, 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 the first quarter fiscal 2004 reflects                      the                      statutory tax rate adjusted for unutilized state net operating                      losses. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The                      Company                      maintains tax reserves pending the resolution of certain tax                      issues. Once                      established, these reserves are adjusted as information becomes                      available                      or when an event requiring a change in the reserves occurs.                      The ultimate                      resolution of tax matters could have a material impact on the                      Company’s                      net income and financial condition in the period in which the                      item is                      resolved.                                                                                                                                                                      |

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Index

|   | The                      Company                      believes all deferred tax items will be realized and therefore                      no                      valuation allowances have been                      recorded. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Prior                    to the                    sale of Life Uniform to Healthcare Uniform Company in fiscal                    2004, the                    Company was a guarantor under certain Life Uniform store lease                    agreements.                    These guarantees obligated the Company to make all payments due                    under the                    leases until their expiration in the event of default of Life                    Uniform. In                    connection with the sale of Life Uniform, the Company requested                    consents,                    as required, from landlords to assign the store leases to Healthcare                    Uniform Company. As a condition to such consents, certain landlords                    required that the Company continue as a guarantor of the leases.                    Under the                    Company’s agreement with Healthcare Uniform Company, these guarantees                    will                    only extend until the end of each lease’s current term. As of April 30,                    2005, the Company is secondarily obligated as a guarantor for                    90 store                    lease agreements and the estimated maximum potential amount of                    future                    payments the Company could be required to make under these guarantees                    is                    $15,000,000. Although these guarantees expire at various dates                    through                    fiscal year 2014, approximately 77 percent of the estimated maximum                    potential future payments expires by the end of fiscal year                    2008. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The                    Company                    has provided certain indemnities to the buyer in connection with                    the sale                    of Life Uniform. Although indemnification claims are generally                    subject to                    an aggregate limit of $6,000,000, the Company believes the likelihood                    of                    making any payments for indemnification claims is remote and                    has reserved                    accordingly.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The                    Company                    faces a possible exposure to outstanding workers’ compensation claims                    incurred prior to fiscal 1999 that were sold to a former insurance                    carrier, in addition to exposure for deposits with that carrier                    for claims                    incurred in fiscal years 1999, 2000 and 2001 that have not yet                    been                    resolved and for claims in excess of the deductible for fiscal                    years 1999,                    2000, 2001 and 2002. This carrier is experiencing financial difficulties                    and may be unable to fulfill its obligation to pay these claims,                    which                    could have a material unfavorable impact on the Company’s results of                    operations and financial condition if it is forced to assume                    these                    liabilities. The Company estimates its exposure from these outstanding                    claims and deposits to be approximately $1,536,000 as of April                    30,                    2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | The                    Company                    faces significant risks and uncertainties to its business operations                    resulting from certain of its collective bargaining agreements                    that have                    expired without any extensions in place, and from certain others                    that are                    scheduled to expire in fiscal 2005. The Company believes the                    renewal of                    these contracts is being delayed due, in large part, to the corporate                    campaign undertaken by a labor union that currently represents                    many of the                    Company’s employees. Any work interruptions or stoppages that result                    from                    this labor unrest could have a material unfavorable impact on                    the                    Company’s results of operations and financial condition. Approximately                    two-thirds of the Company’s employees are covered by collective bargaining                    agreements. Of those employees, approximately 36 percent are                    covered by                    collective bargaining agreements that have expired or will expire                    within                    one year from April 30, 2005. The Company is actively negotiating                    with the                    labor union to renew the expired labor contracts and reach agreement                    on                    the broader union organizing and collective bargaining issues                    in dispute.                                                                                               |

