<PAGE>
 
                    THIS DOCUMENT IS IMPORTANT AND REQUIRES
                           YOUR IMMEDIATE ATTENTION


    You are required under the Canada Business Corporations Act to send the
certificates for your Common Shares of Dominion Textile Inc. to Dominion Textile
c/o Montreal Trust Company of Canada by no later than January 26, 1998. If you
   require further information about this notice, please call Montreal Trust
  Company of Canada at 1-800-639-0802 or (514) 982-7535 in the Montreal area.


                              DT ACQUISITION INC.
                    OFFER TO PURCHASE THE COMMON SHARES OF 
                             DOMINION TEXTILE INC.

               NOTICE PURSUANT TO THE PROVISIONS OF SECTION 206
                    OF THE CANADA BUSINESS CORPORATIONS ACT

TO:  HOLDERS OF COMMON SHARES OF DOMINION TEXTILE INC.

     Pursuant to an offer dated October 29, 1997 (the "Offer"), DT Acquisition
Inc. ("DTA") offered to purchase all of the Common Shares (the "Common Shares")
of Dominion Textile Inc. ("Dominion Textile") at a price of $11.75 (Cdn.) cash
per Common Share. DTA subsequently increased the consideration payable for each
Common Share tendered to the Offer to $14.50 (Cdn.) cash per Common Share and
extended the time during which the Offer was open for acceptance to 4:00 p.m.
(Toronto time) on December 29, 1997 (the "Expiry Time").

     As of the Expiry Time, the holders of more than 90% of the Common Shares to
which the Offer relates have accepted the Offer and DTA has taken up and paid 
for the Common Shares tendered to the Offer.

     In accordance with the Canada Business Corporations Act (the "Act"), you 
are hereby given notice that you are required under the Act to elect by no later
than January 26, 1998, either:

     (i)  to transfer your Common Shares to DTA on the terms on which it 
          acquired the Common Shares of the holders who accepted the Offer (i.e.
          for $14.50 (Cdn.) cash per Common Share), or

     (ii) to demand payment of the fair value of your Common Shares by notifying
          DTA of your election.
<PAGE>
                                      -2-
 
     If you elect to transfer your Common Shares to DTA as contemplated under
clause (i) above, you should deliver the certificate(s) representing your Common
Shares and a letter advising DTA of your election to:

                                    By Mail

                       Montreal Trust Company of Canada
                            Stock Transfer Services
                             151 Front Street West
                                   8th Floor
                               Toronto, Ontario
                            Attn: Re-Org Department
                                    M5J 2N1


                                    By Hand
<TABLE> 
<CAPTION> 
<S>                             <C>                               <C>                                    <C> 
    Montreal Trust                  Montreal Trust                    Montreal Trust                          Montreal Trust
   Company of Canada               Company of Canada                 Company of Canada                      Company of Canada
Stock Transfer Services         Stock Transfer Services           Stock Transfer Services                Stock Transfer Services
   Western Gas Tower             Place Montreal Trust              151 Front Street West                        4th Floor
  530-8th Avenue S.W.           1800 McGill College Ave.                 8th Floor                          510 Burrard Street
   Calgary, Alberta                Montreal, Quebec                  Toronto, Ontario                        Vancouver, B.C.
        T2P 3S8                         H3A 3K9                           M5J 2N1                                V6C 3B9
Attn: Re-Org Department                                           Attn: Re-Org Department                Attn: Re-Org Department
</TABLE> 

Upon receipt of your election and certificate(s), Montreal Trust Company of
Canada ("Montreal Trust") will send you a cheque for the amount to which you are
entitled.

     If you elect to demand payment of the fair value of your Common Shares as
contemplated under clause (ii) above, you should deliver the certificates(s)
representing your Common Shares and a letter advising DTA of your election to
Montreal Trust at one of the above addresses. You must notify DTA of such
election by no later than January 26, 1998. You must then apply to a court
having jurisdiction for a determination of the fair value of your Common Shares
by no later than February 9, 1998. If you do not apply to a court by that date,
you will be deemed to have elected to transfer your Common Shares to DTA on the
same terms as the Offer and to receive $14.50 (Cdn.) cash per share. In that
event, upon receipt of the certificate(s) for your Common Shares, Montreal Trust
will send you a cheque for the amount to which you are entitled.

     If you fail to notify DTA (either directly or c/o Montreal Trust) of your
election under either clause (i) or (ii) above within the time specified, you
will be deemed to have elected to transfer your Common Shares to DTA on the
terms of the Offer and to receive $14.50 (Cdn.) cash per share. Upon receipt of
your certificate(s), Montreal Trust will send you a cheque for the amount to
which you are entitled.

     No matter which election you make, you are required by the Act to send the
certificate(s) representing your Common Shares to Dominion Textile c/o Montreal
Trust by no later than January 26, 1998. The certificate(s) may be sent "as is"
and do not need to be endorsed. A return envelope is enclosed for your
convenience.





<PAGE>
                                      -3-

     Montreal Trust is acting as agent on behalf of DTA for purposes of
receiving your election and is acting as agent on behalf of Dominion Textile in
receiving the certificates for your Common Shares and in making the payments
referred to above.

     DATED this 30th day of December, 1997.

                                      DT ACQUISITION INC.


                                      By: /s/ Jerry Zucker
                                          ------------------------------
                                              Jerry Zucker
                                              Chairman, President and
                                              Chief Executive Officer