<PAGE>

                                                                    Exhibit 13

FINANCIAL SUMMARY - 6 YEARS

<TABLE>
<CAPTION>
For Years Ended                                     January 27, January 29, January 30, January 31,    January 25, January 27,
(Dollars in thousands, except per share amounts)           2001        2000        1999        1998           1997        1996
------------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>         <C>         <C>         <C>            <C>         <C>
OPERATIONS
Combined sales and textile service revenues            $458,646    $468,372    $497,229    $531,968       $494,504    $492,366
Gross profit                                            133,863     129,932     137,478     130,690        130,010     131,744
Operating expenses and other, net,
  excluding interest expense                            115,312     112,925     113,410     116,430        107,484     106,640
Restructuring and other charges                               -           -           -      14,684(a)           -      14,145(b)
Interest expense                                          8,097       8,635       9,726      10,702          9,588       9,104
Income (loss) before income taxes                        10,454       8,372      14,342     (11,126)        12,938       1,855
Provision (benefit) for income taxes                      3,868       3,098       5,450      (4,228)         4,916         714
Net income (loss)                                      $  6,586    $  5,274    $  8,892    $ (6,898)      $  8,022    $  1,141

------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA
Diluted earnings (loss)                                $    .76    $    .61    $    .99    $   (.75)(a)   $    .88    $    .13(b)
Cash dividends paid                                         .48         .96         .96         .96            .96         .95
Common shareholders' equity                            $  19.24    $  18.84    $  19.12    $  18.97       $  20.73    $  20.73

------------------------------------------------------------------------------------------------------------------------------
RATIOS AND PERCENTAGES
Current ratio (current assets to current liabilities)  2.5 to 1    3.9 to 1    3.2 to 1    2.6 to 1       3.3 to 1    5.0 to 1
Long-term debt to long-term debt and equity               27.1%       35.0%       35.4%       35.7%          34.0%       34.6%
Gross profit margin                                       29.2%       27.7%       27.6%       24.6%          26.3%       26.8%
Pretax profit (loss) margin                                2.3%        1.8%        2.9%      (2.1)%           2.6%        0.4%
Effective tax rate                                        37.0%       37.0%       38.0%       38.0%          38.0%       38.5%
Net income (loss) margin                                   1.4%        1.1%        1.8%      (1.3)%           1.6%        0.2%
Return on average shareholders' equity                     4.0%        3.2%        5.2%      (4.1)%           4.2%        0.4%
Return on average total assets                             2.0%        1.6%        2.5%      (1.8)%           2.2%        0.3%

------------------------------------------------------------------------------------------------------------------------------
OTHER SELECTED DATA
Working capital                                        $124,449    $141,122    $136,071    $141,999       $163,015    $181,043
Additions to property and equipment, net                 11,824       7,439       8,654      21,338         23,603       8,760
Depreciation expense                                     13,295      13,711      13,916      13,733         13,415      13,797
Cash flow from operating activities                      18,705      24,722      60,472      26,049         17,445      27,059
Long-term debt, less current maturities                  60,963      87,916      90,910      96,742         97,417     100,103
Total assets                                           $326,284    $319,595    $339,090    $378,709       $374,104    $353,227
Average number of shares of Common
  Stock outstanding                                   8,681,417   8,686,146   9,014,070   9,153,358      9,156,861   9,139,961
Approximate number of associates                          7,600       8,100       8,600       9,400         10,100       9,700

------------------------------------------------------------------------------------------------------------------------------
<FN>
(a)  Portion of $23,247 restructuring and other charges taken in third quarter of fiscal 1998.  Effect on net income per share
     is a reduction of $1.57.
(b)  Restructuring charge taken in fourth quarter of fiscal 1996.  Effect on net income per share is a reduction of $.95.

This information should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this
report.
</TABLE>

                                Angelica Corporation and Subsidiaries  PAGE 17

<PAGE>
<PAGE>

FINANCIAL REVIEW

FINANCIAL CONDITION
At the end of fiscal 2001, the Company had working capital of $124.4
million and a current ratio of 2.5 to 1 compared with $141.1 million and
3.9 to 1 at the end of fiscal 2000. A $16.4 million increase in current
assets is primarily the result of an $11.6 million increase in
inventories in the Manufacturing and Marketing segment to support large
program rollouts expected to be shipped in the first and second quarters
of fiscal 2002 and a $4.7 million increase in cash and short-term
investments. Receivables were down $.7 million in the year and
receivable days outstanding were unchanged at 57. Current liabilities
increased $33.1 million, reflecting the reclassification from long-term
debt to current maturities of a $25.0 million debt payment due December
31, 2001. Accounts payable increased $3.9 million due mostly to the
increase in inventories, and other accrued liabilities rose $4.8
million, largely due to an increase in certain insurance liabilities.
   Cash flow generated by operations in fiscal 2001 was $18.7 million
versus $24.7 million in the prior year, with the decrease due mainly to
the increase in working capital for inventories discussed above. Net
cash used in investing activities of $6.2 million was $4.1 million
higher than in the prior year due to increased capital expenditures of
$4.4 million, primarily for labor-saving equipment in the Textile
Services segment. Cash flow used in financing activities of $7.8 million
was $6.0 million less than the prior year, due to decreases in debt
repayments of $3.7 million and in dividends paid of $4.2 million, offset
by an increase of $.9 million for repurchase of stock.
   As noted above, the Company has $25.0 million of debt maturing on
December 31, 2001. It is Management's opinion that the Company's
financial condition is such that internal and external resources are
sufficient to satisfy the Company's future requirements for debt
repayment, capital expenditures, dividends and working capital.