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Index

|   | 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                    April 30, 2005 and May 1, 2004 (shares in                    thousands):                                                                                                  |

|                                                                |   |  First                    Quarter                    Ended |   |
|---------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|
|                                                                |   |  April                    30,                              |   | May                    1, |   |
|                                                                |   |                                                            | 2005   |   |   | 2004 |   |
|                                                                |   |                                                            |   |   |   |   |   |
| Weighted                    average shares:                         |   |                                                            |   |   |   |   |   |
| Average                    shares outstanding                       |   |                                                            | 9,032  |   |   | 8,876 |   |
| Effect                    of                    dilutive securities |   |                                                            | 279    |   |   | 229 |   |
| Average                    shares outstanding,                      |   |                                                            |   |   |   |   |   |
| adjusted                    for                    dilutive effects |   |                                                            | 9,311  |   |   | 9,105 |   |

|   | In                    accordance                    with SFAS No. 142, “Goodwill                    and                    Other Intangible Assets,” the Company performed its annual goodwill                    impairment test at the end of the third quarter of fiscal 2004                    which                    resulted in no indication of impairment. During the first quarter                    ended                    April 30, 2005, the Company recorded goodwill from business combinations                    totaling $19,314,000, due principally to the acquisition of Royal                    disclosed in Note 3. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | During                    the                    first quarter ended April 30, 2005, the Company acquired customer                    contracts of Royal and various other laundry businesses valued                    at                    $13,136,000, with amortization periods of mainly 15 years, and                    non-compete                    covenants with a value of $6,474,000 to be amortized over 10                    years. Other                    acquired assets consisted of the following (dollars in                    thousands):                                                                                         |

|                                     |   | April                    30,                    2005 |   | January                    29,                    2005 |   |
|------------------------------------------|--------|------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                     |   |                                                 |   |                                                   |   |
|                                     |   | Gross                                                |   |                                                   |   | Other |   | Gross |   |   |   | Other |   |
|                                     |   | Carrying                                             |   | Accumulated                                            |   | Acquired |   | Carrying |   | Accumulated |   | Acquired |   |
|                                     |   | Amount                                               |   | Amortization                                           |   | Assets,                    net |   | Amount |   | Amortization |   | Assets,                    net |   |
|                                     |   |                                                 |   |                                                   |   |   |   |   |   |   |   |   |   |
| Customer                    contracts    |   | $                                                    | 40,771 |                                                   | $      | (6,205 | ) | $ | 34,566 |   | $ | 27,635 |   | $ | (5,619 | ) | $ | 22,016 |   |
| Non-compete                    covenants |   |                                                 | 10,484 |                                                   |   | (1,391 | ) |   | 9,093 |   |   | 4,010 |   |   | (1,166 | ) |   | 2,844 |   |
|                                     |   |                                                 |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                    acquired assets |   | $                                                    | 51,255 |                                                   | $      | (7,596 | ) | $ | 43,659 |   | $ | 31,645 |   | $ | (6,785 | ) | $ | 24,860 |   |

|   | Goodwill                      and                      other acquired assets recorded in connection with the Royal                      acquisition                      are based on the preliminary purchase price allocation, which                      is subject                      to change once all required information is obtained. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                             |
|   | Aggregate                      amortization expense for the first quarter ended April 30,                      2005 and May 1,                      2004                                                                                                                                                                                         |

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Index

|   | amounted                      to $811,000                      and $225,000, respectively. Other acquired assets are scheduled                      to be                      fully amortized by fiscal year 2020 with corresponding annual                      amortization                      expense estimated for each of the next five fiscal years as                      follows                      (dollars in thousands): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  2005 |  $3,921 |  |   |
|--------|------------|--------------|--|--------|
|   |  2006 |  4,103  |  |   |
|   |  2007 |  4,021  |  |   |
|   |  2008 |  3,627  |  |   |
|   |  2009 |  3,344  |  |   |

