KWD Kellwood

Discovery Group, LLC (�Discovery Group�), a 1.5% shareholder in Kellwood Company (NYSE: KWD) (�Kellwood�), today announced that it has sent a letter to the Board of Directors of Kellwood expressing support for Sun Capital�s recently commenced tender offer to purchase all outstanding shares of Kellwood common stock for $21.00 per share in cash. The full text of the letter, sent yesterday, follows: January 16, 2008 Board of Directors Kellwood Company c/o Mr. Robert Skinner, Jr. Chairman and Chief Executive Officer 420 5th Avenue 28th Floor New York, NY 10018 Dear Directors: Discovery Group is a beneficial shareholder of 391,100 shares of Kellwood stock, representing 1.5% of outstanding shares. Discovery Group is a institutional money manager with a focus on investing in undervalued small capitalization stocks. We have made multiple successful investments in the apparel and retailing sector and we have been familiar with Kellwood for several years. We are also familiar with Sun Capital Partners. We are contacting the Board to notify you of our position with respect to the offer Kellwood has received from Sun Capital. Sun�s offer of $21.00 per share provides immediate liquidity and a handsome premium to shareholders at a fair valuation for the Company. We strongly believe that the Board must negotiate in good faith with Sun in order to strike the best possible transaction for all shareholders. A negotiated transaction with Board approval will be more expeditious and productive than a contested takeover. Should the Board decide not to structure a friendly transaction, we as shareholders feel strongly that the Board must rescind its poison pill and any other defense mechanisms. By doing so, the Board will allow shareholders to decide for themselves whether to accept Sun�s $21.00 or to maintain the status quo. Discovery currently intends to submit our shares to the Cardinal Integrated (SCSF and Sun Capital) Tender Offer. Best Regards, /s/ Michael R. Murphy Michael R. Murphy Managing Partner About Discovery Group Discovery Group is a Chicago-based merchant banking firm that manages private partnerships in specialized investment strategies. Discovery Group manages approximately $200 million in assets. Discovery Group's affiliated funds maintain portfolios that are concentrated in publicly-traded small capitalization companies, with ownership stakes that may reach 20% of a particular company's outstanding shares. Investment candidates are initially identified based on statistical criteria that suggest a discrepancy between public trading value and fundamental economic value. Investors in these funds include several large university endowments, nationally-recognized charitable foundations and a variety of trusts, family offices and wealth advisors.