ANALYSIS OF FISCAL 2001 OPERATIONS
COMPARED TO 2000
In fiscal 2001, combined sales and textile service revenues of $458.6
million were $9.7 million or 2.1 percent lower than the prior year. In
the Textile Services segment, revenues decreased 0.9 percent for the
year but increased in both the third and fourth quarters as this segment
essentially completed its recovery from the loss of business in fiscal
2000 to an aggressive competitor in the marketplace. For the second
consecutive year, a record amount of new business additions was
generated in this segment. Sales of the Manufacturing and Marketing
segment, before deduction for intersegment sales, were $6.9 million or
4.5 percent lower than in fiscal 2000. Sales suffered from lower-than-
expected demand for certain products and delays in large customer
program rollouts. Life Retail Stores sales improved $2.1 million or 2.3
percent, the result of a 4.5 percent same-store sales increase partially
offset by having 12 fewer stores in operation at the end of fiscal 2001
compared to the prior year.
   The gross profit percent to combined sales and textile service
revenues in fiscal 2001 was 29.2 percent, up from 27.7 percent in the
prior year. Gross margins in the Textile Services segment were up due to
better management of linen costs and productivity improvements from
installation of labor-saving equipment. Although earnings of this
segment increased 7.7 percent from the prior year, they were negatively
affected by sizable increases in energy costs in the second half of the
year. In the Manufacturing and Marketing segment, gross margins were
improved over the prior year as efforts to lower costs through increased
non-domestic contract sourcing continued to prove successful. In the
Life Retail Stores segment, gross margins were essentially unchanged
from last year as the selective discounting and markup cancellations
initiated in fiscal 2000 were completed. Earnings of this segment
declined 24.7 percent as the sales increase was insufficient to overcome
increases in wages and other costs, including the initial costs of
entering the catalogue and  e-commerce distribution channels in the
third quarter of fiscal 2001.
   Selling, general and administrative expenses increased $3.0
million or 2.6 percent in fiscal 2001. As a percentage of combined sales
and textile service revenues, these expenses increased to 25.2 percent
from 24.0 percent in the prior year, reflective of the decline in
Manufacturing and Marketing segment sales, investments made to
revitalize sales efforts in the Textile Services segment and the
relocation of the Textile Services administrative offices. Consolidated
earnings in fiscal 2001 benefited from lower interest expense as a
result of lower debt balances and from increased interest income due to
higher cash balances. The effective tax rate of 37.0 percent in fiscal
2001 was unchanged from the prior year.


<PAGE>
ANALYSIS OF FISCAL 2000 OPERATIONS
COMPARED TO 1999
Combined sales and textile service revenues in fiscal 2000 were $468.4
million, a decrease of $28.9 million or 5.8 percent from the prior year.
Textile Services segment revenues decreased $11.9 million or 4.6
percent, primarily due to an abnormal loss of existing customers
resulting from the aggressive actions of a new competitor in the
marketplace. A record amount of new business additions was unable to
offset the amount of lost business. Manufacturing and Marketing


PAGE 18  Angelica Corporation and Subsidiaries  
<PAGE>
<PAGE>

segment sales, before deduction for intersegment sales, were $21.2
million or 12.0 percent lower than the prior year. Nearly all of this
decrease is due to the previous sale of underperforming businesses, the
lack of high volume provided in the prior year by the rollout of the New
York City Transit program and exiting of unprofitable product and market
segments. Life Retail Stores had a 5.7 percent or $4.9 million increase
in sales, primarily as a result of a 4.9 percent same-store sales
increase.
   The gross profit percent to combined sales and textile service
revenues in fiscal 2000 was 27.7 percent, up slightly from 27.6 percent
in the prior year. Decreases in gross margins in the Textile Services
segment and Life Retail Stores segment in fiscal 2000 were more than
offset by an increase in gross margins in the Manufacturing and
Marketing segment. In the Textile Services segment, gross margins were
negatively affected in fiscal 2000 by the escalating cost of entry-level
labor across the country and the adverse effects of certain
underperforming plants. Fiscal 2000 earnings in the Textile Services
segment benefited from pretax gains totaling $.9 million on the sale of
two of its facilities. The Manufacturing and Marketing segment gross
margins continue to benefit from lower costs realized through increased
non-domestic contract sourcing. Gross margins in the Life Retail Stores
segment were lower in fiscal 2000 due to continued discounting in
certain geographical areas and to markup cancellations taken in the last
half of the year.
   Selling, general and administrative expenses increased $1.7
million or 1.5 percent in fiscal 2000 compared with fiscal 1999. This
also represented an increase as a percentage of combined sales and
textile service revenues to 24.0 percent from 22.3 percent in the prior
year. The decline in revenues in the Textile Services and Manufacturing
and Marketing segments contributed significantly to this percentage
increase. Interest expense decreased in fiscal 2000 to $8.6 million from
$9.7 million in the prior year due to the repayment of all short-term
debt in fiscal 1999.  The effective tax rate of 37.0 percent in fiscal
2000 compared to 38.0 percent in the prior year is the result of the
reduced earnings being taxed at a lower statutory rate.

FORWARD-LOOKING STATEMENTS
Any forward-looking statements made in this report reflect the Company's
current views with respect to future events and financial performance
and are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to
certain risks and uncertainties that may cause actual results to differ
materially from those set forth in these statements. These potential
risks and uncertainties include, but are not limited to, competitive and
general economic conditions, the ability to retain current customers and
to add new customers in competitive market environments, competitive
pricing in the marketplace, delays in the shipment of orders,
availability of labor at appropriate rates, availability and cost of
energy and water supplies, availability of non-domestic image apparel
contractors to manufacture and deliver at an appropriate cost and in a
timely manner, the ability to attract and retain key personnel, unusual
or unexpected cash needs for operations or capital transactions, and
other factors which may be identified in the Company's filings with the
Securities and Exchange Commission.