|   | On                    March 21,                    2005, the Company borrowed the entire amount of its term loan                    of                    $50,000,000. The proceeds of the term loan were used to fund                    the                    acquisition of Royal (see Note 3), and reduce the amount outstanding                    on                    the Company’s revolving credit facility. On April 5, 2005, the Company                    entered into a LIBOR contract for the $50,000,000 outstanding                    under the                    term loan which bears interest at 2.87 percent plus a margin                    (2.0 percent                    as of April 30, 2005) based on the Company’s ratio of “Funded Debt” to                    “EBITDA,” as each is defined in the loan agreement. The term loan is                    payable in quarterly installments beginning September 30, 2005,                    with the                    final payment due on January 27, 2010.                                                      |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | The                    Company                    is subject to certain financial covenants under its loan agreement.                    One of                    these covenants requires that the Company maintain a minimum                    consolidated                    net worth of $126,023,000 plus an aggregate amount equal to 50                    percent of                    quarterly net income beginning with the fourth quarter of fiscal                    2004                    (with no reduction for net losses). Other covenants require the                    Company to                    maintain a minimum ratio of “EBITDA” to “fixed charges” of no less than                    1.2 to 1, and a maximum ratio of “Funded Debt” to “EBITDA” of no more than                    2.75 to 1. The Company was in compliance with these loan covenants                    as of                    April 30, 2005.                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | At                    the end of                    the first quarter fiscal 2005, the Company borrowed a total of                    $19,474,000                    from the issuers of its company-owned life insurance policies                    against the                    cash surrender value of the policies. The proceeds of the policy                    loans                    were used to reduce the amount outstanding on the revolving credit                    facility as of April 30, 2005. The loans bear interest at variable                    rates                    ranging from 5.7 percent to 6.4 percent, or a fixed rate of 8.0                    percent.                    The proceeds upon surrender of the policies will be reduced by                    the amount                    of any loans outstanding, unless repaid by the Company prior                    to that time.                    The total amount borrowed is netted against cash surrender value                    of life                    insurance in the Consolidated Balance Sheet as of April 30, 2005. |

|   | 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 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

|   | 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                      on the derivative included in accumulated other comprehensive                      loss in the                      first quarter ended April 30, 2005 and May 1, 2004 amounted                      to $54,000 and                      $89,000, respectively, net of tax. The Company has recorded                      a long-term                      asset (liability) of $67,000 and $(9,000) for the fair value                      of the                      derivative as of April 30, 2005 and January 29, 2005,                      respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | To                      moderate                      price risk due to market fluctuations, the Company has entered                      into                      fixed-price contracts as of April 30, 2005 for approximately                      23 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.                                                                                                                                                                                  |

|   | 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 $1,074,000 and $217,000 for the first quarter ended April                    30, 2005                    and May 1, 2004, respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                    Company                    has a non-contributory defined benefit pension plan covering                    primarily                    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                    Company amended the pension plan, effective September 1, 2004,                    to freeze                    participation in the plan. No employee shall become a participant                    in the                    pension plan on or after that date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The                    net                    periodic pension expense recognized in the first quarter ended                    April 30,                    2005 and May 1, 2004 was as                    follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|                                                               |   | First                    Quarter                    Ended |   |
|--------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                                               |   | April                    30,                              |   | May                    1, |   |
| (Dollars                    in                    thousands)       |   |                                                      | 2005   |   |   | 2004 |   |
| Pension                    expense:                                |   |                                                      |   |   |   |   |   |
| Service                    cost                                    |   | $                                                         | 105    |   | $ | 149 |   |
| Interest                    cost                                   |   |                                                      | 317    |   |   | 319 |   |
| Expected                    return on plan assets                  |   |                                                      | (333   | ) |   | (353 | ) |
| Amortization                    of prior service cost              |   |                                                      | 5      |   |   | 5 |   |
| Recognized                    actuarial loss                       |   |                                                      | -      |   |   | 29 |   |
| Net                    periodic                    pension expense |   | $                                                         | 94     |   | $ | 149 |   |

