We define admissible and weakly admissible subcategories in exact categories and prove that the former induce semi-orthogonal decompositions on the derived categories. We develop the theory of thin exact categories, an exact-category analogue of triangulated categories generated by exceptional sequences. The right and left abelian envelopes of exact categories are introduced, an example being the category of coherent sheaves on a scheme as the right envelope of the category of vector bundles. The existence of right (left) abelian envelopes is proven for exact categories with projectively (injectively) generating subcategories with weak (co)kernels. We show that highest weight categories are precisely the right/left envelopes of thin categories. Ringel duality on highest weight categories is interpreted as a duality between the right and left abelian envelopes of a thin exact category. A duality for thin exact categories compatible with Ringel duality is introduced by means of derived categories and Serre functor on them.
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