COMMON STOCK DATA
The Company's Common Stock is listed on the New York Stock Exchange
under the symbol AGL. The quarterly market price ranges of the Common
Stock and dividends per share paid during fiscal 2001 and fiscal 2000
were as follows:

<TABLE>
<CAPTION>
                                                       Fiscal 2001                                  Fiscal 2000
                            --------------------------------------       --------------------------------------
                                High            Low       Dividend           High            Low       Dividend
---------------------------------------------------------------------------------------------------------------
<S>                         <C>            <C>                <C>        <C>            <C>                <C>
First quarter               $10 9/16       $6 5/16            $.24       $16 1/2        $13 5/8            $.24
Second quarter                8 15/16       6 1/2              .08        18             12                 .24
Third quarter                 9 7/8         7 11/16            .08        13             11 1/16            .24
Fourth quarter               10 5/16        8 3/16             .08        11 7/16         8 7/8             .24
===============================================================================================================
</TABLE>

                                Angelica Corporation and Subsidiaries  PAGE 19


<PAGE>
<PAGE>

<TABLE>
CONSOLIDATED STATEMENTS OF INCOME

<CAPTION>
For Years Ended                                        January 27,    January 29,    January 30,
(Dollars in thousands, except per share amounts)              2001           2000           1999
------------------------------------------------------------------------------------------------
<S>                                                       <C>            <C>            <C>
Textile service revenues                                  $243,304       $245,545       $257,451
Net sales                                                  215,342        222,827        239,778
------------------------------------------------------------------------------------------------
Combined sales and textile service revenues                458,646        468,372        497,229
------------------------------------------------------------------------------------------------
Cost of textile services                                   195,136        199,084        205,798
Cost of goods sold                                         129,647        139,356        153,953
------------------------------------------------------------------------------------------------
                                                           324,783        338,440        359,751
------------------------------------------------------------------------------------------------
Gross profit                                               133,863        129,932        137,478
Selling, general and administrative expenses               115,508        112,544        110,858
------------------------------------------------------------------------------------------------
Income from operations                                      18,355         17,388         26,620
Interest expense                                            (8,097)        (8,635)        (9,726)
Other income (expense), net                                    196           (381)        (2,552)
------------------------------------------------------------------------------------------------
Income before income taxes                                  10,454          8,372         14,342
Provision for income taxes                                   3,868          3,098          5,450
------------------------------------------------------------------------------------------------
Net income                                                $  6,586       $  5,274       $  8,892
================================================================================================

Basic and diluted earnings per share                      $    .76       $    .61       $    .99
================================================================================================

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

PAGE 20  Angelica Corporation and Subsidiaries


<PAGE>
<PAGE>

<TABLE>
CONSOLIDATED BALANCE SHEETS

<CAPTION>
                                                                                     January 27,    January 29,
(Dollars in thousands)                                                                      2001           2000
---------------------------------------------------------------------------------------------------------------
<S>                                                                                     <C>            <C>
ASSETS
Current Assets:
      Cash and short-term investments                                                   $ 20,311       $ 15,651
      Receivables, less reserves of $2,581 and $2,792                                     54,983         55,700
      Inventories                                                                         91,844         80,005
      Linens in service                                                                   32,846         33,075
      Prepaid expenses and other current assets                                            5,733          4,881
---------------------------------------------------------------------------------------------------------------
Total Current Assets                                                                     205,717        189,312
---------------------------------------------------------------------------------------------------------------
Property and Equipment:
      Land                                                                                 5,017          5,405
      Buildings and leasehold improvements                                                63,895         71,686
      Machinery and equipment                                                            133,283        131,703
      Capitalized leased property                                                          1,951          1,514
---------------------------------------------------------------------------------------------------------------
                                                                                         204,146        210,308
Less--reserve for depreciation                                                           119,026        118,121
---------------------------------------------------------------------------------------------------------------
                                                                                          85,120         92,187
---------------------------------------------------------------------------------------------------------------
Other:
      Goodwill                                                                             5,341          5,765
      Other acquired assets                                                                2,659          4,575
      Cash surrender value of life insurance                                              22,628         20,954
      Miscellaneous                                                                        4,819          6,802
---------------------------------------------------------------------------------------------------------------
                                                                                          35,447         38,096
---------------------------------------------------------------------------------------------------------------
Total Assets                                                                            $326,284       $319,595
===============================================================================================================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
      Current maturities of long-term debt                                              $ 27,841       $  3,026
      Accounts payable                                                                    27,445         23,535
      Accrued wages and other compensation                                                 7,032          7,519
      Other accrued liabilities                                                           18,950         14,110
---------------------------------------------------------------------------------------------------------------
Total Current Liabilities                                                                 81,268         48,190
---------------------------------------------------------------------------------------------------------------
Long-Term Debt, less current maturities                                                   60,963         87,916
---------------------------------------------------------------------------------------------------------------
Other:
      Deferred compensation and other long-term liabilities                               13,837         13,762
      Deferred income taxes                                                                5,897          6,315
---------------------------------------------------------------------------------------------------------------
                                                                                          19,734         20,077
---------------------------------------------------------------------------------------------------------------
Shareholders' Equity:
      Common Stock, $1 par value, authorized 20,000,000 shares, issued:
        9,471,538 shares                                                                   9,472          9,472
      Capital surplus                                                                      4,196          4,196
      Retained earnings                                                                  168,677        166,574
      Accumulated other comprehensive income                                              (1,980)        (1,699)
      Common Stock in treasury, at cost: 929,070 and 795,856 shares                      (16,046)       (15,131)
---------------------------------------------------------------------------------------------------------------
                                                                                         164,319        163,412
---------------------------------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity                                              $326,284       $319,595
===============================================================================================================

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

                                Angelica Corporation and Subsidiaries  PAGE 21


<PAGE>
<PAGE>

<TABLE>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

<CAPTION>
For Years Ended                                        January 27,    January 29,    January 30,
(Dollars in thousands)                                        2001           2000           1999
------------------------------------------------------------------------------------------------
<S>                                                       <C>            <C>            <C>
COMMON STOCK ($1 PAR VALUE)
      Balance beginning of year                           $  9,472       $  9,472       $  9,472
------------------------------------------------------------------------------------------------
      Balance end of year                                 $  9,472       $  9,472       $  9,472
------------------------------------------------------------------------------------------------
CAPITAL SURPLUS
      Balance beginning of year                           $  4,196       $  4,196       $  4,196
------------------------------------------------------------------------------------------------
      Balance end of year                                 $  4,196       $  4,196       $  4,196
------------------------------------------------------------------------------------------------
RETAINED EARNINGS
      Balance beginning of year                           $166,574       $170,111       $170,098
            Net income                                       6,586          5,274          8,892
            Cash dividends                                  (4,155)        (8,328)        (8,715)
            Exercise of stock options/stock awards            (328)          (483)          (164)
------------------------------------------------------------------------------------------------
      Balance end of year                                 $168,677       $166,574       $170,111
------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
      Balance beginning of year                           $ (1,699)      $ (2,285)      $ (2,162)
            Translation adjustment                            (281)           586           (123)
------------------------------------------------------------------------------------------------
      Balance end of year                                 $ (1,980)      $ (1,699)      $ (2,285)
------------------------------------------------------------------------------------------------
COMMON STOCK IN TREASURY, AT COST
      Balance beginning of year                           $(15,131)      $(15,691)      $ (7,496)
            Treasury stock purchased                        (1,287)          (360)        (8,781)
            Exercise of stock options/stock awards             463            998            712
            Other changes during year                          (91)           (78)          (126)
------------------------------------------------------------------------------------------------
      Balance end of year                                 $(16,046)      $(15,131)      $(15,691)
------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, END OF YEAR                         $164,319       $163,412       $165,803
================================================================================================