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Index

|   | In                    May 2005,                    the FASB issued SFAS No. 154, “Accounting Changes and Error Corrections.”                    SFAS No. 154 replaces APB Opinion No. 20, “Accounting Changes,” and SFAS                    No. 3, “Reporting Accounting Changes in Interim Financial Statements,” and                    changes the requirements for the accounting for and reporting                    of a                    voluntary change in accounting principle. This statement requires                    retrospective application to prior periods’ financial statements of                    changes in accounting principle, unless it is impracticable to                    determine                    either the period-specific effects or the cumulative effect of                    the change,                    instead of including in net income of the period of the change                    the                    cumulative effect of changing to the new accounting principle.                    SFAS No.                    154 is effective for accounting changes and corrections of errors                    made in                    fiscal years beginning after December 15,                    2005. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

**Item          2. Management’s Discussion and Analysis of Financial          Condition **
**and          Results          of Operations**

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Index

----

Index

*i.e.*

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Index

**FORWARD-LOOKING          STATEMENTS**

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Index

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Index

**Item          3. Quantitative and Qualitative Disclosures About Market          Risk**

**Item          4. Controls and Procedures**

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Index

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Index

**PART          II. OTHER INFORMATION**

**Item          4. Submission of Matters to a Vote of          Security Holders**

|                                                                                                                            | **Votes**             |   | **Votes**                        |
|---------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|----------------------------------|
| **Name**                                                                                                                        | **“For”** |   | **“Withheld”**       |
|                                                                                                                            |                  |   |                             |
| For                    terms                    expiring at the 2008                    Annual                    Meeting: |                  |   |                             |
|                                                                                                                            |                  |   |                             |
| Charles                    W.                    Mueller                                                                        | 8,333,473             |   | 182,016                          |
| William                    A.                    Peck                                                                           | 8,430,937             |   |                      84,552 |
| Ronald                    N.                    Riner                                                                           | 8,489,093             |   |                      26,396 |

**Item          6. Exhibits**

Exhibit Index on page 22.

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Index

SIGNATURES

|                                                     | Angelica                    Corporation                          |
|----------------------------------------------------------|------------------------------------------------------------------|
|                                                     | (Registrant)                                                     |
|                                                     |                                                             |
|                                                     |                                                             |
|                                                     |                                                             |
| Date:                    June 9,                    2005 | /s/                    James                    W. Shaffer  |
|                                                     | James                    W.                    Shaffer           |
|                                                     | Vice                    President and                            |
|                                                     | Chief                    Financial Officer                       |
|                                                     | (Principal                    Financial Officer)                 |
|                                                     |                                                             |
|                                                     |                                                             |
|                                                     |                                                             |
|                                                     | /s/                    Richard M. Fiorillo                       |
|                                                     | Richard                    M.                    Fiorillo        |
|                                                     | Principal                    Accounting Officer                  |

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Index

**EXHIBIT          INDEX**

| Exhibit |                                                                                                                                                                                                                                                          |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  | Description                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                          |
|    | *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.**                                                                                           |
|    |                                                                                                                                                                                                                                                          |
| 10.1    | Employment                    Agreement between the Company and David A. Van Vliet, dated June                    1, 2005.                    Filed as Exhibit 10.1 to a Form 8-K filed June 6,                    2005.**                                    |
|    |                                                                                                                                                                                                                                                          |
| 10.2    | Non-Qualified                    Stock Option Agreement between the Company and David A. Van Vliet,                    dated                    June 6, 2005 (50,000 shares at $27.00 exercise price).*                                                       |
|    |                                                                                                                                                                                                                                                          |
| 10.3    | Non-Qualified                    Stock Option Agreement between the Company and David A. Van Vliet,                    dated                    June 6, 2005 (25,000 shares at $28.35 exercise price).*                                                       |
|    |                                                                                                                                                                                                                                                          |
| 10.4    | Non-Qualified                    Stock Option Agreement between the Company and David A. Van Vliet,                    dated                    June 6, 2005 (25,000 shares at $29.70 exercise price).*                                                       |
|    |                                                                                                                                                                                                                                                          |
| 10.5    | Restricted                    Stock Agreement between the Company and David A. Van Vliet, dated                    June 6,                    2005.*                                                                                                          |
|    |                                                                                                                                                                                                                                                          |
| 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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