COMPREHENSIVE INCOME
      Net income                                          $  6,586       $  5,274       $  8,892
      Change in cumulative translation adjustment             (281)           586           (123)
------------------------------------------------------------------------------------------------
      Total Comprehensive Income                          $  6,305       $  5,860       $  8,769
================================================================================================

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

PAGE 22  Angelica Corporation and Subsidiaries


<PAGE>
<PAGE>

<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS

<CAPTION>
For Years Ended                                                                      January 27,    January 29,    January 30,
(Dollars in thousands)                                                                      2001           2000           1999
------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                     <C>            <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
      Net income                                                                        $  6,586       $  5,274       $  8,892
      Non-cash items included in net income:
            Depreciation                                                                  13,295         13,711         13,916
            Amortization of acquisition costs                                              2,340          2,932          3,400
      Change in working capital components, net of businesses acquired/disposed of:
            Receivables, net                                                                 717            152         12,339
            Inventories and linens in service                                            (11,610)        11,853         19,491
            Prepaid expenses                                                              (1,310)          (173)           348
            Accounts payable                                                               3,910           (806)         2,655
            Compensation and other accruals                                                4,176         (6,254)        (4,203)
            Income taxes                                                                     635            845          4,463
      Cash surrender value of life insurance                                              (1,674)        (2,314)        (2,155)
      Other, net                                                                           1,640           (498)         1,326
------------------------------------------------------------------------------------------------------------------------------
Net cash flow provided by operating activities                                            18,705         24,722         60,472
------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
      Expenditures for property and equipment, net                                       (11,824)        (7,439)        (8,654)
      Cost of businesses acquired                                                             --           (505)        (2,280)
      Disposition of businesses and property                                               5,596          5,777          2,080
------------------------------------------------------------------------------------------------------------------------------
Net cash flow used in investing activities                                                (6,228)        (2,167)        (8,854)
------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
      Long-term and short-term debt repayments                                            (2,138)        (5,809)       (30,378)
      Repurchase of stock                                                                 (1,287)          (360)        (8,781)
      Dividends paid                                                                      (4,155)        (8,328)        (8,715)
      Other, net                                                                            (237)           717            299
------------------------------------------------------------------------------------------------------------------------------
Net cash flow used in financing activities                                                (7,817)       (13,780)       (47,575)
------------------------------------------------------------------------------------------------------------------------------
Net increase in cash and short-term investments                                            4,660          8,775          4,043
Cash and short-term investments at beginning of year                                      15,651          6,876          2,833
------------------------------------------------------------------------------------------------------------------------------
Cash and short-term investments at end of year                                          $ 20,311       $ 15,651       $  6,876
==============================================================================================================================
Supplemental cash flow information:
      Income taxes paid (refunded)                                                      $  3,508       $  2,867       $   (583)
      Interest paid                                                                     $  7,767       $  9,286       $  9,831
==============================================================================================================================

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


                                Angelica Corporation and Subsidiaries  PAGE 23


<PAGE>
<PAGE>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations
The Company provides textile rental and laundry services principally to
healthcare institutions and to a limited extent to hotels, motels and
restaurants, in or near major metropolitan areas in the United States.
The Company is a manufacturer and marketer of uniforms and business
career apparel for a wide variety of institutions and businesses in the
United States, Canada and until March 1, 1999, in the United Kingdom.
The Company operates a nationwide chain of specialty retail stores
primarily for nurses and other healthcare professionals.

Principles of Consolidation
All subsidiaries are wholly-owned and are included in the consolidated
financial statements. All significant intercompany accounts and
transactions have been eliminated.
   Textile service revenues are recognized at the time the service is
provided to the customer. Net sales are recognized at the time the
merchandise is shipped to or picked up by the customer.
   In accordance with requirements of the Financial Accounting
Standards Board's Emerging Issues Task Force, in fiscal year 2001 the
Company changed the classification of shipping and handling revenues and
costs to reflect amounts billed to customers as sales and the related
costs as cost of goods sold.
   Certain amounts in prior years have been reclassified to
conform to current year presentation.

Use of Estimates
These financial statements have been prepared on the accrual basis of
accounting, which required the use of certain estimates by Management in
determining the Company's assets, liabilities, revenues and expenses.
Actual results may vary from these estimates.

Foreign Currency Translation
The Company accounts for foreign currency translation in accordance with
Statement of Financial Accounting Standards (SFAS) No. 52. The
cumulative effect of this method is reflected as accumulated other
comprehensive income in shareholders' equity.

Inventories
Inventories are stated at the lower of cost (first-in, first-out basis)
or market. Cost includes material, labor and factory overhead, as
applicable.
   Inventories were comprised of the following:

<TABLE>
<CAPTION>
(Dollars in thousands)                      2001           2000
---------------------------------------------------------------
<S>                                     <C>            <C>
Raw materials                            $27,223        $20,377
Work in process                            5,895          4,446
Finished goods                            58,726         55,182
---------------------------------------------------------------
                                         $91,844        $80,005
===============================================================
</TABLE>

Linens in Service
Linens in service are stated at depreciated cost, not in excess of
market.

Property and Equipment
Property and equipment are stated at cost. Renewals and betterments are
capitalized.
   Property and equipment are depreciated over their expected useful
lives (buildings -- 15 to 40 years; machinery and equipment -- three to
10 years). Depreciation is computed principally on the straight-line
method. Leasehold improvements are amortized using the straight-line
method over their useful lives or lease terms, as appropriate.

Goodwill and Other Acquired Assets
Goodwill, the excess of cost over net assets of businesses acquired, is
being amortized on the straight-line basis over periods not exceeding 40
years. Other acquired assets, including customer contracts and non-
competition agreements, are being amortized on the straight-line basis
generally over periods of three to seven years.

Income Taxes
The Company accounts for income taxes in accordance with SFAS No. 109,
which utilizes the liability method. Under this method, deferred taxes
are determined based on the estimated future tax effects of differences
between the financial statement and tax bases of assets and liabilities
given the provisions of the enacted tax laws.


<PAGE>
Earnings Per Share
Basic earnings per share is computed by dividing net income by the
weighted average number of shares of Common Stock outstanding during the
year. Diluted earnings per share is computed by dividing the net income
applicable to Common shareholders 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
fiscal years 2001, 2000 and 1999:

<TABLE>
<CAPTION>
(Dollars and shares in thousands,
except per share amounts)             2001         2000        1999
-------------------------------------------------------------------
<S>                                 <C>          <C>         <C>
Average shares outstanding           8,634        8,677       9,006
Effect of dilutive securities -
     option shares                      47            9           8
-------------------------------------------------------------------
Average shares outstanding,
     adjusted for dilutive effects   8,681        8,686       9,014
===================================================================
Net income                          $6,586       $5,274      $8,892
Basic earnings per share               .76          .61         .99
Diluted earnings per share             .76          .61         .99
-------------------------------------------------------------------
</TABLE>

PAGE 24  Angelica Corporation and Subsidiaries  
<PAGE>
<PAGE>

Consolidated Statements of Cash Flows
For purposes of the Consolidated Statements of Cash Flows, the Company
considers short-term, highly liquid investments (securities with an
original maturity date of less than three months) as cash equivalents.

Long-Lived Assets
In accordance with SFAS No. 121, Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to be Disposed of, the Company
periodically assesses the carrying value of its long-lived assets and
recognizes impairment losses if it is determined that the carrying
values are not recoverable.

2. RETIREMENT BENEFITS
The Company has a non-contributory defined benefit pension plan covering
primarily all domestic 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 funded status of the plan, the net pension
liability at January 1, 2001 and January 1, 2000, and the net pension
expense for 2001, 2000 and 1999 were as follows:

<TABLE>
<CAPTION>
                                                  January 1,     January 1,
(Dollars in thousands)                                  2001           2000
---------------------------------------------------------------------------
<S>                                                 <C>            <C>
Change in benefit obligation:
      Benefit obligation at beginning of year        $17,938        $19,631
      Service cost                                       601            735
      Interest cost                                    1,281          1,218
      Actuarial loss (gain)                              751         (2,412)
      Benefits paid                                   (1,270)        (1,234)
---------------------------------------------------------------------------
Benefit obligation at end of year                     19,301         17,938
---------------------------------------------------------------------------
Change in plan assets:
      Fair value of plan assets at
            beginning of year                         21,276         21,250
      Actual return on plan assets                        41          1,260
      Employer contributions                              --             --
      Benefits paid                                   (1,270)        (1,234)
---------------------------------------------------------------------------
Fair value of plan assets at end of year              20,047         21,276
---------------------------------------------------------------------------
Net pension liability:
      Funded status                                      746          3,338
      Unrecognized actuarial gain                     (5,200)        (7,732)
      Unrecognized prior service cost                    150            170
      Unrecognized initial obligation                    648            782
---------------------------------------------------------------------------
Net pension liability at end of year                 $(3,656)       $(3,442)
===========================================================================
</TABLE>

<TABLE>
<CAPTION>
(Dollars in thousands)                                  2001           2000           1999
------------------------------------------------------------------------------------------
<S>                                                  <C>            <C>            <C>
Pension expense:
      Service cost                                   $   601        $   735        $   635
      Interest cost                                    1,281          1,218          1,213
      Expected return on plan assets                  (1,585)        (1,462)        (1,356)
      Amortization of prior service cost                  20             20             20
      Recognized actuarial (gain) loss                  (103)           126            113
------------------------------------------------------------------------------------------
Net pension expense                                  $   214        $   637        $   625
==========================================================================================
<CAPTION>
                                                                       2001           2000
------------------------------------------------------------------------------------------
<S>                                                                   <C>            <C>
Actuarial assumptions used in determining
      projected benefit obligation:
            Discount rate                                             7.00%          7.40%
            Expected return on plan assets                            8.50%          8.50%
            Rate of compensation increase                             5.00%          5.00%
------------------------------------------------------------------------------------------
</TABLE>

   The Company's 401(k) retirement savings plan provides retirement
benefits to eligible domestic employees in addition to those provided by
the defined benefit pension plan. The plan permits participants to
voluntarily defer up to 12 percent of their compensation, subject to
Internal Revenue Code limitations. The Company also contributes a
percentage of the employee's salary to the account of each eligible
employee. The Company's policy is to fully fund this plan. The cost for
this plan was $648,000, $690,000 and $490,000, for fiscal years 2001,
2000, and 1999, respectively.

<PAGE>
   The Company does not provide retirees with post-retirement benefits
other than pensions.

3. LONG-TERM DEBT
The following table summarizes information with respect to long-term
debt for 2001 and 2000:

<TABLE>
<CAPTION>
(Dollars in thousands)                                  2001           2000
---------------------------------------------------------------------------
<S>                                                 <C>            <C>
10.2% notes to insurance company, due
      annually to November 1, 2004                   $31,375        $33,375
9.15% notes to insurance companies,
      due December 31, 2001                           25,000         25,000
8.225% notes to insurance companies,
      due May 1, 2006                                 30,000         30,000
76% of prime rate industrial development
      revenue bond, due quarterly to
      October 1, 2000                                     --            338
Other long-term debt including obligations
      under capital leases                             2,429          2,229
---------------------------------------------------------------------------
                                                      88,804         90,942
Less--current maturities                              27,841          3,026
---------------------------------------------------------------------------
                                                     $60,963        $87,916
===========================================================================
</TABLE>

                                Angelica Corporation and Subsidiaries  PAGE 25

<PAGE>
<PAGE>

The most restrictive of the Company's loan agreements require that the
Company maintain a minimum of $160,000,000 in consolidated net worth, as
defined. As of January 27, 2001, the balance was $164,319,000.
   Aggregate maturities of long-term debt for each of the four years
subsequent to January 26, 2002, are $6,840,000, $14,433,000, $13,442,000
and $14,232,000, respectively.
   Based on borrowing rates currently available for debt instruments
with similar terms and average maturities, the fair market value of the
Company's long-term debt, as of January 27, 2001 and January 29, 2000
was approximately $94,161,000 and $92,990,000, respectively.

4. INCOME TAXES
The provision for income taxes consisted of the following:

<TABLE>
<CAPTION>
(Dollars in thousands)                        2001        2000       1999
-------------------------------------------------------------------------
<S>                                        <C>         <C>        <C>
Current:
      Federal                              $ 3,391     $ 4,041    $ 4,966
      State                                    480         514      1,383
      Foreign                                  585         735        481
      Deferred                                (588)     (2,192)    (1,380)
-------------------------------------------------------------------------
                                           $ 3,868     $ 3,098    $ 5,450
=========================================================================
</TABLE>

     Reconciliation between the statutory income tax rate and effective
tax rate is summarized below:

<TABLE>
<CAPTION>
                                              2001        2000       1999
-------------------------------------------------------------------------
<S>                                          <C>         <C>        <C>
Statutory rate                                34.0%       34.0%      35.0%
State tax, net of federal benefit              2.7         2.4        2.7
Other, net                                     0.3         0.6        0.3
-------------------------------------------------------------------------
                                              37.0%       37.0%      38.0%
=========================================================================
</TABLE>

      The tax effect of significant temporary differences representing
deferred tax assets and liabilities were as follows:

<TABLE>
<CAPTION>
                                                 January 27,  January 29,
(Dollars in thousands)                                  2001         2000
-------------------------------------------------------------------------
<S>                                                 <C>          <C>
Deferred tax assets:
      Deferred compensation                         $  5,342     $  5,085
      Insurance reserves not yet deductible            5,103        2,673
      Customer contracts                               2,630        2,633
      Other                                            9,186        7,841
-------------------------------------------------------------------------
                                                      22,261       18,232
-------------------------------------------------------------------------
Deferred tax liabilities:
      Depreciation                                   (11,482)     (10,714)
      Linen amortization                             (12,002)      (9,755)
      Other                                             (703)        (277)
-------------------------------------------------------------------------
                                                     (24,187)     (20,746)
-------------------------------------------------------------------------
Net deferred tax liabilities                        $ (1,926)    $ (2,514)
=========================================================================
</TABLE>

   Temporary differences related to investments in foreign subsidiaries
essentially permanent in nature and not expected to reverse in the
foreseeable future were approximately $7,582,000. The unrecognized
deferred tax liability related to these temporary differences was $379,000.

5. PREFERRED STOCK
The Company has two classes of authorized Preferred Stock: Class A, $1
stated value per share, authorized in the amount of 100,000 shares; and
Class B, authorized in the amount of 2,500,000 shares. At January 27,
2001, no shares of Class A or Class B were outstanding.

6. SHAREHOLDER RIGHTS PLAN
The Company has a Shareholder Rights Plan, under which a Right is
attached to each share of the Company's Common Stock. The Rights may
only become exercisable under certain circumstances involving actual or
potential acquisitions of the Company's Common Stock by a person or
group of affiliated or associated persons. Depending upon the
circumstances, if the Rights become exercisable, the holders thereof may
be entitled to purchase units of the Company's Class B Series 2 Junior
Participating Preferred Stock, shares of the Company's Common Stock or
shares of common stock of the surviving or acquiring company. The Rights
will remain in existence until September 7, 2008, unless they are
earlier exercised, redeemed or exchanged.

7. STOCK-BASED COMPENSATION PLANS
The Company has various stock option and stock bonus plans that provide
for the granting to certain employees and directors of incentive stock
options, non-qualified stock options, restricted stock and performance
awards. Options and awards have been granted at the fair market value at
the date of grant, although certain plans allow for awards to be granted
at a price below fair market value. Options are exercisable not less
than six months nor more than 10 years after the date of grant.
   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.


PAGE 26  Angelica Corporation and Subsidiaries

<PAGE>
<PAGE>

   A summary of the status of the Company's stock option plans for
fiscal years 2001, 2000 and 1999 and changes during the years then ended
is presented in the table below:

<TABLE>
<CAPTION>
                                                         2001                        2000                        1999
---------------------------------------------------------------------------------------------------------------------
                                             Weighted Average            Weighted Average            Weighted Average
                                      Shares   Exercise Price     Shares   Exercise Price     Shares   Exercise Price
---------------------------------------------------------------------------------------------------------------------
<S>                                 <C>               <C>       <C>                <C>      <C>              <C>
Outstanding at beginning of year     754,815           $20.18    674,175           $23.91    697,525           $25.36
Granted                              334,000             7.32    287,200            13.48    152,100            20.47
Exercised                                 --               --         --               --    (12,600)           19.00
Lapsed                              (182,665)           21.88   (206,560)           23.04   (162,850)           27.28
---------------------------------------------------------------------------------------------------------------------
Outstanding at end of year           906,150           $15.10    754,815           $20.18    674,175           $23.91
=====================================================================================================================
Options exercisable at year end      364,292           $21.70    320,797           $25.19    330,878           $27.06
=====================================================================================================================
Options available for future grant   431,982                     656,945                     322,143
=====================================================================================================================
Weighted average fair value for
  options granted during the year      $2.12                       $3.15                       $4.54
=====================================================================================================================
</TABLE>

   The fair value of each option granted is estimated on the date of
grant using the Black-Scholes option pricing model with the following
assumptions used for grants in fiscal 2001, 2000 and 1999, respectively:
risk-free interest rates of 6.8%, 6.1% and 5.5%; expected dividend
yields of 4.4%, 4.2% and 3.8%; volatilities of 31.4%, 23.6% and 21.5%;
and expected lives of seven to 10 years in all periods. The range of
exercise prices for the 906,150 options outstanding at year end was
$7.25 to $30.25, and the weighted-average remaining contractual life was
7.0 years.
   Had compensation expense for stock-based compensation plans for
2001, 2000 and 1999 been determined consistent with SFAS No. 123,
Accounting for Stock-Based Compensation, the Company's net income and
earnings per share would approximate the pro forma amounts below (in
thousands except per share data):

<TABLE>
<CAPTION>
                                      2001           2000           1999
------------------------------------------------------------------------
<S>                                 <C>            <C>            <C>
Net income:
      As reported                   $6,586         $5,274         $8,892
      Pro forma                      6,250          4,766          8,426

Earnings per share:
      As reported                   $  .76         $  .61         $  .99
      Pro forma                        .72            .55            .93
------------------------------------------------------------------------
</TABLE>

   SFAS No. 123 does not apply to awards prior to 1996, nor are the
effects of its application in this disclosure indicative of the pro
forma effect on net income in future years.

8. COMMITMENTS AND CONTINGENCIES
Future minimum payments by year and in the aggregate under operating
leases with initial or remaining terms of one year or more, consisted of
the following at January 27, 2001:

<TABLE>
<CAPTION>
                                                                 Minimum
(Dollars in thousands)                                          Payments
------------------------------------------------------------------------
<S>                                                             <C>
2002                                                             $ 9,593
2003                                                               7,841
2004                                                               6,712
2005                                                               5,483
2006                                                               4,105
Later years                                                       10,275
------------------------------------------------------------------------
Total minimum lease payments                                     $44,009
========================================================================
</TABLE>

   Rental expense for all operating leases consisted of:

<TABLE>
<CAPTION>
(Dollars in thousands)                     2001         2000        1999
------------------------------------------------------------------------
<S>                                     <C>          <C>         <C>
Minimum rentals                         $15,802      $15,695     $15,991
Contingent rentals                          437          418         370
------------------------------------------------------------------------
                                        $16,239      $16,113     $16,361
========================================================================
</TABLE>

   The Company is a party to various claims and legal proceedings
which arose in the ordinary course of its business. Although the
ultimate disposition of these proceedings is not presently determinable,
Management does not believe that an adverse determination in any or all
of such proceedings will have a material adverse effect upon the
financial condition or operating results of the Company.


                                Angelica Corporation and Subsidiaries  PAGE 27

<PAGE>
<PAGE>

9. BUSINESS SEGMENT INFORMATION
The Company operates principally in three industry segments: Textile
Services, Manufacturing and Marketing and Retail Sales. These segments,
including products and principal markets, are described elsewhere in
this report.

<TABLE>
<CAPTION>
(Dollars in thousands)                                        2001           2000           1999
------------------------------------------------------------------------------------------------
<S>                                                       <C>            <C>            <C>
Sales and textile service revenues
      Textile Services                                    $243,304       $245,545       $257,451
      Manufacturing and Marketing                          148,789        155,730        176,962
      Retail Sales                                          92,675         90,550         85,632
      Intersegment sales                                   (26,122)       (23,453)       (22,816)
------------------------------------------------------------------------------------------------
                                                          $458,646       $468,372       $497,229
================================================================================================
Earnings
      Textile Services                                    $ 14,526       $ 13,482       $ 20,864
      Manufacturing and Marketing                            6,065          5,303          3,287
      Retail Sales                                           2,454          3,260          5,466
      Interest, corporate expenses and other, net          (12,401)       (13,560)       (15,478)
      Eliminations                                            (190)          (113)           203
------------------------------------------------------------------------------------------------
                                                          $ 10,454       $  8,372       $ 14,342
================================================================================================
Assets (as of year end)
      Textile Services                                    $141,916       $151,271       $164,803
      Manufacturing and Marketing                          114,593        104,707        121,087
      Retail Sales                                          32,177         28,826         31,590
      Corporate                                             37,598         34,791         21,610
------------------------------------------------------------------------------------------------
                                                          $326,284       $319,595       $339,090
================================================================================================
Depreciation
      Textile Services                                    $  8,320       $  8,483       $  8,614
      Manufacturing and Marketing                            2,028          2,170          3,142
      Retail Sales                                           2,019          2,018          2,049
      Corporate                                                928          1,040            111
------------------------------------------------------------------------------------------------
                                                          $ 13,295       $ 13,711       $ 13,916
================================================================================================
Capital additions, net
      Textile Services                                    $  6,998       $  4,196       $  5,137
      Manufacturing and Marketing                            1,229            723          1,250
      Retail Sales                                           3,591          2,082          2,120
      Corporate                                                  6            438            147
------------------------------------------------------------------------------------------------
                                                          $ 11,824       $  7,439       $  8,654
================================================================================================
</TABLE>

   Sales of foreign operations and export sales were not significant.
The Company has no one major customer. Corporate assets consist
primarily of cash, investments, cash surrender value of company-owned
life insurance, IS equipment and office furniture and fixtures.
Corporate expenses consist of the Company's principal administrative and
financial functions, which are centrally managed. Capital additions do
not include the cost of properties acquired in business acquisitions.


PAGE 28  Angelica Corporation and Subsidiaries

<PAGE>
<PAGE>

10. UNAUDITED QUARTERLY FINANCIAL DATA
Quarterly results for 2001 and 2000 are shown below:

<TABLE>
<CAPTION>
Fiscal 2001 Quarter Ended
(Dollars in thousands, except per share amounts)    April 29        July 29     October 28     January 27
---------------------------------------------------------------------------------------------------------
<S>                                                 <C>            <C>            <C>            <C>
Sales and textile service revenues
      Textile Services                              $ 60,691       $ 59,920       $ 61,159       $ 61,534
      Manufacturing and Marketing                     36,036         38,978         39,057         34,718
      Retail Sales                                    23,291         21,355         24,876         23,153
      Intersegment sales                              (6,766)        (6,313)        (6,815)        (6,228)
---------------------------------------------------------------------------------------------------------
                                                    $113,252       $113,940       $118,277       $113,177
=========================================================================================================
Gross profit
      Textile Services                              $ 12,822       $ 11,973       $ 11,958       $ 11,415
      Manufacturing and Marketing                      8,950         10,168         10,440          8,765
      Retail Sales                                    11,827         10,984         12,711         11,850
---------------------------------------------------------------------------------------------------------
                                                    $ 33,599       $ 33,125       $ 35,109       $ 32,030
=========================================================================================================
Operating earnings
      Textile Services                              $  4,356       $  3,868       $  3,133       $  3,169
      Manufacturing and Marketing                      1,196          2,055          2,000            814
      Retail Sales                                       543            146          1,248            517
---------------------------------------------------------------------------------------------------------
                                                    $  6,095       $  6,069       $  6,381       $  4,500
=========================================================================================================
Net income                                          $  1,577       $  1,807       $  1,994       $  1,208
=========================================================================================================
Basic and diluted earnings per share                $    .18       $    .21       $    .23       $    .14
=========================================================================================================

<CAPTION>
Fiscal 2000 Quarter Ended
(Dollars in thousands, except per share amounts)       May 1        July 31     October 30     January 29
---------------------------------------------------------------------------------------------------------
<S>                                                 <C>            <C>            <C>            <C>
Sales and textile service revenues
      Textile Services                              $ 64,523       $ 60,790       $ 60,139       $ 60,093
      Manufacturing and Marketing                     42,041         41,301         39,674         32,714
      Retail Sales                                    22,137         21,244         24,372         22,797
      Intersegment sales                              (6,069)        (6,055)        (6,207)        (5,122)
---------------------------------------------------------------------------------------------------------
                                                    $122,632       $117,280       $117,978       $110,482
=========================================================================================================
Gross profit
      Textile Services                              $ 13,652       $ 11,773       $ 10,394       $ 10,642
      Manufacturing and Marketing                     10,072          9,563          9,579          7,873
      Retail Sales                                    11,429         11,040         12,407         11,508
---------------------------------------------------------------------------------------------------------
                                                    $ 35,153       $ 32,376       $ 32,380       $ 30,023
=========================================================================================================
Operating earnings
      Textile Services                              $  5,107       $  2,971       $  1,662       $  3,742
      Manufacturing and Marketing                      1,795          1,872          1,553             83
      Retail Sales                                       884            677          1,411            288
---------------------------------------------------------------------------------------------------------
                                                    $  7,786       $  5,520       $  4,626       $  4,113
=========================================================================================================
Net income                                          $  2,491       $  1,295       $    652       $    836
=========================================================================================================
Basic and diluted earnings per share                $    .29       $    .15       $    .07       $    .10
=========================================================================================================
</TABLE>

                                Angelica Corporation and Subsidiaries  PAGE 29


<PAGE>
<PAGE>

REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS

To Angelica Corporation:
We have audited the accompanying consolidated balance sheets of
Angelica Corporation (a Missouri corporation) and subsidiaries as
of January 27, 2001 and January 29, 2000, and the related
consolidated statements of income, shareholders' equity and cash
flows for each of the three years in the period ended January 27,
2001. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion
on these financial statements based on our audits.
   We conducted our audits in accordance with auditing
standards generally accepted in the United States. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
Management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
   In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Angelica Corporation and subsidiaries as of January 27, 2001
and January 29, 2000, and the results of their operations and
their cash flows for each of the three years in the period ended
January 27, 2001, in conformity with accounting principles
generally accepted in the United States.

/s/ Arthur Andersen LLP
ARTHUR ANDERSEN LLP
St. Louis, Missouri
March 13, 2001

REPORT OF
AUDIT COMMITTEE

The Audit Committee consists of four independent non-employee
members of the Board of Directors, operates under a written
Charter adopted by the Board of Directors and has regular
meetings four times a year. The Committee is responsible for
recommending to the Board the appointment of the Company's
independent public accountants, for review and monitoring of the
Company's financial reports, internal controls and accounting
practices, and for review of the scope and results of the audits
performed by the independent public accountants and internal
auditors. The Committee also monitors compliance with Angelica's
Code of Conduct.
   At its quarterly meetings, the Audit Committee reviews the
financial results for the preceding fiscal quarter or entire
fiscal year and has the opportunity to review related press
releases and quarterly reports to shareholders prior to public
release. At these meetings the Committee also reviews the
progress being made in accomplishing the annual internal audit
plan.
   The Committee also discusses at its meetings audit and
financial reporting matters with representatives of Management,
the independent public accountants and the internal auditors.
Among the matters discussed are the scope, timing and fees for
the annual audit by the independent public accountants, the
independence of those accountants, and the results of the
quarterly reviews and annual audit, including any recommendations
for improvements to internal financial controls. The independent
public accountants and the internal auditors have the opportunity
to meet privately with the Committee at any of its meetings.

/s/ H. Edwin Trusheim
H. EDWIN TRUSHEIM
Chairman of the Audit Committee


<PAGE>
REPORT OF
MANAGEMENT

The Management of Angelica Corporation is responsible for the
preparation and integrity of all financial information presented
in this Annual Report. The financial statements have been
prepared in conformity with generally accepted accounting
principles, and necessarily include amounts based on informed
judgments and estimates of Management.
   The Company seeks to assure the integrity and objectivity
of the data in the financial statements through a system of
internal accounting controls. These controls, augmented by the
Company's internal audit function, are designed to provide
reasonable assurance that assets are properly safeguarded and
transactions are executed in accordance with proper
authorization. Necessary records are maintained to provide
accurate data for the preparation of financial statements and for
audit purposes.
   The Company's independent public accountants, Arthur
Andersen LLP, are engaged to audit the financial statements and
to render an opinion thereon, which appears on this page. Their
audit considered the Company's system of internal accounting
controls to the extent they deemed necessary to determine the
nature, timing and extent of their audit tests.
   The Company's Code of Conduct requires employees to maintain
the highest standard of ethical conduct in all their business
activities, and compliance is regularly monitored.

/s/ Don W. Hubble
DON W. HUBBLE
Chairman, President and
Chief Executive Officer

/s/ Theodore M. Armstrong
THEODORE M. ARMSTRONG
Senior Vice President and
Chief Financial Officer


PAGE 30  Angelica Corporation and Subsidiaries